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Dec 31, 2024

CenterPoint Energy Q4 2024 Earnings Report

Compass Minerals reported a decline in revenue and earnings compared to the previous year, affected by lower sales volumes in the Salt segment and pricing pressures in the Plant Nutrition segment.

Key Takeaways

Compass Minerals reported revenue of $307.2 million for Q1 FY25, a 10% decline from the prior year. Net loss stood at $23.6 million, an improvement over the $75.3 million loss in Q1 FY24. The Salt segment saw a 12% revenue decline due to lower deicing salt sales, while Plant Nutrition revenue increased 24% on higher sales volumes. Adjusted EBITDA fell to $32.1 million from $62.2 million, reflecting ongoing pricing challenges and operational costs.

Revenue declined 10% year over year to $307.2 million.

Salt segment revenue dropped 12% due to lower deicing salt sales.

Plant Nutrition segment revenue grew 24% despite a decline in pricing.

Net loss improved to $23.6 million from $75.3 million last year.

Total Revenue
$307M
Previous year: $2.18B
-85.9%
EPS
-$0.55
Previous year: $0.32
-271.9%
Gross Profit
$976M
Previous year: $810M
+20.5%
Cash and Equivalents
$45.8M
Previous year: $650M
-93.0%
Free Cash Flow
-$4.1M
Previous year: -$270M
-98.5%
Total Assets
$1.72B
Previous year: $40.5B
-95.8%

CenterPoint Energy

CenterPoint Energy

Forward Guidance

Compass Minerals expects stable revenue performance in FY25, with potential improvement in deicing salt demand and continued cost reduction initiatives.

Positive Outlook

  • Plant Nutrition revenue expected to increase with higher sales volumes.
  • Salt inventory management expected to reduce costs in future periods.
  • Operational efficiencies projected to improve cash flow.
  • Winter weather conditions in January showed stronger demand.
  • Company remains focused on reducing debt and improving capital allocation.

Challenges Ahead

  • Salt sales volume impacted by mild winter conditions in Q1.
  • Global potassium pricing pressure continues to affect Plant Nutrition revenue.
  • Production cost absorption remains a challenge due to inventory adjustments.
  • Tariff uncertainties on Canadian imports may impact costs.
  • Higher debt levels could limit financial flexibility.