Compass Minerals International Stock Earnings Reports

Compass Minerals reported a markedly better Q2 after a weak Q1 driven by more normal winter weather and execution of its ‘Back-to-Basic’ strategy. Management significantly reduced North American highway de-icing inventories (value down ~47% YoY; volumes down ~59% YoY), unlocking roughly $145 million of working capital and enabling a >$170 million sequential reduction in total debt. Q2 consolidated revenue was $495 million and adjusted EBITDA was $84.1 million (modified adjusted EBITDA $76.2 million). Salt revenue improved to $433 million with volumes up ~47% but pricing down ~5% and per-ton margins compressed (operating earnings per ton $13.10, down ~31%). Plant Nutrition revenue rose 16% YoY. Management raised FY adjusted EBITDA guidance (midpoint now $188 million, which includes an ~$8 million one-time gain) and maintained capex guidance of $75–$85 million. Key operational actions: curtailed production at Goderich last year to draw down inventories, are ramping production back up as tariff uncertainty eased (USMCA-eligible products exempt), initiated >10% corporate headcount reduction, and began winding down the Fortress North America business to simplify operations and accelerate deleveraging. Management expects a more constructive upcoming highway de-icing bid season (potential for stronger pricing and volume commitments) and continues to prioritize cost control, inventory/working-capital management, and free cash flow generation. Longer-term work to lower SOP (sulfate of potash) production costs is underway (pond restoration, dryer/compaction capital project, operational improvements at Ogden). Liquidity at quarter end was ~$329 million (cash $51 million, revolver ~ $279 million).