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CI

CHS INC (CHSCP)·Q4 2025 Earnings Summary

Executive Summary

  • Fiscal Q4 2025 capped a tough year: CHS reported FY2025 net income of $597.9M vs $1.1B in FY2024, with revenues of $35.5B vs $39.3B, driven by lower commodity prices and weaker refining/oilseed crush margins .
  • Q4 revenue was $8.61B* and net income was $196.7M*, sequentially lower vs Q3 revenue ($9.8B) but with improved profitability vs the Q2 net loss, reflecting stabilization in Energy and continued strength in Ag retail and equity affiliates* .
  • Management highlighted headwinds from international trade/tariffs and high U.S. refined product supply; equity method investments (CF Nitrogen, Ventura Foods) remained a bright spot .
  • Board expects to return $120M to owners in 2026 via cash patronage ($30M) and equity redemptions ($90M), reinforcing cooperative value sharing .

Values with asterisk are retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Strong Ag retail/agronomy performance: higher volumes and margins in Q3 agronomy, and “strong volumes in crop protection and crop nutrients” for FY2025, aided by favorable growing conditions .
  • Equity affiliates delivered: CF Nitrogen and Ventura Foods posted strong contributions, with Nitrogen Production pretax earnings +$8.3M YoY and Corporate & Other +$41.8M YoY in FY2025 .
  • CEO underscored resilient execution despite macro: “CHS delivered strong volumes… demonstrating the resilience of our operations and the cooperative system,” emphasizing operational excellence and cost management .

What Went Wrong

  • Energy segment swung to pretax loss: FY2025 Energy pretax loss of $7.0M vs $429.1M pretax profit last year, driven by narrower heavy Canadian crude discounts, tighter refining margins, and planned McPherson refinery maintenance .
  • Oilseed crush/grain margins compressed: Global supply/dynamics reduced margins across grain and oilseed; Q2 and FY releases highlight weaker crush margins and competitive global marketplace .
  • Renewable fuel credit and hedging impacts: Q3 Energy was pressured by increased cost for renewable fuel credits; Q2 propane margins were adversely impacted by hedging effects .

Financial Results

Consolidated Quarterly Performance

MetricQ2 2025Q3 2025Q4 2025
Revenue ($USD Billions)$7.80 $9.80 $8.61*
Net Income ($USD Millions)$(75.8) $232.2 $196.7*
EBIT ($USD Millions)$(174.1)*$68.0*$50.8*
EBITDA ($USD Millions)$(19.1)*$227.4*$145.4*
EBITDA Margin (%)-0.25%*2.33%*1.69%*
EBIT Margin (%)-2.23%*0.70%*0.59%*
Net Income Margin (%)-0.97%*2.38%*2.29%*

Values with asterisk are retrieved from S&P Global.

Year-over-Year (Q4)

MetricQ4 2024Q4 2025
Revenue ($USD Billions)$9.17*$8.61*
Net Income ($USD Millions)$111.8*$196.7*
EBIT ($USD Millions)$(16.7)*$50.8*
EBITDA ($USD Millions)$43.3*$145.4*
EBITDA Margin (%)0.47%*1.69%*
EBIT Margin (%)-0.18%*0.59%*
Net Income Margin (%)1.22%*2.29%*

Values with asterisk are retrieved from S&P Global.

Segment Breakdown (FY)

Segment Pretax Earnings ($USD Thousands)FY 2024FY 2025
Energy$429,053 $(7,042)
Ag$342,677 $245,660
Nitrogen Production$151,235 $159,541
Corporate & Other$174,822 $216,613
Income Before Income Taxes$1,097,787 $614,772
Net Income$1,102,659 $597,995
Net Income Attributable to CHS Inc.$1,102,319 $597,917

KPIs and Operational Drivers

  • Energy: Reduced crude oil discounts (heavy Canadian) and tighter refining margins; McPherson planned maintenance lowered high-margin refined fuel output .
  • Ag: Higher volumes in crop protection and nutrients; weaker grain/oilseed margins, lower crush margins due to increased global soybean/canola supplies .
  • Equity Affiliates: Strong CF Nitrogen (favorable urea market) and Ventura Foods performance .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash returns to owners (patronage + equity redemptions)CY 2026Not previously specified$120M ($30M patronage; $90M equity redemptions) New
Financial guidance (revenue/margins/EPS/OpEx/tax)FY2026/FY2025 exitNot providedNot providedMaintained: No formal guidance

Note: CHS does not provide formal financial guidance metrics in the reviewed materials .

Earnings Call Themes & Trends

No earnings call transcript was available in our document catalog for Q4 2025; themes synthesized from press releases.

TopicQ2 FY2025 (Prior)Q3 FY2025 (Prior)Q4 FY2025 (Current)Trend
Energy refining margins/maintenanceLess favorable margins; high U.S. utilization; propane hedging impact McPherson maintenance reduced refined fuel output; higher renewable fuel credit costs Full-year Energy down on reduced heavy crude discounts, tight margins, planned maintenance Stabilizing post-maintenance with ongoing margin headwinds
Ag margins/volumesGrain/oilseed margins down; global competitiveness; weaker crush margins Strong agronomy volumes and margins; grain/oilseed margins pressured Strong volumes in crop protection/nutrients; lower oilseed crush margins; global export competitiveness issues Solid volumes; margin pressure persists
Equity affiliatesCF Nitrogen contributed; Ventura Foods softer in Q2 Equity investments continued solid contributions Strong results from CF Nitrogen and Ventura Foods Strength consistent, slight improvement YoY
Macro/trade/tariffsPolicy uncertainty; volatility Challenging agriculture and energy markets International trade/tariffs cited as headwinds Macro headwinds continue
Owner returns/cooperative focus——Plan to return $120M in 2026; emphasis on cooperative system resilience Positive for owner sentiment

Management Commentary

  • “CHS delivered strong volumes across our businesses demonstrating the resilience of our operations and the cooperative system… return $120 million in cash patronage and equity redemptions to our farmer-owners and member cooperatives in fiscal year 2026” — Jay Debertin, President & CEO .
  • “We’re focused on delivering value through operational excellence and cost management to support our growth initiatives on behalf of our owners.” — Jay Debertin .
  • “Strong spring agronomy season… favorable spring weather, resulting in a strong third quarter for our agronomy and retail businesses.” — Jay Debertin .
  • “CHS remains focused on operational excellence… while margin and pricing pressure on ag and energy product categories continues, our sales volumes remain strong.” — Jay Debertin .
  • “CHS is committed to sharing the financial strength… intends to return $120 million… in calendar year 2026.” — Dan Schurr, Board Chair .

Q&A Highlights

  • No Q4 FY2025 earnings call transcript was available; Q&A themes and clarifications were not accessible in our document set.

Estimates Context

  • S&P Global consensus coverage appears limited for CHS; EPS and revenue consensus lines for Q4 FY2025 were not populated, and only “actual” values were available via S&P Global data. As a cooperative issuer, CHS has minimal traditional sell-side coverage.
  • We therefore cannot assess beats/misses vs Wall Street consensus for Q4 FY2025. Values retrieved from S&P Global.

Key Takeaways for Investors

  • FY2025 results reflect resilient volumes but margin compression in Energy and oilseed crush; continued strength from equity affiliates mitigated pressures .
  • Sequentially, Q4 showed profitability improvement vs Q2’s loss and a stable net income run-rate relative to Q3, though revenue stepped down vs Q3 amid market conditions* .
  • Energy margin recovery is the swing factor: normalization of heavy crude discounts and refined product supply-demand balance would be accretive to segment earnings .
  • Ag retail/agronomy momentum remains a relative bright spot; sustained volumes and favorable conditions support earnings resiliency .
  • Cooperative capital returns: planned $120M owner return in 2026 underscores balance-sheet capacity and commitment to patronage, potentially reinforcing stakeholder confidence .
  • With limited sell-side coverage, the stock narrative for CHS preferreds centers on rate environment and dividend terms rather than quarterly “beats/misses”; operational stability and margin trajectories matter for credit profile and distribution sustainability.
  • Focus near term: watch refined margin indicators, oilseed crush spreads, and international trade/tariff developments cited by management as key macro drivers .

Values with asterisk are retrieved from S&P Global.