Compass Minerals Reports Fiscal 2026 Third-Quarter Results

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Postmedia has not reviewed the content. by Business Wire Compass Minerals Reports Fiscal 2026 Third-Quarter ResultsAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.OVERLAND PARK, Kan. — Compass Minerals (NYSE: CMP), a leading global provider of essential minerals, today reported fiscal 2026 third-quarter results.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountUnless otherwise noted, it should be assumed that time periods referenced below are on a fiscal-year basis and financial amounts are in U.S. dollars.“What we are experiencing in our Plant Nutrition business is the clearest example of what our improvement process can deliver. We produced segment Adjusted EBITDA of $15.0 million in the quarter on improved pricing and lower per-unit costs, and we have again raised our full-year expectations for this business. In Salt, we realized meaningful pricing gains in highway during the quarter, and we are seeing early signs of a constructive pricing environment within our consumer and industrial (C&I) product line as well. However, production costs at our mining operations have not yet improved at the pace we expected. Production tons are up year over year, but as we invest in maintenance, labor and associated costs have remained elevated relative to plan. We raised our full-year consolidated Adjusted EBITDA guidance midpoint to $230 million, driven by significantly stronger Plant Nutrition performance partially offset by mix, inflationary pressures and the pace of operational improvements in Salt,” said Edward C. Dowling Jr., president and CEO.“Looking ahead, the 2026-27 highway deicing bid season has been very constructive. In our core U.S. markets, we are seeing substantial year-over-year price improvement and consistent growth in demand tenders. Coming off a strong winter, we are aligning our production and planning to the supply realities across our system. Our balance sheet continues to strengthen, with net leverage declining to 2.8 times from 4.3 times a year ago, and our recent credit upgrade from S&P reflects the progress we have made in reducing debt and building a more resilient business. There is more work ahead in our mining operations, but the direction is clear. We are committed to operational improvement, disciplined capital allocation and long-term shareholder value.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. 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Please try againNet loss of $5.7 million for the third quarter of 2026, compared to a net loss of $17.0 million in the prior-year period;Total company Adjusted EBITDA for the third quarter of 2026 of $39.9 million, compared with $41.0 million in the prior-year period;Operating income and Adjusted EBITDA margins within the Salt business declined compared to the prior-year period, driven principally by higher per-unit product costs and distribution costs year over year;Continued improvements in pricing and cost structure increased Plant Nutrition segment operating income and Adjusted EBITDA on both absolute and per-ton bases;Total debt (defined as long-term debt, net of current) declined 13% from the prior-year period to $716.6 million as of June 30, 2026, while net debt decreased $85.6 million, or 11%, to $660.3 million over the same period; andMid-point of full-year 2026 guidance for total company Adjusted EBITDA was raised within modified range of $218 million to $242 million, reflecting stronger-than-expected results in the Plant Nutrition segment and adjustments in the Salt segment related to mix dynamics, inflationary pressures and the pace of operational improvements. QUARTERLY FINANCIAL RESULTS(in millions, except per share data)Three Months Ended June 30,Nine Months Ended June 30,2026202520262025GAAP Results:Revenue$215.3$214.6$1,064.6$1,016.4Operating income10.915.9103.513.3Net (loss) income(5.7)(17.0)25.6(72.6)Net (loss) income per diluted share(0.13)(0.41)0.59(1.74)Non-GAAP Results*:Adjusted operating income*10.917.1103.573.3Adjusted EBITDA*39.941.0191.6157.2Adjusted net (loss) income*(5.8)(15.8)40.1(13.0)Adjusted net (loss) income* per diluted share(0.14)(0.39)0.93(0.31)*Non-GAAP financial measure. Reconciliations to the most directly comparable GAAP financial measure are provided in tables at the end of this press release.Third quarter Salt revenue increased 5% year over year to $173.9 million, reflecting higher pricing across both highway and C&I. Combined average sales prices increased 9%, led by an 8% increase in highway prices and 6% increase in C&I prices. Total sales volumes declined 4%, as a 6% decrease in highway volumes was partially offset by a 3% increase in C&I volumes.Salt segment operating income for the quarter decreased by 25% to $21.2 million from the prior-year period. Adjusted EBITDA decreased to $38.9 million, down 15% from the prior-year period. These financial results reflect lower sales volumes between the periods and higher per-unit product costs and distribution costs year over year, offset by the pricing dynamics described above. PLANT NUTRITION BUSINESS RECAPPlant Nutrition revenue was $37.6 million for the quarter, down 16% compared to the prior-year period. The decrease is primarily driven by a 19% decrease in sales volume, partially offset by a 4% increase in average sales prices. Lower sales volumes were largely attributable to the disposition of the Wynyard sulfate of potash (SOP) business in March 2026. Excluding the impacts of the disposition, sales volumes increased approximately 4% year over year.Operating income in the Plant Nutrition segment was $7.8 million for the quarter, up 50% compared to $5.2 million in the prior-year quarter. Adjusted EBITDA improved 32% to $15.0 million compared to $11.4 million last year. These financial results reflect lower sales volumes and higher average sales prices. Both product costs and distribution costs were down on a per-unit basis year over year. CASH FLOW AND FINANCIAL POSITIONNet cash provided by operating activities amounted to $162.8 million for the nine months ended June 30, 2026, compared to $204.6 million in the prior year. Changes in working capital reflect the seasonal decrease in inventories due to the end of the winter season and the settlement of the previously disclosed tax dispute in Ontario during the first quarter of 2026.Net cash used in investing activities was $39.8 million for the nine months ended June 30, 2026, an increase from $34.7 million used in the prior year. Total capital spending for the nine months ended June 30, 2026, was $62.1 million compared to $53.8 million in 2025. The company received $23.3 million of cash proceeds, net of amounts held in escrow and customary closing adjustments, related to the aforementioned sale of the Wynyard SOP business.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Net cash used in financing activities was $127.1 million for the nine months ended June 30, 2026, which primarily consisted of the redemption of the remaining $150.0 million of the company’s 6.75% Senior Notes due 2027 (the 2027 Notes), partially offset by net borrowings under the revolving credit facility of $35.0 million during the nine months ended June 30, 2026. In the prior year, net cash used in financing activities was $111.5 million and reflected the issuance of $650.0 million of the company’s 8.00% Senior Notes due 2030 (the 2030 Notes), the proceeds of which were used to repurchase $350.0 million of the 2027 Notes, repay $43.5 million under our revolving credit facility, and repay $191.3 million under our term loan facility.The company ended the quarter with $328.1 million of liquidity, comprised of $56.3 million in cash and cash equivalents and $271.8 million of availability under its $325.0 million revolving credit facility.Total debt as of June 30, 2026, was $716.6 million compared to $825.3 million a year earlier. Net debt was $660.3 million at the end of the third quarter of 2026, down $85.6 million from $745.9 million at the end of the comparable prior year period. The net leverage ratio for the quarter ended June 30, 2026, was 2.8 times, down from 4.3 times for the comparable prior year period. S&P GLOBAL RATINGS UPGRADEDuring the third quarter, S&P Global Ratings upgraded the company’s corporate credit rating to ‘B+’ from ‘B’, with a stable outlook. S&P also upgraded the rating on the company’s senior secured debt to ‘BB’ from ‘BB-’ and senior unsecured debt to ‘B+’ from ‘B’. In addition, S&P’s ‘1’ recovery rating on the secured debt and ‘4’ recovery rating on the unsecured debt were unchanged.The upgrade reflected the company’s debt paydown and improved profitability for leverage reduction, which lowered S&P Global Ratings-adjusted leverage from 4.2x to 3.1x for the last 12 months. S&P noted the company used “sale proceeds with cash on the balance sheet to retire $150 million of its 2027 senior unsecured notes, materially improving its debt profile and extending weighted-average maturity.” UPDATED OPERATING AND FISCAL 2026 OUTLOOKBased on stronger-than-expected results in the Plant Nutrition segment and adjustments related to mix dynamics, inflationary pressures and the pace of operational improvements in the Salt segment, Compass Minerals is updating its previously issued full-year fiscal 2026 outlook as follows:Salt Segment2026Previous GuidanceCurrent GuidanceHighway sales volumes (thousands of tons)8,450 – 8,8008,600 – 8,800Consumer and industrial sales volumes (thousands of tons)1,900 – 2,0001,900 – 2,000Total salt sales volumes (thousands of tons)10,350 – 10,80010,500 – 10,800Revenue (in millions)$1,025 – $1,080$1,053 – $1,090Adjusted EBITDA (in millions)$225 – $240$225 – $236Plant Nutrition Segment12026Previous GuidanceCurrent GuidanceSales volumes (thousands of tons)280 – 300290 – 300Revenue (in millions)$190 – $210$200 – $209Adjusted EBITDA (in millions)$43 – $ 47$49 – $ 571)Reflects the impact of the sale of the Wynyard SOP business.Corporate & Other2026Previous GuidanceCurrent GuidanceAdjusted EBITDA (in millions)($56) – ($51)($56) – ($51)Projected Corporate and Other results shown in the table above include corporate expenses in support of our core businesses and the results of DeepStore, the company’s records management business in the U.K.Total Compass MineralsCurrent 2026 Adjusted EBITDA GuidanceSaltPlant NutritionCorporateTotalAdjusted EBITDA (in millions)$225 – $236$49 – $57($56) – ($51)$218 – $2422026 Capital ExpendituresTotalCapital expenditures (in millions)$90 – $110Other Financial Assumptions2026($ in millions)Previous GuidanceCurrent GuidanceDepreciation, depletion and amortization$105 – $115$105 – $115Interest expense, net$62 – $67$62 – $67Effective income tax rate (excl. valuation allowance)30% – 34%27% – 31%Guidance for the 2026 effective income tax rate reflects the income mix by country with income recognized in foreign jurisdictions offset by losses recognized in the U.S.Compass Minerals will discuss its results on a conference call tomorrow morning, Thursday, Aug. 6, at 9:30 a.m. ET (8:30 a.m. CT). Access to the conference call will be available via webcast at investors.compassminerals.com or by dialing 1-833-461-5787. Callers must provide the conference ID number: 590 084 912. Outside of the U.S. and Canada, callers may dial 1-585-542-9983 or 1-626-884-3620. An audio replay of the conference call will be available on the company’s website.A supporting company presentation supporting 2026 third-quarter results is available at investors.compassminerals.com.Compass Minerals (NYSE: CMP) is a leading global provider of essential minerals focused on safely delivering where and when it matters to help solve nature’s challenges for customers and communities. The company’s salt products help keep roadways safe during winter weather and are used in numerous other consumer, industrial, chemical and agricultural applications. Its plant nutrition products help improve the quality and yield of crops while supporting sustainable agriculture. Compass Minerals operates 11 production and packaging facilities with more than 1,800 employees throughout the U.S., Canada and the U.K. Visit compassminerals.com for more information about the company and its products. Forward-Looking Statements and Other DisclaimersThis press release may contain forward-looking statements, including, without limitation, statements about future costs, production, debt reduction, shareholder value, and the company’s outlook for 2026, including its expectations regarding sales volumes, revenue, Adjusted EBITDA, depreciation, depletion, and amortization, interest expense, tax rates, and capital expenditures. Forward-looking statements are those that predict or describe future events or trends and that do not relate solely to historical matters. The company uses words such as “may,” “would,” “could,” “should,” “will,” “likely,” “expect,” “anticipate,” “believe,” “intend,” “plan,” “forecast,” “outlook,” “project,” “estimate” and similar expressions suggesting future outcomes or events to identify forward-looking statements or forward-looking information. These statements are based on the company’s current expectations and involve risks and uncertainties that could cause the company’s actual results to differ materially. The differences could be caused by a number of factors, including without limitation (i) weather conditions, (ii) inflation, the cost and availability of transportation for the distribution of the company’s products and foreign exchange rates, (iii) pressure on prices and impact from competitive products, and (iv) any inability by the company to successfully implement its strategic priorities or its cost-saving or enterprise optimization initiatives. For further information on these and other risks and uncertainties that may affect the company’s business, see the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the company’s Annual Report on Form 10-K for the period ended September 30, 2025, and its Quarterly Reports on Form 10-Q for the quarters ended December 31, 2025, March 31, 2026 and June 30, 2026, filed or to be filed with the SEC, as well as the company’s other SEC filings. The company undertakes no obligation to update any forward-looking statements made in this press release to reflect future events or developments, except as required by law. Because it is not possible to predict or identify all such factors, this list cannot be considered a complete set of all potential risks or uncertainties.In addition to using U.S. generally accepted accounting principles (“GAAP”) financial measures, management uses a variety of non-GAAP financial measures described below to evaluate the company’s and its operating segments’ performance. While the consolidated financial statements provide an understanding of the company’s overall results of operations, financial condition and cash flows, management analyzes components of the consolidated financial statements to identify certain trends and evaluate specific performance areas.Management uses EBITDA, EBITDA adjusted for items which management believes are not indicative of the company’s ongoing operating performance (“Adjusted EBITDA”) and EBITDA margin to evaluate the operating performance of the company’s core business operations because its resource allocation, financing methods and cost of capital, and income tax positions are managed at a corporate level, apart from the activities of the operating segments, and the operating facilities are located in different taxing jurisdictions, which can cause considerable variation in net income. Management also uses adjusted operating income, adjusted operating margin, adjusted net (loss) income, and adjusted net (loss) income per diluted share, which eliminate the impact of certain items that management does not consider indicative of underlying operating performance. The presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or non-recurring items. Management believes these non-GAAP financial measures provide management and investors with additional information that is helpful when evaluating underlying performance. EBITDA and Adjusted EBITDA exclude interest expense, income taxes and depreciation, depletion and amortization, each of which is an essential element of the company’s cost structure and cannot be eliminated. In addition, Adjusted EBITDA and Adjusted EBITDA margin exclude certain cash and non-cash items, including stock-based compensation, impairment charges and certain restructuring charges. Consequently, any measure that excludes these elements has material limitations. The non-GAAP financial measures used by management should not be considered in isolation or as a substitute for net (loss) income, operating income, cash flows or other financial data prepared in accordance with GAAP or as a measure of overall profitability or liquidity. These measures are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the method of calculation. The calculation of non-GAAP financial measures as used by management is set forth in the following tables. All margin numbers are defined as the relevant measure divided by sales. The company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, as the company is unable to estimate significant non-recurring, unusual items and/or distinct non-core initiatives without unreasonable effort. The amounts and timing of these items are uncertain and could be material to the company’s results.Adjusted operating income, adjusted operating margin, adjusted net (loss) income, adjusted net (loss) income per diluted share, net debt and net leverage ratio are presented as supplemental measures of the company’s performance. Management believes these measures provide management and investors with additional information that is helpful when evaluating underlying performance and comparing results on a year-over-year normalized basis. These measures eliminate the impact of certain items that management does not consider indicative of underlying operating performance. These adjustments are itemized below. Adjusted net (loss) income per diluted share is adjusted net (loss) income divided by weighted average diluted shares outstanding. Net debt is calculated as current and long-term debt minus cash and cash equivalents used to evaluate our financial position. Management defines net leverage ratio as net debt divided by Adjusted EBITDA for the previous twelve-month period (“last twelve months,” or “LTM”). You are encouraged to evaluate the adjustments itemized above and the reasons management considers them appropriate for supplemental analysis. In evaluating these measures you should be aware that in the future the company may incur expenses that are the same as or similar to some of the adjustments presented below.Special Items Impacting the Three Months Ended June 30, 2025 (unaudited, in millions, except per share data)Item DescriptionSegmentLine ItemAmountTax Effect(1)After TaxEPS ImpactProduct recall costs(2)SaltProduct cost and Other operating expense (income)$0.2$—$0.2$—Restructuring charges(3)Corporate and OtherOther operating expense (income)0.3—0.3—Impairments(4)Corporate and OtherLoss on impairments0.7—0.70.02Total$1.2$—$1.2$0.02Special Items Impacting the Nine Months Ended June 30, 2025 (unaudited, in millions, except per share data)Item DescriptionSegmentLine ItemAmountTax Effect(1)After TaxEPS ImpactProduct recall costs(2)SaltProduct cost and Other operating expense (income)$2.0$(0.4)$1.6$0.03Restructuring charges(3)SaltOther operating expense (income)0.3—0.30.01Restructuring charges(3)Corporate and OtherOther operating expense (income)4.0—4.00.09Impairments(4)Corporate and OtherLoss on impairments53.7—53.71.30Total$60.0$(0.4)$59.6$1.43(1)There were no substantial income tax benefits related to these items given the U.S. valuation allowances on deferred taxes. Applicable product recall costs reflect an impact from Canadian taxes.(2)The company recorded costs related to a recall of food-grade salt produced at its Goderich plant. Charges for the three and nine months ended June 30, 2025, were $0.2 million and $2.0 million, respectively.(3)For the three and nine months ended June 30, 2025, the company incurred severance and related charges of $0.3 million and $4.3 million, respectively, due to a reduction in workforce, changes to executive leadership and additional restructuring costs related to the exit of the Fortress fire retardant business.(4)For the three and nine months ended June 30, 2025, the company recorded a loss on impairments of $0.7 million and $53.7 million, respectively, related to intangible and long-lived assets due to the exit of the Fortress fire retardant business.Reconciliation for Adjusted Operating Income (unaudited, in millions)Three Months Ended June 30,Nine Months Ended June 30,2026202520262025Operating income$10.9$15.9$103.5$13.3Product recall costs(1)—0.2—2.0Restructuring charges(2)—0.3—4.3Loss on impairments(3)—0.7—53.7Adjusted operating income$10.9$17.1$103.5$73.3Sales215.3214.61,064.61,016.4Operating margin5.1%7.4%9.7%1.3%Adjusted operating margin5.1%8.0%9.7%7.2%(1)The company recorded costs related to a recall of food-grade salt produced at its Goderich plant. Charges for the three and nine months ended June 30, 2025, were $0.2 million and $2.0 million, respectively.(2)For the three and nine months ended June 30, 2025, the company incurred severance and related charges of $0.3 million and $4.3 million, respectively, due to a reduction in workforce, changes to executive leadership and additional restructuring costs related to the exit of the Fortress fire retardant business.(3)For the three and nine months ended June 30, 2025, the company recorded a loss on impairments of $0.7 million and $53.7 million, respectively, related to intangible and long-lived assets due to the exit of the Fortress fire retardant business.Reconciliation for Adjusted Net (Loss) Income (unaudited, in millions)Three Months Ended June 30,Nine Months Ended June 30,2026202520262025Net (loss) income$(5.7)$(17.0)$25.6$(72.6)(Gain) loss on sale of business, net(1)(0.1)—14.5—Product recall costs(2)—0.2—2.0Restructuring charges(3)—0.3—4.3Loss on impairments(4)—0.7—53.7Income tax effect———(0.4)Adjusted net (loss) income$(5.8)$(15.8)$40.1$(13.0)Net (loss) income per diluted share$(0.13)$(0.41)$0.59$(1.74)Adjusted net (loss) income per diluted share$(0.14)$(0.39)$0.93$(0.31)Weighted-average common shares outstanding (in thousands):Diluted42,24641,85942,51241,738(1)For the three months ended June 30, 2026, the company recorded a gain of $0.1 million related to transaction cost adjustments in connection with the sale of the Wynyard SOP business. For the nine months ended June 30, 2026, the company recorded a loss on sale of the Wynyard SOP business of $14.5 million, which included a $13.1 million recognition of cumulative foreign currency translation adjustments reclassified from Accumulated other comprehensive loss.(2)The company recorded costs related to a recall of food-grade salt produced at its Goderich plant. Charges for the three and nine months ended June 30, 2025, were $0.2 million and $2.0 million, respectively.(3)For the three and nine months ended June 30, 2025, the company incurred severance and related charges of $0.3 million and $4.3 million, respectively, due to a reduction in workforce, changes to executive leadership and additional restructuring costs related to the exit of the Fortress fire retardant business.(4)For the three and nine months ended June 30, 2025, the company recorded a loss on impairments of $0.7 million and $53.7 million, respectively, related to intangible and long-lived assets due to the exit of the Fortress fire retardant business.Reconciliation for EBITDA and Adjusted EBITDA (unaudited, in millions)Three Months Ended June 30,Nine Months Ended June 30,2026202520262025Net (loss) income$(5.7)$(17.0)$25.6$(72.6)Interest expense14.616.350.651.2Income tax expense6.43.420.222.9Depreciation, depletion and amortization25.623.280.276.5EBITDA40.925.9176.678.0Adjustments to EBITDA:Stock-based compensation – non-cash3.40.67.97.3Interest income(0.5)(0.3)(1.4)(0.9)(Gain) loss on foreign exchange(4.0)8.4(7.5)3.1(Gain) loss on sale of business, net(1)(0.1)—14.5—Loss on extinguishment of debt(2)—7.60.57.6Product recall costs(3)—0.3—2.1Restructuring charges(4)—0.3—4.3Loss on impairments(5)—0.7—53.7Other expense (income), net0.2(2.5)1.02.0Adjusted EBITDA$39.9$41.0$191.6$157.2(1)For the three months ended June 30, 2026, the company recorded a gain of $0.1 million related to transaction cost adjustments in connection with the sale of the Wynyard SOP business. For the nine months ended June 30, 2026, the company recorded a loss on sale of the Wynyard SOP business of $14.5 million, which included a $13.1 million recognition of cumulative foreign currency translation adjustments reclassified from Accumulated other comprehensive loss.(2)For the nine months ended June 30, 2026, the company recorded a $0.5 million loss on extinguishment of debt related to the write-off of deferred financing costs from the redemption of the 2027 Notes. For the three and nine months ended June 30, 2025, the company recorded a $7.6 million loss on extinguishment of debt, comprised of a $3.9 million prepayment premium related to the partial redemption of the 2027 Notes and a $3.7 million write-off of unamortized deferred financing costs related to the partial redemption of 2027 Notes and repayment of the term loans.(3)The company recorded costs related to a recall of food-grade salt produced at its Goderich plant. Charges for the three and nine months ended June 30, 2025, were $0.3 million and $2.1 million, respectively.(4)For the three and nine months ended June 30, 2025, the company incurred severance and related charges of $0.3 million and $4.3 million, respectively, due to a reduction in workforce, changes to executive leadership and additional restructuring costs related to the exit of the Fortress fire retardant business.(5)For the three and nine months ended June 30, 2025, the company recorded a loss on impairments of $0.7 million and $53.7 million, respectively, related to intangible and long-lived assets due to the exit of the Fortress fire retardant business.Salt Segment Performance (unaudited, in millions, except for sales volumes and prices per short ton)Three Months Ended June 30,Nine Months Ended June 30,2026202520262025Sales$173.9$166.0$888.0$840.9Operating income$21.2$28.1$135.5$124.4Operating margin12.2%16.9%15.3%14.8%Adjusted operating income(1)$21.2$28.3$135.5$126.7Adjusted operating margin(1)12.2%17.0%15.3%15.1%EBITDA(1)$38.9$45.6$189.3$176.8EBITDA(1) margin22.4%27.5%21.3%21.0%Adjusted EBITDA(1)$38.9$45.8$189.3$179.1Adjusted EBITDA(1) margin22.4%27.6%21.3%21.3%Sales volumes (in thousands of tons):Highway1,0741,1447,5187,714Consumer and industrial4114001,5061,428Total Salt1,4851,5449,0249,142Average prices (per ton):Highway$83.74$77.63$77.10$71.52Consumer and industrial$204.09$193.26$204.69$202.60Total Salt$117.07$107.54$98.40$91.99(1)Non-GAAP financial measure. Reconciliations follow in these tables.Reconciliation for Salt Segment Adjusted Operating Income (unaudited, in millions)Three Months Ended June 30,Nine Months Ended June 30,2026202520262025Reported GAAP segment operating income$21.2$28.1$135.5$124.4Restructuring charges(1)———0.3Product recall costs(2)—0.2—2.0Segment adjusted operating income$21.2$28.3$135.5$126.7Segment sales173.9166.0888.0840.9Segment operating margin12.2%16.9%15.3%14.8%Segment adjusted operating margin12.2%17.0%15.3%15.1%(1)The company incurred severance and related charges of $0.3 million, due to a reduction in workforce, during the nine months ended June 30, 2025.(2)The company recorded costs related to a recall of food-grade salt produced at its Goderich plant. Charges for the three and nine months ended June 30, 2025, were $0.2 million and $2.0 million, respectively.Reconciliation for Salt Segment EBITDA and Adjusted EBITDA (unaudited, in millions)Three Months Ended June 30,Nine Months Ended June 30,2026202520262025Reported GAAP segment operating income$21.2$28.1$135.5$124.4Depreciation, depletion and amortization17.717.553.852.4Segment EBITDA$38.9$45.6$189.3$176.8Restructuring charges(1)———0.3Product recall costs(2)—0.2—2.0Segment Adjusted EBITDA$38.9$45.8$189.3$179.1Segment sales173.9166.0888.0840.9Segment EBITDA margin22.4%27.5%21.3%21.0%Segment Adjusted EBITDA margin22.4%27.6%21.3%21.3%(1)The company incurred severance and related charges of $0.3 million, due to a reduction in workforce, during the nine months ended June 30, 2025.(2)The company recorded costs related to a recall of food-grade salt produced at its Goderich plant. Charges for the three and nine months ended June 30, 2025, were $0.2 million and $2.0 million, respectively.Plant Nutrition Segment Performance (unaudited, dollars in millions, except for sales volumes and prices per short ton)Three Months Ended June 30,Nine Months Ended June 30,2026202520262025Sales$37.6$44.8$165.4$164.5Operating income$7.8$5.2$20.8$0.3Operating margin20.7%11.6%12.6%0.2%Adjusted operating income(1)$7.8$5.2$20.8$0.3Adjusted operating margin(1)20.7%11.6%12.6%0.2%EBITDA(1)$15.0$11.4$44.7$21.4EBITDA(1) margin39.9%25.4%27.0%13.0%Adjusted EBITDA(1)$15.0$11.4$44.7$21.4Adjusted EBITDA(1) margin39.9%25.4%27.0%13.0%Sales volumes (in thousands of tons)5568240263Average price (per ton)$687.05$658.79$688.78$625.28(1)Non-GAAP financial measure. Reconciliations follow in these tables.Reconciliation for Plant Nutrition Segment Adjusted Operating Income (unaudited, in millions)Three Months Ended June 30,Nine Months Ended June 30,2026202520262025Reported GAAP segment operating income$7.8$5.2$20.8$0.3Segment adjusted operating income$7.8$5.2$20.8$0.3Segment sales37.644.8165.4164.5Segment operating margin20.7%11.6%12.6%0.2%Segment adjusted operating margin20.7%11.6%12.6%0.2%Reconciliation for Plant Nutrition Segment EBITDA and Adjusted EBITDA (unaudited, in millions)Three Months Ended June 30,Nine Months Ended June 30,2026202520262025Reported GAAP segment operating income$7.8$5.2$20.8$0.3Depreciation, depletion and amortization7.26.223.921.1Segment EBITDA$15.0$11.4$44.7$21.4Segment Adjusted EBITDA$15.0$11.4$44.7$21.4Segment sales37.644.8165.4164.5Segment EBITDA margin39.9%25.4%27.0%13.0%Segment Adjusted EBITDA margin39.9%25.4%27.0%13.0%Reconciliation of Net Debt (unaudited, in millions)June 30,20262025Current portion of long-term debt$—$—Long-term debt, net of current portion716.6825.3Total Debt716.6825.3Less: Cash and cash equivalents(56.3)(79.4)Net Debt$660.3$745.9Reconciliation of Net Leverage Ratio (unaudited, in millions)Twelve Months Ended June 30,20262025Net Debt (as of period end)$660.3$745.9Divided by: LTM Adjusted EBITDA(1)233.2172.8Net Leverage Ratio2.84.3(1)See Reconciliation for June 30, 2026 LTM Adjusted EBITDA and Reconciliation for June 30, 2025 LTM Adjusted EBITDA in the tables below.Reconciliation for June 30, 2026 LTM Adjusted EBITDA (unaudited, in millions)Add: Current YearLess: Prior YearAdd: Prior Fiscal YearLTM Adjusted EBITDANine Months Ended June 30, 2026Nine Months Ended June 30, 2025Twelve Months Ended September 30, 2025Twelve Months Ended June 30, 2026Net income (loss)$25.6$(72.6)$(79.8)$18.4Interest expense50.651.268.567.9Income tax expense20.222.926.123.4Depreciation, depletion and amortization80.276.5103.2106.9EBITDA176.678.0118.0216.6Adjustments to EBITDA:Stock-based compensation – non-cash7.97.310.210.8Interest income(1.4)(0.9)(1.3)(1.8)(Gain) loss on foreign exchange, net(7.5)3.1(0.1)(10.7)Loss on sale of business, net(1)14.5——14.5Loss on extinguishment of debt(2)0.57.67.60.5Product recall costs(3)—2.12.1—Restructuring charges(4)—4.34.3—Loss on impairments(5)—53.753.7—Other expense, net(6)1.02.04.33.3Adjusted EBITDA$191.6$157.2$198.8$233.2(1)For the nine months ended June 30, 2026, the company recorded a loss on sale of the Wynyard business of $14.5 million, which included a $13.1 million recognition of cumulative foreign currency translation adjustments reclassified from Accumulated other comprehensive loss.(2)For the nine months ended June 30, 2026, the company recorded a $0.5 million loss on extinguishment of debt related to the write-off of deferred financing costs from the redemption of the 2027 Notes. For both the nine months ended June 30, 2025 and the twelve months ended September 30, 2025, the company recorded a $7.6 million loss on extinguishment of debt, comprised of a $3.9 million prepayment premium related to the partial redemption of the 2027 Notes and a $3.7 million write-off of unamortized deferred financing costs related to the partial redemption of 2027 Notes and repayment of the term loans.(3)The company recorded costs related to a recall of food-grade salt produced at its Goderich plant. Charges for both the nine months ended June 30, 2025 and the twelve months ended September 30, 2025 were $2.1 million.(4)The company incurred severance and related charges of $4.3 million, due to a reduction in workforce, changes to executive leadership and additional restructuring costs related to the exit of the Fortress fire retardant business, for both the nine months ended June 30, 2025 and the twelve months ended September 30, 2025.(5)For both the nine months ended June 30, 2025 and the twelve months ended September 30, 2025, the company recorded a loss on impairments of $53.7 million, related to intangible and long-lived assets due to the exit of the Fortress fire retardant business.(6)Other expense primarily consisted of fees paid and the write-off of previously capitalized deferred financing costs related to the modification of the company’s Credit Agreement for the nine months ended June 30, 2025 and the twelve months ended September 30, 2025, respectively.Reconciliation for June 30, 2025 LTM Adjusted EBITDA (unaudited, in millions)Add: Current YearLess: Prior YearAdd: Prior Fiscal YearLTM Adjusted EBITDANine Months Ended June 30, 2025Nine Months Ended June 30, 2024Twelve Months Ended September 30, 2024Twelve Months Ended June 30, 2025Net loss$(72.6)$(157.8)$(206.1)$(120.9)Interest expense51.250.469.570.3Income tax expense22.920.417.920.4Depreciation, depletion and amortization76.578.4105.0103.1EBITDA78.0(8.6)(13.7)72.9Adjustments to EBITDA:Stock-based compensation – non-cash7.36.38.19.1Interest income(0.9)(0.8)(1.0)(1.1)Loss (gain) on foreign exchange, net3.1(1.1)0.74.9Loss on extinguishment of debt(1)7.6——7.6Product recall costs(2)2.1—0.82.9Restructuring charges(3)4.317.215.82.9Loss on impairments(4)53.7175.8193.471.3Other expense, net(5)2.01.92.22.3Adjusted EBITDA$157.2$190.7$206.3$172.8(1)For the nine months ended June 30, 2025, the company recorded a $7.6 million loss on extinguishment of debt, comprised of a $3.9 million prepayment premium related to the partial redemption of the 2027 Notes and a $3.7 million write-off of unamortized deferred financing costs related to the partial redemption of 2027 Notes and repayment of the term loans.(2)The company recorded costs related to a recall of food-grade salt produced at its Goderich plant. Charges for the nine months ended June 30, 2025 and the twelve months ended September 30, 2024 were $2.1 million and $0.8 million, respectively.(3)The company incurred severance and related charges of $4.3 million, due to a reduction in workforce, changes to executive leadership and additional restructuring costs related to the exit of the Fortress fire retardant business, during the nine months ended June 30, 2025. For the nine months ended June 30, 2024 and the twelve months ended September 30, 2024, the company incurred severance and related charges due to the reduction in workforce, changes to executive leadership and additional restructuring costs related to the termination of the company’s lithium development project of $17.2 million and $15.8 million, respectively.(4)For the nine months ended June 30, 2025, the company recorded loss on impairments of $53.7 million, related to intangible and long-lived assets due to the exit of the Fortress fire retardant business. For the nine months ended June 30, 2024 and the twelve months ended September 30, 2024, the company recorded loss on impairments of $175.8 million and $193.4 million, respectively, related to the termination of the lithium development project, Fortress goodwill, intangible assets, and Plant Nutrition goodwill and water rights.(5)Other expense primarily consisted of the write-off of previously capitalized deferred financing costs related to the modification of the company’s Credit Agreement for the nine months ended June 30, 2025. For the nine months ended June 30, 2024 and the twelve months ended September 30, 2024, other expense primarily consisted of expense related to natural gas hedges.COMPASS MINERALS INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in millions, except share and per-share data)Three Months Ended June 30,Nine Months Ended June 30,2026202520262025Sales$215.3$214.6$1,064.6$1,016.4Shipping and handling cost64.056.7314.1288.7Product cost113.4116.7566.4575.4Gross profit37.941.2184.1152.3Selling, general and administrative expenses27.024.080.686.9Loss on impairments—0.7—53.7Other operating expense (income)—0.6—(1.6)Operating income10.915.9103.513.3Other expense (income):Interest income(0.5)(0.3)(1.4)(0.9)Interest expense14.616.350.651.2(Gain) loss on foreign exchange(4.0)8.4(7.5)3.1(Gain) loss on sale of business, net(0.1)—14.5—Loss on extinguishment of debt—7.60.57.6Other expense (income), net0.2(2.5)1.02.0Income (loss) before income taxes0.7(13.6)45.8(49.7)Income tax expense6.43.420.222.9Net (loss) income$(5.7)$(17.0)$25.6$(72.6)Basic net (loss) income per common share$(0.13)$(0.41)$0.60$(1.74)Diluted net (loss) income per common share$(0.13)$(0.41)$0.59$(1.74)Weighted-average common shares outstanding (in thousands):Basic42,24641,85942,15341,738Diluted42,24641,85942,51241,738COMPASS MINERALS INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions)(Unaudited)June 30,September 30,20262025ASSETSCurrent assets:Cash and cash equivalents$56.3$59.7Receivables, net149.9179.6Inventories, net257.2312.0Other current assets35.720.9Total current assets499.1572.2Property, plant and equipment, net747.1770.1Intangible assets, net4.023.8Goodwill6.06.0Other noncurrent assets97.3147.3Total assets$1,353.5$1,519.4LIABILITIES AND STOCKHOLDERS’ EQUITYCurrent liabilities:Accounts payable$92.4$96.0Accrued salaries and wages23.926.4Current portion of finance lease liabilities5.67.9Income taxes payable—5.6Accrued interest26.419.0Accrued expenses and other current liabilities99.6110.7Total current liabilities247.9265.6Long-term debt, net of current portion716.6832.2Finance lease liabilities, net of current portion5.97.6Deferred income taxes, net50.953.9Other noncurrent liabilities68.7126.0Commitments and contingenciesStockholders’ equity:Common stock0.40.4Additional paid-in capital428.7430.0Treasury stock, at cost(3.6)(10.8)Accumulated deficit(52.0)(77.6)Accumulated other comprehensive loss(110.0)(107.9)Total stockholders’ equity263.5234.1Total liabilities and stockholders’ equity$1,353.5$1,519.4COMPASS MINERALS INTERNATIONAL, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited, in millions)Nine Months Ended June 30,20262025Cash flows from operating activities:Net income (loss)$25.6$(72.6)Adjustments to reconcile net income (loss) to net cash flows provided by operating activities:Depreciation, depletion and amortization80.276.5Amortization of deferred financing costs3.13.5Non-cash portion of stock-based compensation7.97.3Deferred income taxes(3.0)(0.5)Unrealized foreign exchange (gain) loss, net(8.4)1.0Loss on impairments—53.7Net gain from remeasurement of contingent consideration—(7.9)Loss on extinguishment of debt0.57.6Loss on sale of business, net14.5—Gain on sale of Fortress assets—(2.4)Other, net2.01.3Changes in operating assets and liabilities:Receivables26.614.2Inventories40.1138.0Other assets33.21.4Accounts payable and accrued expenses and other current liabilities(2.0)(27.4)Other liabilities(57.5)10.9Net cash provided by operating activities162.8204.6Cash flows from investing activities:Capital expenditures(62.1)(53.8)Proceeds from sale of business, net of cash and transaction costs23.3—Proceeds from sale of Fortress assets, net of transaction costs—19.6Other, net(1.0)(0.5)Net cash used in investing activities(39.8)(34.7)Cash flows from financing activities:Borrowings under revolving credit facility152.0244.3Repayments under revolving credit facility(117.0)(434.4)Proceeds from issuance of long-term debt58.862.1Principal payments on long-term debt(211.6)(255.1)Proceeds from 2030 Notes—650.0Repurchase of 2027 Notes—(350.0)Premium paid to extinguish 2027 Notes—(3.9)Payments of deferred financing costs(0.4)(15.5)Shares withheld to satisfy employee tax obligations(2.0)(1.3)Other, net(6.9)(7.7)Net cash used in financing activities(127.1)(111.5)Effect of exchange rate changes on cash and cash equivalents0.70.8Net change in cash and cash equivalents(3.4)59.2Cash and cash equivalents, beginning of the year59.720.2Cash and cash equivalents, end of period$56.3$79.4COMPASS MINERALS INTERNATIONAL, INC. SEGMENT INFORMATION (unaudited, in millions)Three Months Ended June 30, 2026SaltPlant NutritionCorporate & Other(1)TotalSales to external customers(2)$173.9$37.6$3.8$215.3Intersegment sales—3.4(3.4)—Shipping and handling cost58.85.2—64.0Product cost87.523.52.4113.4Gross profit27.68.91.437.9Selling, general and administrative expenses6.41.119.527.0Operating income (loss)21.27.8(18.1)10.9Other Segment Disclosures:Depreciation, depletion and amortization17.77.20.725.6Gain on sale of business, net(3)—(0.1)—(0.1)Capital expenditures15.53.91.721.1Total assets (as of end of period)894.7326.7132.11,353.5Three Months Ended June 30, 2025SaltPlant NutritionCorporate & Other(1)TotalSales to external customers(2)$166.0$44.8$3.8$214.6Intersegment sales—3.2(3.2)—Shipping and handling cost50.06.7—56.7Product cost81.632.42.7116.7Gross profit34.45.71.141.2Selling, general and administrative expenses6.20.517.324.0Loss on impairments(4)——0.70.7Other operating expense0.1—0.50.6Operating income (loss)(5)(6)28.15.2(17.4)15.9Other Segment Disclosures:Depreciation, depletion and amortization17.56.2(0.5)23.2Capital expenditures14.62.90.518.0Total assets (as of end of period)1,032.1354.0151.31,537.4Nine Months Ended June 30, 2026SaltPlant NutritionCorporate & Other(1)TotalSales to external customers(2)$888.0$165.4$11.2$1,064.6Intersegment sales—6.4(6.4)—Shipping and handling cost291.322.8—314.1Product cost440.6118.57.3566.4Gross profit156.124.13.9184.1Selling, general and administrative expenses20.63.356.780.6Operating income (loss)135.520.8(52.8)103.5Other Segment Disclosure:Depreciation, depletion and amortization53.823.92.580.2Loss on sale of business, net(3)—14.5—14.5Capital expenditures46.513.12.562.1Nine Months Ended June 30, 2025SaltPlant NutritionCorporate & Other(1)TotalSales to external customers(2)$840.9$164.5$11.0$1,016.4Intersegment sales—8.7(8.7)—Shipping and handling cost263.225.5—288.7Product cost430.0135.410.0575.4Gross profit147.73.61.0152.3Selling, general and administrative expenses22.73.360.986.9Loss on impairments(4)——53.753.7Other operating expense (income)0.6—(2.2)(1.6)Operating income (loss)(5)(6)124.40.3(111.4)13.3Other Segment Disclosure:Depreciation, depletion and amortization52.421.13.076.5Capital expenditures42.19.12.653.8(1)Corporate and other includes corporate entities, records management operations, the Fortress fire retardant costs, and other incidental operations and eliminations. Operating income (loss) for corporate and other includes indirect corporate overhead, including costs for general corporate governance and oversight, as well as costs for human resources, information technology, legal and finance functions.(2)Sales to external customers are net of intersegment sales.(3)For the three months ended June 30, 2026, the company recorded a gain of $0.1 million related to transaction cost adjustments in connection with the sale of the Wynyard SOP business. For the nine months ended June 30, 2026, the Company recorded a loss on sale of the Wynyard SOP business of $14.5 million, which included a $13.1 million recognition of cumulative foreign currency translation adjustments reclassified from Accumulated other comprehensive loss.(4)For the three and nine months ended June 30, 2025, the company recorded a loss on impairments of $0.7 million and $53.7 million, respectively, related to intangible and long-lived assets due to the exit of the Fortress fire retardant business.(5)The company recorded costs related to a recall of food-grade salt produced at its Goderich plant. Charges for the three and nine months ended June 30, 2025, were $0.2 million and $2.0 million, respectively.(6)For the three and nine months ended June 30, 2025, the company incurred severance and related charges of $0.3 million and $4.3 million, respectively, due to a reduction in workforce, changes to executive leadership and additional restructuring costs related to the exit of the Fortress fire retardant business.View source version on businesswire.com: Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.