CHS(CHSCP) - 2025 Q3 - Quarterly Report

PART I. FINANCIAL INFORMATION This section presents the unaudited condensed consolidated financial statements for CHS Inc. and its subsidiaries, along with detailed notes explaining the basis of presentation, significant accounting policies, and other financial details Item 1. Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements for CHS Inc. and its subsidiaries, including the Balance Sheets, Statements of Operations, Comprehensive Income, and Cash Flows, along with detailed notes explaining the basis of presentation, significant accounting policies, revenues, receivables, inventories, investments, debt, income taxes, equities, benefit plans, segment reporting, derivatives, fair value measurements, commitments, other current assets/liabilities, and a recent acquisition Condensed Consolidated Balance Sheets Presents the company's financial position, detailing assets, liabilities, and equities at specific reporting dates | Metric | May 31, 2025 (Thousands) | August 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------- | :----------------------- | :------------------------ | :----------------- | :------- | | ASSETS | | | | | | Total current assets | $8,927,147 | $8,708,783 | $218,364 | 2.5% | | Investments | $3,901,119 | $3,780,967 | $120,152 | 3.2% | | Property, plant and equipment | $5,454,678 | $5,177,355 | $277,323 | 5.4% | | Other assets | $1,403,738 | $1,047,970 | $355,768 | 34.0% | | Total assets | $19,686,682 | $18,715,075 | $971,607 | 5.2% | | LIABILITIES AND EQUITIES | | | | | | Total current liabilities | $6,360,369 | $5,400,814 | $959,555 | 17.8% | | Long-term debt | $1,826,072 | $1,824,194 | $1,878 | 0.1% | | Other liabilities | $711,980 | $728,143 | $(16,163) | -2.2% | | Total CHS Inc. equities | $10,784,825 | $10,755,391 | $29,434 | 0.3% | | Noncontrolling interests | $3,436 | $6,533 | $(3,097) | -47.4% | | Total liabilities and equities | $19,686,682 | $18,715,075 | $971,607 | 5.2% | Condensed Consolidated Statements of Operations Details the company's revenues, expenses, and net income over specific operating periods | Metric | 3 Months Ended May 31, 2025 (Thousands) | 3 Months Ended May 31, 2024 (Thousands) | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Revenues | $9,766,421 | $9,608,983 | $26,856,724 | $30,087,121 | | Cost of goods sold | $9,436,610 | $9,141,188 | $26,049,922 | $28,608,484 | | Gross profit | $329,811 | $467,795 | $806,802 | $1,478,637 | | Marketing, general and administrative expenses | $258,850 | $316,435 | $769,968 | $866,721 | | Operating earnings | $70,961 | $151,360 | $36,834 | $611,916 | | Interest expense | $44,109 | $23,425 | $96,962 | $78,513 | | Other income | $(27,398) | $(29,934) | $(74,138) | $(105,802) | | Equity income from investments | $(204,605) | $(151,999) | $(418,970) | $(373,167) | | Income before income taxes | $258,855 | $309,868 | $432,980 | $1,012,372 | | Income tax expense | $27,175 | $12,613 | $31,710 | $21,416 | | Net income | $231,680 | $297,255 | $401,270 | $990,956 | | Net income attributable to CHS Inc. | $232,184 | $297,274 | $401,220 | $990,504 | Condensed Consolidated Statements of Comprehensive Income Reports net income and other comprehensive income items, reflecting total changes in equity from non-owner sources | Metric | 3 Months Ended May 31, 2025 (Thousands) | 3 Months Ended May 31, 2024 (Thousands) | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Net income | $231,680 | $297,255 | $401,270 | $990,956 | | Other comprehensive income (loss), net of tax | $(1,011) | $(3,592) | $(6,821) | $(5,466) | | Comprehensive income | $230,669 | $293,663 | $394,449 | $985,490 | | Comprehensive income attributable to CHS Inc. | $231,173 | $293,682 | $394,399 | $985,038 | Condensed Consolidated Statements of Cash Flows Summarizes cash inflows and outflows from operating, investing, and financing activities | Metric | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | | :------------------------------------------ | :------------------------------------ | :------------------------------------ | | Net cash (used in) provided by operating activities | $(635,272) | $159,733 | | Net cash used in investing activities | $(552,160) | $(519,472) | | Net cash provided by (used in) financing activities | $724,692 | $(1,095,558) | | Decrease in cash and cash equivalents and restricted cash | $(469,713) | $(1,454,759) | Note 1 Basis of Presentation, Significant Accounting Policies and Subsequent Events Outlines the financial statement presentation, key accounting policies, and significant events occurring after the reporting period - The unaudited condensed consolidated financial statements reflect normal recurring adjustments and are subject to seasonality. No significant accounting policies were updated or changed since the prior Annual Report on Form 10-K. Recent accounting pronouncements (ASU 2023-07, 2023-09, 2024-03) are being evaluated for disclosure or financial statement impact, with ASU 2023-07 (Segment Reporting) effective for fiscal 2025 annual reporting and ASU 2023-09 (Income Tax Disclosures) effective for fiscal 2026 annual reporting. A subsequent event, the enactment of H.R.1 - One Big Beautiful Bill on July 4, 2025, makes the Qualified Business Income Deduction permanent, providing significant future income tax benefits[27][28][29][30][31][32] Note 2 Revenues Provides a detailed breakdown of revenues by segment and information on contract assets and liabilities | Segment | 3 Months Ended May 31, 2025 (Thousands) | 3 Months Ended May 31, 2024 (Thousands) | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | | :---------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Energy | $1,785,749 | $2,067,178 | $5,608,148 | $6,541,840 | | Ag | $7,962,254 | $7,523,656 | $21,189,835 | $23,486,932 | | Corporate and Other | $18,418 | $18,149 | $58,741 | $58,349 | | Total revenues | $9,766,421 | $9,608,983 | $26,856,724 | $30,087,121 | Contract Assets and Liabilities: | Metric | May 31, 2025 (Millions) | August 31, 2024 (Millions) | | :------------------ | :---------------------- | :----------------------- | | Contract assets | $17.9 | $34.7 | | Contract liabilities | $274.1 | $248.8 | Revenues Recognized from Contract Liabilities: | Period | 2025 (Millions) | 2024 (Millions) | | :-------------------- | :-------------- | :-------------- | | Three Months Ended May 31 | $26.3 | $54.0 | | Nine Months Ended May 31 | $192.6 | $222.8 | Note 3 Receivables Details the composition of trade accounts and notes receivable, including allowances and credit availability | Metric | May 31, 2025 (Thousands) | August 31, 2024 (Thousands) | | :-------------------------- | :----------------------- | :------------------------ | | Trade accounts receivable | $2,926,247 | $2,232,203 | | CHS Capital short-term notes receivable | $885,725 | $944,861 | | Other | $468,773 | $452,662 | | Gross receivables | $4,280,745 | $3,629,726 | | Less: allowances and reserves | $82,860 | $79,809 | | Total receivables | $4,197,885 | $3,549,917 | CHS Capital Notes Receivable Composition: | Type | May 31, 2025 | August 31, 2024 | | :---------------- | :----------- | :------------ | | Commercial notes | 34% | 18% | | Producer notes | 66% | 82% | Additional Credit Available: * CHS Capital customers had an additional $1.2 billion in available credit as of May 31, 2025 Note 4 Inventories Presents the breakdown of inventory types and valuation methods, including LIFO and FIFO impacts | Inventory Type | May 31, 2025 (Thousands) | August 31, 2024 (Thousands) | | :---------------------- | :----------------------- | :------------------------ | | Grain and oilseed | $1,110,891 | $888,768 | | Energy | $794,692 | $720,636 | | Agronomy | $1,145,236 | $1,126,916 | | Processed grain and oilseed | $129,771 | $124,686 | | Other | $270,789 | $206,409 | | Total inventories | $3,451,379 | $3,067,415 | LIFO vs. FIFO Valuation: * Approximately 20% (May 31, 2025) and 18% (August 31, 2024) of inventories, primarily crude oil and refined fuels, were valued using the LIFO method * If FIFO had been used, inventories would have been higher by $324.8 million as of May 31, 2025, and $456.3 million as of August 31, 2024 Note 5 Investments Details the company's equity method and other investments, including attributable earnings | Investment | May 31, 2025 (Thousands) | August 31, 2024 (Thousands) | | :------------------------ | :----------------------- | :------------------------ | | CF Industries Nitrogen, LLC | $2,614,328 | $2,544,530 | | Ventura Foods, LLC | $518,774 | $511,231 | | Ardent Mills, LLC | $238,388 | $234,021 | | Producer Ag, LLC | $35,890 | $15,274 | | Other equity method investments | $341,856 | $338,139 | | Other investments | $151,883 | $137,772 | | Total investments | $3,901,119 | $3,780,967 | Equity Method Investment Earnings (Nine Months Ended May 31): | Investment | 2025 Earnings Attributable to CHS Inc. (Thousands) | 2024 Earnings Attributable to CHS Inc. (Thousands) | | :------------------------ | :------------------------------------------------ | :------------------------------------------------ | | CF Nitrogen | $199,014 | $218,905 | | Ventura Foods | $116,100 | $76,268 | | Ardent Mills and Producer Ag | $69,405 | $45,728 | Key Insights: * Cumulative undistributed earnings from equity method investees totaled approximately $749.0 million as of May 31, 2025 * Ventura Foods' net earnings increase was largely due to a gain on the sale of a business Note 6 Notes Payable and Long-Term Debt Provides a comprehensive overview of the company's short-term and long-term debt obligations and interest expenses | Debt Type | May 31, 2025 (Thousands) | August 31, 2024 (Thousands) | | :-------------------------- | :----------------------- | :------------------------ | | Notes payable | $770,197 | $163,136 | | CHS Capital notes payable | $1,079,631 | $143,695 | | Total notes payable | $1,849,828 | $306,831 | Long-Term Debt (including current portion): | Debt Type | May 31, 2025 (Thousands) | August 31, 2024 (Thousands) | | :-------------------------- | :----------------------- | :------------------------ | | Private placement debt | $1,963,000 | $2,113,000 | | Term loan | $0 | $1,000 | | Finance lease liabilities | $55,840 | $49,511 | | Deferred financing costs | $(4,056) | $(4,562) | | Other | $1,363 | $2,511 | | Total long-term debt | $2,016,147 | $2,161,460 | | Less current portion | $190,075 | $337,266 | | Long-term portion | $1,826,072 | $1,824,194 | Interest Expense (Net of Capitalized Interest): | Period | 2025 (Millions) | 2024 (Millions) | | :-------------------- | :-------------- | :-------------- | | Three Months Ended May 31 | $44.1 | $23.4 | | Nine Months Ended May 31 | $97.0 | $78.5 | Key Insights: * The company was in compliance with all debt covenants as of May 31, 2025 * Notes payable significantly increased from $306.8 million to $1,849.8 million * The $2.8 billion revolving credit facility had no outstanding borrowings * The Securitization Facility had $846.0 million utilized out of $1.1 billion total availability as of May 31, 2025 * The Repurchase Facility had $159.7 million utilized out of $189.3 million total availability as of May 31, 2025 * The 10-year term loan facility was amended to a $300.0 million revolving loan, with no amount outstanding as of May 31, 2025 Note 7 Income Taxes Details the company's income tax expense and effective tax rates, along with factors influencing tax liabilities | Metric | 3 Months Ended May 31, 2025 | 3 Months Ended May 31, 2024 | 9 Months Ended May 31, 2025 | 9 Months Ended May 31, 2024 | | :------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Effective tax rate | 10.5% | 4.1% | 7.3% | 2.1% | Key Insights: * Increased income tax expense for the three months ended May 31, 2025, was primarily due to a change in state law reducing future utilization of state income tax credits * Unrecognized tax benefits that would benefit the effective tax rate were $71.7 million as of May 31, 2025, up from $65.1 million as of August 31, 2024 Note 8 Equities Presents the components of CHS Inc. equities, including preferred stock, equity certificates, and accumulated comprehensive loss | Metric | May 31, 2025 (Thousands) | August 31, 2024 (Thousands) | | :-------------------------- | :----------------------- | :------------------------ | | Preferred stock | $2,264,038 | $2,264,038 | | Equity certificates | $5,806,451 | $5,982,369 | | Accumulated other comprehensive loss | $(303,363) | $(296,542) | | Capital reserves | $3,017,699 | $2,805,526 | | Total CHS Inc. equities | $10,784,825 | $10,755,391 | Preferred Stock Dividends Declared Per Share (Three Months Ended May 31, 2025): | Series | Nasdaq Symbol | Dividend Per Share | | :-------------------------------------- | :------------ | :----------------- | | 8% Cumulative Redeemable | CHSCP | $0.50 | | Class B Cumulative Redeemable, Series 1 | CHSCO | $0.49 | | Class B Reset Rate Cumulative Redeemable, Series 2 | CHSCN | $0.44 | | Class B Reset Rate Cumulative Redeemable, Series 3 | CHSCM | $0.42 | | Class B Cumulative Redeemable, Series 4 | CHSCL | $0.47 | Key Insights: * Total CHS Inc. equities increased slightly from $10,755,391 thousand as of August 31, 2024, to $10,784,825 thousand as of May 31, 2025. Accumulated other comprehensive loss increased from $(296,542) thousand to $(303,363) thousand during the same period[18] Note 9 Benefit Plans Details the net periodic benefit costs for qualified and nonqualified pension plans and other employee benefits | Component of Net Periodic Benefit Costs | 3 Months Ended May 31, 2025 (Thousands) | 3 Months Ended May 31, 2024 (Thousands) | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | | :-------------------------------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Qualified Pension Benefits | $11,167 | $6,859 | $33,497 | $20,576 | | Nonqualified Pension Benefits | $1,234 | $819 | $3,700 | $2,458 | | Other Benefits | $76 | $(66) | $228 | $(200) | Key Insights: * No contributions were made to pension plans during the nine months ended May 31, 2025, and none are anticipated for fiscal 2025, though voluntary contributions may occur[67] Note 10 Segment Reporting Provides financial information by operating segment, including revenues and income before income taxes | Segment | 3 Months Ended May 31, 2025 (Thousands) | 3 Months Ended May 31, 2024 (Thousands) | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | | :---------------- | :------------------------------------ | :------------------------------------ | :------------------------------------ | :------------------------------------ | | Revenues (Net of Intersegment) | | | | | | Energy | $1,785,749 | $2,067,178 | $5,608,148 | $6,541,840 | | Ag | $7,962,254 | $7,523,656 | $21,189,835 | $23,486,932 | | Corporate and Other | $18,418 | $18,149 | $58,741 | $58,349 | | Total Revenues | $9,766,421 | $9,608,983 | $26,856,724 | $30,087,121 | | Income Before Income Taxes (IBIT) | | | | | | Energy | $(50,088) | $97,850 | $(113,794) | $416,264 | | Ag | $151,040 | $108,535 | $272,140 | $335,106 | | Nitrogen Production | $54,610 | $52,366 | $100,195 | $125,834 | | Corporate and Other | $103,293 | $51,117 | $174,439 | $135,168 | | Total IBIT | $258,855 | $309,868 | $432,980 | $1,012,372 | Key Insights: * CHS operates in three reportable segments: Energy, Ag, and Nitrogen Production, with Corporate and Other encompassing financing, hedging, and nonconsolidated joint ventures[68] * Business activities are highly seasonal, with revenues and IBIT generally lower in the second fiscal quarter and increasing in the third[69] * Commodity prices and sales volumes significantly affect revenues, assets, and cash flows, influenced by factors like weather, supply/demand, and global trade[71][72][75] Note 11 Derivative Financial Instruments and Hedging Activities Details the company's use of derivative instruments to manage market risks and their financial impact | Derivative Type | May 31, 2025 (Thousands) | August 31, 2024 (Thousands) | | :---------------------- | :----------------------- | :------------------------ | | Derivative Assets | | | | Commodity derivatives | $123,756 | $165,709 | | Foreign exchange derivatives | $35,355 | $9,029 | | Total Derivative Assets | $159,111 | $174,738 | | Derivative Liabilities | | | | Commodity derivatives | $164,410 | $221,803 | | Foreign exchange derivatives | $7,627 | $24,476 | | Total Derivative Liabilities | $172,037 | $246,279 | Pretax Gains (Losses) on Derivatives Not Designated as Hedges (Thousands): | Location of Gain (Loss) | 3 Months Ended May 31, 2025 | 3 Months Ended May 31, 2024 | 9 Months Ended May 31, 2025 | 9 Months Ended May 31, 2024 | | :-------------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Commodity derivatives (Cost of goods sold) | $(32,997) | $35,591 | $16,547 | $74,478 | | Foreign exchange derivatives (Cost of goods sold) | $33,703 | $(19,803) | $37,713 | $(25,411) | | Foreign exchange derivatives (Marketing, general and administrative expenses) | $2,927 | $(1,555) | $2,859 | $(1,584) | | Total | $3,633 | $14,233 | $57,119 | $47,483 | Notional Volumes for Outstanding Commodity Contracts (May 31, 2025, in thousands): | Commodity | Long | Short | | :-------------------------- | :----- | :---- | | Grain and oilseed (bushels) | 411,548 | 688,875 | | Energy products (barrels) | 9,790 | 6,387 | | Processed grain and oilseed (tons) | 682 | 2,604 | | Crop nutrients (tons) | 16 | 74 | Key Insights: * The company uses various derivative instruments to manage exposure to commodity prices, foreign currency, and interest rates[76] * Most derivatives are economic hedges not designated for hedge accounting, with fair value changes recorded in earnings (primarily cost of goods sold)[78] * Notional amount of foreign exchange derivative contracts increased from $1.5 billion (August 31, 2024) to $2.3 billion (May 31, 2025)[79][80] * Cash flow hedges for crude oil purchases and refined product sales had aggregate notional amounts of 6.5 million barrels as of May 31, 2025, up from 5.5 million barrels[81][82] Note 12 Fair Value Measurements Explains the fair value hierarchy and measurement techniques used for financial assets and liabilities | Asset/Liability | Level 1 (Thousands) | Level 2 (Thousands) | Level 3 (Thousands) | Total (Thousands) | | :-------------------------------------- | :------------------ | :------------------ | :------------------ | :---------------- | | May 31, 2025 Assets | | | | | | Commodity derivatives | $1,223 | $130,685 | $0 | $131,908 | | Foreign exchange derivatives | $0 | $35,355 | $0 | $35,355 | | Segregated investments and marketable securities | $15,155 | $135,613 | $0 | $150,768 | | Other assets | $179,484 | $0 | $0 | $179,484 | | Total Assets | $195,862 | $301,653 | $0 | $497,515 | | May 31, 2025 Liabilities | | | | | | Commodity derivatives | $969 | $168,160 | $0 | $169,129 | | Foreign exchange derivatives | $0 | $7,627 | $0 | $7,627 | | Total Liabilities | $969 | $175,787 | $0 | $176,756 | Key Insights: * Fair values are determined using a three-level hierarchy, maximizing observable inputs[86] * Exchange-traded futures and options are Level 1, while forward contracts and OTC derivatives are Level 2[87][88] * Segregated investments and marketable securities, time deposits, and other assets are primarily Level 1 or Level 2[89] Note 13 Commitments and Contingencies Describes the company's legal proceedings, environmental liabilities, and guarantees - The company complies with environmental laws and regulations, establishing reserves for probable and estimable remediation costs. While involved in various lawsuits and claims, management believes resulting liabilities will not materially affect financial position, results of operations, or cash flows. Guarantees for nonconsolidated companies' lines of credit and performance obligations totaled $89.4 million as of May 31, 2025, against a maximum allowed of $1.1 billion, with no expected cash payouts[90][91][92] Note 14 Other Current Assets and Liabilities Details the composition of other current assets and liabilities, including short-term investments and customer deposits | Metric | May 31, 2025 (Thousands) | August 31, 2024 (Thousands) | | :-------------------------- | :----------------------- | :------------------------ | | Other Current Assets | | | | Short-term investments | $0 | $500,921 | | Derivative assets | $162,509 | $177,111 | | Margin and related deposits | $214,103 | $176,821 | | Prepaid expenses | $163,207 | $202,392 | | Supplier advance payments | $229,879 | $133,678 | | Restricted cash | $80,287 | $78,997 | | Other | $104,036 | $26,666 | | Total other current assets | $954,021 | $1,296,586 | | Other Current Liabilities | | | | Customer margin deposits and credit balances | $110,539 | $95,369 | | Customer advance payments | $354,694 | $337,045 | | Derivative liabilities | $175,415 | $243,068 | | Dividends and equity payable | $278,310 | $600,000 | | Total other current liabilities | $918,958 | $1,275,482 | Note 15 Acquisition Provides details on the acquisition of West Central Ag Services, including purchase price and financial impact - On January 2, 2025, CHS acquired West Central Ag Services (WCAS) for an estimated cash purchase price of $322.1 million, including $107.5 million for working capital. This acquisition expanded CHS's grain and agronomy platforms in west-central Minnesota and eastern North Dakota, and included the remaining 50% ownership of Central Plains Ag Services (CPAS). The acquisition resulted in $59.4 million in goodwill and $53.5 million in definite-lived intangible assets. WCAS contributed $225.0 million in revenues and $4.9 million in income before income taxes to CHS's consolidated statements from January 2, 2025, through May 31, 2025[94][95][96] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations This section provides management's perspective on CHS Inc.'s financial condition, results of operations, liquidity, and other factors affecting future results Overview Provides an overview of CHS Inc.'s business, operational segments, and key financial management focus areas - CHS Inc. is a diversified agricultural cooperative providing grain, food, agronomy, and energy resources globally, owned by farmers, ranchers, and member cooperatives. It operates in three reportable segments: Energy, Ag, and Nitrogen Production, with financing, hedging, and nonconsolidated joint ventures aggregated in Corporate and Other. Management focuses on gross profit and income before income taxes (IBIT) due to commodity market volatility, alongside balance sheet strength, liquidity, leverage, capital allocation, and cash flow optimization. Business activities are highly seasonal, with revenues and IBIT generally lower in the second fiscal quarter and increasing in the third. Commodity prices and sales volumes are significantly affected by external factors like weather, supply/demand, and global trade disputes[100][101][102][103][105][106][108] Business Strategy Outlines CHS's strategic priorities for empowering customers, expanding market access, and evolving core businesses - CHS's business strategies focus on empowering customers, expanding market access for owners, and evolving core businesses by capitalizing on market dynamics. Key execution areas include implementing agile technology, building efficient supply chains, developing high-performing teams, achieving operational excellence, and maintaining a strong balance sheet[109] Fiscal 2025 Third Quarter Highlights Summarizes key financial and operational performance highlights for the third fiscal quarter of 2025 - Ag segment earnings were stronger due to higher volumes and margins in wholesale and retail agronomy products, partially offset by decreased margins in grain and oilseed and oilseed processing[113] - Energy segment earnings were lower due to planned major maintenance at the McPherson, Kansas, refinery, resulting in reduced sales of higher-margin refined products[113] - Equity method investments, particularly Ventura Foods and CF Nitrogen, provided solid contributions to CHS income[113] Fiscal 2025 Trends Update Discusses anticipated market uncertainties and their expected impact on energy and agricultural commodity margins for fiscal 2025 - CHS anticipates continued uncertainty and instability in global energy and agricultural commodity markets for fiscal 2025 due to macroeconomic factors like U.S. trade policy changes, ongoing global conflicts (Russia-Ukraine, Middle East), shifts in global trade flows, an uncertain interest rate environment, and pricing pressures on labor, freight, and materials. These factors are expected to lead to significantly reduced margins for energy and agricultural commodities through at least the remainder of fiscal 2025. The company plans to pursue growth through strategic investments and cooperative connections while leveraging financial strength[111][112] Operating Metrics Presents key operational performance indicators for the Energy and Ag segments Energy Operating Metrics Details key operational metrics for the Energy segment, including refinery throughput and market indicators | Metric | 3 Months Ended May 31, 2025 | 3 Months Ended May 31, 2024 | 9 Months Ended May 31, 2025 | 9 Months Ended May 31, 2024 | | :------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Refinery Throughput Volumes (Barrels per day) | | | | | | Heavy, high-sulfur crude oil | 82,160 | 111,740 | 99,637 | 108,204 | | All other crude oil | 30,767 | 68,217 | 55,682 | 69,434 | | Other feedstocks and blendstocks | 3,560 | 12,943 | 12,002 | 10,766 | | Total refinery throughput volumes | 116,487 | 192,900 | 167,321 | 188,404 | | Refined Fuel Yields (Barrels per day) | | | | | | Gasolines | 50,506 | 88,631 | 77,114 | 84,172 | | Distillates | 50,226 | 86,002 | 73,146 | 85,441 | Market Indicators (Average Prices/Discounts): | Metric | 3 Months Ended May 31, 2025 | 3 Months Ended May 31, 2024 | 9 Months Ended May 31, 2025 | 9 Months Ended May 31, 2024 | | :------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | WTI crude oil (dollars per barrel) | $63.99 | $81.14 | $68.71 | $79.81 | | WTI - WCS crude oil discount (dollars per barrel) | $11.69 | $15.96 | $12.28 | $18.67 | | Group 3 2:1:1 crack spread (dollars per barrel) | $23.88 | $21.37 | $18.35 | $23.04 | | Group 3 5:3:2 crack spread (dollars per barrel) | $23.40 | $20.82 | $17.66 | $21.29 | | D6 ethanol RIN (dollars per RIN) | $0.9242 | $0.4986 | $0.7633 | $0.7117 | | D4 biodiesel RIN (dollars per RIN) | $0.9899 | $0.5020 | $0.7935 | $0.7154 | Key Insights: * Refinery throughput volumes and refined fuel yields decreased significantly for both the three and nine months ended May 31, 2025, primarily due to planned major maintenance at the McPherson, Kansas, refinery[115][116] * RIN prices (D6 ethanol and D4 biodiesel) increased substantially during the three months ended May 31, 2025, compared to the prior year, impacting profitability[117] * Crack spreads increased for the three months but decreased for the nine months ended May 31, 2025, while WCS crude oil discounts decreased for both periods, contributing to lower IBIT for the Energy segment[118] Ag Operating Metrics Details key operational metrics for the Ag segment, including commodity prices and volumes | Metric | 3 Months Ended May 31, 2025 | 3 Months Ended May 31, 2024 | 9 Months Ended May 31, 2025 | 9 Months Ended May 31, 2024 | | :------------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Commodity Prices (Dollars per bushel/ton/gallon) | | | | | | Corn | $4.56 | $4.43 | $4.47 | $4.53 | | Soybeans | $10.30 | $11.81 | $10.19 | $12.32 | | Wheat | $5.28 | $6.08 | $5.47 | $5.88 | | Urea (dollars per ton) | $397.00 | $329.21 | $355.93 | $341.53 | | Urea ammonium nitrate (dollars per ton) | $326.95 | $256.07 | $267.40 | $249.35 | | Ethanol (dollars per gallon) | $1.73 | $1.67 | $1.68 | $1.81 | | Volumes (Thousands of bushels/tons/gallons) | | | | | | Grain and oilseed | 604,009 | 540,067 | 1,805,800 | 1,744,161 | | North American grain and oilseed port throughput | 190,979 | 147,167 | 576,610 | 523,683 | | Wholesale crop nutrients | 2,316 | 2,196 | 5,802 | 5,606 | | Ethanol | 138,254 | 140,791 | 418,266 | 574,207 | Results of Operations Analyzes the company's financial performance for the three and nine months ended May 31, 2025 and 2024 | Metric | 3 Months Ended May 31, 2025 (Thousands) | 3 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Revenues | $9,766,421 | $9,608,983 | $157,438 | 1.6% | | Gross profit | $329,811 | $467,795 | $(137,984) | -29.5% | | Operating earnings | $70,961 | $151,360 | $(80,399) | -53.1% | | Income before income taxes | $258,855 | $309,868 | $(51,013) | -16.5% | | Net income attributable to CHS Inc. | $232,184 | $297,274 | $(65,090) | -21.9% | Three Months Ended May 31, 2025 and 2024 Compares the company's financial results for the three-month periods ended May 31, 2025 and 2024 Energy Segment IBIT (3 Months) Analyzes the Energy segment's income before income taxes for the three-month period, highlighting key drivers of change | Metric | 3 Months Ended May 31, 2025 (Thousands) | 3 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | (Loss) income before income taxes | $(50,088) | $97,850 | $(147,938) | -151.2% | - Decreased IBIT by $118.4 million due to reduced sales mix of higher-margin produced refined fuels products (due to planned major maintenance at McPherson refinery) relative to lower-margin purchased products[129] - Higher costs for RINs in refined fuels business decreased IBIT by $32.6 million[129] Ag Segment IBIT (3 Months) Analyzes the Ag segment's income before income taxes for the three-month period, highlighting key drivers of change | Metric | 3 Months Ended May 31, 2025 (Thousands) | 3 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Income before income taxes | $151,040 | $108,535 | $42,505 | 39.2% | - Increased IBIT by $76.5 million due to higher volumes and margins of wholesale and retail agronomy products, driven by favorable market conditions[136] - Decreased IBIT by $45.2 million due to decreased margins for grain and oilseed and oilseed processing product categories, primarily from timing of mark-to-market adjustments and market conditions[136] All Other Segments IBIT (3 Months) Analyzes income before income taxes for Nitrogen Production and Corporate and Other segments for the three-month period | Segment | 3 Months Ended May 31, 2025 (Thousands) | 3 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Nitrogen Production IBIT | $54,610 | $52,366 | $2,244 | 4.3% | | Corporate and Other IBIT | $103,293 | $51,117 | $52,176 | 102.1% | Key Insights: * Nitrogen Production IBIT increased slightly due to higher equity income from favorable urea market conditions. Corporate and Other IBIT significantly increased due to a gain on the sale of a business by Ventura Foods[135] Energy Segment Revenues (3 Months) Analyzes the Energy segment's revenues for the three-month period, detailing factors influencing changes | Metric | 3 Months Ended May 31, 2025 (Thousands) | 3 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :---------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Revenues | $1,785,749 | $2,067,178 | $(281,429) | -13.6% | - Decreased revenues by $277.9 million due to lower selling prices for refined fuels caused by global market oversupply[140] - Partially offset by a $38.2 million increase in revenues from higher refined fuels volumes due to more favorable weather conditions[140] Ag Segment Revenues (3 Months) Analyzes the Ag segment's revenues for the three-month period, detailing factors influencing changes | Metric | 3 Months Ended May 31, 2025 (Thousands) | 3 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :---------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Revenues | $7,962,254 | $7,523,656 | $438,598 | 5.8% | - Increased revenues by $538.5 million from higher grain and oilseed volumes due to lower prices[148] - Increased revenues by $392.4 million from higher wholesale and retail agronomy product volumes, driven by the WCAS acquisition and strategic initiatives[148] - Decreased revenues due to lower selling prices across Ag segment product categories: $295.5 million for grain and oilseed, $93.2 million for oilseed processing, and $81.1 million for wholesale and retail agronomy products[148] All Other Segments Revenues (3 Months) Analyzes revenues for Nitrogen Production and Corporate and Other segments for the three-month period | Segment | 3 Months Ended May 31, 2025 (Thousands) | 3 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Corporate and Other revenues | $18,418 | $18,149 | $269 | 1.5% | Key Insights: * No significant changes to Corporate and Other revenues during the three months ended May 31, 2025, compared to the prior fiscal year[147] Energy Segment COGS (3 Months) Analyzes the Energy segment's cost of goods sold for the three-month period, detailing factors influencing changes | Metric | 3 Months Ended May 31, 2025 (Thousands) | 3 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :---------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Cost of goods sold | $1,760,043 | $1,885,415 | $(125,372) | -6.6% | - Decreased COGS by $116.8 million for refined fuels due to lower costs from global market oversupply[152] - Partially offset by a $34.7 million increase in COGS from higher refined fuels volumes due to more favorable weather conditions[152] Ag Segment COGS (3 Months) Analyzes the Ag segment's cost of goods sold for the three-month period, detailing factors influencing changes | Metric | 3 Months Ended May 31, 2025 (Thousands) | 3 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :---------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Cost of goods sold | $7,676,093 | $7,257,861 | $418,232 | 5.8% | - Increased costs by $531.5 million for grain and oilseed due to higher demand from lower prices[156] - Increased costs by $333.7 million for wholesale and retail agronomy products due to the WCAS acquisition and strategic initiatives[156] - Decreased costs across Ag segment product categories due to global market conditions and lower commodity prices: $265.8 million for grain and oilseed, $77.6 million for oilseed processing, and $99.0 million for wholesale and retail agronomy[156] All Other Segments COGS (3 Months) Analyzes cost of goods sold for Nitrogen Production and Corporate and Other segments for the three-month period | Segment | 3 Months Ended May 31, 2025 (Thousands) | 3 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Nitrogen Production COGS | $424 | $430 | $(6) | -1.4% | | Corporate and Other COGS | $50 | $(2,518) | $2,568 | 102.0% | Key Insights: * No significant dollar changes in COGS for Nitrogen Production or Corporate and Other segments[155] Marketing, General and Administrative Expenses (3 Months) Analyzes changes in marketing, general, and administrative expenses for the three-month period | Metric | 3 Months Ended May 31, 2025 (Thousands) | 3 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Marketing, general and administrative expenses | $258,850 | $316,435 | $(57,585) | -18.2% | Key Insights: * Marketing, general and administrative expenses decreased primarily due to lower performance-based incentive compensation, reflecting the company's lower profitability[157] Interest Expense (3 Months) Analyzes changes in interest expense for the three-month period, identifying key drivers | Metric | 3 Months Ended May 31, 2025 (Thousands) | 3 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :--------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Interest expense | $44,109 | $23,425 | $20,684 | 88.3% | Key Insights: * Interest expense increased due to a higher short-term notes payable balance[158] Other Income (3 Months) Analyzes changes in other income for the three-month period, identifying key drivers | Metric | 3 Months Ended May 31, 2025 (Thousands) | 3 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :----------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Other income | $27,398 | $29,934 | $(2,536) | -8.5% | Key Insights: * Other income decreased primarily due to lower interest income resulting from a smaller cash balance[159] Equity Income from Investments (3 Months) Analyzes changes in equity income from investments for the three-month period, identifying key drivers | Metric | 3 Months Ended May 31, 2025 (Thousands) | 3 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Equity income from investments | $204,605 | $151,999 | $52,606 | 34.6% | Key Insights: * Equity income from investments increased primarily due to a gain on the sale of a business recognized by Ventura Foods[161] Income Tax Expense (3 Months) Analyzes changes in income tax expense and effective tax rate for the three-month period | Metric | 3 Months Ended May 31, 2025 (Thousands) | 3 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :----------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Income tax expense | $27,175 | $12,613 | $14,562 | 115.5% | | Effective tax rate | 10.5% | 4.1% | 6.4% | 156.1% | Key Insights: * Increased income tax expense was primarily due to a change in state law reducing future utilization of state income tax credits[162] Nine Months Ended May 31, 2025 and 2024 Compares the company's financial results for the nine-month periods ended May 31, 2025 and 2024 | Metric | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Revenues | $26,856,724 | $30,087,121 | $(3,230,397) | -10.7% | | Gross profit | $806,802 | $1,478,637 | $(671,835) | -45.4% | | Operating (loss) earnings | $36,834 | $611,916 | $(575,082) | -94.0% | | Income before income taxes | $432,980 | $1,012,372 | $(579,392) | -57.2% | | Net income attributable to CHS Inc. | $401,220 | $990,504 | $(589,284) | -59.5% | Energy Segment IBIT (9 Months) Analyzes the Energy segment's income before income taxes for the nine-month period, highlighting key drivers of change | Metric | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | (Loss) income before income taxes | $(113,794) | $416,264 | $(530,058) | -127.3% | - Decreased IBIT by $366.0 million due to significantly lower crack spreads and WCS crude oil discounts from less favorable global market conditions[173] - Decreased IBIT by $93.5 million due to reduced sales mix of higher-margin produced refined fuels products (due to planned major maintenance at McPherson refinery)[173] - Lower margins for refined fuels and propane contributed to $37.5 million and $10.9 million decreased IBIT, respectively, due to hedging-related impacts and global market conditions[173] Ag Segment IBIT (9 Months) Analyzes the Ag segment's income before income taxes for the nine-month period, highlighting key drivers of change | Metric | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Income before income taxes | $272,140 | $335,106 | $(62,966) | -18.8% | - Decreased IBIT by $87.6 million due to lower margins for oilseed processing products, driven by higher global supply of soybean and canola meal and oil[180] - Decreased IBIT by $82.3 million due to lower margins for grain and oilseed products, primarily from unfavorable market conditions in Europe and South America[180] - Increased IBIT by $46.2 million due to increased margins for certain wholesale and retail agronomy products[180] All Other Segments IBIT (9 Months) Analyzes income before income taxes for Nitrogen Production and Corporate and Other segments for the nine-month period | Segment | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Nitrogen Production IBIT | $100,195 | $125,834 | $(25,639) | -20.4% | | Corporate and Other IBIT | $174,439 | $135,168 | $39,271 | 29.1% | Key Insights: * Nitrogen Production IBIT decreased due to lower equity income from higher natural gas input costs, partially offset by favorable urea market conditions. Corporate and Other IBIT increased significantly due to a gain on the sale of a business by Ventura Foods[179] Energy Segment Revenues (9 Months) Analyzes the Energy segment's revenues for the nine-month period, detailing factors influencing changes | Metric | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :---------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Revenues | $5,608,148 | $6,541,840 | $(933,692) | -14.3% | - Decreased revenues by $929.4 million due to lower selling prices for refined fuels from global market conditions[184] - Partially offset by a $28.9 million increase in revenues from higher propane selling prices and a $32.1 million increase from higher refined fuels volumes, both driven by more favorable weather conditions[184] Ag Segment Revenues (9 Months) Analyzes the Ag segment's revenues for the nine-month period, detailing factors influencing changes | Metric | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :---------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Revenues | $21,189,835 | $23,486,932 | $(2,297,097) | -9.8% | - Decreased revenues across most Ag segment product categories due to global market conditions and lower selling prices: $2.3 billion for grain and oilseed, $377.5 million for oilseed processing, $172.5 million for wholesale and retail agronomy, and $86.0 million for renewable fuels[190] - Partially offset by a $564.8 million increase in revenues from higher grain and oilseed volumes due to lower prices[190] All Other Segments Revenues (9 Months) Analyzes revenues for Nitrogen Production and Corporate and Other segments for the nine-month period | Segment | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Corporate and Other revenues | $58,741 | $58,349 | $392 | 0.7% | Key Insights: * No significant changes to Corporate and Other revenues during the nine months ended May 31, 2025, compared to the prior fiscal year[189] Energy Segment COGS (9 Months) Analyzes the Energy segment's cost of goods sold for the nine-month period, detailing factors influencing changes | Metric | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :---------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Cost of goods sold | $5,506,244 | $5,904,110 | $(397,866) | -6.7% | - Decreased COGS by $391.5 million for refined fuels due to lower costs from global market conditions[193] - Partially offset by a $36.1 million increase in COGS for propane and a $28.9 million increase for refined fuels volumes, both driven by more favorable weather conditions[193] Ag Segment COGS (9 Months) Analyzes the Ag segment's cost of goods sold for the nine-month period, detailing factors influencing changes | Metric | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :---------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Cost of goods sold | $20,542,339 | $22,710,005 | $(2,167,666) | -9.5% | - Decreased costs across most Ag segment product categories due to global market conditions: $2.3 billion for grain and oilseed, $289.8 million for oilseed processing, $178.8 million for wholesale and retail agronomy, and $78.4 million for renewable fuels[198] - Partially offset by a $557.1 million increase in COGS for grain and oilseed due to higher demand from lower prices[198] All Other Segments COGS (9 Months) Analyzes cost of goods sold for Nitrogen Production and Corporate and Other segments for the nine-month period | Segment | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Nitrogen Production COGS | $1,258 | $1,261 | $(3) | -0.2% | | Corporate and Other COGS | $81 | $(6,892) | $6,973 | 101.2% | Key Insights: * No significant dollar changes in COGS for Nitrogen Production or Corporate and Other segments[197] Marketing, General and Administrative Expenses (9 Months) Analyzes changes in marketing, general, and administrative expenses for the nine-month period | Metric | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Marketing, general and administrative expenses | $769,968 | $866,721 | $(96,753) | -11.2% | Key Insights: * Marketing, general and administrative expenses decreased primarily due to lower performance-based incentive compensation, reflecting the company's lower profitability[199] Interest Expense (9 Months) Analyzes changes in interest expense for the nine-month period, identifying key drivers | Metric | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :--------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Interest expense | $96,962 | $78,513 | $18,449 | 23.5% | Key Insights: * Interest expense increased due to a higher short-term notes payable balance[200] Other Income (9 Months) Analyzes changes in other income for the nine-month period, identifying key drivers | Metric | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :----------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Other income | $74,138 | $105,802 | $(31,664) | -29.9% | Key Insights: * Other income decreased primarily due to lower interest income resulting from a smaller cash balance[201] Equity Income from Investments (9 Months) Analyzes changes in equity income from investments for the nine-month period, identifying key drivers | Metric | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Equity income from investments | $418,970 | $373,167 | $45,803 | 12.3% | Key Insights: * Equity income from investments increased primarily due to a gain on the sale of a business recognized by Ventura Foods[203] Income Tax Expense (9 Months) Analyzes changes in income tax expense and effective tax rate for the nine-month period | Metric | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | % Change | | :----------------- | :------------------------------------ | :------------------------------------ | :----------------- | :------- | | Income tax expense | $31,710 | $21,416 | $10,294 | 48.1% | | Effective tax rate | 7.3% | 2.1% | 5.2% | 247.6% | Key Insights: * Increased income tax expense was primarily due to a reduction in research and development tax credits, a change in state law, and the impact of equity management assumptions[204] Liquidity and Capital Resources Discusses the company's financial liquidity, capital structure, and resource management strategies | Metric | May 31, 2025 (Thousands) | August 31, 2024 (Thousands) | | :-------------------------------- | :----------------------- | :------------------------ | | Cash and cash equivalents | $323,862 | $794,865 | | Notes payable | $1,849,828 | $306,831 | | Long-term debt including current maturities | $2,016,147 | $2,161,460 | | Total equities | $10,788,261 | $10,761,924 | | Working capital | $2,566,778 | $3,307,969 | | Current ratio | 1.4 | 1.6 | Key Insights: * The company believes its cash from operations and available borrowing capacity will be sufficient for short-term and long-term needs. It was in compliance with all debt covenants as of May 31, 2025, and expects continued compliance for fiscal 2025[209] Summary of Our Major Sources of Cash and Cash Equivalents Outlines the primary sources of cash and cash equivalents used to fund operations and capital needs - Current operations are primarily funded by cash flows from operations and short-term borrowings via committed and uncommitted revolving credit facilities, including securitization and repurchase facilities. Long-term capital needs, mainly for property, plant, and equipment acquisitions, are funded by operating cash flows and long-term debt. The 10-year term loan facility was amended to a converting revolver feature[206] Summary of Our Major Uses of Cash and Cash Equivalents Details the significant expenditures and cash outflows for capital investments, acquisitions, and shareholder distributions - Expected total capital expenditures for fiscal 2025 are approximately $735.4 million (vs. $808.8 million in FY2024). $533.5 million acquired in property, plant, and equipment during the nine months ended May 31, 2025[207][208] - Acquired West Central Ag Services (WCAS) for an estimated cash purchase price of $322.1 million[207][208] - Major maintenance expenditures were $274.1 million during the nine months ended May 31, 2025, significantly up from $22.7 million in fiscal 2024, due to the McPherson refinery turnaround[207][208] - Expected long-term debt and finance lease obligation repayments of $339.6 million and interest payments of $101.7 million for fiscal 2025. $158.5 million of scheduled debt repaid during the nine months[207][208] - Expected preferred stock dividends of $168.7 million for fiscal 2025. $126.5 million paid during the nine months[207][208] - Authorized $300.0 million of fiscal 2024 patronage refunds to be paid in fiscal 2025. $300.3 million distributed during the nine months[207][208] - Authorized $300.0 million of equity redemptions for fiscal 2025. $271.0 million redeemed during the nine months[207][208] Working Capital Analyzes the company's working capital position and its components, highlighting changes over time | Metric | May 31, 2025 (Thousands) | August 31, 2024 (Thousands) | Change (Thousands) | | :--------------- | :----------------------- | :------------------------ | :----------------- | | Current assets | $8,927,147 | $8,708,783 | $218,364 | | Current liabilities | $6,360,369 | $5,400,814 | $959,555 | | Working capital | $2,566,778 | $3,307,969 | $(741,191) | Key Insights: * Working capital decreased by $741.2 million, primarily due to a $959.6 million increase in current liabilities (driven by notes payable and seasonality) partially offset by a $218.4 million increase in current assets (driven by receivables and inventories and seasonality)[210] Contractual Obligations Summarizes the company's material contractual obligations and any changes from prior disclosures - No material changes to contractual obligations occurred during the nine months ended May 31, 2025, from those disclosed in the Annual Report on Form 10-K for the year ended August 31, 2024[212] Cash Flows Analyzes the company's cash flow performance across operating, investing, and financing activities | Metric | 9 Months Ended May 31, 2025 (Thousands) | 9 Months Ended May 31, 2024 (Thousands) | Change (Thousands) | | :------------------------------------------ | :------------------------------------ | :------------------------------------ | :----------------- | | Net cash (used in) provided by operating activities | $(635,272) | $159,733 | $(795,005) | | Net cash used in investing activities | $(552,160) | $(519,472) | $(32,688) | | Net cash provided by (used in) financing activities | $724,692 | $(1,095,558) | $1,820,250 | | Decrease in cash and cash equivalents and restric