Raw material group K+S has raised its earnings before interest, taxes, depreciation and amortisation (Ebitda) guidance for the 2026 financial year to €630-million to €730-million, from the previous forecast of €600-million to €700-million.

This is driven by the strong performance in the first quarter, the continued positive price trend in the agriculture customer segment over recent weeks, and the revised euro:dollar exchange rate assumption of €1.17 to the dollar instead of €1.20 to the dollar for the remainder of the financial year.

Compared with the original assumptions, higher prices for materials, energy and freight resulting from the conflict in the Middle East since March are, however, having a negative impact.

For the midpoint of the earnings guidance, a price level of €45/MWh is now assumed for the portion of European gas demand procured at spot prices (about 30%).

For freight costs, an oil price of about $100/bl and the current spot freight rates from Vancouver are used as a basis.

Also, the midpoint of the Ebitda guidance range assumes that the price level achieved to date in Brazil, an important overseas market for K+S, will remain stable and continues to have a positive impact on other sales markets served by K+S, as well as on further product groups, and that rising sulphur prices will continue to benefit prices for K+S’s sulphate-containing specialty products.

The price level of the product portfolio in the agriculture customer segment achieved by mid‑year will then need to be broadly maintained on average in the second half of the year, the company explains.

Overall, the effects related to the conflict in the Middle East continue to be of limited predictability.

The company’s revenue for the first quarter of the 2026 financial year increased to €1.06-billion from €965-million in the first quarter of 2025, while Ebitda operating earnings reached €279-million, an increase from €201-million in the prior comparable quarter.

The average selling price in the agriculture customer segment (excluding trade goods) continues to rise, to €336/t, from €326/t year-on-year.

Sales volumes in the Industry+ customer segment were significantly higher owing to strong de-icing salt business.

“As already communicated, we made a very positive start to the 2026 financial year. Our Ebitda and adjusted free cash flow in the first quarter were significantly above both the prior‑year figures and market expectations.

"The main drivers were our strong de‑icing salt business, as well as higher potash prices. As reported, we have, therefore, slightly raised our Ebitda forecast for the full year,” K+S chairperson Dr Christian H Meyer highlights.

“In addition to external factors, our high level of cost discipline also had a positive impact. The fact that our efforts are paying off motivates us to continue working with full commitment on achieving the best possible positioning in terms of capital allocation, structures, processes, and costs, in order to make K+S more robust for the future,” he adds.

For the full-year, adjusted free cash flow is expected to remain at least break‑even, owing to higher working capital resulting from the positive price trend, as well as continued high levels of investment in Werra 2060 and the ramp-up of production at the Bethune site in Canada.

The K+S Group’s capital expenditure is now expected to be about €600-million for the year, compared with the previous forecast of between €550-million and €600-million.