Compass Minerals International (CMP) investor relations material

Executive summary

• Net loss for Q3 2026 narrowed to $5.7 million from $17.0 million year-over-year, driven by improved Plant Nutrition performance, higher Salt pricing, and operational improvements, despite elevated Salt production costs and lower Salt margins.

• Consolidated Adjusted EBITDA for Q3 was $39.9 million, down slightly from $41.0 million last year, with margin at 18.5%.

• S&P upgraded the corporate credit rating to B+ following significant debt reduction and improved profitability.

• Leadership changes included the promotion of Brandon Risner to COO, reflecting a focus on operational improvements and cost management.

• Total sales for the quarter were $215.3 million, up 0.3% year-over-year, with higher Salt sales offset by lower Plant Nutrition sales.

Financial highlights

• Salt segment revenue rose 5% to $173.9 million, with average price per ton up 9%, but Adjusted EBITDA fell 15% to $38.9 million due to higher costs and lower volumes.

• Plant Nutrition revenue declined 16% to $37.6 million, but Adjusted EBITDA rose 32% to $15.0 million on improved pricing and lower per-unit costs.

• Operating income for Q3 was $10.9 million, down from $15.9 million last year, mainly due to lower Salt segment income.

• Net cash from operating activities for the nine months ended June 30, 2026, was $162.8 million, down from $204.6 million year-over-year.

• Gross profit for the quarter was $37.9 million (17.6% margin), down from $41.2 million (19.2% margin) year-over-year.

Outlook and guidance

• Full-year 2026 consolidated Adjusted EBITDA guidance midpoint raised to $230 million (range $218–$242 million), with Salt segment at $225–$236 million and Plant Nutrition at $49–$57 million.

• Capital expenditures for 2026 projected at $90–$110 million, focused on maintenance and productivity projects.

• Effective income tax rate guidance for 2026 is 27–31%.

• Salt sales volumes expected between 10.5–10.8 million tons; Plant Nutrition sales volumes 290–300 thousand tons.

• Fiscal 2027 demand expected to be lower than 2026, reflecting normalized weather assumptions after a strong winter season.