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CI

CHS INC (CHSCP)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 FY2025 revenue was $9.77B, up 1.6% y/y, while net income fell to $232.2M from $297.3M y/y as Energy posted a pretax loss due to planned refinery maintenance and higher RIN costs; Ag benefited from strong agronomy volumes/margins .
  • Segment pretax results: Energy -$50.1M, Ag $151.0M, Nitrogen Production $54.6M, Corporate & Other $103.3M; equity income rose on Ventura Foods gains, partially offsetting Energy headwinds .
  • Management highlighted favorable spring weather and strong ag retail/agronomy execution; macro commentary remains cautious on energy/ag commodity margins through the remainder of FY2025 .
  • No EPS is reported (cooperative, preferred stock only); Wall Street consensus estimates were not available for Q3 FY2025, limiting beat/miss analysis versus S&P Global consensus (values retrieved from S&P Global)*.
  • Near-term catalysts: normalization of refinery utilization post-maintenance, agronomy strength into seasonally strong periods, and continued contributions from equity-method investments (Ventura Foods, CF Nitrogen) .

What Went Well and What Went Wrong

What Went Well

  • Agronomy and retail delivered stronger earnings on higher volumes/margins; CEO: “strong third quarter for our agronomy and retail businesses” .
  • Corporate & Other pretax up sharply y/y ($103.3M vs $51.1M) largely due to Ventura Foods’ gain on sale, boosting equity income .
  • Nitrogen Production posted modest y/y improvement ($54.6M vs $52.4M) on favorable urea conditions .

What Went Wrong

  • Energy posted a pretax loss (-$50.1M), down $147.9M y/y, driven by planned McPherson refinery maintenance lowering produced refined fuels mix and higher renewable fuel credit (RIN) costs .
  • Gross profit and margins compressed (gross profit $329.8M vs $467.8M; gross margin 3.4% vs 4.9% y/y), reflecting softer commodity spreads and mix headwinds .
  • Interest expense rose materially ($44.1M vs $23.4M y/y) on higher short-term notes payable; effective tax rate increased to 10.5% (vs 4.1% y/y) amid state law changes reducing credit utilization .

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Revenue ($USD Billions)$9.61 $9.30 $7.80 $9.77
Net Income ($USD Millions)$297.3 $244.8 -$75.8 $232.2
Income Before Income Taxes ($USD Millions)$309.9 $258.8 -$84.7 $258.9
Margin MetricQ3 2024Q3 2025
Gross Profit ($USD Millions)$467.8 $329.8
Gross Profit Margin %4.9% 3.4%
Operating Earnings ($USD Millions)$151.4 $71.0
Net Income Margin %3.1% 2.4%

Segment breakdown (pretax/IBIT):

Segment Pretax ($USD Millions)Q3 2024Q3 2025
Energy$97.9 -$50.1
Ag$108.5 $151.0
Nitrogen Production$52.4 $54.6
Corporate & Other$51.1 $103.3

KPIs

KPIQ3 2024Q3 2025
Refinery Throughput (barrels/day)192,900 116,487
Gasoline Yield (barrels/day)88,631 50,506
Distillate Yield (barrels/day)86,002 50,226
Grain & Oilseed Volumes (000s bushels)540,067 604,009
NA Port Throughput (000s bushels)147,167 190,979
Wholesale Crop Nutrients (000s tons)2,196 2,316
Ethanol Production/Sales (000s gallons)140,791 138,254

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Capital ExpendituresFY2025Not disclosed~$735.4M New disclosure
Preferred Stock DividendsFY2025Not disclosed~$168.7M New disclosure
Debt Repayment (LT + leases)FY2025Not disclosed~$339.6M New disclosure
Cash Patronage DistributionFY2025Authorized prior year~$300.3M distributed YTD; ~$300.0M authorized Maintained/Executing
Equity RedemptionsFY2025Authorized prior year~$300.0M authorized; $271.0M YTD redeemed Maintained/Executing
Tax Rate (effective)Q3 20254.1% (Q3 2024) 10.5% Higher (state credit changes)
Preferred Dividends per Share (Series)Q3 2025N/ACHSCP $0.50; CHSCO $0.49; CHSCN $0.44; CHSCM $0.42; CHSCL $0.47 Maintained series rates

Earnings Call Themes & Trends

Note: No Q3 FY2025 earnings call transcript was available; themes reflect press releases and MD&A -.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2025)Trend
Energy margins/crack spreads & WCS differentialQ1: compressed refinery margins; Q2: less favorable market conditions Crack spreads higher y/y, but WCS discount narrower; maintenance reduced produced mix Mixed: structural margins still below FY2024; near-term operational drag
RINs cost pressureLimited in Q1/Q2D6/D4 RIN prices +85%/+97% y/y; higher RIN expense reduced IBIT Rising cost headwind
Agronomy volumes/marginsQ1: price decreases in agronomy; Q2: weaker ag margins Higher agronomy volumes/margins; strong spring season Improving
Global grain/oilseed competitivenessQ1/Q2: more competitive global marketplace; lower crush margins Grain/oilseed margins decreased (timing/mark-to-market, global conditions) Persistent headwind
Equity-method contributionsQ1: CF Nitrogen largest contributor; Q2: lower Ventura Foods;Q3: Ventura Foods gain boosted Corporate & Other; CF Nitrogen favorable urea Supportive

Management Commentary

  • CEO: “CHS was well positioned to meet owners' planting needs…resulting in a strong third quarter for our agronomy and retail businesses…we will continue positioning the cooperative system to best navigate the current challenging agriculture and energy markets.” .
  • Q2 tone: “Softer commodity markets, policy uncertainty and volatility…margin and pricing pressure…sales volumes remain strong.” .
  • Q1 tone: “Leveraging efficient global supply chain…strategically investing to meet owners’ future needs…compressed refinery margins and weaker farm economy.” .

Q&A Highlights

  • No Q3 FY2025 earnings call transcript available; CHS did not provide a Q&A session in the materials accessed [List: earnings-call-transcript returned none].

Estimates Context

  • S&P Global consensus coverage for CHS Inc. (CHSCP preferred) was not available for EPS; revenue/EBITDA consensus figures were not provided for Q3 FY2025, limiting beat/miss quantification (values retrieved from S&P Global)*.
  • Investor implication: Estimate models should reflect Energy maintenance impact, higher RIN costs, and stronger agronomy volumes; equity income uplift from Ventura Foods is non-operating and may normalize .

Key Takeaways for Investors

  • Energy headwinds were largely self-inflicted (planned maintenance) plus external (RIN cost spike); expect operational normalization next quarter but margin environment remains below FY2024 levels .
  • Agronomy strength is a bright spot; volumes/margins benefited from favorable weather and WCAS/CPAS integration—supporting Ag segment resilience .
  • Equity-method investments (Ventura Foods, CF Nitrogen) are meaningful earnings contributors; Ventura Foods gain drove Corporate & Other; CF Nitrogen benefited from urea pricing .
  • Liquidity remains adequate with diversified facilities; working capital down ytd on seasonality and notes payable; interest expense up accordingly—monitor leverage/short-term funding costs .
  • FY2025 capital allocation: ~$735M capex, ~$169M preferred dividends, ~$340M debt repayments, ~$300M patronage and ~$300M equity redemptions—stable cooperative returns profile .
  • Macro risks (tariffs, wars, weak export competitiveness) and RIN volatility likely to pressure margins through FY2025; near-term stock catalysts hinge on Energy margin recovery and sustained agronomy performance .

*Values retrieved from S&P Global.