Compass Minerals International Q3 Earnings Call Highlights

Compass Minerals International NYSE: CMP reported fiscal third-quarter adjusted EBITDA of $39.9 million, compared with $41 million a year earlier, as stronger pricing in its salt and plant nutrition businesses was offset by lower highway de-icing volumes and higher production and distribution costs in salt. The company posted a net loss of $5.7 million for the quarter, narrowing from a net loss of $17 million in the prior-year period. President and CEO Edward Dowling Jr. said the company’s Plant Nutrition business “earned the lead” during the quarter, while salt pricing and demand conditions remained constructive despite operational cost pressures. Plant Nutrition Raises Full-Year Outlook Plant Nutrition adjusted EBITDA increased 32% year over year to $15 million, while operating earnings rose 50% to $7.8 million. Revenue in the segment declined 16% to $37.6 million, primarily due to the March 2026 sale of the Wynyard sulfate of potash asset. Excluding the Wynyard impact, sales volumes increased approximately 4%, according to CFO Peter Fjellman. Average Plant Nutrition selling prices increased 4%, while product and distribution costs declined on a per-unit basis. Dowling attributed the improvement at the Ogden, Utah, operation to operational changes initiated two years ago, including efforts to manage production variability and improve recovery. The company raised its fiscal 2026 Plant Nutrition adjusted EBITDA outlook to a range of $49 million to $57 million, from prior guidance of $43 million to $47 million. Compass is also continuing a dryer project at Ogden that it expects to complete by the end of fiscal 2027. The project is intended to improve product yield, production volumes, costs and finished-product quality. During the question-and-answer session, Dowling said Compass is supplementing its pond-based production with purchased potassium chloride, or KCl, and plans to use approximately the same amount next year. Chief Commercial Officer Ben Nichols said the company expects the use of muriate of potash in the process to remain part of its operating model, but said it has improved its ability to manage pond chemistry and related costs. Salt Pricing Gains Offset by Cost Pressures Salt revenue rose 5% to $173.9 million in the fiscal third quarter. Segment pricing increased 9%, including an 8% increase in highway de-icing pricing and a 6% increase in consumer and industrial, or C&I, pricing. Highway sales volumes declined 6%, while C&I volumes increased 3%. Salt adjusted EBITDA fell 15% to $38.9 million, and operating earnings declined 25% to $21.2 million. Fjellman said the declines reflected lower highway volumes and higher per-unit production and distribution costs, partly offset by pricing gains. Dowling said Compass produced more tons at its Goderich mine year over year, but was not hoisting enough tonnage at the costs it had planned. The company has increased maintenance spending at its U.S. mines and added employees in an effort to incr.