Wed, Apr 2, 3:58 PM (27 days ago)
**CHS Inc. (CHSCP) Q2 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $7.8 billion (Q2 2025) vs. $9.1 billion (Q2 2024) - **Net Loss:** $76 million (Q2 2025) vs. Net Income of $170 million (Q2 2024) - **Gross Profit Margin:** 1% (Q2 2025) vs. 4% (Q2 2024) - **Operating Loss:** $172 million (Q2 2025) vs. Operating Income of $68 million (Q2 2024) **Cash Flow:** - **Net Cash Used in Operating Activities:** $1.3 billion (H1 2025) vs. $397 million (H1 2024) - **Net Cash Used in Investing Activities:** $46 million (H1 2025) vs. $185 million (H1 2024) - **Net Cash Provided by Financing Activities:** $1.0 billion (H1 2025) vs. Outflow of $550 million (H1 2024) **Segment Performance:** - **Energy:** Significant decline in earnings due to lower refining margins and reduced crack spreads. - **Ag:** Weaker earnings attributed to lower grain and oilseed margins and competitive global marketplace conditions. - **Nitrogen Production:** Continued strong performance, with CF Nitrogen being the largest contributor. **Trends and Uncertainties:** - **Macroeconomic Factors:** Uncertainty in global energy and agricultural commodity markets due to trade policies, geopolitical conflicts, and interest rate environments. - **Market Conditions:** Persistent margin pressure and lower profitability expected through fiscal 2025. - **Strategic Initiatives:** Focus on growth through strategic investments and leveraging financial strength. **Future Operations Impact:** - **Capital Expenditures:** $764.3 million expected for fiscal 2025, with $357.6 million spent in H1 2025. - **Major Maintenance:** $247.5 million expected for fiscal 2025, with $45.7 million spent in H1 2025. - **Debt and Interest:** $339.6 million in debt repayments and $101.7 million in interest payments expected for fiscal 2025. - **Preferred Stock Dividends:** $168.7 million expected for fiscal 2025, with $84.3 million paid in H1 2025. - **Patronage and Equity Redemptions:** $300 million each expected for fiscal 2025, with $229.5 million in patronage and $16.3 million in equity redemptions paid in H1 2025. **Liquidity and Capital Resources:** - **Working Capital:** $2.9 billion (Q2 2025) vs. $3.3 billion (Q4 2024) - **Current Ratio:** 1.4 (Q2 2025) vs. 1.6 (Q4 2024) - **Cash and Cash Equivalents:** $433.3 million (Q2 2025) vs. $794.9 million (Q4 2024) **Seasonality and Volatility:** - **Seasonal Trends:** Higher volumes and revenues typically in Q3, with lower margins in Q2. - **Commodity Prices:** Significant impact on revenues and earnings due to global market conditions and supply/demand dynamics. **Forward-Looking Statements:** - **Uncertainties:** Geopolitical risks, trade policies, and global economic conditions may impact future performance. - **Strategic Focus:** Emphasis on operational excellence, technological advancements, and sustainable practices to navigate market challenges.