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Sep 30, 2024
Compass Minerals Q4 2024 Earnings Report
Compass Minerals reported a net loss in Q4 2024, impacted by mild winter conditions and strategic business decisions.
Key Takeaways
Compass Minerals reported a net loss of $48.3 million for Q4 2024, which included a $17.6 million write-down of intangible water rights in Utah. Adjusted EBITDA for the quarter was $15.6 million, down from $31.3 million in the prior year. The company is focused on improving cash generation and reducing debt.
Net loss for the fourth quarter of 2024 was $48.3 million, including a $17.6 million write down of certain intangible water rights in Utah.
Total company adjusted EBITDA for the fourth quarter of 2024 was $15.6 million, down from $31.3 million in the prior year.
Salt segment revenue totaled $162.5 million, down 13% year over year, due to a 21% decrease in total sales volumes offset by a 10% increase in price.
Plant Nutrition segment revenue totaled $42.4 million, up 20% year over year, driven by a 33% increase in sales volumes offset by a 10% decrease in price.
Compass Minerals
Compass Minerals
Forward Guidance
Compass Minerals provided financial outlook for fiscal full-year 2025.
Positive Outlook
- Salt sales volumes for 2025 at the midpoint of guidance are expected to increase approximately 9% over 2024, assuming average sales-to-commitment ratios
- Plant Nutrition earnings expected to be in line with 2024 levels while efforts continue to restore the business, driven by lower SOP pricing offset by improving volumes and lower forecasted production costs.
- The company expects a modest increase in sales volumes in 2025 as economic conditions in certain key markets are anticipated to improve.
- Operationally, the focus of the Plant Nutrition segment in 2025 is on the restoration of the company's Ogden ponds and advancing efficiency initiatives at the plant.
- Total capital expenditures for the company in fiscal 2025 are expected to be within a range of $100 million to $110 million.
Challenges Ahead
- Completed 2024-2025 bid season resulted in North American highway deicing prices down approximately 2% and committed volumes down roughly 9%.
- SOP prices are expected to decline year over year as a result of anticipated weakness in global potash prices.
- Projected Corporate segment results include corporate expenses in support of our core businesses, Fortress financial results, and the results of DeepStore
- The guidance does not include any revenue that could arise from a fire-retardant contract resulting from ongoing negotiations with the USFS.
- The guidance for the 2025 effective income tax rate reflects the income mix by country with income recognized in foreign jurisdictions offset by losses recognized in the U.S.