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Apr. 7, 2025 Source: CHS Inc. news release Inner Grove Heights, MN -- CHS Inc., the nation's leading agribusiness cooperative, today released results for its second quarter of fiscal year 2025. The company reported a net loss of $75.8 million and revenues of $7.8 billion for the quarter that ended Feb. 28, 2025, compared to net income of $170.3 million and revenues of $9.1 billion in the second quarter of fiscal year 2024. For the first six months of fiscal year 2025, the company reported net income of $169.0 million and revenues of $17.1 billion compared to net income of $693.2 million and revenues of $20.5 billion in the first half of fiscal year 2024. Key highlights for second quarter fiscal year 2025 financial results: *Despite strong volumes, Energy segment earnings declined substantially from the prior fiscal year due to evolving market conditions that negatively impacted refining margins. *Ag segment earnings were weaker due to lower grain and oilseed margins, attributed to a more competitive global marketplace and the timing impact of mark-to-market adjustments. *Equity method investments continued to perform well, with CF Nitrogen being the largest contributor. "CHS remains focused on operational excellence and enhancing efficiency as we navigate this time of softer commodity markets, policy uncertainty and volatility. I commend our employees around the world for their commitment to strong execution in this challenging environment," said Jay Debertin, president and CEO of CHS Inc. "While margin and pricing pressure on ag and energy product categories continues, our sales volumes remain strong. We are well positioned to help meet our owners' spring planting needs with inputs, services and local expertise." Energy A pretax loss of $83.5 million for the second quarter of fiscal year 2025 represents a $135.0 million decrease versus the prior year period and reflects: Less favorable market conditions, including the impact of higher U.S. refinery capacity utilization and global supply and demand factors A decrease in propane margins, mostly attributable to hedging-related impacts Ag A pretax loss of $45.6 million represents a $102.4 million decrease versus the prior year period and reflects: Decreased margins for the grain and oilseed product category, primarily due to the timing impact of mark-to-market adjustments as well as global market conditions A higher global supply of canola and soybean meal and oil, resulting in weaker oilseed crush margins compared to the prior fiscal year Nitrogen Production Pretax earnings of $20.3 million represent a $16.7 million decrease versus the prior year period, primarily due to the unfavorable impact of increased natural gas costs. Corporate and Other Pretax earnings of $24.0 million represent a $16.3 million decrease versus the prior year period, mostly reflecting lower income from the company's equity investment in Ventura Foods, which experienced less favorable market conditions for oil-based food products. To read the entire report click here. Tweet |
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