Financial Results Announcement - CHS Inc. announced its results for the quarter ended November 30, 2025, on January 7, 2026[4] - The press release detailing the financial results is attached as Exhibit 99.1[6] Company Classification - The company is not classified as an emerging growth company under the Securities Act[3]

Financial Performance - CHS Inc. reported strong performance in the Energy segment, driven by strengthened refining margins and record premium diesel sales volumes[124]. - Revenues for the three months ended November 30, 2025, were $8,864,104 thousand, a decrease of 4.6% from $9,294,112 thousand in the same period of 2024[135]. - Gross profit for the same period was $389,352 thousand, representing 4.4% of revenues, compared to $400,676 thousand or 4.3% in 2024[135]. - The Agronomy segment reported revenues of $1,238,005 thousand, a decline of 2.1% from $1,264,034 thousand in 2024, while income before income taxes increased by 30.9% to $36,804 thousand[144]. - The Grains segment experienced a revenue drop of $463,818 thousand, or 8.2%, to $5,215,354 thousand, with income before income taxes decreasing by 78.3% to $36,242 thousand[140]. - The Energy segment's revenues increased by $68,407 thousand, or 3.0%, to $2,364,877 thousand, with income before income taxes rising significantly by 868.9% to $152,347 thousand[138]. Market Dynamics - The Grains segment faced continued headwinds due to global trade factors and commodity market dynamics, impacting profitability[124]. - The Agronomy segment showed solid performance, largely attributed to the CF Nitrogen joint venture, but was partially offset by a weaker U.S. farm economy[124]. - The company anticipates macroeconomic factors, including geopolitical conflicts and fluctuating tariffs, will create uncertainty and instability in global energy and agricultural commodity markets throughout fiscal 2026[120]. - CHS Inc. expects reduced margins for energy and agricultural commodities to persist throughout fiscal 2026 due to ongoing market pressures[121]. Operational Metrics - Refinery throughput volumes for the three months ended November 30, 2025, were 204,504 barrels per day, compared to 198,108 barrels per day in the same period of 2024[126]. - Ethanol production volumes increased to 165,122 thousand gallons, up from 136,747 thousand gallons in the prior year[135]. - The average Group 3 2:1:1 crack spread increased to $26.61 per barrel for the three months ended November 30, 2025, from $16.88 per barrel in the prior year[128]. - The average price of D6 ethanol RINs rose by 51% to $0.9987 during the three months ended November 30, 2025, compared to $0.6632 in the same period of the previous year[126]. - The average price of D4 biodiesel RINs increased by 54% to $1.0190 during the same period, up from $0.6632[126]. Expenses and Cash Flow - Cost of goods sold decreased by $418,684 thousand, or 4.7%, to $8,474,752 thousand, primarily due to lower retail and domestic feed grains margins[147]. - Marketing, general and administrative expenses increased by 2.0% to $268,120 thousand, attributed to depreciation related to the enterprise resource planning system[151]. - Interest expense rose by 35.1% to $37,351 thousand, driven by a higher short-term notes payable balance compared to the previous year[152]. - Cash used in operating activities increased by $43.8 million year-over-year to $337.8 million, primarily due to increased inventories[167]. - Cash used in investing activities rose by $241.2 million to $247.9 million, mainly due to purchases of investments and decreased proceeds from short-term investments[168]. - Cash provided by financing activities increased by $680.3 million to $644.2 million, reflecting higher net cash inflows from notes payable[169]. Investments and Capital Expenditures - Total capital expenditures for fiscal 2026 are expected to be approximately $575.1 million, down from $728.6 million in fiscal 2025, with $116.0 million spent on property, plant, and equipment in the three months ended November 30, 2025[161]. - Other income increased by $8.5 million, or 32.2%, to $34.9 million for the three months ended November 30, 2025, primarily due to unrealized gains on investments and increased interest income[153]. - Equity income from investments rose by $31.2 million, or 25.5%, to $153.5 million, driven by higher equity income from CF Nitrogen due to increased urea and UAN prices and decreased natural gas costs[154][155]. Tax and Working Capital - Income tax expense decreased by $1.5 million, or 11.4%, to $11.7 million, with effective tax rates of 4.3% for the three months ended November 30, 2025, compared to 5.1% in the prior year[156]. - Working capital increased by $128.0 million to $2.9 billion as of November 30, 2025, driven by a $1.8 billion increase in current assets, primarily due to higher inventories[163]. - The current ratio as of November 30, 2025, was 1.4, down from 1.5 as of August 31, 2025, indicating a slight decrease in short-term liquidity[158]. Risk Factors - No material changes in market risk exposures were experienced for the period ended November 30, 2025[178].

Financial Results Announcement - CHS Inc. announced its results for the year ended August 31, 2025, on November 5, 2025[4] - The press release detailing the financial results is attached as Exhibit 99.1[6] Company Classification - The company is not classified as an emerging growth company under the Securities Act[3]

Financial Performance - CHS Inc. reported a decline in its Ag segment performance due to softening grain and oilseed product margins, lower oilseed crush margins, and declining commodity prices, impacting overall profitability[182]. - Revenues for fiscal 2025 decreased to $35.46 billion, down 9.1% from $39.26 billion in fiscal 2024[190]. - Gross profit margin declined to 3.2% in fiscal 2025 from 4.5% in fiscal 2024, reflecting increased cost of goods sold[190]. - Net income attributable to CHS Inc. was $597.92 million, a decrease of 45.7% compared to $1.10 billion in the previous year[190]. - The Energy segment reported a revenue decline of 12.9%, totaling $8.77 billion, primarily due to decreased selling prices for refined fuels[205]. - The Ag segment's revenues fell by 8.8% to $27.75 billion, driven by decreased selling prices across product categories[208]. Segment Performance - The Energy segment's results significantly decreased, attributed to lower Western Canadian Select crude oil discounts and unfavorable crack spreads, with planned maintenance at the McPherson refinery further affecting sales[182]. - Average market prices for WTI crude oil decreased to $68.08 per barrel in fiscal 2025 from $79.41 per barrel in fiscal 2024, contributing to reduced profitability in the Energy segment[188]. - The Ag segment's grain and oilseed throughput increased to 2,433,258 thousand bushels in fiscal 2025, compared to 2,382,219 thousand bushels in fiscal 2024, indicating strong volume performance despite margin pressures[189]. - The overall decrease in IBIT for the Energy segment was $436.1 million, reflecting lower crude oil discounts and reduced refined fuels production volumes[198]. - The Nitrogen Production segment's IBIT increased by 5.5% to $159.54 million, attributed to favorable market conditions for urea[202]. Costs and Expenses - Marketing, general and administrative expenses decreased by 10.4% to $1.05 billion, attributed to lower performance-based incentive compensation[221]. - Interest expense increased by 40.4% to $146.08 million due to a higher short-term notes payable balance and increased interest rates[222]. - Other income decreased by 27.0% to $100.43 million, primarily due to reduced interest income from a smaller cash balance[223]. - Income tax expense increased by $21.6 million, or 444.4%, to $16.8 million in fiscal 2025, primarily due to lower research and development tax credits and changes in state law[226]. Cash Flow and Capital Expenditures - Cash and cash equivalents decreased by $467.0 million to $327.8 million as of August 31, 2025, compared to $794.9 million in 2024[228]. - Working capital decreased by $504.1 million to $2.8 billion as of August 31, 2025, driven by a lower cash balance due to decreased cash provided by operations[232]. - Net cash provided by operating activities decreased by $637.1 million to $635.8 million in fiscal 2025 from $1.3 billion in fiscal 2024[238]. - Total capital expenditures for fiscal 2026 are expected to be approximately $575.1 million, down from $728.6 million in fiscal 2025[230]. - Major maintenance costs for fiscal 2026 are expected to be approximately $53.3 million, significantly lower than $271.4 million in fiscal 2025 due to reduced turnaround activities[230]. Debt and Compliance - Total long-term debt as of August 31, 2025, was $1.8 billion, down from $2.2 billion in 2024[228]. - The company remains in compliance with all debt covenants and restrictions as of August 31, 2025, and expects continued compliance based on current projections[231]. - The company expects to pay approximately $168.7 million in preferred stock dividends during fiscal 2026, with $2.3 billion of preferred stock outstanding as of August 31, 2025[230]. Risk Management - The company incurs commodity price risk related to price changes and performance, with hedging activities in place to mitigate this risk[251]. - As of August 31, 2025, the notional amount of foreign exchange derivative contracts was $1.7 billion, up from $1.5 billion in 2024[260]. - The company has variable rate short-term notes payable totaling $1.15 billion with average interest rates of 5.0% and 4.8%[259]. - Fixed rate long-term debt amounts to $1.78 billion with varying average interest rates, including 5.7% for 2030[259]. - The company’s risk management policies include established net physical position limits for commodities, reviewed annually[254]. - The company has not experienced significant nonperformance events on open contracts historically, but continues to evaluate counterparty exposure[255]. Strategic Outlook - CHS Inc. anticipates unfavorable global supply and demand factors for energy and agricultural commodities in fiscal 2026, leading to continued margin pressure and lower profitability[180]. - The company expects to navigate less favorable market conditions by maximizing integrated supply chains and capitalizing on domestic and global opportunities[181]. - Equity method investments, including CF Nitrogen and Ventura Foods, continued to provide solid contributions to CHS income, highlighting the importance of strategic partnerships[182]. - Equity income from investments decreased by $89.8 million, or 18.7%, to $479.9 million in fiscal 2025 from $569.7 million in fiscal 2024, primarily due to a gain on the sale of a business recognized by Ventura Foods[224][225].

Financial Performance - CHS reported net income of $232.2 million for Q3 FY 2025, a decrease of 21.9% from $297.3 million in Q3 FY 2024[2] - Revenues for Q3 FY 2025 were $9.8 billion, up from $9.6 billion in Q3 FY 2024, marking a 2.1% increase[2] - For the first nine months of FY 2025, net income was $401.2 million, down 59.6% from $990.5 million in the same period of FY 2024[2] - CHS's total revenues for the first nine months of FY 2025 were $26.9 billion, down from $30.1 billion in the same period of FY 2024[2] Segment Performance - The agronomy segment saw a pretax income of $151.0 million, an increase of $42.5 million compared to the prior year, driven by higher volumes and margins[3] - Energy segment reported a pretax loss of $50.1 million, a decrease of $147.9 million from the prior year, impacted by planned maintenance at the McPherson refinery[3][5] - Nitrogen production earnings increased to $54.6 million, up $2.2 million from the previous year, due to favorable market conditions for urea[3] - Corporate and Other segment earnings rose to $103.3 million, a $52.2 million increase year-over-year, largely from the Ventura Foods joint venture[6] Strategic Focus - The company emphasized its commitment to customer service and efficiency improvements amid challenging agriculture and energy markets[2] - CHS operates in 65 countries and recorded approximately $39 billion in revenues for FY 2024, highlighting its global agribusiness presence[9]

Refinery and Energy Performance - CHS Inc. reported a decrease in total refinery throughput volumes to 116,487 barrels per day in Q3 2025, down from 192,900 barrels per day in Q3 2024[115]. - The company conducted planned major maintenance at the McPherson refinery, resulting in lower sales of higher-margin refined products[113]. - The average WTI crude oil price was $63.99 per barrel in Q3 2025, down from $81.14 per barrel in Q3 2024[118]. - The Energy segment reported a loss before income taxes of $50,088 thousand in 2025, a significant decline from income of $97,850 thousand in 2024, representing a change of 151.2%[125]. - The Energy segment reported a loss before income taxes of $416,264,000 for the nine months ended May 31, 2025, compared to a loss of $113,794,000 in the prior year, reflecting a change of $530,058,000 or 127.3%[169]. - Revenues in the Energy segment decreased by $933,692,000 or 14.3%, from $6,541,840,000 in 2025 to $5,608,148,000 in 2024[181]. - Cost of goods sold in the Energy segment decreased by 6.6% to $1,760,043 thousand in 2025 from $1,885,415 thousand in 2024, driven by market oversupply conditions[149]. Agricultural Segment Performance - The Ag segment earnings improved due to higher volumes and margins in wholesale and retail agronomy products, despite decreased margins in grain and oilseed processing categories[113]. - Total grain and oilseed throughput reached 604,009 thousand bushels in Q3 2025, up from 540,067 thousand bushels in Q3 2024[119]. - The Ag segment's income before income taxes increased to $151,040 thousand in 2025, up 39.2% from $108,535 thousand in 2024[131]. - Revenues in the Ag segment rose to $7,962,254 thousand in 2025, an increase of 5.8% from $7,523,656 thousand in 2024[142]. - The Ag segment's revenues fell to $21,189,835,000 in 2025 from $23,486,932,000 in 2024, a decrease of $2,297,097,000 or 9.8%[185]. - Cost of goods sold in the Ag segment decreased to $20,542,339,000 in 2025 from $22,710,005,000 in 2024, a reduction of $2,167,666,000 or 9.5%[194]. Financial Performance Overview - Revenues for the three months ended May 31, 2025, were $9,766,421 thousand, a slight increase from $9,608,983 thousand in 2024, representing a growth of 1.6%[120]. - Gross profit decreased to $329,811 thousand in 2025, down from $467,795 thousand in 2024, reflecting a gross margin decline from 4.9% to 3.4%[120]. - Net income attributable to CHS Inc. was $232,184 thousand for the three months ended May 31, 2025, compared to $297,274 thousand in 2024, a decrease of 21.9%[120]. - Revenues for the nine months ended May 31, 2025, were $26,856,724,000, down from $30,087,121,000 in the same period of 2024, representing a decrease of $3,230,397,000 or 10.7%[163]. - Gross profit decreased to $806,802,000, which is 3.0% of revenues, compared to $1,478,637,000 or 4.9% of revenues in the prior year[163]. - Net income attributable to CHS Inc. for the nine months ended May 31, 2025, was $401,220,000, down from $990,504,000 in 2024, a decrease of $589,284,000 or 59.5%[163]. Expenses and Income Tax - Marketing, general and administrative expenses decreased by 18.2% to $258,850 thousand in 2025 from $316,435 thousand in 2024, primarily due to lower performance-based compensation expenses[157]. - Interest expense increased by 88.3% to $44,109 thousand in 2025 from $23,425 thousand in 2024, attributed to a higher short-term notes payable balance[158]. - Income tax expense increased to $12,613,000 in Q3 2025 from $27,175,000 in Q3 2024, a change of $14,562,000 or 115.5%[162]. - Income tax expense rose by $10.3 million (48.1%) to $31.7 million, influenced by reduced research and development tax credits and changes in state law, resulting in effective tax rates of 7.3% for 2025 compared to 2.1% for 2024[204]. Cash Flow and Capital Expenditures - Cash and cash equivalents decreased significantly from $794.9 million in August 2024 to $323.9 million in May 2025[205]. - Working capital decreased by $741.2 million to $2.57 billion as of May 31, 2025, due to increased current liabilities driven by seasonality[210]. - Total capital expenditures for fiscal 2025 are expected to be approximately $735.4 million, down from $808.8 million in fiscal 2024[207]. - Net cash used in operating activities was $635.3 million for the nine months ended May 31, 2025, a decrease of $795.0 million year-over-year[213]. - The company expects to pay approximately $168.7 million in dividends on preferred stock during fiscal 2025, with $126.5 million paid during the nine months ended May 31, 2025[207]. - The company redeemed $271.0 million of member equity during the nine months ended May 31, 2025, as part of its patronage program[208]. Market Outlook and Strategic Initiatives - The company anticipates continued margin pressure and lower profitability in energy and agricultural commodities through at least the remainder of fiscal 2025 due to macroeconomic factors[111]. - CHS Inc. expects global economic factors impacting energy and agricultural commodities to be less favorable in fiscal 2025 compared to fiscal 2024[111]. - CHS Inc. plans to pursue growth through strategic investments and cooperative connections despite less favorable market conditions[112]. - The company acquired WCAS for an estimated cash purchase price of $322.1 million, enhancing its grain and agronomy platforms[207]. - No material changes in market risk exposures were experienced for the period ended May 31, 2025[222]. - The company refers to Note 1 for applicable standards issued and not yet adopted[221].