Core Viewpoint - Compass Minerals International reported a stronger start to fiscal 2026, achieving its first positive quarterly net income since 2023, driven by higher salt volumes and improved performance in Plant Nutrition [4][6]. Financial Performance - The company posted a reported net income of $0.43 for the quarter, compared to a net loss of $0.57 in the prior-year period [3][6]. - Adjusted EBITDA doubled to $65 million, and net leverage decreased to 3.6x [3][6]. - Management raised the midpoint of full-year adjusted EBITDA guidance to $224 million, citing solid results in salt and continued momentum in Plant Nutrition [3][6]. Salt Segment Performance - Salt volumes surged 37% year-over-year, with highway de-icing volumes increasing by 43%, leading to salt revenue of $332 million, up from $242 million a year earlier [6][10]. - Operating earnings in the salt segment improved to $14.33 per ton, a 22% increase from the prior year [9]. - Despite higher realized pricing, overall salt segment pricing remained relatively flat due to the higher proportion of highway de-icing in the segment mix [10]. Plant Nutrition Insights - Plant Nutrition adjusted EBITDA improved despite lower volumes, with SOP prices rising approximately 13% [5][14]. - The company announced the sale of its Wynyard SOP operation for $30.8 million, allowing it to focus on being a leading North American SOP producer [13][15]. - Management raised Plant Nutrition adjusted EBITDA guidance by 8% to a midpoint of $37 million, despite the Wynyard sale [15]. Operational Challenges - Production limits at the Goderich mine and higher distribution costs are constraining the company's ability to meet incremental in-season demand [6][7]. - The mine is undergoing heavy development, which typically results in higher costs and lower production rates [7]. - Mid-season imports are challenging to bring to market due to transit lead times, contributing to a tight market [8]. Cost Management - Product cost per ton declined by 7% to $50.20, while distribution costs per ton rose by 6% due to inflationary pressures [11]. - Corporate overhead decreased by 24% year-over-year to $19 million, attributed to multiyear cost control initiatives [17]. Future Outlook - For fiscal 2026, adjusted EBITDA guidance for the salt segment is projected between $230 million and $252 million, while Plant Nutrition is expected to range from $34 million to $39 million [18]. - The company plans to begin discussions about capital allocation as confidence in continued leverage improvement grows [19].