Intrepid Potash(IPI) - 2025 Q2 - Quarterly Results

Second Quarter 2025 Financial & Operational Highlights Intrepid reported strong Q2 2025 results, driven by potash and Trio performance, with revised production outlook Management Commentary & Key Results 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][4] 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] Consolidated Financial & Operational Metrics 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 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] - 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][9] 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 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] - Q2 2025 capital expenditures totaled $4.1 million The full-year 2025 forecast is projected to be between $32 million and $37 million[12] Segment Performance Analysis Analysis of Potash, Trio®, and Oilfield Solutions segments reveals varied performance in Q2 2025 Potash Segment 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][14] - 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][17] Trio® Segment 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] - Trio® segment COGS per ton improved by 10% to $235, down from $261 in Q2 2024, reflecting strong efficiencies and lower operating expenses[21] Oilfield Solutions Segment 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] - Segment gross margin decreased by $0.8 million to $1.3 million, reflecting the lower sales[23] Financial Statements Key financial statements for Q2 2025 show improved sales, net income, and strong cash flow and liquidity Condensed Consolidated Statements of Operations 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 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 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 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 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 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 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 Detailed revenue breakdown by product and segment highlights Trio® and Potash as primary gross margin drivers Revenue by Product and Segment 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 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 |