Compass Minerals Reports Strong Fiscal 2026 First-Quarter Performance

Compass Minerals (NYSE: CMP), a global supplier of essential minerals, has announced its financial results for the first quarter of fiscal 2026. Unless otherwise specified, all time references relate to the company’s fiscal year, and all financial figures are presented in U.S. dollars.

Management Commentary

President and CEO Edward C. Dowling Jr. highlighted a strong start to the fiscal year, driven primarily by favorable winter weather conditions that boosted the Salt segment.At the same time, pricing improvements and structural cost efficiencies contributed to notable margin expansion within the Plant Nutrition business.

Dowling noted that the company’s performance in Salt, combined with encouraging momentum in Plant Nutrition, supported an upward revision to full-year adjusted EBITDA guidance. Despite the offsetting impact of the planned divestiture of the Wynyard sulfate of potash (SOP) facility, the midpoint of total company adjusted EBITDA guidance has been increased by approximately 2%.

He also emphasized progress in strengthening the balance sheet, pointing out that net debt declined more than 10% year over year—representing a reduction exceeding $90 million. Management remains focused on improving operational execution, commercial performance, and financial discipline to enhance cash-flow generation and further reduce leverage. Looking ahead, the company sees continued opportunities to build on current momentum and create long-term shareholder value.

Key Quarterly Highlights

During the first quarter of fiscal 2026, Compass Minerals reported:

Net income of $18.6 million, compared with a net loss of $23.6 million in the same period last year.
Total company adjusted EBITDA of $65.3 million, representing a 103% year-over-year increase.
Salt segment sales volume growth of 37%, which drove operating earnings and adjusted EBITDA increases of 67% and 41%, respectively.
Improved pricing and cost efficiencies in the Plant Nutrition segment, resulting in stronger operating earnings and adjusted EBITDA both in absolute terms and on a per-ton basis.
Net debt reduction to $836.9 million as of December 31, 2025—down $92 million, or 10%, from the prior year.
A 2% increase in midpoint full-year adjusted EBITDA guidance, now projected at $208 million to $240 million, including the impact of the Wynyard SOP divestiture.

Consolidated Financial Results

GAAP Performance

For the quarter ended December 31, 2025:

Revenue totaled $396.1 million, up from $307.2 million in the prior-year period.
Operating income reached $36.6 million, compared with $0.5 million a year earlier.
Net income was $18.6 million, versus a net loss of $23.6 million last year.
Diluted earnings per share came in at $0.43, compared with a loss of $0.57 per share in the prior year.

Non-GAAP Performance

Adjusted measures showed similar improvement:

Adjusted operating income of $36.6 million, up from $1.4 million.
Adjusted EBITDA of $65.3 million, more than double the $32.1 million reported last year.
Adjusted net income of $18.6 million, compared with an adjusted loss of $22.9 million.
Adjusted diluted EPS of $0.43, versus $(0.55) in the prior period.

Salt Segment Performance

Revenue in the Salt business increased 37% year over year to $331.5 million. This growth was primarily driven by higher sales volumes in:

Highway deicing, which rose 43%, and
Consumer and industrial (C&I) applications, which increased 14%.

Because highway deicing represented a larger share of total volume, overall segment pricing remained relatively flat despite 6% higher highway deicing prices and 2% higher C&I prices compared with last year.

Segment operating earnings climbed 67% to $49.1 million, while adjusted EBITDA rose 41% to $67.2 million. These gains reflect stronger volumes and lower unit production costs, partially offset by higher per-unit distribution expenses.

Plant Nutrition Segment Performance

Plant Nutrition revenue totaled $60.8 million, representing a 1% decline year over year due to 13% lower sales volumes. However, the average sales price increased 14% to roughly $687 per ton.

The segment reported operating earnings of $5.4 million, a significant turnaround from the $3.1 million operating loss recorded in the prior-year quarter. Adjusted EBITDA improved to $12.8 million, compared with $4.4 million last year.

Improved pricing and reduced per-unit product costs supported profitability, although these benefits were partly offset by reduced volumes—reflecting the company’s decision to avoid lower-margin export sales—and higher distribution costs.

Cash Flow and Financial Position

Operating and Investing Cash Flow

Net cash used in operating activities was $37.0 million, compared with $4.1 million in the prior year. Working-capital changes primarily reflected settlement of a previously disclosed Ontario tax dispute during the quarter.

Net cash used in investing activities totaled $23.3 million, slightly higher than $22.2 million a year earlier. Capital expenditures for the quarter were $22.8 million.

Financing and Liquidity

Financing activities generated $47.1 million in net cash, including $50.7 million in net borrowings. In the prior year, financing provided $53.1 million, with $57.5 million in borrowings.

At quarter end, Compass Minerals reported $341.7 million in liquidity, consisting of:

$46.7 million in cash and equivalents, and
$295.0 million available under a $325 million revolving credit facility.

The net-debt-to-adjusted-EBITDA ratio improved to 3.6×, down from 5.3× a year earlier.

Divestiture of Wynyard SOP Operations

After the quarter closed, Compass Minerals entered into an agreement to sell its Wynyard, Saskatchewan SOP facility for $30.8 million in cash, subject to customary closing adjustments and conditions.

The company determined the asset was non-core, given its ability to serve the North American SOP market from the Ogden, Utah operation, where performance continues to improve. Proceeds from the transaction are expected to support further net-debt reduction, aligning with the company’s broader balance-sheet strategy.

Updated Fiscal 2026 Outlook

Salt Segment Expectations

For fiscal 2026, Compass Minerals projects:

Highway deicing volumes: 8.2–8.5 million tons
C&I volumes: 1.7–1.95 million tons
Total salt volumes: 9.9–10.45 million tons
Revenue: $980 million to $1.05 billion
Adjusted EBITDA: $230 million to $252 million

Plant Nutrition Outlook

Guidance, reflecting the Wynyard divestiture, includes:

Sales volumes: 255,000–275,000 tons
Revenue: $170 million to $185 million
Adjusted EBITDA: $34 million to $39 million

Corporate Segment

Corporate adjusted EBITDA is expected to range between $(56) million and $(51) million, including contributions from the DeepStore records-management business in the United Kingdom.

Total Company Adjusted EBITDA

Combined fiscal-year adjusted EBITDA is projected at $208 million to $240 million across all segments.

Capital Expenditures and Assumptions

Planned capital spending remains unchanged at $90 million to $110 million for fiscal 2026.

Additional assumptions include:

Depreciation, depletion, and amortization: $105 million to $115 million
Net interest expense: $65 million to $70 million
Effective tax rate: 30% to 34%, reflecting geographic income mix

Outlook Summary

Compass Minerals has entered fiscal 2026 with solid operational momentum, strengthened profitability, and meaningful debt reduction. Continued performance in the Salt business, improving economics in Plant Nutrition, and strategic portfolio actions—including the Wynyard divestiture—position the company to enhance cash flow and shareholder value throughout the remainder of the fiscal year.

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