Key Takeaways
- CHS reported a net loss of $75.8 million in Q2 FY2025 compared to net income of $170.3 million in Q2 FY2024.
- Revenues declined to $7.8 billion from $9.1 billion year over year.
- Energy and Ag segments experienced lower earnings due to unfavorable market conditions.
- Nitrogen production earnings were lower, driven by increased natural gas costs.
- First-half FY2025 net income totaled $169.0 million on $17.1 billion in revenue.
CHS Navigates Volatile Market Conditions in Q2 FY2025
CHS Inc., the largest farmer-owned cooperative in the U.S., reported a net loss of $75.8 million and $7.8 billion in revenue for the second quarter of fiscal year 2025, ending February 28. This compares to net income of $170.3 million and $9.1 billion in revenue for the same quarter of the previous year. For the first six months of FY2025, CHS reported net income of $169.0 million and $17.1 billion in revenue, down from $693.2 million and $20.5 billion respectively in FY2024.
Jay Debertin, president and CEO of CHS, stated: “CHS remains focused on operational excellence and enhancing efficiency as we navigate this time of softer commodity markets, policy uncertainty and volatility. While margin and pricing pressure continues, our sales volumes remain strong. We are well positioned to meet our owners’ spring planting needs.”
Segment Highlights and Financial Overview of CHS
Energy Segment
The Energy segment posted a pretax loss of $83.5 million, a decrease of $135.0 million compared to the previous year. This was primarily attributed to less favorable refining margins, higher U.S. refinery capacity utilization, and lower propane margins impacted by hedging.
CHS’s Ag Segment
The Ag segment experienced a pretax loss of $45.6 million, down $102.4 million year-over-year. Contributing factors included lower grain and oilseed margins and mark-to-market timing effects in global trading.
Nitrogen Production
Pretax earnings in Nitrogen Production totaled $20.3 million, a decrease from $37.0 million in FY2024, largely due to increased natural gas costs.
Corporate and Other
The Corporate and Other segment reported pretax earnings of $24.0 million, down $16.3 million from the prior year, reflecting reduced returns from the company’s equity stake in Ventura Foods.
Read the complete financial results here.
