Compass Minerals(US:CMP)2025-12-08 21:30Financial Performance - Fourth-quarter net loss for 2025 was $7.2 million, an improvement from a net loss of $48.3 million in the prior year[3] - Total adjusted EBITDA for the fourth quarter of 2025 was $41.6 million, up from $15.6 million in the prior year[3] - Total company reported adjusted EBITDA for fiscal 2025 was $198.8 million, down 4% year over year, but adjusted EBITDA increased by 4% when excluding the impact of contingent consideration[3] - Adjusted EBITDA for the fiscal year ended September 30, 2025, was reported at $198.8 million, down from $206.3 million in 2024, with a modified adjusted EBITDA of $190.9 million compared to $184.2 million in the previous year[36] - The company reported a net loss of $7.2 million for the three months ended September 30, 2025, compared to a net loss of $48.3 million for the same period in 2024[46] - Adjusted net loss income for the twelve months ended September 30, 2025, was $20.1 million, a significant improvement from an adjusted net income of $3.7 million in 2024[46] Sales and Revenue - Sales for the fiscal year ended September 30, 2025, reached $1,243.9 million, an increase from $1,117.4 million in 2024[43] - The Salt segment revenue for fiscal 2025 was up 13% year over year to $1,022.5 million, driven by a 20% increase in highway deicing sales volumes[8] - Sales for the Salt Segment reached $181.6 million for the three months ended September 30, 2025, up from $162.5 million in the same period of 2024[54] - Sales to external customers for the three months ended September 30, 2025, were $227.5 million, an increase from $208.8 million in the same period of 2024, representing a growth of 9.5%[72] Cost Management and Expenses - The company reduced net total debt by 14%, or $125 million, year over year, to $772.5 million at year-end[5] - Capital expenditures for the twelve months ended September 30, 2025, were $69.7 million, a decrease from $114.2 million in 2024, indicating a focus on cost management[70] - Selling, general and administrative expenses for the three months ended September 30, 2025, totaled $26.4 million, compared to $31.3 million in the same period of 2024, reflecting a decrease of 15.6%[72] - The company recognized restructuring charges of $60.1 million for the fiscal year ended September 30, 2025, which included $4.0 million in corporate and other segments[40] Impairment and Losses - The company incurred total impairment losses of $53.7 million during the fiscal year ended September 30, 2025, compared to $193.4 million in 2024[45] - The company incurred total impairment losses of $53.0 million related to intangible assets and $0.7 million related to long-lived assets during the twelve months ended September 30, 2025[47] - The company recorded an impairment loss of $53.0 million for intangible assets during the twelve months ended September 30, 2025, and $191.0 million for the twelve months ended September 30, 2024[74] Liquidity and Cash Flow - The company ended fiscal 2025 with $59.7 million in cash and cash equivalents and $304.9 million available under its revolving credit facility, totaling $364.6 million in liquidity[15] - Cash and cash equivalents increased to $59.7 million at the end of Q3 2025, compared to $20.2 million at the end of Q3 2024, reflecting improved cash flow from operations[70] Segment Performance - Annual Plant Nutrition sales volumes increased by 19% in 2025 to 326 thousand tons, with profitability improvements due to cost structure reductions[5] - Plant Nutrition Segment sales for Q3 2025 were $41.8 million, a slight decrease from $42.4 million in Q3 2024, while total sales for the twelve months ended September 30, 2025, increased to $206.3 million from $181.0 million in 2024[59] - The operating income for the Plant Nutrition Segment improved to $6.2 million in Q3 2025 from a loss of $29.7 million in Q3 2024, with an operating margin of 14.8% compared to (70.0)% in the prior year[59] - Adjusted EBITDA for the Plant Nutrition Segment was $13.5 million in Q3 2025, significantly better than the adjusted loss of $3.7 million in Q3 2024, resulting in an adjusted EBITDA margin of 32.3%[62] Future Guidance - Guidance for total adjusted EBITDA for 2026 is projected to be between $200 million and $240 million[5] - Salt segment adjusted EBITDA for 2026 is expected to range from $225 million to $255 million, with improvements driven by stronger pricing and lower anticipated per-ton costs[5] - Capital expenditures for fiscal 2026 are expected to be between $90 million and $110 million, allowing for scaling back in the second half if necessary[23]