COMPASS MINERALS INTERNATIONAL (CMP)·Q1 2026 Earnings Summary

Compass Minerals Crushes Q1 as Winter Weather Drives 103% EBITDA Surge

February 4, 2026 · by Fintool AI Agent

Compass Minerals delivered a blowout fiscal Q1 2026, crushing estimates across all metrics as robust winter weather drove a 37% surge in Salt segment volumes. The company swung to profitability with net income of $18.6 million versus a $23.6 million loss in the prior year, while adjusted EBITDA more than doubled to $65.3 million.

Management raised full-year EBITDA guidance by 2% at the midpoint and announced the strategic sale of its Wynyard sulfate of potash facility for $30.8 million, furthering its debt reduction goals.

Did Compass Minerals Beat Earnings?

Compass Minerals beat on every key metric:

Consensus estimates from S&P Global

The revenue beat was driven entirely by volume strength in the Salt segment, where highway deicing sales volumes surged 43% year-over-year to 2.85 million tons on favorable winter weather conditions.

Year-over-year comparisons were equally impressive:

What Drove the Segment Performance?

Salt Segment: Winter Weather Delivers

The Salt business was the star performer, with revenue up 37% to $331.5 million.

Key Salt metrics:

Volume strength across both highway deicing (+43%) and consumer & industrial (+14%) channels drove the outperformance. Pricing remained positive with highway deicing up 6% and C&I up 2% year-over-year, though the sales mix shift toward lower-priced highway deicing kept overall segment pricing roughly flat.

Plant Nutrition: Margin Expansion Story

Plant Nutrition revenue dipped 1% to $60.8 million on 13% lower volumes, but the profitability story was compelling. The segment swung from an operating loss of $3.1 million to operating income of $5.4 million.

Key Plant Nutrition metrics:

Management noted the lower volumes reflect a strategic decision to exit lower-margin export opportunities, focusing on higher-value domestic sales.

What Did Management Guide?

Compass Minerals raised its full-year FY2026 adjusted EBITDA guidance by 2% at the midpoint, now expecting $208-240 million versus prior guidance of approximately $204-235 million.

Updated FY2026 Guidance:

The guidance includes the impact of the Wynyard SOP operation sale but excludes any proceeds from that transaction. Capital expenditures remain unchanged at $90-110 million.

What Changed From Last Quarter?

Several key developments marked a shift in Compass Minerals' trajectory:

1. Return to profitability: Net income of $18.6M marks the first profitable quarter after four consecutive quarterly losses totaling over $120 million.

2. Deleveraging progress: Net debt decreased $92 million (10%) year-over-year to $836.9 million. The net debt to trailing 12-month EBITDA ratio improved dramatically to 3.6x from 5.3x.

3. Strategic divestiture: Subsequent to quarter-end, Compass Minerals agreed to sell its Wynyard, Saskatchewan SOP operation for $30.8 million. Management noted this asset was "surplus to needs" given its ability to service customers from its core Ogden, Utah facility. Proceeds will further reduce net debt.

4. Liquidity position: The company ended the quarter with $341.7 million of liquidity, comprising $46.7 million cash and $295 million availability under its revolver.

How Did the Stock React?

CMP shares closed the regular session at $25.52, down 3.99% on the day. However, after-hours trading following the earnings release saw the stock surge to $26.93, up approximately 5.5% from the close.

Stock Performance Context:

The stock has rallied dramatically from its 52-week low of $8.60, reflecting improving fundamentals and successful execution of management's turnaround strategy.

What Should Investors Watch Next?

Key catalysts ahead:

• Earnings call (Feb 5, 9:30am ET): Management will provide additional color on winter weather conditions and the pace of deicing salt demand through the critical Q2 period.

• Wynyard sale closing: The $30.8 million divestiture is subject to customary closing conditions. Proceeds will reduce net debt further.

• Q2 salt volumes: The second fiscal quarter (Jan-Mar) is typically the peak winter weather period. Continued strong snowfall would provide further upside to Salt segment results.

• Plant Nutrition pricing: With average prices up 14% YoY and mix improving, sustainability of pricing power will be key to margin durability.

Key Quotes From Management

CEO Edward C. Dowling Jr. highlighted the strategic progress:

"Compass Minerals delivered a strong opening quarter to fiscal 2026. Robust winter weather supported performance in our Salt segment, while higher pricing and cost-structure improvements drove meaningful margin expansion in our Plant Nutrition segment."

"We reduced total net debt by 10% year over year — more than $90 million. We remain focused on strengthening operational, commercial, and financial execution to enhance cash-flow generation and further reduce net debt."

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View the full Q1 2026 Transcript | CMP Research Page | Prior Quarter Earnings