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CHS reports Q1 fiscal year 2025 earnings

Published by , Editorial Assistant
World Fertilizer,


CHS Inc., a leading agribusiness cooperative, today released results for its Q1 of fiscal year 2025. The company reported net income of US$244.8 million and revenues of US$9.3 billion for the quarter that ended 30 November 2024, compared to net income of US$522.9 million and revenues of US$11.4 billion in the Q1 of fiscal year 2024.

Key highlights for first quarter fiscal year 2025 financial results:

  • Decreased selling prices for grains, oilseeds and refined fuels led to lower revenues.
  • Despite strong sales volumes, energy segment earnings declined due to evolving market conditions negatively impacting refining margins.
  • Ag segment earnings were moderately lower due to softening oilseed crush margins compared to historically high margins in the first quarter of the prior fiscal year.
  • Equity method investments continued to perform well, with the CF Nitrogen investment being the largest contributor.

“The energy industry is experiencing compressed refinery margins at the same time that US agriculture is seeing a weaker farm economy with a globally competitive marketplace for grains and oilseeds,” said Jay Debertin, president and CEO of CHS Inc. “Just as we have for nearly 100 years, CHS is leveraging our efficient global supply chain, strong relationships and expertise to navigate these changing markets, while strategically investing to meet our owners’ future needs.”

Energy

Pre-tax earnings of US$19.8 million for the Q1 of fiscal year 2025 represent a US$247.1 million decrease versus the prior year period and reflect:

  • Lower refined fuel margins due to less favourable market conditions, including higher US refinery capacity utilisation and global production.
  • The positive impact of lower costs for renewable fuel credits, which partially offset lower income from refined fuels.

Ag

Pre-tax earnings of US$166.7 million represent a US$3.1 million decrease versus the prior year period and reflect:

  • Decreased margins in oilseed processing due to a larger supply of canola and soybean meal and oil across global markets, somewhat offset by the timing impact of market adjustments.
  • Market-driven price decreases in wholesale and retail agronomy.

Nitrogen production

Decreased market prices for urea, partially offset by lower natural gas costs, contributed to pre-tax earnings of US$25.2 million – an US$11.2 million decrease versus the prior year period.

Corporate and other

Pre-tax earnings of US$47.2 million represent a US$3.3 million increase versus the prior year period, primarily reflecting improved equity method investment income.

Read the article online at: https://www.worldfertilizer.com/nitrogen/23012025/chs-reports-q1-fiscal-year-2025-earnings/

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