Executive Summary

Q2 FY25: Net loss of $75.8M on $7.8B revenue vs net income of $170.3M on $9.1B revenue in Q2 FY24; deterioration driven by Energy margin compression and Ag mark‑to‑market headwinds amid softer commodity markets and competitive global grain/oilseed dynamics .
Sequentially weaker from Q1 FY25 (net income $244.8M on $9.3B revenue) as Energy turned to a deeper loss and Ag swung to a loss; management emphasized operational execution and positioning for spring planting .
Segment mix: Energy pretax loss ($83.5M) vs +$51.6M YoY; Ag pretax loss ($45.6M) vs +$56.9M YoY; Nitrogen Production pretax $20.3M vs $37.0M YoY; Corporate & Other $24.0M vs $40.2M YoY .
Capital return context: CHS announced plans to return $120M to owners in calendar 2026 (cash patronage + equity redemptions), highlighting balance sheet resilience and cooperative model alignment despite cyclical pressure .
Street context: S&P Global did not show available Q2 FY25 consensus for EPS or revenue; comparisons to estimates are unavailable (Values retrieved from S&P Global).

What Went Well and What Went Wrong

What Went Well

Equity method investments continued to perform well in Q2, with CF Nitrogen the largest contributor to earnings, partially offsetting segment pressure .
Management highlighted strong execution and focus on operational efficiency to navigate softer markets, emphasizing readiness to meet spring planting needs with inputs, services and local expertise .
Strategic posture reinforced: management reiterated cost discipline and supply chain strength as the company works through challenging ag and energy cycles .

What Went Wrong

Energy segment: pretax loss of $83.5M in Q2 FY25 vs $51.6M profit in Q2 FY24, driven by less favorable market conditions, including higher U.S. refinery utilization and global supply/demand factors; propane margin declines (hedging‑related) added pressure .
Ag segment: pretax loss of $45.6M vs $56.9M profit YoY due to weaker grain/oilseed margins from timing impacts of mark‑to‑market adjustments and more competitive global markets; higher global supply of canola/soybean meal and oil compressed crush margins .
Nitrogen Production: pretax earnings $20.3M vs $37.0M YoY, pressured by increased natural gas costs despite continued contribution from CF Nitrogen .

Financial Results

Consolidated Results vs Prior Periods and Prior Year

Notes: Net income margin (%) is calculated using cited revenue and net income.

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($B)	$9.1B	$9.3B	$7.8B
Net Income ($M)	$170.3M	$244.8M	$(75.8)M
Net Income Margin (%)	1.9% (calc from )	2.6% (calc from )	(1.0)% (calc from )

EPS: Not reported by CHS in press releases; as a cooperative with listed preferred securities, management reports net income rather than EPS for common equity .

Results vs Estimates

S&P Global consensus for Q2 FY25 EPS and revenue was unavailable; S&P datasets returned actuals only and no consensus means for the period (Values retrieved from S&P Global).

Metric	Q2 2025 Actual	Q2 2025 Consensus	Delta
Revenue	$7.8B	Unavailable (S&P Global)	N/A
EPS	N/A	Unavailable (S&P Global)	N/A

Segment Pretax Earnings (Earnings defined as income before income taxes)

Segment	Q2 2024 ($M)	Q2 2025 ($M)
Energy	$51.6	$(83.5)
Ag	$56.9	$(45.6)
Nitrogen Production	$37.0	$20.3
Corporate & Other	$40.2	$24.0
Income before income taxes	$185.7	$(84.7)

EBITDA (additional context)

Metric	Q4 2024	Q1 2025	Q2 2025
EBITDA ($M)	$43.3*	$287.8*	$(19.1)*
EBITDA Margin (%)	0.47%*	3.10%*	(0.25%)*

*Values retrieved from S&P Global.

Guidance Changes

Management did not provide quantitative forward guidance in Q2 FY25 earnings materials. Capital return plans were communicated later in the quarter.

Metric	Period	Previous Guidance	Current Guidance	Change
Capital returns to owners (cash patronage + equity redemptions)	Calendar 2026	N/A	Intends to return $120M	New

Context: FY25 year-end release reiterated ability to return $120M to owners given FY25 results and cooperative model .

Earnings Call Themes & Trends

No Q2 FY25 earnings call transcript was available in our document set. The following themes reflect management’s prepared commentary from press releases across Q4 FY24, Q1 FY25, and Q2 FY25.

Topic	Previous Mentions (Q4 FY24)	Previous Mentions (Q1 FY25)	Current Period (Q2 FY25)	Trend
Energy refining margins	Weaker refining margins vs FY23; less favorable heavy Canadian crude pricing pressed Energy	Compressed refinery margins; lower refined fuel margins vs prior year	Less favorable market conditions; higher U.S. refinery utilization and global S/D; propane hedging impacts	Continued pressure
Ag oilseed crush & grain margins	Softer oilseed crush; compressed grain margins; improved agronomy volumes	Moderately lower Ag earnings on softer crush; market-driven price decreases in agronomy	Weaker grain/oilseed margins from mark‑to‑market timing and global conditions; higher global supply reduced crush margins	Ongoing softness
Equity investments (CF Nitrogen, Ventura Foods)	Continued contribution; lower YoY on pricing (CF Nitrogen)	Largest contributor: CF Nitrogen; Corporate & Other benefitted from equity method income	Equity method investments continued to perform well; CF Nitrogen largest contributor	Stable positive
Cost discipline/operations	Focus on efficiency and cost management; invest to strengthen supply chains	Leverage supply chain, relationships, expertise to navigate markets	Focus on operational excellence and efficiency amid volatility	Consistent focus
Capital returns to owners	Intent to return $600M in FY25 (prior year context)	—	Plans to return $120M in 2026; reiteration with FY25 results	Normalized post-2024

Management Commentary

“CHS remains focused on operational excellence and enhancing efficiency as we navigate this time of softer commodity markets, policy uncertainty and volatility. I commend our employees around the world for their commitment to strong execution in this challenging environment.” – Jay Debertin, President & CEO .
“While margin and pricing pressure on ag and energy product categories continues, our sales volumes remain strong. We are well positioned to help meet our owners’ spring planting needs with inputs, services and local expertise.” – Jay Debertin .

Q&A Highlights

No Q2 FY25 earnings call transcript was available in our document repository; no Q&A disclosures or guidance clarifications beyond the press release were identified .

Estimates Context

S&P Global did not provide consensus means for Q2 FY25 EPS or revenue for CHS; available data reflected actuals only. As a result, we cannot assess beat/miss vs Street for Q2 FY25 (Values retrieved from S&P Global).

Key Takeaways for Investors

Mix shift and cyclical headwinds: Energy and Ag swung to losses in Q2 as refining margins compressed and grain/oilseed margins were pressured by global competition and mark‑to‑market timing; this explains the sharp sequential drop from Q1 profitability to a Q2 loss .
Equity method resiliency: CF Nitrogen continued to contribute meaningfully, partially cushioning cyclicality in core segments; monitor natural gas costs and fertilizer pricing as forward drivers .
Operating playbook: Management is leaning on cost control and supply chain execution to navigate volatility; near‑term catalysts hinge on margin normalization in refined fuels and stabilization in crush and export economics .
Capital returns signal: Despite cyclical pressure, CHS plans $120M cash/ equity returns to owners in 2026, underscoring balance sheet/ liquidity strength and cooperative alignment .
Estimate resets likely: With no Street consensus available, investors should anchor to company‑reported trends; forward modeling should contemplate sustained margin pressure in Energy and Ag until market conditions improve (Values retrieved from S&P Global).
Watchlist: Refining margin spreads, heavy Canadian crude differentials, propane hedging dynamics, global oilseed product supply, and U.S. export competitiveness will drive near‑term earnings sensitivity .

Citations:

Q2 FY25 results and segment detail:
Q1 FY25 results:
Q3 FY25 context:
FY25 and capital returns reference:

CHS INC (CHSCP)·Q2 2025 Earnings Summary