K+S posts profit, raises 2026 EBITDA guidance after EBITDA beats estimates

German specialty chemicals group K+S AG said on Thursday it returned to profit in the first half of 2024, driven by improved operational performance and favorable market conditions in its core potash and magnesium businesses.

The company reported EBITDA of €215 million for the six-month period, up from a loss of €123 million in the same period last year and ahead of the €190 million average estimate from analysts surveyed by Refinitiv. Revenue rose 12% year-over-year to €1.8 billion, supported by higher sales volumes and pricing in key agricultural and industrial end markets.

K+S also raised its 2026 EBITDA guidance to at least €600 million, up from the prior target of €500 million, citing sustained demand for potash fertilizers and continued cost discipline. The company maintained its full-year 2024 EBITDA guidance of €400 million to €450 million, though it noted risks from geopolitical tensions and volatile energy costs.

Chief Executive Burkhard Lohr said the improved outlook reflects "a robust operational performance" and the company's ability to navigate a challenging macroeconomic environment. "We are confident in our strategy and the resilience of our business model," Lohr added.

K+S shares were up 3.2% in early Frankfurt trading on Thursday, outperforming the broader European materials sector. The company's bonds also tightened, with the 2029 maturity yield falling 15 basis points to 5.85%.

Analysts at Berenberg noted that the guidance upgrade signals "a structural improvement" in K+S's profitability, though they warned that execution risks remain given ongoing supply chain disruptions and regulatory pressures in Europe.