Key Takeaways
- CHS Inc. posted $232.2 million in net income and $9.8 billion in revenue for Q3 FY2025
- Ag segment earnings rose due to strong agronomy performance; Energy segment reported a pretax loss
- Net income declined from $297.3 million in Q3 FY2024, while revenues slightly increased
- Nine-month net income fell to $401.2 million, down from $990.5 million in the prior year period
- Planned refinery maintenance and increased renewable fuel credit costs impacted Energy earnings
CHS Inc. Q3 Financial Overview
CHS Inc. (NASDAQ: CHSCO), the largest farmer-owned cooperative in the U.S., reported net income of $232.2 million on revenues of $9.8 billion for the third quarter of fiscal year 2025, which ended May 31. This compares to $297.3 million in net income and $9.6 billion in revenues for the same period in FY2024. For the first nine months of the fiscal year, CHS Inc. reported $401.2 million in net income—down significantly from $990.5 million during the same timeframe last year.
Jay Debertin, president and CEO of CHS Inc., noted that favorable spring weather contributed to a strong quarter for the company’s agronomy and retail segments. “CHS was well positioned to meet our owners’ planting needs with products, services and local expertise,” he said.
Stronger Agronomy Offsets Energy Segment Challenges
CHS Inc. Ag Segment Gains Traction
The Ag segment reported pretax income of $151.0 million for the quarter—up $42.5 million from Q3 FY2024. This performance was driven by higher volumes and margins for wholesale and retail agronomy products, despite global market volatility that affected margins in grain, oilseed, and processing categories.
CHS Inc. Energy Segment Faces Headwinds
Conversely, the Energy segment recorded a pretax loss of $50.1 million, a significant decrease from $97.9 million in earnings in Q3 FY2024. The drop was primarily attributed to planned major maintenance at the CHS refinery in McPherson, Kansas, which lowered fuel production. Additionally, increased costs related to renewable fuel credits further impacted profitability.
Stable Returns from Investments and Joint Ventures
CHS Inc.’s nitrogen production business delivered pretax earnings of $54.6 million—up modestly from $52.4 million a year ago—benefiting from improved market conditions for urea. Meanwhile, Corporate and Other, which includes the Ventura Foods joint venture, contributed $103.3 million in pretax income, nearly doubling the segment’s result from the prior year.
Equity method investments remained a stable source of income for CHS Inc., continuing to play a supportive role in its overall financial performance.
Looking Ahead For CHS Inc.
Despite a year-over-year decline in earnings, CHS Inc. emphasized operational readiness and service delivery as key strengths. “Our employees remain committed to maintaining a high level of customer service while driving efficiency improvements,” said Debertin. “Working together with our valued partners, we will continue positioning the cooperative system to best navigate the current challenging agriculture and energy markets.”
Read the complete financial results here.
