CHS Inc. — Fiscal Year 2026 Earnings Summary

Financial Performance

• Net income for fiscal year 2026 was $1.1 billion, compared to $597.9 million in fiscal year 2025.
• Consolidated revenues reached $39.2 billion in fiscal year 2026, an increase from $35.5 billion in fiscal year 2025, driven largely by higher commodity prices.
• Income before income taxes was $1,128.7 million in fiscal year 2026, compared to $614.8 million in fiscal year 2025.
• Income tax expense was $32.7 million in fiscal year 2026, compared to $16.8 million in fiscal year 2025.
• Net income attributable to CHS Inc. was $1,095.9 million in fiscal year 2026, compared to $597.9 million in fiscal year 2025.

Guidance and Future Outlook

• CHS intends to return $300 million in cash to owners in fiscal year 2027 via $150 million in cash patronage and up to $150 million in equity redemptions, representing an approximately 150% increase over fiscal year 2026 distributions.
• Cumulative returns to owners are projected to exceed $2.7 billion over the past five years upon completion of the planned 2027 distributions.
• Two major capital projects are pending approvals: a nearly $450 million phosphate production facility in Louisiana (joint venture with OCP North America) and a $700 million soybean processing facility in Evansville, Wisconsin.
• Both new facilities are expected to be operational in late 2028 or 2029, with the Wisconsin facility expected to increase soy processing capacity by two-thirds.

Business Segments and Product Lines

• Energy: Pretax earnings were $554.6 million, a $573.6 million increase versus the prior year. Performance was driven by significantly improved refining margins and strong operational performance, partially offset by record-high renewable fuels compliance costs (RINs) and unrealized hedging losses.
• Grains: Pretax earnings were $127.4 million, an $83.4 million increase versus the prior year. Results reflected strong oilseed crush margins and solid feed grains export volumes, partially offset by global trade volatility and weakening retail margins.
• Agronomy: Pretax earnings were $354.6 million, a $20.6 million decrease versus the prior year. Strong performance from the CF Nitrogen joint venture was offset by decreased volumes due to deferred purchasing decisions by U.S. farmers and lower margins caused by strong competition.
• Corporate and Services: Pretax earnings were $92.1 million, a $122.4 million decrease versus the prior year, primarily due to lower equity method earnings from joint ventures and the absence of a gain on sale of a business that occurred in 2025.

Market and Competitive Landscape

• Global market dynamics and high refinery production volumes positively impacted the Energy segment.
• Renewable energy policy impacts drove strong oilseed crush and ethanol margins in the Grains segment.
• Ongoing weakness in the U.S. farm economy reduced demand for agronomy products.
• Strong competition and negative market dynamics contributed to lower margins in agronomy products.

Risks and Challenges

• Record-high expenses for renewable energy credits (RINs) impacted Energy segment earnings.
• Global trade headwinds and reduced retail margins negatively affected the Grains segment.
• Deferred purchasing decisions by U.S. farmers and lower margins due to competition challenged the Agronomy segment.
• The press release notes general forward-looking risks including changes in commodity prices, global conflicts, inflation, competitive markets, loss of members, and evolving government policies and regulations.

Management Commentary and Tone

• Jay Debertin, President and CEO, stated that results demonstrate the strength of diversified businesses and strategic supply chain investments.
• Management noted that while market and policy conditions created volatility, teams executed exceptionally well to capture opportunities in energy and agriculture markets.
• The Board of Directors is described as committed to sharing profits with owners and strengthening rural communities while investing in businesses.

Other Key Points

• CHS is the nation's leading cooperative and largest farmer-owned cooperative in the United States, serving customers in 65 countries.
• Fiscal year 2026 financial segment information has been recast to align with a new end-to-end product line operating model.
• The company is committed to reducing its environmental impact and developing new solutions in agriculture and energy.