Compass Minerals International : First Quarter 2026 Quarter Business Update

About this update from Compass Minerals Intl Inc

Fiscal 2026 First-Quarter Business Update // Feb. 5, 2026 Fiscal 2026 First-Quarter Results 1 Adjusted EBITDA is a non-GAAP financial measure. See appendix for reconciliation to net income (loss), the most directly comparable GAAP financial measure. Net income of $18.6 million for the first quarter of 2026, compared to a net loss of $23.6 million in the prior year Fiscal 2026 First-Quarter Overview Total company adjusted EBITDA for the first quarter of 2026 of $65.3 million, up 103% year over year Strong sales volume growth year over year of 37% led to increases in Salt business operating earnings and adjusted EBITDA of 67% and 41%, respectively, from the prior-year period Improvements in pricing and cost structure increased Plant Nutrition segment operating earnings and adjusted EBITDA on both absolute and per-ton bases Net debt decreased to $836.9 million as of December 31, 2025, a $92 million, or 10%, decrease from December 31, 2024 Full-year guidance for total company adjusted EBITDA increased 2% at the mid-point of guidance range to $208 million to $240 million, inclusive of the impact of the Wynyard sulfate of potash (SOP) operation sale 4 First-Quarter Fiscal 2026 Consolidated Results Consolidated Results Revenue (y-o-y) 1Q26 +29% 1Q26 Adjusted EBITDA 1 (in millions) $32.1 $19.4 $8.4 $5.4 $65.3 Adjusted EBITDA 1 (y-o-y) +103% Adjusted EBITDA 1 margin 16.5% 1Q25 Salt Plant Nutrition Corp. & Other 1Q26 Historical TTM Adjusted EBITDA 1 and Margin First-Quarter Fiscal 2026 Summary Steady winter weather during 1Q26 driving improved Salt adjusted EBITDA year over year Stronger pricing and improvements to cost structure driving improvements in Plant Nutrition segment despite lower sales volumes compared to the prior year period Corporate and Other reflects positive momentum reducing costs resulting from in multi-year cost control and continuous improvement initiatives $250 $200 ( millions ) $150 $100 $50 $0 Adjusted EBITDA Adjusted EBITDA Margin $199 $206 $199 $232 Sept. 30, 2023 Sept. 30, 2024 Sept. 30, 2025 Dec. 31, 2025 40.0% 30.0% 20.0% 10.0% 0.0% ($ in millions) 1Q26 1Q25 %Δ Revenue $331.5 $242.2 +37% Adj. EBITDA 1 $67.2 $47.8 +41% Adj. EBITDA 1 margin 20.3% 19.7% +0.6 pts Average price per ton $97/ton $97/ton -0.4% 2,851 Sales Volumes First-Quarter 2026 Salt Results 1,987 (in thousands of short tons) 575 506 First-Quarter Fiscal 2026 Summary Strong start to 2026 deicing season propelled sales volumes for both highway deicing and C&I higher year over year, with increases of 43% Highway Deicing Consumer & Industrial and 14%, respectively Pricing up 6% and 2%, respectively, for highway deicing and C&I, Salt segment average selling price flat year over year due to change in mix, 1Q26 1Q25 Historical TTM Adj. EBITDA 1 and Margin with pricing up 6% for both highway deicing and C&I Adjusted EBITDA 1 improved 41% to $67.2 million year over year led by volume growth and lower production costs per ton, offset by higher transportation cost per ton $300 $250 $200 (millions) $150 EBITDA EBITDA Margin 40% $231 $228 $221 $240 30% $100 20% $50 $0 Sept. 30, 2023 Sept. 30, 2024 Sept. 30, 2025 Dec. 31, 2025 10% First-Quarter 2026 Plant Nutrition Results ($ in millions) 1Q26 1Q25 %Δ Revenue $60.8 $61.4 -1% Adj. EBITDA 1 $12.8 $4.4 191% Adj. EBITDA 1 margin 21.1% 7.2% +13.9 pts Average price per ton $687/ton $603/ton +14% Sales Volumes (in thousands of short tons) 89 102 First-Quarter Fiscal 2026 Summary Sales volumes declined in 2026 by 13% year over year as the company recalibrated away from lower margin export opportunities Strong growth in sales pricing of 14% helped maintain revenue 1Q26 1Q25 Historical TTM Adj. EBITDA 1 and Margin despite reduction in sale volumes Plant Nutrition adjusted EBITDA 1 up to $12.8 million from $4.4 million year over year, driven by improve pricing and lower costs per ton, offset by higher per-unit distribution costs $60.0 (millions) $40.0 $20.0 EBITDA EBITDA Margin $43.3 50.0% $18.0 $34.9 $43.8 40.0% 30.0% 20.0% 10.0% $0.0 Sept. 30, 2023 Sept. 30, 2024 Sept. 30, 2025 Dec. 31, 2025 0.0% Total Net Debt 1 (in millions) $1,000 $900 $800 $700 $600 $500 $837 Down 10% $929 12/31/25 12/31/24 Debt Maturity Profile 2 (in millions) $650 $150 $97 2026 2027 2028 Fiscal year 2029 2030 8 Charting a Prudent Financial Path Forward Net debt 1 declined 10% year over year as of Dec. 31, 2026 Completed refinancing transaction in 3Q25 that improved the company's financial flexibility, enhanced its liquidity, and extended its maturity profile Strong liquidity & attractive debt maturity profile o $341.7 million in liquidity as of Dec. 31, 2025 comprised of $46.7 million in cash and $295.0 million available under revolving credit agreement 1 Total net debt defined as sum of current portion of long-term debt and long-term debt, net of current portion less cash and cash equivalents 2 As of Dec. 31, 2025 Outlook & Guidance Salt and Plant Nutrition Outlook and Guidance Salt Plant Nutrition Long-Term Attributes Resilient, recession-resistant demand profile Difficult to replicate asset base with important logistical advantages New mine development rarely economically feasible Convenient access to water transportation Extensive depot network Attractive markets Highway deicing in North America and the U.K. Consumer and industrial in North America Fiscal 2026 Salt Guidance Long-Term Attributes Largest producer of SOP in the Western Hemisphere Unique solar evaporation asset in Ogden, Utah, provides competitive advantages Well positioned to serve specialty crops, particularly on the west coast of U.S. Strategic forward-deploy warehouse network Attractive markets High-value and chloride-sensitive crops in North America Diversified end markets insulated from the volatility of commodity row crops in North America Fiscal 2026 Plant Nutrition Guidance Highway Deicing volumes (thousands of tons) Consumer and industrial volumes (thousands of tons) FY26 Total Volumes (thousands of tons) 8,200 1,700 9,900 2026 Range 8,500 1,950 10,450 FY26 Volumes (thousands of tons) 255 2026 Range 275 FY26 Revenue (in millions) $980 $1,050 FY26 Revenue (in millions) $170 $185 FY26 Adj. EBITDA (in millions) $230 $252 FY26 EBITDA (in millions) $34 $39 2026 Adj. EBITDA Range (in millions) Salt $230 $252 Plant Nutrition 34 39 Corporate (56) (51) TOTAL $208 $240 2026 Capital Expenditure Range (in millions) TOTAL $90 $110 Consolidated Guidance Summary Other Consolidated Modeling Information (in millions of dollars unless otherwise noted) 2026 Range Interest expense, net of interest income $65 $70 Depreciation, depletion and amortization $105 $115 Effective tax rate (excl. valuation allowance and impairments) 1 30% 34% 1 Guidance for the 2026 effective income tax rate reflects the income tax mix by country with income recognized in foreign jurisdictions offset by losses recognized in the U.S. Appendix Special Items Impacting Three Months Ended Dec. 31,2024 (unaudited, in millions, except per share data) Item Description Segment Line Item Amount Tax Effect 1 After Tax EPS Impact Product recall costs (1) Salt Product cost and Other $0.9 $(0.2) $0.7 $0.02 operating expense Total $0.9 $(0.2) $0.7 $0.02 1 The company recorded costs related to a recall of food-grade salt produced at its Goderich plant. Charges for the three months ended Dec. 31, 2024 were $0.9 million. Special Items Reconciliation for Adjusted Operating Income (unaudited, in millions) Three months ended Dec. 31, 2025 2024 Operating income $ 36.6 $ 0.5 Product recall costs 1 --- 0.9 Adjusted operating earnings $ 36.6 $ 1.4 Sales 396.1 307.2 Operating margin 9.2% 0.2% Adjusted operating margin 9.2% 0.5% Reconciliation of Non-GAAP Information Reconciliation for Adjusted Net Income (unaudited, in millions) Three months ended Dec. 31, 2025 2024 Net income (loss) $ 18.6 $ (23.6) Product recall costs 1 --- 0.9 Income tax effect --- (0.2) Adjusted net earnings $ 18.6 $ (22.9) Net loss per diluted share $ 0.43 $ (0.57) Adjusted net earnings per diluted share $ 0.43 $ (0.55) Weighted-average common shares outstanding (in thousands): Diluted 42,267 41,441 Reconciliation of Non-GAAP Information Reconciliation for EBITDA and Adjusted EBITDA (unaudited, in millions) Three months ended Dec. 31, 2025 2024 Net income (loss) $ 18.6 $ (23.6) Interest expense 18.1 16.9 Income tax (benefit) expense (2.2) 9.7 Depreciation, depletion and amortization 26.4 26.8 EBITDA $ 60.9 $ 29.8 Adjustments to EBITDA: Stock-based compensation - non-cash 2.3 3.9 Interest income (0.3) (0.4) Loss (gain) on foreign exchange 2.1 (5.2) Product recall costs 1 --- 0.9 Other expense, net 0.3 3.1 Adjusted EBITDA $ 65.3 $ 32.1 Reconciliation of Non-GAAP Information Salt Segment Performance (in millions, except for sales volumes and prices per short ton) Three months ended Dec. 31, 2025 2024 Sales $ 331.5 $ 242.2 Operating income $ 49.1 $ 29.4 Operating margin 14.8% 12.1% Adjusted operating income 1 $ 49.1 $ 30.3 Adjusted operating margin 1 14.8% 12.5% EBITDA 1 $ 67.2 $ 46.9 EBITDA 1 margin 20.3% 19.4% Adjusted EBITDA 1 $ 67.2 $ 47.8 Adjusted EBITDA margin 1 20.3% 19.7% Sales volumes (in thousands of tons): Highway deicing 2,851 1,987 Consumer and industrial 575 506 Total Salt 3,426 2,493 Average sales price (per ton): Highway deicing $ 73.96 $ 69.50 Consumer and industrial $ 209.83 $ 205.74 Total Salt $ 96.77 $ 97.16 Salt Segment Performance Reconciliation for Salt Segment Adjusted Operating Income (unaudited, in millions) Three months ended Dec. 31, 2025 2024 Reported GAAP segment operating income $ 49.1 $ 29.4 Product recall costs 1 --- 0.9 Segment adjusted operating income $ 49.1 $ 30.3 Segment sales 331.5 242.2 Segment operating margin 14.8% 12.1% Segment adjusted operating margin 14.8% 12.5% Reconciliation for Salt Segment EBITDA and Adjusted EBITDA (unaudited, in millions) Three months ended Dec. 31, 2025 2024 Reported GAAP segment operating income $ 49.1 $ 29.4 Depreciation, depletion and amortization 18.1 17.5 Segment EBITDA $ 67.2 $ 46.9 Product recall costs 1 --- 0.9 Segment adjusted EBITDA $ 67.2 $ 47.8 Segment sales 331.5 242.2 Segment EBITDA margin 20.3% 19.4% Segment adjusted EBITDA margin 20.3% 19.7% Salt Reconciliation of Non-GAAP Information Plant Nutrition Segment Performance (in millions, except for sales volumes and prices per short ton) Three months ended Dec. 31, 2025 2024 Sales $ 60.8 $ 61.4 Operating income (loss) $ 5.4 $ (3.1) Operating margin 8.9% (5.0)% Adjusted operating income (loss) 1 $ 5.4 $ (3.1) Adjusted operating margin 1 8.9% (5.0)% EBITDA 1 $ 12.8 $ 4.4 EBITDA 1 margin 21.1% 7.2% Adjusted EBITDA 1 $ 12.8 $ 4.4 Adjusted EBITDA margin 1 21.1% 7.2% Sales volumes (in thousands of tons): 89 102 Average sales price (per ton): $ 687.26 $ 602.86 Plant Nutrition Segment Performance 2025 2024 Reported GAAP segment operating income (loss) $ 5.4 $ (3.1) Segment adjusted operating income (loss) $ 5.4 $ (3.1) Segment sales 60.8 61.4 Segment operating margin 8.9% (5.0)% Segment adjusted operating margin 8.9% (5.0)% Reconciliation for Plant Nutrition Segment EBITDA and Adjusted EBITDA (unaudited, in millions) Three months ended Dec. 31, 2025 2024 Reported GAAP segment operating income (loss) $ 5.4 $ (3.1) Depreciation, depletion and amortization 7.4 7.5 Segment EBITDA $ 12.8 $ 4.4 Segment adjusted EBITDA $ 12.8 $ 4.4 Segment sales 60.8 61.4 Segment EBITDA margin 21.1% 7.2% Segment adjusted EBITDA margin 21.1% 7.2% Plant Nutrition Reconciliation of Non-GAAP Information Reconciliation for Plant Nutrition Segment Adjusted Operating Income (Loss) (unaudited, in millions) Three months ended Dec. 31, 20 Attention : This is an excerpt of the original content. 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