Evan McCall

Evan McCall asked for color on the cadence of earnings for the year, specifically if Q3 growth is possible or if Q4 would be the first quarter of growth.

Answer

Josh Beal, Director of Investor Relations, stated that for equipment operations as a whole, the expectation is for mid-single-digit growth for most quarters for the balance of the year, though less than Q1 due to easier prior-year comps. Josh Jepsen, Chief Financial Officer, added that for Production and Precision Ag specifically, Q2 is likely the toughest comparable, with easier comparisons in the back half of the year from a top-line perspective.

Evan McCall inquired about the expected cadence of earnings for the year, specifically asking if growth in Q3 was possible or if Q4 would mark the first quarter of growth.

Answer

Director of Investor Relations Josh Beal stated that for equipment operations as a whole, mid-single-digit growth is expected for most quarters for the balance of the year, though Q1 had an easier comparison due to significant underproduction last year. CFO Josh Jepsen added that for Production and Precision Ag (PPA) specifically, Q2 would likely be the toughest comparison, with easier comps in the back half from a top-line perspective, and a relatively equal tariff burden throughout the year.

Evan McCall inquired about the progress of plans for the new mill at Goderich, the timeline for a decision on the investment, and whether the strong winter has influenced the decision.

Answer

President and CEO Edward Dowling explained that there are three associated projects: the East Mine Drive (ongoing for years), the 3B108 project (just starting to connect shafts to the East Mine Drive), and the new mill itself, which is in the engineering and value engineering stage, with more details expected in coming quarters.

Evan McCall from BMO Capital Markets inquired about the current state of the salt market, specifically if it's well-supplied for the strong winter, the potential for imports or a larger spot market, and Compass Minerals' capacity to sell excess tons. He also asked for an update on the new mill project at Goderich Mine, the decision timeline, and if the strong winter influenced the investment decision.

Answer

Edward Dowling, President and CEO of Compass Minerals, and Ben Nichols, Chief Commercial Officer, confirmed the salt market is very tight due to the strong winter, making mid-season imports difficult. Mr. Dowling detailed the three projects associated with the Goderich mill (East Mine Drive, 3B108 project, and the new mill itself), noting the new mill is in the value engineering stage with updates expected in coming quarters. The strong winter's impact on the investment decision was not explicitly stated as a direct factor for the ongoing engineering work.