Executive Summary

Q1 FY2025 revenue was $9.3B and net income was $244.8M, down sharply year over year on weaker commodity pricing and compressed refining margins; Energy pretax income fell to $19.8M while Ag held relatively steady at $166.7M .
Management emphasized navigating “compressed refinery margins” and a “weaker farm economy” while leveraging supply chain capabilities; CF Nitrogen remained the largest equity contributor .
No formal financial guidance was issued, but management expects “significantly reduced margins for energy and agricultural commodities to persist or accelerate through the remainder of fiscal 2025” (tone negative) .
Preferred dividends were declared for all series (e.g., CHSCP $0.50 per share for the March 31, 2025 payment), maintaining payout cadence amidst macro pressure .
Wall Street consensus via S&P Global was unavailable for this quarter; estimate comparisons could not be performed due to data limitations (see Estimates Context).

What Went Well and What Went Wrong

What Went Well
- Equity method investments continued to perform well; CF Nitrogen earnings attributable to CHS were $56.8M in Q1, supporting Corporate & Other results .
- Ag segment pretax earnings were resilient at $166.7M despite softer crush margins; favorable weather lifted grain and oilseed volumes and port throughput .
- Lower RIN prices reduced Energy compliance costs, partially offsetting weaker refined fuel margins; D6/D4 RINs fell ~32% YoY in the quarter .
- Quote: “CHS is leveraging our efficient global supply chain, strong relationships and expertise to navigate these changing markets” — Jay Debertin, President & CEO .
What Went Wrong
- Energy pretax income collapsed to $19.8M (down $247.1M YoY) on materially lower crack spreads and narrower WCS discounts; planned/unplanned maintenance also weighed on results .
- Ag oilseed processing margins fell on a larger global supply of canola/soy products; renewable fuels volumes/prices were also weaker versus prior year .
- Company-wide gross margin compressed to 4.3% vs 5.7% YoY as revenue declined to $9.294B from $11.391B and gross profit fell to $401M from $645M .
- Management’s FY2025 “Trends Update” signals continued margin pressure across energy and ag, with risks from global conflicts, trade flows and policy uncertainty .

Financial Results

Year-over-year comparison (Q1 FY2024 → Q1 FY2025):

Metric	Q1 2024	Q1 2025
Revenue ($USD Billions)	$11.391	$9.294
Gross Profit ($USD Millions)	$644.950	$400.676
Operating Earnings ($USD Millions)	$392.894	$137.826
Net Income ($USD Millions)	$523.368	$245.593
Net Income attributable to CHS Inc. ($USD Millions)	$522.923	$244.790

Segment pretax earnings (IBIT) YoY (Q1 FY2024 → Q1 FY2025):

Segment IBIT ($USD Thousands)	Q1 2024	Q1 2025
Energy	$266,835	$19,763
Ag	$169,720	$166,652
Nitrogen Production	$36,459	$25,241
Corporate & Other	$43,832	$47,181

Sequential trend (Q1 → Q2 → Q3 FY2025):

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Billions)	$9.294	$7.8	$9.8
Net Income ($USD Millions)	$245.593	$(75.8)	$232.2

Operational KPIs and market indicators:

KPI	Q1 2024	Q1 2025
Refinery throughput (barrels/day)	191,124	198,108
Gasoline yields (barrels/day)	85,760	93,936
Distillate yields (barrels/day)	85,072	86,518
WTI ($/bbl)	$84.09	$70.13
WTI–WCS discount ($/bbl)	$18.20	$13.05
Group 3 2:1:1 crack spread ($/bbl)	$30.65	$16.88
D6 ethanol RIN ($/RIN)	$0.9687	$0.6632
Corn ($/bushel)	$4.72	$4.20
Soybeans ($/bushel)	$13.02	$10.10
Grain & oilseed volumes (000 bushels)	591,412	628,025
NA port throughput (000 bushels)	178,700	201,469

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Capital Expenditures	FY2025	n/a	~$837.3M	Initiated FY2025 target
Major Maintenance	FY2025	FY2024 actual: $22.7M	~$256.9M (McPherson turnaround)	Raised materially vs FY2024
Preferred Dividends	FY2025	n/a	~$168.7M total for FY2025	Maintained payout outlook
Patronage Distribution	FY2025	n/a	~$300.0M authorized	Maintained cooperative returns
Equity Redemptions	FY2025	n/a	~$300.0M authorized	Maintained program
Declared Quarterly Dividends (per share)	Q1 FY2025 (payable 3/31/25)	n/a	CHSCP $0.50; CHSCO $0.492188; CHSCN $0.443750; CHSCM $0.421875; CHSCL $0.468750	Declared (regular)

Note: The company does not provide quantitative revenue/EPS guidance; management commentary indicates continued margin pressure in FY2025 .

Earnings Call Themes & Trends

No Q1 FY2025 earnings call transcript was available in our document sources. The narrative below references prepared MD&A/press materials and prior-quarter press releases.

Topic	Previous Mentions (Q2 FY2025, Q3 FY2025)	Current Period (Q1 FY2025)	Trend
Energy refining margins/crack spreads	Q2: Less favorable conditions; propane margins weaker; Energy pretax loss $(83.5)M . Q3: Planned major maintenance at McPherson reduced production; Energy pretax loss $(50.1)M .	Compressed crack spreads and narrower WCS discounts; Energy pretax income $19.8M (down $247.1M YoY) .	Negative; margin compression persisting
RIN costs	Q2: Hedging impacts noted; propane margins weakness . Q3: Increased costs for renewable fuel credits .	RIN price declines (D6/D4 down ~32% YoY) provided cost relief .	Mixed; Q1 tailwind, Q3 headwind
Ag oilseed processing	Q2: Weaker crush margins on global supply; timing of MTM . Q3: Decreased margins for grain/oilseed and processing .	Softer crush margins vs prior year; volumes strong on favorable weather .	Negative margins; volume support
Macro/trade/market volatility	Q2/Q3: Challenging markets, policy uncertainty .	Management expects reduced margins to persist/accelerate through FY2025 .	Negative; risk elevated
Equity investments (CF Nitrogen, Ventura)	Q2: CF earnings decreased on higher gas costs; Ventura weaker . Q3: CF favorable; Ventura strong .	CF Nitrogen remained largest contributor; equity income up YoY .	Stable overall; CF supportive

Management Commentary

“The energy industry is experiencing compressed refinery margins at the same time that U.S. agriculture is seeing a weaker farm economy... CHS is leveraging our efficient global supply chain... while strategically investing to meet our owners’ future needs.” — Jay Debertin, President & CEO .
Fiscal 2025 Trends Update: CHS “currently expect[s] the trend of significantly reduced margins for energy and agricultural commodities to persist or accelerate through the remainder of fiscal 2025” amidst geopolitical and policy risks .

Q&A Highlights

A public Q1 FY2025 earnings call transcript was not available in our document catalog; no Q&A points could be sourced or validated.

Estimates Context

S&P Global/Capital IQ consensus estimates for Q1 FY2025 were unavailable due to data access limitations; we were unable to retrieve Revenue, EPS or EBITDA consensus for CHSCP for this quarter via SPGI. Values retrieved from S&P Global were not available.*

Implications: Without Street anchors, the quarter should be assessed on company-reported trends (margin compression in Energy; resilient Ag volumes; equity income support), with a cautious forward tone from management .

Key Takeaways for Investors

Energy margin compression is the core headwind; with Group 3 crack spreads falling to ~$16.9/bbl and WTI–WCS discounts narrowing, Energy profitability is highly levered to market recovery and maintenance cadence .
Ag volumes and port throughput were strong, partially offsetting pricing/margin pressure; watch global oilseed supply and the timing of mark-to-market impacts in coming quarters .
Equity method contributions (CF Nitrogen) remain a meaningful earnings stabilizer; CF earnings to CHS were $56.8M in Q1 .
Capital intensity is elevated in FY2025 (CapEx ~$837M; major maintenance ~$257M), which could weigh on near-term free cash as CHS executes refinery turnaround work .
Preferred dividends continue as scheduled (e.g., CHSCP $0.50/share for March 31, 2025), reinforcing the cooperative’s return framework amid macro volatility .
Management tone is cautious: expect continued margin pressure across energy and agriculture through FY2025; positioning and efficiency initiatives are key to mitigating headwinds .
Near-term trading lens: sensitivity to crack spreads/WCS differentials, RIN price trajectory, and quarterly maintenance schedules will likely drive earnings variability; Ag volume strength is a constructive offset .

CHS INC (CHSCP)·Q1 2025 Earnings Summary