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 $430,008 thousand or 4.6% compared to $9,294,112 thousand in 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 Energy segment's revenues increased by $68,407 thousand or 3.0%, with income before income taxes soaring by 868.9% to $152,347 thousand [138]. - The Agronomy segment reported revenues of $1,238,005 thousand, a decrease of $26,029 thousand or 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 decline of $463,818 thousand or 8.2%, with income before income taxes dropping by 78.3% to $36,242 thousand [140]. 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 Grains segment's profitability is largely driven by throughput and production volumes, which are affected by market-driven commodity prices and weather-related conditions [129]. - CHS Inc. anticipates macroeconomic factors will continue to drive uncertainty in global energy and agricultural commodity markets throughout fiscal 2026 [120]. - The company expects reduced margins for energy and agricultural commodities to persist throughout fiscal 2026 due to various headwinds [121]. Cost and Expenses - Cost of goods sold decreased by $418,684 thousand or 4.7%, primarily due to lower retail and domestic feed grains margins [147]. - Marketing, general and administrative expenses rose by $5,270 thousand or 2.0%, attributed to depreciation related to the enterprise resource planning system [151]. - Interest expense increased by $9,703 thousand or 35.1%, due to a higher short-term notes payable balance compared to the previous year [152]. Cash Flow and Capital Expenditures - Net cash used in operating activities increased by $43.8 million to $337.8 million for the three months ended November 30, 2025, primarily due to increased inventories [167]. - Net cash used in investing activities rose by $241.2 million to $247.9 million, reflecting increased purchases of investments [168]. - Net cash provided by financing activities increased by $680.3 million to $644.2 million, primarily due to increased net cash inflows from notes payable [169]. - 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]. Inventory and Working Capital - 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]. Commodity Prices - 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 2024 [126]. - The average price of D4 biodiesel RINs increased by 54% to $1.0190 during the same period, up from $0.6632 [126]. - Urea prices rose to $381.31 per ton in 2025 from $318.29 per ton in 2024, indicating a positive trend in commodity pricing [133]. Other Income and Tax - 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]. - 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]. Preferred Stock and Market Risk - As of November 30, 2025, the company had approximately $2.3 billion of preferred stock outstanding [161]. - The company expects to pay approximately $168.7 million in preferred stock dividends during fiscal 2026, with $42.2 million paid in the three months ended November 30, 2025 [161]. - 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 Accounting Standards - CHS Inc. has not elected to use the extended transition period for new financial accounting standards[3] Data Presentation - The report includes a cover page interactive data file embedded within the Inline XBRL document[6]

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 [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 fiscal 2024 [190]. - The Energy segment reported a revenue decrease of $1.13 billion, or 12.9%, primarily due to lower selling prices for refined fuels [205]. - The Ag segment's revenues fell by $2.67 billion, or 8.8%, 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, alongside planned maintenance at the McPherson refinery [182]. - Refinery throughput volumes for fiscal 2025 were 174,837 barrels per day, down from 189,424 barrels per day in fiscal 2024, primarily due to a planned shutdown for maintenance [184]. - 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 [189]. - The Nitrogen Production segment's income before income taxes increased by 5.5% to $159.54 million, attributed to favorable market conditions [202]. Cost and Expenses - Interest expense increased by 40.4% to $146.08 million due to higher short-term notes payable and interest rates [222]. - Marketing, general and administrative expenses decreased by 10.4% to $1.05 billion, primarily due to lower performance-based compensation [221]. - The overall cost of goods sold for the Energy segment decreased by 8.7% to $8.04 billion, influenced by lower refined fuels costs [213]. Future Outlook - CHS anticipates unfavorable global supply and demand factors for energy and agricultural commodities in fiscal 2026, leading to reduced margins [180]. - The company expects continued margin pressure in fiscal 2026 due to macroeconomic uncertainties, including geopolitical conflicts and fluctuating tariffs [180]. - Total capital expenditures for fiscal 2026 are expected to be approximately $575.1 million, a decrease from $728.6 million in fiscal 2025 [230]. - 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]. - Major maintenance costs for fiscal 2026 are projected to be around $53.3 million, significantly lower than $271.4 million in fiscal 2025 due to reduced turnaround activities [230]. Cash Flow and Working Capital - As of August 31, 2025, total cash and cash equivalents decreased to $327,826,000 from $794,865,000 in 2024, reflecting a significant decline in cash provided by operations [228]. - Working capital as of August 31, 2025, was $2,803,865,000, a decrease of $504,104,000 from $3,307,969,000 in 2024, primarily due to a lower cash balance [232]. - Net cash provided by operating activities for fiscal 2025 was $635,787,000, down $637,093,000 from $1,272,880,000 in fiscal 2024 [238]. - Cash flows from investing activities decreased by $551,000,000 in fiscal 2025, reflecting increased proceeds from the sale and maturity of investments [239]. Tax and Compliance - The increase in income tax expense for fiscal 2025 was primarily due to lower research and development tax credits, resulting in an effective tax rate of 2.7% compared to (0.4)% in fiscal 2024 [226]. - The company has deferred tax assets that may require a valuation allowance if future taxable income does not support realization [245]. - Tax benefits related to uncertain tax positions are recognized if there is more than a 50% probability of being sustained upon examination by tax authorities [246]. 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, indicating exposure to foreign currency fluctuations [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, overseen by corporate compliance teams [254]. - The company has not experienced significant nonperformance events on open contracts historically, but continues to evaluate counterparty exposure [255].

Financial Performance - CHS reported net income of $232.2 million for Q3 FY 2025, a decrease from $297.3 million in Q3 FY 2024, with revenues of $9.8 billion compared to $9.6 billion in the prior year[2] - For the first nine months of FY 2025, net income was $401.2 million, down from $990.5 million, with revenues of $26.9 billion compared to $30.1 billion in the same period last year[2] Segment Performance - The agronomy segment achieved pretax income of $151.0 million, an increase of $42.5 million year-over-year, driven by higher volumes and margins for wholesale and retail agronomy products[3] - Energy segment reported a pretax loss of $50.1 million, a decline of $147.9 million compared to the previous year, primarily due to planned maintenance at the McPherson refinery[3][5] - Nitrogen production earnings increased to $54.6 million, up $2.2 million from the prior year, attributed to favorable market conditions for urea[3] - Corporate and Other segment saw pretax earnings rise to $103.3 million, a $52.2 million increase, largely due to strong results from the Ventura Foods joint venture[6] Strategic Focus - CHS emphasized its commitment to customer service and efficiency improvements amid challenging agriculture and energy markets[2] - The company aims to navigate current market conditions by leveraging local expertise and partnerships[2] Market Outlook - CHS's diversified agronomy, grains, foods, and energy businesses recorded revenues of approximately $39 billion in FY 2024[9] - Forward-looking statements indicate potential risks including commodity price changes, global conflicts, and regulatory impacts that could affect future performance[10][11]

Financial Performance - CHS Inc. reported stronger earnings in the Ag segment due to higher volumes and margins in wholesale and retail agronomy products, partially offset by decreased margins in grain and oilseed processing [113]. - Revenues for the three months ended May 31, 2025, were $9,766,421, a slight increase from $9,608,983 in 2024, representing a growth of 1.6% [120]. - Gross profit decreased to $329,811, down from $467,795 in 2024, reflecting a gross margin decline from 4.9% to 3.4% [120]. - Operating earnings fell to $70,961, a decrease of 53% from $151,360 in the prior year [120]. - Net income attributable to CHS Inc. was $232,184, down 21.8% from $297,274 in 2024 [120]. - Revenues for the nine months ended May 31, 2025, were $26,856,724, a decrease of 10.5% from $30,087,121 in 2024 [163]. - Gross profit for the same period was $806,802, representing 3.0% of revenues, down from $1,478,637 or 4.9% in 2024 [163]. - Net income attributable to CHS Inc. for the nine months ended May 31, 2025, was $401,220, a decline of 59.5% from $990,504 in 2024 [163]. Segment Performance - The Energy segment experienced lower earnings due to planned major maintenance at the McPherson, Kansas refinery, resulting in reduced sales of higher-margin refined products [113]. - The Energy segment reported a loss before income taxes of $50,088, a significant decline from income of $97,850 in 2024, marking a change of 151.2% [125]. - Revenues in the Energy segment decreased by 13.6% to $1,785,749, primarily due to lower selling prices for refined fuels [137]. - The Ag segment's income before income taxes increased by 39.2% to $151,040 from $108,535 in 2024 [131]. - Ag segment revenues increased by 5.8% to $7,962,254, driven by higher volumes and favorable market conditions [142]. - The Ag segment's revenues fell by 9.8% to $21,189,835 in 2025 from $23,486,932 in 2024, largely due to decreased selling prices across product categories [188]. Market Conditions - Average market prices for WTI crude oil decreased to $63.99 per barrel in Q3 2025 from $81.14 per barrel in Q3 2024, impacting profitability in the Energy segment [118]. - 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]. - The price of D6 ethanol RINs increased by 85% and D4 biodiesel RINs by 97% during the three months ended May 31, 2025, compared to the same period in the prior fiscal year [116]. - The average price of corn was $4.56 per bushel in Q3 2025, compared to $4.43 per bushel in Q3 2024, indicating slight price increases [119]. Expenses and Cash Flow - Marketing, general and administrative expenses decreased by 18.2% to $258,850, attributed to lower performance-based incentive compensation [157]. - Marketing, general and administrative expenses decreased by 11.2% to $769,968 in 2025 from $866,721 in 2024, attributed to lower performance-based compensation expenses [199]. - Interest expense increased by 23.5% to $96,962 in 2025 from $78,513 in 2024, due to a higher short-term notes payable balance [200]. - 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]. - Cash and cash equivalents decreased to $323.9 million as of May 31, 2025, down from $794.9 million as of August 31, 2024 [205]. Investments and Acquisitions - The company plans to continue executing enterprise priorities for fiscal 2025, focusing on growth through strategic investments and cooperative connections [112]. - The company acquired WCAS for an estimated cash purchase price of $322.1 million, enhancing its grain and agronomy platforms [207]. - Equity income from investments rose by 34.6% to $204,605, primarily due to a gain on the sale of a business by Ventura Foods [160]. - Equity income from investments increased by $45.8 million (12.3%) to $419.0 million for the nine months ended May 31, 2025, mainly due to a gain on the sale of a business by Ventura Foods [202][203]. Tax and Regulatory Changes - The effective tax rate increased to 10.5% in 2025 from 4.1% in 2024, primarily due to changes in state law affecting tax credits [162]. - Income tax expense rose by $10.3 million (48.1%) to $31.7 million for the nine months ended May 31, 2025, attributed to reduced research and development tax credits and changes in state law [204]. Capital Expenditures - Total capital expenditures for fiscal 2025 are expected to be approximately $735.4 million, down from $808.8 million in fiscal 2024 [207]. - Major maintenance costs increased to $274.1 million during the nine months ended May 31, 2025, compared to $22.7 million in fiscal 2024 [207]. Risk and Compliance - No material changes in market risk exposures were experienced for the period ended May 31, 2025 [222]. - The quantitative and qualitative disclosures remain consistent with the Annual Report on Form 10-K for the year ended August 31, 2024 [222]. - Recent accounting pronouncements are discussed in Note 1 of the Quarterly Report on Form 10-Q [221].