CMP

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 9:30 a.m. ET Investor Relations - Tripp Sullivan President and CEO - Edward Dowling CFO - Peter Fjellman Chief Commercial Officer - Ben Nichols Operator: Thank you for joining us and welcome to Compass Minerals Fiscal Third Quarter 2026 Earnings Conference Call. [Operator Instructions] I will now hand the conference over to Tripp Sullivan, Investor Relations. Please go ahead. Tripp Sullivan: Thank you, operator. Good morning and welcome to the Compass Minerals Fiscal Third Quarter 2026 Earnings Conference Call. Today, we will discuss our most recent quarterly results. We will begin with prepared remarks from our President and CEO, Edward Dowling, and our CFO, Peter Fjellman. Joining in for the question-and-answer portion of the call will be Ben Nichols, our Chief Commercial Officer. Before we get started, I will remind everyone that the remarks we make today reflect financial and operational outlooks as of today's date, August 6, 2026. Outlooks entail assumptions and expectations that involve risks and uncertainties that could cause the company's actual results to differ materially. A discussion of these risks can be found on our SEC filings located online at investors.compassminerals.com. Our remarks today also include certain non-GAAP financial measures. You can find reconciliations of these items in our earnings release or in our presentation, both of which are also available online. And with that, I'll now turn the call over to Ed. Edward Dowling: Thank you, Tripp. Good morning, everyone. I'll start with the Plant Nutrition business because it's earned the lead. At Ogden, we produced segment-adjusted EBITDA of $15 million in the quarter on improved pricing and lower per-unit costs. We again raise our full year guidance for this business. Operational improvements we put in place 2 years ago are compounding. Team who was determined to restore the business to the $40 million to $50 million adjusted EBITDA range per year and have now exceeded that level. We continue to invest in Ogden with the dryer project underway that we expect to complete by the end of next fiscal year. That investment will allow us to improve product yield, further improve production volume and cost profile of this operation, as well as finished good product quality We're excited about the continued momentum at our Ogden site, solidifying our position as the leading North American producer of sulfate of potash. In our salt business, the commercial story is strong. We realized meaningful price gains in the highway de-icing during the quarter and beginning to see a constructive pricing environment in our C&I product line as well. These are encouraging and I want to put them into context. When comparing the salt costs in our P&L between periods, there are a number of factors that must be considered, including production costs, logistic costs, regional and product mix. As a winter unfolds, where we sell our products, where they are produced, how it is shipped to the customer and our production costs all have various levels of impact, particularly in a season like this past one where inventory levels became very tight. Production tons at our mine are up year over year. That's a positive. But costs, while lower than last year as original guidance had anticipated, have not come down the way we expected. And I want to address that directly. There are three factors driving higher than anticipated production costs. First, despite the above, we're not hoisting enough tons out of Goderich at the cost we had planned. Second, we have increased our maintenance spending at both U.S. mines to improve operational uptime and stability, which has been guided by the implementation of a preventative maintenance system. Lastly, we've increased the headcount to maximize every opportunity to produce more tons out of the mines. In terms of logistics, our total cost metric was burdened by global fuel costs and increased rates due to tightening of truck capacity. We have three accelerator teams working at Goderich focused on specific operational improvements. We're working on improving our cut times and rates, and investing in training required to sustain those improvements as well as overall mine design and sequencing. Our maintenance program is delivering results, focused on quicker turnarounds and improved equipment availability. Let me be direct about the trade-off that we're making. We're spending incremental dollars on labor and maintenance in the current period cost for longer term operational stability, production volumes, and profitability. This is the right decision for the business, but also means that our cost metrics have not yet reflected the efficiency gains we're targeting. In addition, we have other accelerator teams working on logistics and enterprise-wide improvements, including network optimization, procurement efficiency, contract management. All of these are focused on sustainable cost improvement and risk mitigation. As we think about the future of the company and the sustainable improvement, we have made an operational leadership change. Patrick Merrin is no longer with the company, and I'd like to thank Pat for his service and wish him the best. Brandon Risner Has been promoted to Chief Operating Officer. He's led impressive operational improvements in our Plant Nutrition segment, and in the operational leadership of our C&I product line. Combination of prior mining experience and a track record of leading positive outcomes make him a natural fit to lead our operations. Turning to the bid season, the '26-'27 highway de-icing bid season has been very constructive. In our core U.S. markets, we're seeing substantial price improvement year over year, in some cases well into the double digits. With consistent growth in demand tenders. North American highway de-icing markets remain structurally tight. Inventories across the industry are low following the past winter, and it is supporting both pricing and tender sizes. As we look forward into fiscal 2027, let me give a sense of what we are thinking about volume. The 2025-'26 winter season trended ahead of seasonal averages with snowfall events in our key markets higher than the recent past. That strong demand, coupled with our disciplined approach to working capital and the current production constraints at Goderich has left us and the industry with historically low inventories across the system. Given those realities, along with an assumption of more normalized winter weather, we expect to commit to a reduced demand profile for fiscal 2027 relative to the past seasons. We will provide tighter guidance when we report fourth quarter results. But pricing gains we have secured for the business, combined with continued focus on production increases, and cost per ton improvement should position us to improve our per unit margins headed into next year. Let me address tariffs briefly. As you're aware, tariffs on Canadian goods shipped to the United States are set to take effect on August 19th. A large majority of the gross annualized exposure relates to the highway de-icing salt shipped from our Goderich mine into the United States. Through proactive measures within our commercial agreements, including pass-through provisions that are now standard in several of our key contracts, we believe we meaningfully reduce our exposure to those risks. The situation remains fluid and we're closely monitoring it. We believe that we're in a stronger position to manage this than a year ago, given our proactive measures, constructive pricing environment, and our improved balance sheet. In addition to potential impact to tariffs, we're closely monitoring the variability within the fuel market, which is incorporated into our 2026 guidance. We expect to provide clear understanding of the anticipated fuel impact and sensitivity within our detailed 2027 guidance when we report Q4, but we wanted to note our current focus on mitigation efforts moving into next year. On capital projects, as part of our ongoing investment in the future of Goderich, we have been planning to construct the new mill. Given the complexity of executing a project of this scale within an operating underground mine, we're taking additional time to evaluate the engineering, sequencing, and timing as well as establishing appropriate project governance. We cannot afford disruption to the production during a period where we're focused on improving output and rebuilding inventory. We expect to provide more detailed update on the project timeline early next year. I'd like to take a quick moment to clarify some news that was issued earlier in the quarter about a potential Utah lithium project. To be clear, we have no plans to get back into the lithium market. The announcement with EnergyX was a non-binding MOU where we're evaluating leasing them land and brine used in our Utah operations. We have no capital commitment or operational expenses. Nothing in these negotiations has been finalized. Turning to the balance sheet, net leverage has declined to 2.8x from 4.3x a year ago. Total net debt is down 13% year over year. A recent credit upgrade from S&P is a direct reflection of the work we've done to reduce debt and strengthen the business. I know there are questions about how we plan to allocate capital going forward, and I want to signal how we're thinking about it. Our near-term priorities are clear. Investment in our assets, continued debt reduction where it makes sense, as our balance sheet strengthens and our operations stabilize, the opportunity to consider other uses of capital become more real. The Board is engaged in this discussion and we expect to share more on this topic when we report full-year results. Before I hand it over to Peter, let me step back for a moment. Two years ago, we laid out a back-to-basics framework on what we're going to improve this company. At Ogden, the process of delivering the results then speaks for themselves. In Salt, commercial execution is strong. The market is constructive. The balance sheet is in a very different position than it was even a year ago. Work in our mining operations is taking longer than planned, and we are being direct about that. The process is the same. The team is engaged. The work will continue. We are really excited about the future of this business and organic opportunities this work has created. Peter Fjellman: Thanks, Ed. Good morning, everyone. I'll walk through our third quarter results and the updated outlook. All comparisons are to the prior year quarter unless otherwise noted. For the third quarter, total company adjusted EBITDA was $39.9 million compared with $41 million in the prior year. We reported a net loss of $5.7 million compared to a net loss of $7.7 million in the prior year. $17 million in the prior year. In Salt, third quarter revenue increased 5% year over year to $173.9 million. Segment pricing was up 9% overall, and highway pricing was up 8%, and C&I pricing was up 6%. Highway sales volumes declined 6% while C&I volumes increased 3%. Salt adjusted EBITDA was $38.9 million for the quarter, down 15%, and operating earnings decreased 25% to $21.2 million. The decline reflects lower highway sales volumes and higher per-unit production and distribution costs within the segment, partially offset by the pricing gains. In Plant 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 volumes attributable to the Wynyard SOP asset sale in March 2026, partially offset by 4% increase in an average sales prices, excluding the impacts of the Wynyard sales volumes increased approximately 4% year over year. Despite the sale, operating earnings were $7.8 million, up 50% from $5.2 million a year ago. Adjusted EBITDA improved 32% to $15 million from $11.4 million. Both product costs and distribution costs declined on a per-unit basis year-over-year, driving the margin expansion at Ogden that Ed described earlier. Turning to cash flow in the balance sheet, operating cash flow for the first 9 months was $162.8 million compared to $204.6 million in the prior year period. Capital expenditures for 9 months totaled $62.1 million compared to the $53.8 million in the prior year, reflecting planned investments across our operations. Total debt as of June 30th was $716.6 million, down from $825.3 million a year ago. Net debt was $660.3 million, a reduction of $85.6 million year over year. The total liquidity was $328.1 million consisting of $56.3 million in cash and $271.8 million of availability under our revolving credit facility. As Ed noted, our net leverage ratio improved to 2.8x from 4.3x a year ago. Now let me walk you through our updated fiscal 2026 outlook. We are raising our full-year consolidated adjusted EBITDA guidance midpoint to $230 million, with a range of $218 million to $242 million. Plant Nutrition we're raising segment-adjusted EBITDA guidance to a range of $49 million to $57 million, up from $43 million to $47 million previously. Primarily reflecting the continuous strength in our pricing and cost performance at Ogden. In Salt, our current adjusted EBITDA guidance range is $225 million to $236 million. Narrowed from $225 million to $240 million previously to reflect the mix dynamics, inflationary pressures and the pace of operational improvements that Ed previously discussed. Our expectations for corporate and other costs remain unchanged in the range of $51 million to $56 million for the full year, along with full-year capital expenditures in the range of $90 million to $110 million. In closing, I'd like to note that we are in a stronger financial position and Plant Nutrition is outperforming our expectations. Salt pricing and demand remain very constructive, and we are laser focused on converting operational work at Goderich into sustainable cost improvement across the platform. We're also continuing to deploy capital with discipline, including reducing leverage where it makes sense. That concludes our prepared remarks. Operator, we're ready to take some questions. Operator: Thank you. [Operator Instructions] Your first question comes from the line of Joel Jackson with BMO Capital Markets. Your line is open. Please go ahead. Joel Jackson: Just talking about your guidance around bid season early in '27 here. When you think about how well salt bid season's going -- Rock salt bid seasons going here, does that imply when you think about your entire business, maybe high single digit price growth next year, maybe mid to high? It seems like you're saying that volumes might be a little bit lower if you get normalized weather, what you're actually going to sell. And then what are costs looking like in '27? Should we see costs up a little? It's really speaking about more net back expansion, so we think about price versus cost things. Edward Dowling: Good morning, Joel. Nice to hear your voice when you're unmuted. Appreciate the question. The bid season has been really great, really based on the previous winter and really the inventory management and discipline that's been established in the market. Most of the bids of course are transparent. And we see a wide range of outcomes depending on where you are. Our focus has really been to really dive in and really try to serve those markets who we maximize our margin with and not trying to serve everything everywhere, albeit we do try to spread it out just because you never know exactly where winter is going to be. You know, it'd be safe to say overall, you know, we're kind of around double digits in price increase. Okay, with regard to looking at cost, etc. going forward, this is an important point. We're working really hard on our mine costs. You know, we've got this fantastic mine, Goderich mine, the world's largest underground salt mine. And, you know, the cost production is up, costs are down, these are unit costs are down. On the logistics side, we're battling fuel and truck carrier a bit, but we're laser-focused on this. We'll provide guidance in the fourth quarter. Joel Jackson: Okay. It seemed like in your prepared remarks you were speaking about you would expect with normal weather that '27 volumes could be lower based on the reasons you gave. There's been a lot of churn at the CEO level at Compass the last number of years. You have a lot of objectives that you came in with, right? Lower costs, you had a lot of things to do, working capital management, inventory management, things weren't great when you took over a few years ago. And you've got some aggressive targets on cost. But like I said, you've had a lot of churn at the COO level and you're talking about delaying some of the decisions on the mill project, not getting the cost as fast as you wanted. I can't help but think it's all tied together. Can you sort of speak about your journey here and what has to get done to achieve what you wanna do? Edward Dowling: Yes, look, appreciate the question. The you know, we're first of all, let me just say we're very grateful for Pat and the service and wish him the best in the future. This is Pat Merrin. But we're really pushing hard and we need to have an organization that's really fit for purpose. And we're really focused on our costs. Brandon Risner, I don't know whether you've had a chance to meet him yet, but we'll make sure you do. But Brandon, has been leading the efforts with Plant Nutrition, which is a fantastic story for the company. In addition, he's been our operational leader in our C&I product line. Also done a really good job in increasing the earnings from that part of our business. Just even before he brings a history of success, whether it was in Compass, he's the guy that started really the way we look at capital allocation for capital investment, project capital investment. And even before that with Peabody, it's a great track record of operational improvements. That's what we need right now. And so, you know, as much as I like Pat, you know, the needs of the company are more important than any individual. So that's what we're doing. With regard to the project, it'd be one thing if we're building this mill in a parking lot and it'd be pretty easy. But given the fact that we're doing this in an operating underground mine, and with all materials, everything coming down the same shaft as our operating people and our operating materials, it's very complex. And so we need to make sure that we have a very high degree of front-end loading in terms of our engineering, our project execution plan, all of the logistics that go around that. We have a rock solid owner's team. We really need to put this all in place before I'm ready to take it to the board of directors. Okay. I think I hit your points, Joel. Operator: [Operator Instructions] We'll now go to David Silver of Freedom Capital Markets. Your line is open. Please go ahead. David Silver: Questions here maybe let's just start with the progress at Plant Nutrition. So, you know, first of all, I mean, congratulations. I mean, there's especially most recently there's been a significant kind of step down in, I mean, cash costs, I'll call it. But, you know, to achieve those, I had a couple of questions. To what extent is the plan there to just rely on pond-based tons and how much of maybe the bottom line progress to date has been, you know, from supplementing with purchased potash? And then maybe bigger picture, again, my models go back, you know, more than a decade here. But is the progress to date maybe would you say it reflects kind of getting back to the operating environment that was in effect let's say in the late 2010s or very early 2020s or you know is there something qualitatively different being done to kind of significantly boost the per ton economics -- production economics. Edward Dowling: Okay. David, thanks. Great question. Look, it's been a fantastic story for the company in terms of the restoration of that business to where it really should be. And recognize that before when we reported Plant Nutrition also included our Wynyard mine up in Canada. These results are without Wynyard. And so it's really a great story for our Utah partners and our colleagues out there in terms of restoring this business. And there's more to go because we're, as you know, we're executing the dryer compaction plant where we lose, we have a lot of yield loss there. We're executing a project there, which will be done about this time next year really make a better product so we'll see additional yield come from that well that'll happen at a lower cost basically it's an incremental cost we either put the product and today you put the product into what we sell or blows away as dust and that's not quite right way to say it but we lose it. But we'll capture that going forward and we'll produce a much higher quality product for our customer base. So the improvement, we expect that to continue to improve at least through, and we should start seeing that, about this time next year. Let's see, in terms of the last part of your question, you know, I wasn't here 10 years ago, but we restored the outcomes to that, but they're all, it's really, the answer to that is, if you've got that back to where it was, the answer to that's yes, but are you doing anything different? The answer to that's yes, too. And it's a way that we, manage our harvest the tons and Brandon, for example, led that. It's the way that we manage that from a stockpile into the plant, really reducing variability in the plant. It's some things that we've done within the plant itself to improve recovery beyond sort of historical level. So it's really a number of things that we've done to make this improvement over and above the success of the company had in the past. David Silver: And then maybe just a comment on the plan to supplement pond-based tons with purchased potash or just ... Edward Dowling: Thanks, David. Yes, we are, thanks for reminding me of that. We are supplementing this year with KCl, and we've never really guided on this, but I think from your thinking, you know, we're going to be doing that. You know, we'll be, our plan is to do about the same amount next year. Okay. Ben Nichols: Yes, David, this is Ben, and just to add to what Ed said, the utilization of MOP in our process is always going to be a part of what we do. I think to Ed's point, what we're doing differently is we better understand the leading indicators on the chemistry of the pond. And so our ability to flex that utilization and that cost profile is much tighter than it has been. Historically, and so that's, you know, hence the confidence in where we're headed. David Silver: Okay, great. I'd like to ask you, I guess, maybe more of a, I don't know, philosophical question about the bid season results to date. But, you know, I always assume that, you know, your company probably has pretty much, you know, encyclopedic knowledge of, you know, your marketing areas and bid histories and, you know, competitor tendencies and things like that. And, you know, based on the, you know, mostly qualitative, you know, discussion thus far, I mean, it seems like, you know, you've identified some pockets where either volume or price or both, you know, can be pushed a little more and further last point my assumption is that to a certain extent you are responding to what you see, you know, in the bid season results to date. In other words, competitor behavior. So, for the balance of the bid season, you know, which should be mostly done, I guess, next, by September. You know, is this the case where, you know, you'll be able to bid a little more aggressively for the balance of the season? Or are you maybe altering or what's the word, structuring your bidding profile, both tons and price, based on your mining plan? In other words, what's going into your kind of virtual or in-season kind of bidding strategy? Edward Dowling: Okay, let me try to field that and I'll have Ben help me out as well. We do have a deep understanding of our markets and really the distribution network really looking at our focus in terms of our every year we come up with a bid strategy. Part of our strategy this year was to really maximize the margins, recognize that the market was really tight. Where do we really want to serve that we can maximize our margins? And that's really what we've been doing. So that's sort of, you know, delivered costs, you know, subtracted from the price. That's worked out well. And we'll see what winter does and how we're able to bring that home. As you know, we have the variability due to mix and regional sales. But our focus at this point, we're largely through our big state contracts, albeit there's still some states that are coming back and rebidding areas that they weren't able to fill. There shouldn't be any surprise about that. And largely our focus right now are really our commercial customers, which we should be wrapping up in the next couple of weeks. Ben, you want to add something to that? Ben Nichols: No, yes, thanks, Ed, and David, thanks for the question. I think, you know, going into this bid season, our overwhelming focus was the value of our product in the market, and coming off of a big winter like the last season, we were excited to see the market had a renewed understanding of how important our product is relative to public safety. And so, you know, focus number one was value of every ton that we sell. In addition to that, you know, we've spent a lot of time working with our key customers on our terms and ensuring that the way we operate our business fits the terms that we need specifically around minimum takes and having a higher level of confidence in what we commit and what's going to move through the pipeline. So we're really excited about the results we've seen. The market has a lot of momentum and we're looking forward to the next season. David Silver: Okay, and then one last one, maybe kind of a clarification on how you're thinking about the looming tariffs on Canadian shipments to the U.S. But I don't know, I guess a little over a year ago, there was another round of tariffs that were going to impact cross-border trade, Canada and the U.S. It turned out, I guess, because of the essential nature of the products or other steps that you or others took, those tariffs were kind of negated. They didn't apply to Goderich shipments to the U.S. Is there something qualitatively different about this round of tariffs? You know, in other words, what has to happen for, you know, a repeat, in other words, the cross-border trade from Goderich not being impacted by this latest announced round of tariffs. Edward Dowling: Yes, the real difference from a year ago to today, from the tariff standpoint is the USMCA, the United States-Mexico-Canada Trade Agreement, where certain cross-border materials, et cetera, were exempted from tariffs and things like that. So once that was clarified a year ago, or more than a year ago, a year and a quarter ago, you know, we really just started up the ramp up at Goderich mine. What's also different is recognize that potential exposure. Our commercial team and the company here has been working on how do we minimize the impact on the company if something like that happens again. So, you know, Ben and his team have been really looking at contract terms. He just mentioned in terms of the market, how, you know, we're trying to tighten up min-maxes and those sort of things and having success on that. But really being able to pass through costs like this to customers has really been the focus. And so we understand exposure. We look at, we've looked at ways to mitigate that and you know a big part of that has been mitigated. We continue to work to try to really underscore the message to the government about we have this great amazing asset in Ontario which is critical to interstate commerce, public safety in the United States. And you know, that the market in the United States cannot be served without Goderich mine, fully served without Goderich mine. And that it is a truly essential and critical mineral for our economies. And you know, we're highly engaged in that effort right now. David Silver: Okay, great. And I'm just going to sneak one last one in if that's okay. But this relates to the outlook and guidance for the Salt segment in particular for 2026. And I'll just say for the highway de-icing volumes, you did bump up the low end of your guidance range by 150,000 tons. Should I assume that's all just going to be pre-buy or pre-season shipment increases from your bid season customers or is there some chemical volume in there or something else? You know, kind of unusual for the salt volume -- the highway salt volumes to move up, you know, third quarter to fourth quarter. Just a comment on that, please. Edward Dowling: We don't really talk about that sort of stuff generally, but what we're doing is, remember our warehousing -- many of them were scraped clean last year. You know, been a long time since that's happening. And so we're really, part of the normal course of business here. We're working very hard to re-establish inventories where they need to be to serve the contracts that we've committed to. And so there's really nothing unusual about that in our plan here. Operator: There appear to be no further questions. I will now turn the call back to Ed Dowling for closing remarks. Edward Dowling: Okay, thank you all for joining us and we're excited about the future here at Compass Minerals and we look forward to speaking to you again. You know, when we have a chance to catch up. And we have a number of investor calls coming up. I'm sure we'll be chatting with many of you here over the next couple of days. Thanks very much. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Compass Minerals International, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Compass Minerals International wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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Interested in Compass Minerals International, Inc.? Here are five stocks we like better. Plant Nutrition outperformed: Adjusted EBITDA rose 32% to $15 million, prompting Compass Minerals to raise its fiscal 2026 segment outlook to $49 million–$57 million from $43 million–$47 million. Salt pricing gains were offset by operational pressures: Salt revenue increased 5% as pricing rose 9%, but adjusted EBITDA fell 15% because of lower highway de-icing volumes and higher production and logistics costs. Balance-sheet performance improved: Total debt declined to $716.6 million from $825.3 million a year earlier, while net leverage improved to 2.8 times; the company raised consolidated fiscal 2026 adjusted EBITDA guidance to $218 million–$242 million. Compass Minerals International (NYSE:CMP) reported fiscal third-quarter adjusted EBITDA of $39.9 million, compared with $41 million a year earlier, as stronger pricing in its salt and plant nutrition businesses was offset by lower highway de-icing volumes and higher production and distribution costs in salt. The company posted a net loss of $5.7 million for the quarter, narrowing from a net loss of $17 million in the prior-year period. President and CEO Edward Dowling Jr. said the company’s Plant Nutrition business “earned the lead” during the quarter, while salt pricing and demand conditions remained constructive despite operational cost pressures. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Plant Nutrition adjusted EBITDA increased 32% year over year to $15 million, while operating earnings rose 50% to $7.8 million. Revenue in the segment declined 16% to $37.6 million, primarily due to the March 2026 sale of the Wynyard sulfate of potash asset. Excluding the Wynyard impact, sales volumes increased approximately 4%, according to CFO Peter Fjellman. Average Plant Nutrition selling prices increased 4%, while product and distribution costs declined on a per-unit basis. Dowling attributed the improvement at the Ogden, Utah, operation to operational changes initiated two years ago, including efforts to manage production variability and improve recovery. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High The company raised its fiscal 2026 Plant Nutrition adjusted EBITDA outlook to a range of $49 million to $57 million, from prior guidance of $43 million to $47 million. Compass is also continuing a dryer project at Ogden that it expects to complete by the end of fiscal 2027. The project is intended to improve product yield, production volumes, costs and finished-product quality. During the question-and-answer session, Dowling said Compass is supplementing its pond-based production with purchased potassium chloride, or KCl, and plans to use approximately the same amount next year. Chief Commercial Officer Ben Nichols said the company expects the use of muriate of potash in the process to remain part of its operating model, but said it has improved its ability to manage pond chemistry and related costs. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Salt revenue rose 5% to $173.9 million in the fiscal third quarter. Segment pricing increased 9%, including an 8% increase in highway de-icing pricing and a 6% increase in consumer and industrial, or C&I, pricing. Highway sales volumes declined 6%, while C&I volumes increased 3%. Salt adjusted EBITDA fell 15% to $38.9 million, and operating earnings declined 25% to $21.2 million. Fjellman said the declines reflected lower highway volumes and higher per-unit production and distribution costs, partly offset by pricing gains. Dowling said Compass produced more tons at its Goderich mine year over year, but was not hoisting enough tonnage at the costs it had planned. The company has increased maintenance spending at its U.S. mines and added employees in an effort to increase output and improve operating stability. Its logistics costs were also affected by fuel costs and tighter truck capacity. “We’re spending incremental dollars on labor and maintenance in the current period costs for longer-term operational stability, production volumes, and profitability,” Dowling said. Compass has formed teams focused on improving Goderich mine cut times, production rates, training, mine design and sequencing. It is also pursuing logistics, procurement, contract-management and network-optimization initiatives across the company. Dowling announced that Patrick Merrin had left the company and that Brandon Risner had been promoted to chief operating officer. Dowling said the 2026-2027 highway de-icing bid season has produced substantial year-over-year price increases in core U.S. markets, in some cases in the double digits. In response to an analyst question, he said overall price increases were “around double digits.” Low industry inventories after the prior winter have supported both pricing and tender sizes, management said. However, Compass expects to commit to a reduced mine profile for fiscal 2027 compared with recent seasons, reflecting historically low inventories, Goderich production constraints and an assumption of more normalized winter weather. The company expects to provide more detailed fiscal 2027 guidance with its fourth-quarter results. Its current salt adjusted EBITDA outlook for fiscal 2026 is $225 million to $236 million, narrowed from $225 million to $240 million, reflecting mix considerations, inflationary pressures and the pace of operational improvements. For fiscal 2026, Compass raised the midpoint of its consolidated adjusted EBITDA guidance to $230 million, with a range of $218 million to $242 million. Corporate and other costs are still expected to be $51 million to $56 million, while capital expenditures are projected at $90 million to $110 million. For the first nine months of the fiscal year, operating cash flow totaled $162.8 million, compared with $204.6 million a year earlier. Capital expenditures were $62.1 million, up from $53.8 million. Total debt as of June 30 was $716.6 million, down from $825.3 million a year earlier. Net debt declined $85.6 million to $660.3 million, and net leverage improved to 2.8 times from 4.3 times. Total liquidity was $328.1 million. Compass said it is evaluating the engineering, sequencing, timing and governance of a planned new mill at Goderich before proceeding, citing the complexity of building the project within an operating underground mine. The company expects to provide a more detailed update early next year. Management also said potential tariffs on Canadian goods shipped to the United States, scheduled to take effect Aug. 19, could affect salt volumes from Goderich. Compass said contractual pass-through provisions and other commercial measures have meaningfully reduced its exposure, though it described the situation as fluid. Compass Minerals International, Inc is a global producer of essential mineral-based products, primarily known for its salt and plant nutrition portfolios. The company's deicing salts are used by municipalities and commercial customers across North America to maintain safer roadways in winter months. In addition, its water conditioning salts serve both residential and industrial users, supporting water treatment systems that remove hard minerals to protect plumbing and equipment. Beyond conventional salt products, Compass Minerals has developed a specialty plant nutrition business focused on sulfate of potash (SOP), a premium fertilizer that provides both potassium and sulfur to crops. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Compass Minerals International Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Plant Nutrition segment-adjusted EBITDA exceeded historical targets, driven by operational improvements at the Ogden site that improved pricing and lowered per-unit costs. Salt segment commercial execution remains strong with double-digit price increases in highway de-icing, though production costs at Goderich remain higher than anticipated due to hoisting constraints. Management is intentionally trading off short-term profitability for long-term stability by increasing labor and maintenance spending to improve equipment availability and mine sequencing. A leadership change was implemented, promoting Brandon Risner to COO to apply his successful Plant Nutrition operational framework to the broader mining portfolio. The company is prioritizing network optimization and procurement efficiency through dedicated accelerator teams to mitigate global fuel costs and tightening truck capacity. Strategic inventory management is a primary focus following a winter season that left industry-wide stockpiles at historically low levels. Management expects to commit to a reduced demand profile for fiscal 2027 to rebuild historically low inventories and account for current production constraints at Goderich. The Goderich mill project timeline is being re-evaluated to ensure engineering and project governance are finalized without disrupting current production output. Fiscal 2027 guidance will incorporate specific sensitivities regarding fuel market variability and anticipated logistics mitigation efforts. Capital allocation priorities remain focused on asset investment and debt reduction, with the Board evaluating additional uses of capital as the balance sheet strengthens. The Ogden dryer project is scheduled for completion by the end of fiscal 2027, which is expected to improve product yield, quality, and the overall cost profile. Management clarified that the EnergyX MOU is a non-binding land/brine lease agreement with no capital commitment, reiterating they have no plans to re-enter the lithium market. Proactive pass-through provisions in commercial agreements have been implemented to meaningfully reduce exposure to looming tariffs on Canadian goods shipped to the U.S. Net leverage declined significantly to 2.8x from 4.3x year-over-year, supported by a 13% reduction in total net debt and a recent credit upgrade from S&P. The Wynyard SOP asset sale in March 2026 resulted in a 19% decrease in Plant Nutrition sales volumes, though underlying Ogden volumes grew approximately 4%. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed double-digit price increases in the current bid season due to market discipline and tight inventory levels. While logistics costs face fuel and carrier headwinds, the company is laser-focused on reducing unit production costs through mine-level operational improvements. The COO change was driven by the need for a 'fit for purpose' organization, leveraging Brandon Risner's track record in capital allocation and operational turnarounds. The mill project delay is a strategic choice to avoid production disruptions in a complex underground environment while refining the execution plan. Improvements were driven by reducing variability in pond harvesting and improving plant recovery rates beyond historical levels. The company will continue to supplement pond-based tons with purchased MOP (KCl), using improved chemistry indicators to flex utilization and manage costs. Management emphasized that Goderich is critical to U.S. interstate commerce and public safety, which they are highlighting in government engagement efforts. Contractual protections, including the ability to pass through such costs to customers, are now standard in key agreements to minimize financial impact.

OVERLAND PARK, Kan., August 05, 2026--(BUSINESS WIRE)--Compass Minerals (NYSE: CMP), a leading global provider of essential minerals, today reported fiscal 2026 third-quarter results. Unless 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. MANAGEMENT COMMENTARY "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." QUARTERLY HIGHLIGHTS Net 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; and Mid-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 SALT BUSINESS RECAP 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 RECAP Plant 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 POSITION Net 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. 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 UPGRADE During 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 OUTLOOK Based 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: 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. 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. CONFERENCE CALL 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. About Compass Minerals 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 Disclaimers This 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. Non-GAAP Measures 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. GAAP View source version on businesswire.com: https://www.businesswire.com/news/home/20260805687968/en/ Contacts Investor Contacts SCR Partners, LLCTripp Sullivan+1.615.942.7077John [email protected]

Interested in Compass Minerals International, Inc.? Here are five stocks we like better. Compass Minerals improved profitability in Q2 even as revenue fell 8% to $453 million, with adjusted EBITDA rising 3.3% to $86 million and margin expanding to 19.1%. Management said lower SG&A and better segment margins helped offset weaker highway deicing sales. The Plant Nutrition segment was a standout, with revenue up to $67 million and adjusted EBITDA jumping 202% year over year to $17 million. The company said stronger execution at Ogden and the Wynyard SOP sale simplified the portfolio and improved focus. Compass Minerals made a major debt reduction move by retiring the remaining $150 million of its 2027 notes, cutting net debt to $639 million and lowering leverage to 2.7x. It also raised full-year Plant Nutrition EBITDA guidance, lowered Salt guidance slightly, and said the North American deicing market still looks constructive heading into the next bid season. Compass Minerals International (NYSE:CMP) reported improved profitability in its fiscal second quarter despite lower revenue, as management pointed to stronger margins, progress in its Plant Nutrition business and a major debt reduction milestone. On the company’s May 7 earnings call, President and CEO Edward Dowling said Compass Minerals retired the remaining $150 million of its 2027 senior unsecured notes earlier than anticipated, continued operational improvement efforts at its Goderich mine and benefited from a strong winter across much of North America. → Uber's Annual Product Showcase Reveals It Is Coming for Airbnb and Booking “We are making progress, we recognize that we have more work to do,” Dowling said. He added that, compared with the first half of the prior year, both the Salt and Plant Nutrition businesses posted higher revenue, operating margins and EBITDA, while companywide debt and SG&A declined. CFO Peter Fjellman said consolidated second-quarter revenue was $453 million, down $41 million, or 8%, from the prior-year quarter. He attributed the decline primarily to lower Highway Deicing sales in the current quarter. → Wells Fargo’s Comeback Is Real—But Not Risk-Free Adjusted EBITDA rose to $86 million from $84 million a year earlier, an increase of 3.3%. Adjusted EBITDA margin improved to 19.1% from 17.0%, reflecting margin gains in both the Salt and Plant Nutrition segments and lower SG&A expense. For the first half of fiscal 2026, adjusted EBITDA was $152 million, up 32% from $116 million in the first half of the prior year. Adjusted EBITDA margin for the first half improved to 17.9% from 14.5%. → Rocket Lab Posts Record Q1 Revenue, Raises Q2 Guidance “These combined results show that the plan we put in place is working,” Fjellman said. “We are working hard to maximize value, control cost, and manage working capital and inventory.” Compass Minerals’ Salt business generated second-quarter revenue of $383 million, down from $433 million in the prior-year period. Tons sold totaled 4.1 million, a 19% decline that Fjellman said reflected the timing and velocity of winter weather. Operating earnings on a per-ton basis were $15.85, up 21% from $13.10 a year earlier. Fjellman said the improvement reflected price realization, partly offset by higher distribution and product costs. Dowling said Salt production cost per ton rose year over year due to several factors, including regional weather activity, product mix and the pace of operational improvements. He said production costs within the mines are improving, but the company has not yet achieved the efficiency gains it expected. Fjellman said the reported cost per ton reflected “geographic mix driven by weather, product mix, and the production cost dynamics at the facility level.” In response to an analyst question, he said higher-cost served markets and mix within the company’s consumer and industrial business contributed to the updated outlook. Management said the company remains focused on “back to basics” operating improvements, including safety, equipment availability, utilization, production and mine planning. Dowling said the company recently completed a new collective bargaining agreement at Goderich, calling it “a fair agreement for everyone” that should support safety, reliability, efficiency and flexibility. Pat Merrin, chief operating officer, said the company has spent the past 18 months improving its relationship with the union at Goderich and said the new agreement reflects a shared goal of seeing the site succeed. He said Compass Minerals is focused on whether equipment is being repaired, whether machines are available and whether they are being used effectively. The Plant Nutrition segment delivered a notably stronger quarter. Revenue rose to $67 million from $58 million in the prior-year quarter. Adjusted EBITDA increased 202% year over year to $17 million, while adjusted EBITDA margin improved to 25.2% from 9.6%. Fjellman noted that the quarter included only a partial contribution from the Wynyard SOP operation before its sale, which closed during the period. Dowling said the divestiture simplified the portfolio and allows the Plant Nutrition business to focus on the company’s Ogden facility. “The Ogden story continues to be strong,” Fjellman said, citing better operational execution and strong asset utilization. In response to an analyst question, Dowling said the improvement in the SOP business has largely come from better pond management, building salt at the right grade and maintaining sufficient inventory ahead of the wet plant. He said Compass Minerals will continue to supplement with KCl when appropriate and noted that a dryer compaction project expected to be completed later next year should support more capacity, lower costs and better product quality, all else equal. Compass Minerals redeemed the remaining $150 million of its 2027 senior unsecured notes during the quarter using cash on hand. Fjellman said the move extended the company’s maturity profile and reduced balance sheet leverage. The company also renewed its accounts receivable securitization facility on improved terms. At quarter end, total net debt was $639 million, down $119 million from the prior-year second quarter. The company’s leverage ratio was 2.7 times on a trailing 12-month basis, compared with 4.6 times a year earlier. Liquidity was $379 million, consisting of $74 million in cash and about $305 million of revolver capacity. The company updated its full-year adjusted EBITDA guidance to a range of $212 million to $236 million, with a midpoint of $224 million. Fjellman said the company lowered the midpoint of its Salt segment adjusted EBITDA outlook to $233 million from $241 million, reflecting mix and cost factors. Plant Nutrition adjusted EBITDA guidance was raised to $43 million to $47 million, with a $45 million midpoint. Interest expense guidance was reduced to $62 million to $67 million following the debt paydown. Fjellman said guidance for corporate adjusted EBITDA, capital expenditures, depreciation, depletion and amortization, and the effective income tax rate remained unchanged. With the winter season over, Dowling said Compass Minerals is turning its attention to rebuilding inventory and preparing for the next highway deicing bid season. He said the North American highway deicing market remains structurally tight, with low inventories across the system after the winter. Dowling said it is still early in the bid season, but management expects market conditions to be constructive. He emphasized that the company’s focus remains “value over volume” and maximizing value for every ton committed. Ben Nichols, chief commercial officer, said early bid-season data points were positive and supported management’s view that the environment is constructive. He said the industry is “thin on inventories” coming out of the season, all else equal, and that the company expects to provide more detail on the next quarterly call. Dowling closed the call by saying Compass Minerals had a strong quarter but still has work ahead. “The direction is right, strategy’s sound, the team is committed,” he said. Compass Minerals International, Inc is a global producer of essential mineral-based products, primarily known for its salt and plant nutrition portfolios. The company's deicing salts are used by municipalities and commercial customers across North America to maintain safer roadways in winter months. In addition, its water conditioning salts serve both residential and industrial users, supporting water treatment systems that remove hard minerals to protect plumbing and equipment. Beyond conventional salt products, Compass Minerals has developed a specialty plant nutrition business focused on sulfate of potash (SOP), a premium fertilizer that provides both potassium and sulfur to crops. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Compass Minerals International Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Management attributed the 32% year-to-date increase in adjusted EBITDA to the successful deployment of the 'Back to Basics' framework across both core segments. Salt production costs per ton increased year-over-year due to a combination of regional weather-driven sales mix, product mix shifts, and a slower-than-anticipated pace of operational efficiency gains. The Plant Nutrition segment achieved significant margin expansion, reaching 25.2% from 9.6% a year ago, driven by improved asset utilization and better pond management at the Ogden facility. Operational improvements at the Goderich mine are focused on restoring long-term practices, specifically targeting equipment availability, maintenance, and mine planning to offset geological headwinds. The company simplified its portfolio by completing the sale of the Wynyard SOP operation, allowing management to concentrate resources on the higher-performing Ogden asset. A new collective bargaining agreement at Goderich was described as a 'genuine partnership' that provides the operational flexibility needed to improve mine efficiency and safety. Management views the upcoming North American highway deicing bid season as 'constructive' due to structurally tight supply and low system-wide inventories following the recent winter. The commercial strategy for the next season will prioritize 'value over volume,' with a focus on maximizing pricing and margins rather than chasing market share. Full-year Salt segment guidance was moderated to reflect the current pace of operational improvements and the impact of regional product mix on costs. Plant Nutrition outlook was raised based on strong cost performance at Ogden and favorable pricing trends expected to continue through the fiscal year. The company plans to execute a major capital project at Ogden involving a new dryer compaction plant to improve product quality and reduce yield losses by late next year. The company retired the remaining $150 million of its 2027 senior unsecured notes early, significantly reducing interest expense and extending the maturity profile to 2028. Net leverage was reduced to 2.7x from 4.6x in the prior year, marking a major milestone in the company's stated priority of balance sheet strengthening. The Board of Directors was refreshed with four new members bringing specific industrial and manufacturing expertise to support the current phase of corporate development. Management noted that most legacy 'non-business' issues, including legal matters and the Ontario mining tax settlement, are now largely resolved. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management expects unit costs at the mine to decrease as operational improvements take hold, though they are currently battling headwinds from the existing mine plan. The focus remains on fundamental KPIs like machine availability and utilization, which have not yet reached target efficiency levels. The improvement is primarily due to better management of evaporation ponds and harvest-to-production ratios, reducing the reliance on expensive supplemental KCI purchases. Future gains are expected from a dryer compaction plant project that will address current yield losses and high circulating loads. While early, management noted that initial data points are positive and support a thesis of constructive pricing. Inventory levels vary by region; the northern system remains tight, while the West and U.K. have higher inventories due to milder weather. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

OVERLAND PARK, Kan., May 06, 2026--(BUSINESS WIRE)--Compass Minerals (NYSE: CMP), a leading global provider of essential minerals, today reported fiscal 2026 second-quarter results. The company also announced that unionized employees at its Goderich mine have ratified a new three-year collective bargaining agreement. Unless 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. MANAGEMENT COMMENTARY "Consistent with our Back-to-Basics framework, during the quarter we took a significant step in strengthening our balance sheet by retiring the remaining $150 million of senior unsecured notes due in 2027 and removing our nearest debt maturity," said Edward C. Dowling Jr., president and CEO. "We had a strong winter across much of North America, and our Salt platform delivered on a high level of sales commitments while continuing to realize pricing gains. Our Plant Nutrition segment delivered another strong quarter at Ogden, with meaningful year-over-year improvement in cost performance and margins. Total company adjusted EBITDA for the quarter was $86.4 million, bringing us to $151.7 million for the first half of the year and on track to achieve our full-year outlook. We increased our Plant Nutrition guidance to reflect the strong results we continue to see in that operation, including higher expected sales volumes, better pricing and lower costs. We decreased our Salt guidance to reflect the differences in regional and product sales mix relative to forecast. Additionally, while we are seeing improvements in mine-level product costs, we have not yet achieved the level of production and efficiency gains in our mining operations that we had expected earlier in the year. "Goderich mine is important for Compass Minerals, and I am pleased that we reached a new three-year agreement with the represented workforce. We believe we have struck a mutually beneficial arrangement that allows us to continue building upon the safe and reliable operations while allowing us to take steps to improve the mine's efficiency and flexibility. "The hard work being done across the company is beginning to bear fruit. Some of this is manifesting itself currently in our financial results, while other initiatives will take a little more time. We know what we need to do and we are heading in the right direction, but there is more work to be done. We remain focused on reducing debt, improving our operations in all areas of the company, and building long-term value for shareholders." QUARTERLY HIGHLIGHTS Net income of $12.7 million for the second quarter of 2026, compared to a net loss of $32.0 million in the prior year; Total company adjusted EBITDA for the second quarter of 2026 of $86.4 million, up 3% year over year; Operating earnings and adjusted EBITDA margins within the Salt business improved year over year; absolute operating earnings and adjusted EBITDA both declined 3% between comparative periods, driven principally by lower highway deicing sales volume; Continued improvements in pricing and cost structure increased Plant Nutrition segment operating earnings and adjusted EBITDA on both absolute and per-ton bases; Total debt declined 12% year over year to $713.0 million as March 31, 2026, while net debt decreased $119.2 million, or 16%, to $638.9 million over the same period; and Mid-point of full-year 2026 guidance for total company adjusted EBITDA maintained within modified range of $212 million to $236 million, reflecting stronger-than-expected results in the Plant Nutrition segment and adjustments related to changes in sales mix and operational matters in the Salt segment. QUARTERLY FINANCIAL RESULTS SALT BUSINESS RECAP Salt revenue for the second quarter decreased 12% year over year to $382.6 million, as a result of 22% lower sales volumes in highway deicing and flat consumer and industrial (C&I) volumes. Highway deicing sales tons made up 87% of total salt sales for the quarter, compared to 90% of prior year's sales volumes. Salt segment pricing increased 10% year over year, with highway deicing pricing up 10% and C&I sales prices down of 3%, respectively, year over year. Salt segment operating earnings for the quarter decreased by 3% to $65.2 million from the prior-year period. Adjusted EBITDA decreased to $83.2 million, down 3% from the prior-year period. These financial results reflect lower sales volumes between the periods and the pricing dynamics described above, offset by higher per-unit production costs and distribution costs year over year. For the first half of the year, Salt revenue increased 6% year over year to $714.1 million. Highway deicing revenue increased 6% from the comparable prior year period, driven by 8% higher pricing offset by a 2% decrease in sales volumes. C&I revenue for the same period also increased 6%, driven by a 7% increase in sales volumes offset by a 1% decrease in pricing. In the first half of 2026, Salt segment operating earnings for the quarter increased by 19% to $114.3 million compared to the first half of 2025. For the same period, adjusted EBITDA increased 13% to $150.4 million. These results reflect the stronger deicing season experienced in 2025/2026 in the company's served markets, which drove higher sales volumes between the periods, and improved pricing. Stronger sales were partially offset by higher per-unit production costs and distribution costs year over year. The regional mix of sales volumes impacted cost comparability between periods due to different cost structures across the company's production facilities and storage depots. PLANT NUTRITION BUSINESS RECAP Plant Nutrition revenue for the quarter totaled $67.0 million, up 15% year over year on 4% stronger sales volume over the same period. The average segment sales price for the quarter was up 10% year over year to approximately $690 per ton. Operating earnings in the Plant Nutrition segment were $7.6 million for the quarter, compared to an operating loss of $1.8 million in the prior-year quarter. Adjusted EBITDA improved to $16.9 million versus $5.6 million last year. These financial results reflect higher sales volumes and higher average sales prices. Both product costs and distribution costs were down on a per-unit basis year over year. The Company completed the sale of its sulfate of potash (SOP) business in Wynyard, Saskatchewan, Canada, on March 1, 2026, for total consideration of $30.8 million prior to customary closing adjustments, $3.9 million of which was placed in escrow. Compass Minerals recognized a non-cash loss on the sale of $14.6 million, including $13.1 million of cumulative foreign currency translation adjustments reclassified from accumulated other comprehensive loss. CASH FLOW AND FINANCIAL POSITION Net cash provided by operating activities amounted to $160.4 million for the six months ended March 31, 2026, compared to $182.8 million in the prior year. Changes in working capital reflect the settlement of the previously disclosed tax dispute in Ontario during the first quarter of 2026. Net cash used in investing activities was $18.6 million for the six months ended March 31, 2026, a decrease from $35.9 million used in the prior year. Total capital spending for the six months ended March 31, 2026, was $41.0 million compared to $35.8 million in 2025. The company received $23.2 million of cash proceeds, net of amounts held in escrow and customary closing adjustments related to the aforementioned sale of the Wynyard SOP business. Net cash used in financing activities was $127.3 million for the six months ended March 31, 2026, which included net payments of $120.8 million, inclusive of the redemption of the $150 million in 2027 Senior Unsecured Notes in March of 2026. In the prior year, net cash used in financing activities was $116.8 million and reflected net payments of $109.8 million in the period. The company ended the quarter with $378.9 million of liquidity, comprised of $74.1 million in cash and cash equivalents and $304.8 million of availability under its $325.0 million revolving credit facility. Total debt as of March 31, 2026, was $713.0 million compared to $807.6 million a year earlier. Net debt was $638.9 million at the end of the second quarter of 2026, down $119.2 million from $758.1 million at the end of the comparable prior year period. The net leverage ratio for the quarter ended March 31, 2026, was 2.7 times, down from 4.6 times for the comparable prior year period. UPDATED OPERATING AND FISCAL 2026 OUTLOOK Based on stronger-than-expected results in the Plant Nutrition segment and adjustments related to changes in sales mix and operational matters in the Salt segment, Compass Minerals is updating its previously issued full-year fiscal 2026 outlook as follows: 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. 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. CONFERENCE CALL Compass Minerals will discuss its results on a conference call tomorrow morning, Thursday, May 7, at 9:30 a.m. ET (8:30 a.m. CT). To access the conference call, please visit the company’s website at investors.compassminerals.com or dial 800-715-9871. Callers must provide the conference ID number 7896827. Outside of the U.S. and Canada, callers may dial 646-307-1963. Replays of the call will be available on the company’s website. A supporting company presentation supporting 2026 second-quarter results is available at investors.compassminerals.com. About Compass Minerals 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 Disclaimers This press release may contain forward-looking statements, including, without limitation, statements about future costs, production, mutual benefits of our arrangement with the workforce at Goderich, 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 Sept. 30, 2025, and its Quarterly Reports on Form 10-Q for the quarter ended Mar. 31, 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. Non-GAAP Measures 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 earnings. Management also uses adjusted operating earnings, adjusted operating margin, adjusted net earnings, and adjusted net earnings 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 earnings, operating earnings, 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 earnings, adjusted operating margin, adjusted net earnings (loss), adjusted net earnings (loss) 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 earnings (loss) per diluted share is adjusted net earnings (loss) 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. GAAP View source version on businesswire.com: https://www.businesswire.com/news/home/20260506851604/en/ Contacts Investor Contact Brent Collins Vice President, Treasurer & Investor Relations +1.913.344.9111 [email protected]

Compass Minerals (CMP) came out with quarterly earnings of $0.63 per share, missing the Zacks Consensus Estimate of $0.66 per share. This compares to earnings of $0.63 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -5.18%. A quarter ago, it was expected that this minerals producer would post earnings of $0.11 per share when it actually produced earnings of $0.43, delivering a surprise of +290.91%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Compass, which belongs to the Zacks Chemical - Diversified industry, posted revenues of $453.2 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 10.03%. This compares to year-ago revenues of $494.6 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Compass shares have added about 34.7% since the beginning of the year versus the S&P 500's gain of 6%. While Compass has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Compass was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.03 on $203.86 million in revenues for the coming quarter and $0.89 on $1.23 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Diversified is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Olin (OLN), has yet to report results for the quarter ended March 2026. The results are expected to be released on May 7. This chlor-alkali and ammunition producer' is expected to post quarterly loss of $0.67 per share in its upcoming report, which represents a year-over-year change of -1775%. The consensus EPS estimate for the quarter has been revised 88.6% higher over the last 30 days to the current level. Olin's revenues are expected to be $1.57 billion, down 4.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Compass Minerals International, Inc. (CMP) : Free Stock Analysis Report Olin Corporation (OLN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research