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Dec 31, 2024
Compass Minerals Q1 2025 Earnings Report
Compass Minerals reported fiscal 2025 first-quarter results, showing progress on its back-to-basics strategy and initiatives to reduce inventory volumes, improve cost structure, and enhance profitability.
Key Takeaways
Compass Minerals reported a net loss of $23.6 million and diluted EPS of -$0.57 for the first quarter of fiscal 2025. Revenue totaled $307.2 million. The company saw a decline in salt inventory volumes year over year despite a slow start to the winter deicing season, and made progress in improving the cost structure of its Plant Nutrition business.
North American salt inventory volumes declined 10% year over year through December.
Salt revenue decreased 12% year over year, driven by a 13% sales volume decline, partially offset by a 1% increase in average sales price.
Plant Nutrition revenue increased 24% year over year due to a 36% improvement in sales volumes.
Total planned capital expenditures for fiscal 2025 have been reduced to a range of $75 million to $85 million.
Compass Minerals
Compass Minerals
Compass Minerals Revenue by Segment
Revenue by Segment
Salt Segment Revenue
CapyFin.comPlant Nutrition Revenue
CapyFin.comCorporate & Other Revenue
CapyFin.com Forward Guidance
For fiscal 2025, Compass Minerals expects total salt sales volumes between 9.4 million and 10.45 million tons, with revenue ranging from $900 million to $1 billion and adjusted EBITDA between $205 million and $230 million for the Salt Segment. Plant Nutrition sales volumes are projected to be 295-315 thousand tons, with revenue between $180 million and $200 million and adjusted EBITDA between $17 million and $24 million. Corporate adjusted EBITDA is expected to be between -$70 million and -$61 million. Total capital expenditures are projected to be $75 million to $85 million.
Positive Outlook
- Increased adjusted EBITDA guidance for the Plant Nutrition segment.
- Higher sales expectations and lower forecasted production costs for Plant Nutrition.
- Reduced total planned capital expenditures for fiscal 2025.
- Ability to toggle production at Goderich and Cote Blanche mines provides flexibility to adjust to demand.
- Ongoing cost reduction initiatives to drive down operating, capital, and general and administrative costs.
Challenges Ahead
- Expected decline in pricing for Plant Nutrition due to softness in the MOP market.
- Potential impacts from tariffs on products imported to the United States from Canadian operations (not included in guidance).
- Mild winter weather in the first two months of the quarter contributed to a softer quarter.
- Higher cost production per ton for salt due to curtailment of production at Goderich mine.
- Lower sales volumes in the first quarter of fiscal 2025 compared to prior year for salt.
Revenue & Expenses
Visualization of income flow from segment revenue to net income