Key Takeaways:
- Intrepid Potash posted $71.5 million in total sales and $3.3 million in net income for Q2 2025
- Adjusted EBITDA rose 78% year-over-year to $16.4 million, with adjusted net income of $6.0 million
- Potash and Trio® sales volumes increased, while improved production efficiency supported margins
- Weather impacts and brine supply issues are expected to affect 2026 output
- 2025 production forecast revised to 270–280 thousand tons, down from 285–295 thousand tons
Intrepid Potash Reports Improved Financials Amid Strong Demand
Q2 Earnings Reflect Higher Sales Volumes and Operational Gains
Intrepid Potash, Inc. (NYSE: IPI) reported second-quarter 2025 results marked by strong potash and Trio® performance. The company recorded $71.5 million in total sales and $3.3 million in net income, or $0.25 per diluted share. Adjusted net income was $6.0 million, while adjusted EBITDA reached $16.4 million—up from $9.2 million in Q2 2024.
Cash flow from operations totaled $39.9 million for the quarter, allowing the company to maintain a robust liquidity position with $87 million in cash and no outstanding borrowings as of August 1, 2025.
CEO Kevin Crutchfield noted, “Supportive market fundamentals and steady demand for our potash and Trio® helped drive strong gross margins and improved unit economics across both segments.”
Segment Performance: Potash and Trio® Drive Revenue Growth
Potash Benefits from Volume Gains Despite Lower Prices
Potash sales for the quarter totaled $34 million, up from $30 million in Q2 2024. Volumes rose 25% to 69 thousand tons, while the average net realized sales price declined 11% year-over-year to $361 per ton. This decline was attributed to lower spring season prices and a reduced share of feed market sales.
Potash gross margin increased by $1.5 million year-over-year, supported by improved cost of goods sold (COGS) per ton, which dropped 13% to $337.
Trio® Segment Posts Margin Expansion
Trio® sales reached $33.2 million in Q2 2025, up 25% from the prior year. Sales volumes grew to 70 thousand tons, and average net realized sales price rose 17% to $368 per ton. Gross margin in the Trio® segment increased to $8.1 million, up from $2.2 million in Q2 2024, helped by stronger pricing, higher volumes, and a 10% reduction in COGS per ton.
The company attributed Trio®’s performance to increased corn acreage, tight sulfate supply, and continued demand strength during the spring application season.
Operational Updates and Outlook Adjustments
Weather and Brine Conditions Affect Production Forecasts
Above-average rainfall at the HB facility has reduced evaporation rates, leading to a planned temporary mill shutdown in September and a shift of approximately 15,000 tons of 2025 production into early 2026. Separately, technical findings at the AMAX Cavern indicate no existing brine pool, prompting reevaluation of injection system plans.
As a result, Intrepid has lowered its production forecasts:
- 2025 potash production: revised to 270–280 thousand tons
- 2026 potash production: revised to 270–280 thousand tons, down from 300–310 thousand tons previously
The company expects a total 2026 production shortfall of approximately 45,000 tons due to weather and reduced brine quality.
Oilfield Solutions and Capital Spending
Lower Water Sales Weigh on Segment Results
Sales in the oilfield solutions segment declined to $4.3 million in Q2 2025, driven by a $2.0 million decrease in water sales. Gross margin decreased to $1.3 million from $2.1 million in the prior-year period. Surface use and easement revenues partially offset the lower water sales, which were impacted by reduced oilfield activity near Intrepid South Ranch.
Capital expenditures for the quarter were $4.1 million. Intrepid expects full-year 2025 capital spending to total between $32 million and $37 million, primarily focused on sustaining capital projects.
