CHS Posts $75.8 Million Quarterly Loss Amid Market Challenges
The company records $7.8 billion revenue for Q2 ended Feb 28, 2025
CHS INC [CHSCN] reported $75.8 million loss for Q2 ended Feb 28, 2025, compared to net income of $170.3 million in the same quarter of the previous year.
The company revealed in its 8-K filing to the SEC dated Apr 2, 2025 that it generated revenue of $7.8 billion for the period, showing revenue of $9.1 billion in the same quarter of the previous year.
"CHS remains focused on operational excellence and enhancing efficiency as we navigate this time of softer commodity markets, policy uncertainty and volatility. I commend our employees around the world for their commitment to strong execution in this challenging environment," said Jay Debertin, president and CEO of CHS Inc.
"While margin and pricing pressure on ag and energy product categories continues, our sales volumes remain strong. We are well positioned to help meet our owners' spring planting needs with inputs, services and local expertise."
In its Energy segment, CHS posted a pretax loss of $83.5 million for Q2 of fiscal year 2025, a sharp $135 million decline from the previous year. The loss stemmed from weaker market conditions, higher U.S. refinery utilization, and declining propane margins due to hedging-related impacts.
The Agriculture sector also struggled, with a $45.6 million pretax loss, marking a $102.4 million drop from the prior year. The downturn was driven by lower grain and oilseed margins, influenced by mark-to-market timing adjustments and an increased global supply of canola and soybean products, leading to weaker oilseed crush margins.
Meanwhile, Nitrogen Production saw pretax earnings of $20.3 million, down $16.7 million year-over-year, as higher natural gas costs weighed on profitability.
Despite the losses, CHS continues to navigate shifting global market conditions, with investors closely watching its next steps.
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