K+S confirms forecast for 2025

• Q2 revenues: €871 million (Q2/2024: €874 million); H1: €1,836 million (H1/2024: €1,862 million)
• Q2 EBITDA: €110 million (Q2/2024: €128 million), burdened by the adjustment of mining provisions amounting to approximately €10 million; H1: €310 million (H1/2024: €328 million)
• Agriculture customer segment with strong performance in Europe and significantly higher prices; average selling price at €336/t (Q2/2024: €305/t); sales volumes (excluding trade goods) slightly below previous year at 1.74 million tonnes (Q2/2024: 1.84 million tonnes)
• CS Industry+: Higher prices offset weather-related declines in sales volumes
• Adjusted free cash flow reaches €+24 million in the first six months (H1/2024: €+87 million)
• Non-cash impairment loss on assets in the consolidated balance sheet (IFRS) of about €2 billion (ad hoc disclosure on July 14, 2025)
• 2025 outlook confirmed:
  o  High capacity utilization in the global potash market continued to be expected for the remainder of the year
  o  EBITDA still expected to range between €560 million and €640 million (2024: €558 million)
  o  Slightly positive adjusted free cash flow continues to be expected (2024: €+62 million)

* K+S had already published its preliminary results for the second quarter and confirmed its 2025 forecast in an ad hoc disclosure on July 29.

The main reason for the lower EBITDA in the second quarter was a €10 million one-off effect on earnings related to the valuation of mining provisions. Additionally, sales volumes in the Agriculture customer segment (excluding trade goods) were at 1.74 million tonnes and with that lower compared to the prior-year quarter. This decline was attributable to the maintenance break at the Bethune site in Canada, which already began in June, the postponement of the departure of a bulk ship from the end of June to the beginning of July, and further logistical challenges in the second quarter. Furthermore, the USD/EUR spot exchange rate was less favorable than expected and than in the prior-year quarter.

“Despite a less favorable USD/EUR exchange rate assumption, we still expect to achieve EBITDA of €560 million to €640 million and slightly positive adjusted free cash flow for the full year 2025, as potash prices have continued to rise moderately in recent months,” said K+S CEO Dr. Christian H. Meyer when presenting the figures for the first half of the year.

In the Agriculture customer segment, revenues in the second quarter remained largely stable year-on-year at €618 million (Q2/2024: €616 million). Lower sales volumes were offset by significant price increases for all products, particularly potassium chloride.

In the quarter under review, revenues in Europe amounted to €290 million (Q2/2024: €271 million) and overseas to €328 million (Q2/2024: €335 million). The average selling price of the K+S product portfolio (excluding trade goods) was €336/t in the second quarter, thereby exceeding the figure for the first quarter of 2025 (Q1/2025: €325/t) and the level of the prior-year period (Q2/2024: €305/t).

Excluding trade goods, sales volumes in the reporting period amounted to 1.74 million tonnes, down from 1.84 million tonnes in the prior-year quarter. This was mainly attributable to lower inventories compared with the previous year, the maintenance break in Bethune, which already began in June this year, and logistical challenges.

In the Industry+ customer segment, price increases were achieved in the second quarter. This largely offset declines in sales volumes, with revenues remaining at a consistently high level in the reporting quarter at €254 million (Q2/2024: €258 million).

Prices for salt products remained high by long-term standards. Lower demand for de-icing salt due to weather conditions resulted in a tangible decline in sales volume in this customer segment during the second quarter. Sales volumes amounted to 1.31 million tonnes, which was below the prior-year quarter's figure of 1.47 million tonnes.

While compiling the K+S Group's Half-Year Financial Report, a non-cash impairment loss on assets in the consolidated balance sheet (IFRS) totaling approximately €2 billion was identified and announced in an ad hoc disclosure on July 14, 2025. The impairment loss is mainly attributable to the increase in the long-term USD/EUR exchange rate assumption of USD 0.10 per EUR, but also to changed assumptions on long-term potash price series and an increase in the cost of capital. The impairment loss will be recognized in the adjusted Group earnings after tax and in the return on capital employed (ROCE), but will not result in a cash outflow. The book value per share, determined after the impairment loss, remains with around €24 still well above the share price. Factors influencing the valuation in accordance with IAS 36 have also fluctuated considerably in both directions in the past. Therefore, sensitivity calculations are published in the K+S Group's Annual Reports to demonstrate their effects.

Since the previous forecast was published, potash prices have continued to rise moderately. Despite a less favorable USD/EUR exchange rate assumption of 1.18 USD/EUR (previously 1.10 USD/EUR) for the remaining months, K+S continues to expect EBITDA for the full year 2025 to range between €560 million and €640 million (2024: €558 million), as announced in the ad hoc disclosure on July 29, 2025. The midpoint of this range assumes the maintenance of the current price level in our sales markets for all product groups for the remainder of the year.

Adjusted free cash flow should remain slightly positive as previously forecast (2024: €+62 million). We continue to expect an elevated level of capital expenditure of €550 million due to the Werra 2060 transformation project and the Bethune ramp-up project.

K+S continues to expect sales volumes for all products in the Agriculture customer segment (excluding trade goods) to range between 7.5 million and 7.7 million tonnes (2024: 7.56 million tonnes).

Further assumptions on which the assessment for the full year 2025 is based are described on page 18 of the Half-Year Financial Report.

Additional information and data on developments in the second quarter of 2025 will be provided in the H1/2025 Half-Year Financial Report, the H1/2025 Facts & Figures, and the video about business development with Dr. Christian H. Meyer, the CEO of K+S. Today at 10:00 am, a video conference for analysts with Dr. Christian H. Meyer and CFO Dr. Jens Christian Keuthen will be held in English. Members of the press and interested members of the public are invited to follow the conference via a live audio webcast. The conference will be recorded and made available as an audio recording afterwards.

We make an important contribution to society: We enable farmers securing the world's food supply. Our products keep numerous industries running. We enrich consumers' daily lives and ensure safety in winter. With around 11,000 employees, production sites on two continents, and a global distribution network, we are a reliable partner for our customers. At the same time, we are realigning ourselves: We are focusing even more strongly than before on fertilizers and specialties. We are becoming leaner, more cost-efficient, more digital, and more performance-oriented. On a solid financial basis, we are tapping into new markets and business models. We are committed to our responsibility towards society and the environment in all regions in which we operate.

This press release contains facts and forecasts that relate to the future development of the K+S Group and its companies. The forecasts represent estimates that we have made on the basis of all the information available to us at the present time. Should the assumptions underlying these forecasts prove not to be correct or risks – such as those described in the risk report contained in the current annual report – materialize, actual developments and results may deviate from current expectations. The Company assumes no obligation to update the statements contained in this press release other than as required by law.