Intrepid Potash, Inc. SEC 10-Q Report

Intrepid Potash, Inc., a leading producer of potash and Trio® fertilizers, has released its Form 10-Q report for the second quarter of 2025. The report highlights significant improvements in both financial and operational performance, driven by increased sales and effective cost management. The company continues to benefit from strong agricultural demand and strategic operational initiatives.

Financial Highlights

• Total Revenue: $71.5 million, increased by 15% compared to the same period in 2024, driven by higher sales in the Trio® and potash segments.
• Gross Margin: $14.3 million, up from $7.6 million in the same period in 2024, due to increased sales and lower per ton cost of goods sold for both potash and Trio®.
• Operating Income (Loss): $3.3 million, compared to an operating loss of $1.6 million in the same period in 2024, reflecting improved sales and cost management.
• Net Income: $3.3 million, compared to a net loss of $0.8 million in the same period in 2024, attributed to increased sales and improved gross margin.
• Diluted EPS: $0.25, compared to a loss of $0.06 per share in the same period in 2024, reflecting the turnaround in profitability.

Business Highlights

• Revenue Segments: The Trio® segment saw a 25% increase in sales for the three months ended June 30, 2025, driven by an 11% increase in tons sold and a 17% rise in average net realized sales price per ton. Potash segment sales increased by $4.0 million, with a 25% increase in tons sold, although the average net realized sales price per ton decreased by 11%.
• Sales Units: Potash sales volumes increased by 25% and 33% for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024, due to improved production volumes. Trio® sales volumes increased by 11% and 18% for the same periods, supported by increased production rates and higher demand.
• Geographical Performance: Potash prices in the U.S. Midwest warehouse increased from $370 per ton at the beginning of the second quarter to $410 per ton after the summer-fill period, reflecting strong agricultural demand and tightening global supply.
• New Production Launches: The company plans to shut down the HB mill for a few weeks in September to maximize potential late-season evaporation, shifting approximately 15,000 tons of 2025 production into the spring of 2026.
• Future Outlook: Potash prices are expected to remain supported by strong agricultural demand, tightening global supply, and recent contract settlements with China and India. The company anticipates a decrease in 2026 production by approximately 25,000 tons due to reduced brine grade at the HB facility.
• Operational Challenges: Above-average rainfall in June and July 2025 in Carlsbad, New Mexico, led to below-average evaporation, reducing pond inventory and expected production from the HB facility by approximately 20,000 tons in the first half of 2026.
• Other Operational Highlights: The company reported an unpermitted discharge of brine at the HB facility, with an estimated liability of $2.2 million for potential penalties and $0.1 million for environmental remediation activities.

SEC Filing: Intrepid Potash, Inc. [ IPI ] - 10-Q - Aug. 07, 2025