Compass Minerals Reports Fiscal 2025 Third-Quarter Results

Compass Minerals, a leading global provider of essential minerals, has released its fiscal 2025 third-quarter results. The company reported significant improvements in several key financial metrics and operational areas, reflecting a strong performance compared to the previous year.

Financial Highlights

For the third quarter of fiscal 2025, Compass Minerals reported a net loss of $17.0 million, a notable improvement from the net loss of $43.6 million in the same period last year. The company's total revenue for the quarter was $214.6 million, up from $202.9 million in the prior year. Adjusted EBITDA increased by 25% year-over-year to $41.0 million.

Key financial metrics include:

• Net loss per diluted share improved to $(0.41) from $(1.05) in the prior year.
• Total company adjusted EBITDA for the third quarter of 2025 was $41.0 million, up 25% year-over-year.
• Salt business operating earnings and adjusted EBITDA increased by 4% and 6% respectively on a per-ton basis.
• Plant Nutrition sales volumes increased by 21% from the comparable prior-year period.

Business and Operational Highlights

The Salt business saw a 4% increase in sales volumes year-over-year, with operating earnings for the quarter increasing by 9% to $28.1 million. The Plant Nutrition segment also performed well, with sales volumes up 21% year-over-year, leading to an operating income of $5.2 million compared to an operating loss of $1.4 million in the prior-year quarter.

Distribution costs per ton remained flat year-over-year, while all-in product costs per ton declined by 2% from the comparable prior-year quarter.

Strategic Initiatives and Corporate Developments

Compass Minerals took significant steps to enhance its financial flexibility in the third quarter. The company reduced net debt and strengthened its balance sheet through the sale of certain assets related to Fortress. Additionally, the company recognized a loss from the extinguishment of debt amounting to $7.6 million due to the redemption of a portion of the outstanding 6.75% senior unsecured notes and modifications to the company's credit agreement.

Net cash provided by operating activities amounted to $204.6 million for the nine months ended June 30, 2025, compared to $27.1 million in the prior year. This improvement was primarily driven by a significant reduction in North American salt inventory.

Management's Perspective

Edward C. Dowling Jr., president and CEO, commented, "Compass Minerals had a strong third quarter that saw year-over-year improvement on a number of performance measures. Our ramp-up of highway deicing production is underway as we prepare for the coming deicing season. We continue to execute on our back-to-basics strategy, and the results from the quarter reflect the progress we are making."

Future Outlook

Looking ahead, Compass Minerals has updated its fiscal 2025 outlook. The company expects total salt sales volumes to range between 10,700 and 11,000 thousand tons, with revenue projected between $1,000 million and $1,040 million. Adjusted EBITDA for the Salt segment is expected to be between $220 million and $229 million. For the Plant Nutrition segment, sales volumes are expected to be between 320 and 325 thousand tons, with revenue projected between $200 million and $205 million.

The company also provided guidance for corporate expenses, which include $3 to $5 million in cash expenses related to Fortress. Total planned capital expenditures remain unchanged at $75 to $85 million.

SEC Filing: COMPASS MINERALS INTERNATIONAL INC [ CMP ] - 8-K - Aug. 11, 2025