DENVER--(BUSINESS WIRE)--Intrepid Potash, Inc. (NYSE: IPI) plans to release its third quarter 2025 financial results on Wednesday, November 5, 2025, after the market closes. Intrepid will host a conference call on Thursday, November 6, 2025, at 12:00 p.m. Eastern Time to discuss the results and other operating and financial matters and answer investor questions. Management invites you to listen to the conference call by using the toll-free dial-in number 1 (800) 715-9871 or International dial-i. ...

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Group 1 - Intrepid Potash (IPI) shares increased by 8.4% to close at $31.14, contrasting with a 4.2% loss over the past four weeks, indicating strong trading volume [1] - The rally in IPI's stock reflects positive market fundamentals for potash and robust demand for its products, particularly the specialty fertilizer Trio, with a 25% increase in potash sales volumes to 69,000 tons in Q2 [2] - The company is projected to report quarterly earnings of $0.13 per share, representing a year-over-year increase of 192.9%, while revenues are expected to be $45.75 million, down 7.6% from the previous year [3] Group 2 - The consensus EPS estimate for IPI has remained stable over the last 30 days, suggesting that stock price movements may not sustain without earnings estimate revisions [4] - IPI holds a Zacks Rank of 1 (Strong Buy), indicating strong market confidence, while another industry player, Nutrien (NTR), saw a 4.7% increase in its stock price, but has returned -3.7% over the past month [5] - Nutrien's EPS estimate has decreased by 0.7% to $0.92, reflecting a year-over-year change of 135.9%, and it currently holds a Zacks Rank of 3 (Hold) [6]

Company Performance - Franco-Nevada (FNV) has returned approximately 57.4% since the beginning of the calendar year, significantly outperforming the Basic Materials sector, which has gained an average of 17.7% [4] - The Zacks Consensus Estimate for FNV's full-year earnings has increased by 15.5% over the past quarter, indicating improved analyst sentiment and earnings outlook [3] - Franco-Nevada is currently ranked 2 (Buy) in the Zacks Rank system, which emphasizes earnings estimates and revisions [3] Industry Context - Franco-Nevada operates within the Mining - Gold industry, which consists of 39 individual stocks and is currently ranked 86 in the Zacks Industry Rank [5] - Stocks in the Mining - Gold industry have gained about 78.6% year-to-date, suggesting that while FNV is performing well, it is slightly underperforming its industry peers [5] - In contrast, Intrepid Potash, which belongs to the Fertilizers industry ranked 1, has seen a year-to-date return of 28.4% and a consensus EPS estimate increase of 122.6% over the past three months [5][6]

Core Insights - The materials sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Group 1: Oversold Stocks - Celanese Corp has an RSI of 26.6, with a stock price of $41.80, and has fallen approximately 29% over the past month, reaching a 52-week low of $36.29 [8] - Namib Minerals has an RSI of 19.5, with a stock price of $2.93, and has experienced a significant decline of around 66% over the past month, hitting a 52-week low of $2.61 [8] - Intrepid Potash Inc has an RSI of 27.4, with shares closing at $29.01, and has decreased about 17% in the last month, with a 52-week low of $20.86 [8]

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited financial statements present the company's financial position, results of operations, and cash flows for the periods ended June 30, 2025 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets grew to $607.2 million, driven by a significant increase in cash and cash equivalents Condensed Consolidated Balance Sheet Highlights (In thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $211,632 | $183,763 | | Cash and cash equivalents | $85,049 | $41,309 | | Inventory, net | $100,196 | $112,968 | | **Total Assets** | **$607,160** | **$594,520** | | **Total Current Liabilities** | $40,083 | $38,003 | | **Total Liabilities** | **$123,323** | **$120,128** | | **Total Stockholders' Equity** | **$483,837** | **$474,392** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company returned to profitability with a net income of $7.9 million, driven by a 20% increase in sales Condensed Consolidated Statements of Operations Highlights (In thousands, except per share amounts) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Sales | $169,232 | $141,342 | | Gross Margin | $28,889 | $14,058 | | Operating Income (Loss) | $8,292 | $(5,934) | | Net Income (Loss) | $7,869 | $(3,963) | | Diluted EPS | $0.60 | $(0.31) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was $50.9 million, and lower capital expenditures led to a decrease in cash used for investing Cash Flow Summary (In thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $50,860 | $69,278 | | Net cash used in investing activities | $(5,798) | $(16,407) | | Net cash used in financing activities | $(1,318) | $(5,275) | | **Net Change in Cash** | **$43,744** | **$47,596** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail business segments, revenue sources, and significant legal contingencies including lawsuits and environmental liabilities - The company operates in three segments: potash, Trio®, and oilfield solutions, producing potassium, magnesium, sulfur, salt, and water products[16](index=16&type=chunk)[18](index=18&type=chunk) - A class action lawsuit was filed alleging failure to properly compensate employees for donning and doffing personal protective equipment, with alleged damages **exceeding $5.0 million**[70](index=70&type=chunk) - Following a final court decision invalidating certain water rights, the company must repay for water sold under previous authorizations, though the form and amount are uncertain[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) - In May 2025, the company reported an unpermitted brine discharge and has recorded an **estimated liability of $2.2 million** for potential penalties and $0.1 million for remediation[74](index=74&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=28&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes financial results, highlighting a return to profitability driven by strong Trio® performance and higher potash volumes [Significant Business Trends and Activities](index=31&type=section&id=Significant%20Business%20Trends%20and%20Activities) Key trends include lower potash prices offset by higher volumes, strong Trio® pricing, and declining water sales - Potash average net realized sales price per ton decreased in Q2 and H1 2025 compared to 2024, but **sales volumes increased significantly** due to improved production and strong demand[103](index=103&type=chunk) - Trio® average net realized sales price per ton and sales volumes **both increased** in Q2 and H1 2025 compared to 2024, driven by rising potash and sulfate prices and strong demand[107](index=107&type=chunk) - Water sales **declined sharply** in 2025 as the oil and gas market trends towards using more recycled water[107](index=107&type=chunk) - Above-average rainfall and lack of anticipated brine are expected to **reduce 2026 production** from the HB facility by a combined total of approximately 45,000 tons[109](index=109&type=chunk)[110](index=110&type=chunk) [Consolidated Results](index=33&type=section&id=Consolidated%20Results) The company's net income reached $7.9 million, reversing a prior-year loss, driven by a 20% sales increase and doubled gross margin Consolidated Results Summary (In thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Sales | $169,232 | $141,342 | | Gross Margin | $28,889 | $14,058 | | Net Income (Loss) | $7,869 | $(3,963) | Average Net Realized Sales Price Per Ton | Product | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Potash | $332 | $399 | | Trio® | $352 | $306 | [Segment Results](index=37&type=section&id=Segment%20Results) The Trio® segment's gross margin surged to $18.5 million, offsetting declines in the Potash and Oilfield Solutions segments Potash Segment Performance (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Sales (in thousands) | $77,571 | $67,610 | | Gross Margin (in thousands) | $7,361 | $8,886 | | Sales Volumes (in k tons) | 172 | 129 | | Avg. Net Realized Price/ton | $332 | $399 | Trio® Segment Performance (Six Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Sales (in thousands) | $83,054 | $63,010 | | Gross Margin (in thousands) | $18,520 | $1,043 | | Sales Volumes (in k tons) | 181 | 154 | | Avg. Net Realized Price/ton | $352 | $306 | Oilfield Solutions Segment Performance (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Sales | $8,724 | $10,862 | | Gross Margin | $3,008 | $4,129 | [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with $85.0 million in cash and no outstanding debt on its credit facility - Cash and cash equivalents **increased to $85.0 million** as of June 30, 2025, from $41.3 million at December 31, 2024[177](index=177&type=chunk) - The company has a **$150 million revolving credit facility** with no borrowings outstanding as of June 30, 2025[181](index=181&type=chunk)[183](index=183&type=chunk) - Expected capital investments for 2025 are between **$32 million and $37 million**, primarily for sustaining capital[176](index=176&type=chunk) - **No shares were repurchased** in the first six months of 2025 under the share repurchase program, which has approximately $13 million remaining[185](index=185&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) There have been no material changes to the company's market risk exposure since year-end 2024 - There have been **no material changes** to the company's market risk exposure since December 31, 2024[191](index=191&type=chunk) [Controls and Procedures](index=48&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2025[192](index=192&type=chunk) - **No changes occurred** in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[193](index=193&type=chunk) [PART II - OTHER INFORMATION](index=49&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=49&type=section&id=ITEM%201.%20Legal%20Proceedings) This section refers to Note 14 for details on legal matters, including lawsuits and contingent liabilities - For details on legal proceedings, the report directs readers to **Note 14** in Part I, Item 1[196](index=196&type=chunk) [Risk Factors](index=50&type=section&id=ITEM%201A.%20Risk%20Factors) The company highlights expanded risks related to U.S. tariffs and their potential impact on costs and customer demand - The company highlights the risk from changes in laws, particularly the **uncertainty surrounding U.S. tariffs** announced in April 2025 and potential retaliatory tariffs[199](index=199&type=chunk)[200](index=200&type=chunk) - Tariffs could affect **raw material costs and availability**, influence customer purchasing decisions, and increase overall operating costs[200](index=200&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company withheld shares to cover employee taxes on vested stock but made no repurchases under its formal program Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | Purchased as Part of Program | Remaining Program Value | | :--- | :--- | :--- | :--- | :--- | | April 2025 | 3,791 | $29.63 | — | $12,987,86 | | May 2025 | 1,881 | $32.57 | — | $12,987,86 | | June 2025 | — | $— | — | $12,987,86 | | **Total** | **5,672** | **$30.61** | **—** | **$12,987,86** | - The shares purchased were withheld to cover employee taxes on vested restricted stock and were **not part of the formal share repurchase program**[203](index=203&type=chunk) [Mine Safety Disclosures](index=51&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) The company provides required mine safety disclosures for its MSHA-regulated facilities in Exhibit 95.1 - The company's New Mexico facilities are regulated by MSHA, and required mine safety violation information is provided in **Exhibit 95.1**[206](index=206&type=chunk)

Financial Data and Key Metrics Changes - In the second quarter, the company generated adjusted EBITDA of $16.4 million and adjusted net income of $6 million, compared to adjusted EBITDA of $9.2 million and an adjusted net loss of approximately $0.04 million in the prior year [5][6] - Year-to-date production of potash was 137,000 tons, an 8% increase from the same period in 2024, with cost of goods sold per ton improving by 12% to $323 [6] - Year-to-date production of Trio was 132,000 tons, also an 8% increase from the previous year, with cost of goods sold per ton improving by 18% to $234 [6] Business Line Data and Key Metrics Changes - Potash segment saw second quarter sales volumes of 69,000 tons, a 25% increase year-over-year, with a net realized sales price of $361 per ton, up about $50 from the first quarter [12] - Trio segment sold 70,000 tons at an average net realized sales price of $368 per ton, supported by a tight domestic sulfate market [15] - Oilfield Solutions segment generated revenue of $4.3 million with a gross margin of $1.3 million, maintaining a 30% margin consistent with historical averages [16] Market Data and Key Metrics Changes - Global supply remains tight with strong demand outpacing supply additions in 2025, and key international contracts were settled at supportive levels [8] - The Jansen project, expected to come online late next year, has been delayed by six months, contributing to a more balanced market outlook [8] - Despite some weakness in U.S. corn and soybean futures, strong exports and recent trade deals are expected to support agricultural markets [9][10] Company Strategy and Development Direction - The company remains focused on enhancing core operations for long-term success, prioritizing investments that support higher production and lower costs [11][18] - The company plans to evaluate options for an injection well and pipeline to connect the Amex mine to the HB injection system following the unsuccessful drilling of the Amax Cavern sample well [6][7] - The company aims to maintain production levels and improve unit economics despite recent production challenges [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potash market fundamentals and pricing, which are expected to help offset lower near-term production [19] - The company is in a strong financial position to navigate production headwinds and execute necessary projects for future success [19][20] - Management acknowledged the recent challenges but emphasized the overall strong performance and production improvements achieved in prior periods [19] Other Important Information - The company has reduced its capital expenditure guidance for 2025 to $32 million to $37 million due to the results of the Amex well [18] - The company expects potash production to be between 270,000 to 280,000 tons for both 2025 and 2026, reflecting adjustments due to weather and drilling outcomes [14][15] Q&A Session Summary Question: Clarification on production timing changes - The total impact on production is a reduction of 45,000 tons in 2026, netting off the 15,000 tons shifted from 2025 [22][24] Question: Long-term production outlook - The company anticipates a potential tailwind into 2027 from the temporary production shifts, with the medium-term challenge being the 25,000 tons reduction due to the unsuccessful well [25][27] Question: Impact of lower production on cost absorption - A potential 8% to 10% increase in cost per ton is expected for 2026 unless cost-cutting measures are implemented [31][33] Question: Capital allocation discussion - The board is actively discussing capital allocation as cash accumulates, with a focus on core operations and potential future investments [44][46]

Core Viewpoint - Intrepid Potash reported strong second quarter 2025 financial results, exceeding consensus estimates, but lowered production targets for 2025 and 2026 due to weather and operational challenges [1][13]. Financial Performance - GAAP revenue reached $71.5 million, surpassing the estimate of $61.6 million, and non-GAAP EPS was $0.45 compared to the estimate of $0.19 [1][2]. - Adjusted EBITDA was $16.4 million, a 78.3% increase from $9.2 million in Q2 2024 [2][5]. - Cash flow from operations improved to $39.9 million, up 44% from $27.7 million year-over-year [2][5]. - Gross margin increased significantly to $14.3 million from $7.6 million in Q2 2024, reflecting an 88.2% year-over-year growth [2][5]. Segment Performance - Potash segment sales rose 13.2% to $34.0 million, with sales volumes increasing 25% to 69,000 tons [6]. - Trio® segment sales increased 25% to $33.2 million, with average net realized price up 17% to $368 per ton [6]. - Oilfield Solutions segment revenue decreased to $4.3 million from $5.5 million in Q2 2024 due to reduced activity [7]. Operational Insights - The company focused on operational efficiency and margin improvement, with a strategic emphasis on maximizing production volumes and improving cost discipline [4]. - Potash production was 44,000 tons, an increase of 4,000 tons year-over-year, while Trio® sales volumes rose 11% to 70,000 tons [8]. - Late-quarter weather impacts and project delays affected inventory and future production outlooks, with a projected decrease in 2026 production by approximately 25,000 tons [9]. Environmental and Compliance Issues - Intrepid recorded a $2.2 million environmental penalty related to an unpermitted discharge, along with asset impairments and employee separation costs [10]. Financial Position - As of August 1, 2025, the company held $87 million in cash with no outstanding borrowings, maintaining a $150 million undrawn revolving credit facility [11]. - Capital expenditures for the quarter were $4.1 million, with guidance for fiscal 2025 set at $32–37 million [11][12]. Future Outlook - Management provided conservative guidance for potash production in fiscal 2025 and 2026, lowering targets to 270,000–280,000 tons per year due to adverse weather and operational issues [13].

[Second Quarter 2025 Financial & Operational Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20%26%20Operational%20Highlights) Intrepid reported strong Q2 2025 results, driven by potash and Trio performance, with revised production outlook [Management Commentary & Key Results](index=1&type=section&id=Management%20Commentary%20%26%20Key%20Results) Intrepid exceeded Q2 2025 expectations with strong financial results, driven by improved pricing and demand for potash and Trio - Management highlighted that solid pricing and sales volumes for potash and Trio® drove higher gross margins compared to the prior year[3](index=3&type=chunk)[4](index=4&type=chunk) Q2 2025 Key Financial Results | Metric | Value | | :--- | :--- | | Total Sales | $71.5 million | | Net Income | $3.3 million ($0.25/share) | | Adjusted Net Income | $6.0 million ($0.45/share) | | Adjusted EBITDA | $16.4 million | | Cash Flow from Operations | $39.9 million | - Adjusted EBITDA of **$16.4 million** was roughly **75%** higher than the **second quarter of 2024**[4](index=4&type=chunk) [Consolidated Financial & Operational Metrics](index=2&type=section&id=Consolidated%20Financial%20%26%20Operational%20Metrics) Q2 2025 saw Intrepid's total sales rise to $71.5 million, with net income turning positive and increased sales volumes Q2 2025 vs Q2 2024 Financial Performance (Three Months Ended June 30) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Sales | $71.5 million | $62.1 million | | Gross Margin | $14.3 million | $7.6 million | | Net Income (Loss) | $3.3 million | $(0.8) million | | Adjusted EBITDA | $16.4 million | $9.2 million | | Cash Flow from Operations | $39.9 million | $27.7 million | Q2 2025 vs Q2 2024 Key Operational Metrics (Three Months Ended June 30) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Potash Sales Volumes | 69k tons | 55k tons | | Avg. Potash Price/ton | $361 | $405 | | Trio® Sales Volumes | 70k tons | 63k tons | | Avg. Trio® Price/ton | $368 | $314 | [Operational Updates & Outlook](index=2&type=section&id=Operational%20Updates%20%26%20Outlook) Potash production outlook for 2025-2026 revised downward due to rainfall and HB AMAX Cavern project results - Above-average rainfall at the HB facility is expected to reduce **1H 2026** production by approximately **20,000 tons** A planned mill shutdown in **September 2025** will shift about **15,000 tons** of production from **2025** into **1H 2026**[7](index=7&type=chunk) - The HB AMAX Cavern project did not find an anticipated brine pool, which is now expected to decrease **2026** production by an additional **25,000 tons** due to a reduced overall brine grade[8](index=8&type=chunk)[9](index=9&type=chunk) Revised Potash Production Outlook (in thousands of tons) | Year | Current Forecast | Previous Forecast | | :--- | :--- | :--- | | 2025 | 270k - 280k | 285k - 295k | | 2026 | 270k - 280k | 300k - 310k | [Liquidity & Capital Expenditures](index=3&type=section&id=Liquidity%20%26%20Capital%20Expenditures) Intrepid maintains strong liquidity with $87 million cash and no debt, forecasting $32-37 million in 2025 capex - As of **August 1, 2025**, the company had **$87 million** in cash and cash equivalents and no outstanding debt on its **$150 million** revolving credit facility[11](index=11&type=chunk) - **Q2 2025** capital expenditures totaled **$4.1 million** The full-year **2025** forecast is projected to be between **$32 million** and **$37 million**[12](index=12&type=chunk) [Segment Performance Analysis](index=3&type=section&id=Segment%20Performance%20Analysis) Analysis of Potash, Trio®, and Oilfield Solutions segments reveals varied performance in Q2 2025 [Potash Segment](index=3&type=section&id=Potash%20Segment) Potash segment sales increased by $4.0 million in Q2 2025, driven by higher volumes and improved gross margin Potash Segment Performance (Three Months Ended June 30) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Sales | $34.0 million | $30.0 million | | Gross Margin | $4.9 million | $3.3 million | | Sales Volumes | 69k tons | 55k tons | | Avg. Net Realized Price/ton | $361 | $405 | - The increase in sales was primarily driven by a **25%** rise in sales volumes, while the average net realized sales price per ton decreased by **11%** compared to the prior year[13](index=13&type=chunk)[14](index=14&type=chunk) - Unit economics improved, with COGS per ton decreasing by **13%** to **$337** from **$386** in **Q2 2024**, which contributed to the higher gross margin[16](index=16&type=chunk)[17](index=17&type=chunk) [Trio® Segment](index=4&type=section&id=Trio%C2%AE%20Segment) Trio® segment sales surged 25% in Q2 2025 due to increased volume and price, boosting gross margin to $8.1 million Trio® Segment Performance (Three Months Ended June 30) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Sales | $33.2 million | $26.5 million | | Gross Margin | $8.1 million | $2.2 million | | Sales Volume | 70k tons | 63k tons | | Avg. Net Realized Price/ton | $368 | $314 | - Sales growth was driven by both an **11%** increase in tons sold and a **17%** increase in the average net realized sales price per ton[21](index=21&type=chunk) - Trio® segment COGS per ton improved by **10%** to **$235**, down from **$261** in **Q2 2024**, reflecting strong efficiencies and lower operating expenses[21](index=21&type=chunk) [Oilfield Solutions Segment](index=5&type=section&id=Oilfield%20Solutions%20Segment) Oilfield Solutions sales decreased by $1.2 million in Q2 2025 due to lower water sales, resulting in reduced gross margin Oilfield Solutions Segment Performance (Three Months Ended June 30) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Sales | $4.3 million | $5.5 million | | Gross Margin | $1.3 million | $2.1 million | - The sales decrease was attributed to a **$2.0 million** drop in water sales from slightly lower oilfield activity, partially offset by a **$0.9 million** increase in surface use and easement sales[22](index=22&type=chunk) - Segment gross margin decreased by **$0.8 million** to **$1.3 million**, reflecting the lower sales[23](index=23&type=chunk) [Financial Statements](index=10&type=section&id=Financial%20Statements) Key financial statements for Q2 2025 show improved sales, net income, and strong cash flow and liquidity [Condensed Consolidated Statements of Operations](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 saw Intrepid's total sales rise to $71.5 million, with gross margin doubling and net income turning positive Q2 2025 vs Q2 2024 Income Statement Highlights (Three Months Ended June 30) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | | Sales | $71,472 | $62,055 | | Gross Margin | $14,287 | $7,624 | | Operating Income (Loss) | $3,294 | $(1,628) | | Net Income (Loss) | $3,263 | $(833) | | Diluted EPS | $0.25 | $(0.06) | [Condensed Consolidated Balance Sheets](index=11&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Intrepid's balance sheet as of June 30, 2025, shows strong liquidity with increased cash and total stockholders' equity Balance Sheet Highlights (as of June 30, 2025 vs Dec 31, 2024) | Metric | June 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $85,049 | $41,309 | | Total current assets | $211,632 | $183,763 | | Total Assets | $607,160 | $594,520 | | Total current liabilities | $40,083 | $38,003 | | Total Liabilities | $123,323 | $120,128 | | Total Stockholders' Equity | $483,837 | $474,392 | [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q2 2025 operating cash flow was strong at $39.9 million, ending with $85.6 million cash balance Q2 2025 vs Q2 2024 Cash Flow Highlights (Three Months Ended June 30) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $39,943 | $27,746 | | Net cash used in investing activities | $(130) | $(9,830) | | Net cash used in financing activities | $(431) | $(318) | | Net Change in Cash | $39,382 | $17,598 | | Cash, end of period | $85,642 | $52,247 | [Non-GAAP Financial Measures & Reconciliations](index=13&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) Reconciliations of non-GAAP measures like Adjusted Net Income and EBITDA provide insights into core financial performance [Reconciliation of Net Income to Adjusted Net Income](index=14&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) Q2 2025 GAAP Net Income of $3.3 million adjusted to $6.0 million, excluding non-recurring items for comparability Reconciliation of Net Income to Adjusted Net Income (Q2 2025) | Description | Amount (in thousands) | | :--- | :--- | | **Net Income (GAAP)** | **$3,263** | | Impairment of long-lived assets | $1,204 | | (Gain) on sale of assets | $(1,274) | | Employee separation costs | $638 | | Unpermitted discharge penalty | $2,155 | | **Adjusted Net Income (Non-GAAP)** | **$5,986** | [Reconciliation of Net Income to Adjusted EBITDA](index=15&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 significantly increased to $16.4 million, reflecting core operating performance Reconciliation of Net Income to Adjusted EBITDA (Q2 2025 vs Q2 2024) | Description | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | | **Net Income (Loss) (GAAP)** | **$3,263** | **$(833)** | | Total adjustments | $13,128 | $10,068 | | **Adjusted EBITDA (Non-GAAP)** | **$16,391** | **$9,235** | [Reconciliation to Average Net Realized Sales Price per Ton](index=16&type=section&id=Reconciliation%20to%20Average%20Net%20Realized%20Sales%20Price%20per%20Ton) Average net realized sales price per ton for Q2 2025 was $361 for Potash and $368 for Trio®, after adjustments Average Net Realized Sales Price per Ton (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Potash | $361 | $405 | | Trio® | $368 | $314 | [Disaggregation of Revenue and Segment Data](index=17&type=section&id=Disaggregation%20of%20Revenue%20and%20Segment%20Data) Detailed revenue breakdown by product and segment highlights Trio® and Potash as primary gross margin drivers [Revenue by Product and Segment](index=17&type=section&id=Revenue%20by%20Product%20and%20Segment) Q2 2025 total revenue of $71.5 million was primarily driven by Trio® ($33.2 million) and Potash ($27.7 million) sales Total Revenue by Product (Q2 2025) | Product | Revenue (in thousands) | | :--- | :--- | | Potash | $27,741 | | Trio® | $33,192 | | Water | $587 | | Salt | $3,189 | | Magnesium Chloride | $1,623 | | Brine Water | $2,438 | | Other | $2,702 | | **Total Revenue** | **$71,472** | [Segment Gross Margin Analysis](index=19&type=section&id=Segment%20Gross%20Margin%20Analysis) Trio® segment led Q2 2025 gross margin at $8.1 million, contributing to $14.3 million consolidated gross margin Gross Margin by Segment (Q2 2025 vs Q2 2024) | Segment | Q2 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | | Potash | $4,858 | $3,312 | | Trio® | $8,086 | $2,182 | | Oilfield Solutions | $1,343 | $2,130 | | **Consolidated** | **$14,287** | **$7,624** |