OCP Group Reports €4.4 Billion Revenue in H1 2026 Amid Challenging Market Conditions

Morocco's leading phosphate producer, OCP Group, reported revenues of €4.4 billion (MAD 48.372 billion) for the first half of 2026, representing a decline from €4.75 billion (MAD 52.166 billion) recorded in the same period of 2025.

Volume Pressures in Key Markets

The revenue decrease stems primarily from lower sales volumes across the company's main business segments. According to OCP's official statement, affordability constraints significantly impacted demand in several key markets, creating headwinds for the fertilizer industry globally.

Strategic Resilience Amid Cost Pressures

Despite facing an exceptionally challenging operational environment characterized by soaring sulfur prices and elevated ammonia costs, OCP demonstrated remarkable resilience. The group's solid fundamentals, combined with strategic decisions regarding production levels, raw material procurement, and product mix optimization, enabled it to navigate the turbulent market conditions effectively.

In a proactive move, OCP secured sulfur inventory ahead of the sharp price increases. Additionally, the company advanced a portion of its maintenance program originally scheduled for the second half of the year into the early second quarter, preserving operational flexibility for the remainder of 2026.

TSP Production Ramp-Up

Simultaneously, OCP accelerated the production and sales of Triple Super Phosphate (TSP), a phosphate-rich fertilizer that requires significantly less sulfur and no ammonia. This strategic shift not only reduced input cost exposure but also provided farmers with a more economically accessible fertilizer option while delivering significant agronomic benefits.

These measures, coupled with OCP's cost competitiveness and flexible industrial model, strengthened the group's resilience against the unprecedented surge in raw material costs and the global decline in fertilizer demand, primarily driven by deteriorating farmer affordability.

Market Dynamics and Demand Trends

Beyond the impact of rising fertilizer prices, destocking activities and seasonal factors also contributed to the demand decline observed in major importing regions during the first half of 2026. Throughout this period, OCP continued serving its globally diversified customer base while increasing TSP's share in its product portfolio.

Financial Performance Highlights

"Throughout the first semester, OCP maintained a solid margin profile, with an EBITDA margin of 28% over the six-month period and 27% in the second quarter, despite more difficult market conditions," stated Mostafa Terrab, Chairman and CEO of OCP Group.

Key financial metrics for H1 2026 include:

• EBITDA: €1.21 billion (MAD 13.307 billion), compared to €1.695 billion (MAD 18.612 billion) in the previous year
• Gross Margin: €2.40 billion (MAD 26.369 billion), down from €3.04 billion (MAD 33.345 billion) year-over-year
• Capital Expenditure: €1.46 billion (MAD 16.067 billion), up from €1.38 billion (MAD 15.162 billion) in H1 2025

Despite revenue pressures, OCP maintained its commitment to long-term growth through sustained investment activity, demonstrating confidence in its strategic positioning and the fundamental demand for phosphate-based fertilizers in global agriculture.