Aug 5, 2026, 5:17 PM ETBasic Materials

Compass Minerals — Fiscal 2026 Third-Quarter Earnings Summary

CMPCOMPASS MINERALS INTERNATIONAL INC

Financial Performance

Reported revenue of $215.3 million for the quarter ended June 30, 2026, compared to $214.6 million in the prior-year period.
Net loss was $5.7 million for the quarter, an improvement from a net loss of $17.0 million in the prior-year period.
Adjusted EBITDA for the quarter was $39.9 million, down from $41.0 million in the prior-year period.
Nine-month revenue totaled $1,064.6 million, up from $1,016.4 million in the prior year.
Nine-month net income was $25.6 million, compared to a net loss of $72.6 million in the prior year.
Nine-month Adjusted EBITDA was $191.6 million, up from $157.2 million in the prior year.
Total debt declined 13% year-over-year to $716.6 million as of June 30, 2026.
Net debt decreased $85.6 million (11%) to $660.3 million as of June 30, 2026.
Net leverage ratio improved to 2.8 times, down from 4.3 times a year ago.
Net cash provided by operating activities for the nine months ended June 30, 2026, was $162.8 million, compared to $204.6 million in the prior year.
Capital expenditures for the nine months ended June 30, 2026, were $62.1 million, compared to $53.8 million in the prior year.
Operating income and Adjusted EBITDA margins in the Salt business declined year-over-year due to higher per-unit product and distribution costs.

Raised full-year 2026 consolidated Adjusted EBITDA guidance midpoint to $230 million within a modified range of $218 million to $242 million.
Updated Salt segment full-year revenue guidance to $1,053 million–$1,090 million (previously $1,025 million–$1,080 million).
Updated Salt segment full-year Adjusted EBITDA guidance to $225 million–$236 million (previously $225 million–$240 million).
Updated Salt segment full-year highway sales volume guidance to 8,600–8,800 thousand tons (previously 8,450–8,800 thousand tons).
Updated Plant Nutrition segment full-year Adjusted EBITDA guidance to $49 million–$57 million (previously $43 million–$47 million).
Updated Plant Nutrition segment full-year revenue guidance to $200 million–$209 million (previously $190 million–$210 million).
Updated Plant Nutrition segment full-year sales volume guidance to 290–300 thousand tons (previously 280–300 thousand tons).
Corporate & Other Adjusted EBITDA guidance remains unchanged at ($56) million to ($51) million.
Full-year capital expenditure guidance remains $90 million to $110 million.
Effective income tax rate guidance for 2026 lowered to 27%–31% (previously 30%–34%).
Management cited the 2026-27 highway deicing bid season as very constructive with substantial year-over-year price improvements and consistent demand growth in core U.S. markets.

Salt Segment: Revenue increased 5% year-over-year to $173.9 million, driven by a 9% increase in combined average sales prices (8% in highway, 6% in C&I). Total sales volumes declined 4% to 1,485 thousand tons, with highway volumes down 6% and C&I volumes up 3%. Segment operating income decreased 25% to $21.2 million; Adjusted EBITDA decreased 15% to $38.9 million.
Plant Nutrition Segment: Revenue decreased 16% to $37.6 million, primarily due to a 19% decrease in sales volumes following the disposition of the Wynyard SOP business in March 2026. Excluding the disposition, sales volumes increased approximately 4%. Segment operating income increased 50% to $7.8 million; Adjusted EBITDA improved 32% to $15.0 million.
Wynyard Disposition: The company received $23.3 million in net cash proceeds from the sale of the Wynyard SOP business. A loss on sale of $14.5 million was recorded for the nine months ended June 30, 2026, including $13.1 million in reclassified foreign currency translation adjustments.

Salt business realized meaningful pricing gains in highway and early signs of a constructive pricing environment in consumer and industrial (C&I) product lines.
Production costs at mining operations have not yet improved at the expected pace, with labor and maintenance costs remaining elevated relative to plan.
S&P Global Ratings upgraded the company's corporate credit rating to 'B+' from 'B' with a stable outlook, and upgraded senior secured debt to 'BB' and senior unsecured debt to 'B+'.
The upgrade reflected debt paydown and improved profitability, lowering S&P-adjusted leverage from 4.2x to 3.1x for the last 12 months.

Production costs at mining operations remain elevated relative to plan due to investments in maintenance and labor.
Salt segment margins declined due to higher per-unit product costs and distribution costs year-over-year.
Forward-looking statements involve risks including weather conditions, inflation, transportation costs, foreign exchange rates, and competitive pricing pressures.
Operational improvements in the Salt segment are proceeding slower than expected.

CEO Edward C. Dowling Jr. stated that the Plant Nutrition business is the clearest example of the company's improvement process, citing improved pricing and lower per-unit costs.
Management expressed confidence in the constructive pricing environment for the upcoming highway deicing bid season.
The tone emphasized a clear direction for operational improvement, disciplined capital allocation, and long-term shareholder value.
Management noted that while more work remains in mining operations, the balance sheet is strengthening and the debt profile is improving.

The company redeemed the remaining $150.0 million of its 6.75% Senior Notes due 2027 during the nine months ended June 30, 2026.
Net borrowings under the revolving credit facility were $35.0 million during the nine months ended June 30, 2026.
Liquidity at the end of the quarter was $328.1 million, comprised of $56.3 million in cash and $271.8 million in availability under a $325.0 million revolving credit facility.
The company settled a previously disclosed tax dispute in Ontario during the first quarter of 2026.
Adjusted EBITDA for the nine months ended June 30, 2026, included a $0.5 million loss on extinguishment of debt related to the write-off of deferred financing costs from the 2027 Notes redemption.
The company operates 11 production and packaging facilities with more than 1,800 employees in the U.S., Canada, and the U.K.