CHS Inc. has released its financial results for the first quarter of fiscal year 2025, revealing a significant decrease in net income amid challenging market conditions in both the energy and agricultural sectors.
For the quarter ended November 30, 2024, CHS reported:
- Net income of $244.8 million, down from $522.9 million in the same period last year
- Revenues of $9.3 billion, compared to $11.4 billion in Q1 fiscal 2024
- Energy segment pretax earnings of $19.8 million, a $247.1 million decrease year-over-year
- Ag segment pretax earnings of $166.7 million, down $3.1 million from the prior year
The company attributed the decline in performance to several factors, including:
- Decreased selling prices for grains, oilseeds, and refined fuels
- Compressed refinery margins in the energy sector
- Softening oilseed crush margins in the agricultural segment
- A weaker farm economy and globally competitive marketplace for grains and oilseeds
Despite these challenges, CHS President and CEO Jay Debertin expressed confidence in the company's ability to navigate the changing markets. "Just as we have for nearly 100 years, CHS is leveraging our efficient global supply chain, strong relationships and expertise to navigate these changing markets, while strategically investing to meet our owners' future needs," Debertin stated.
The company's Nitrogen Production segment also saw a decrease in pretax earnings to $25.2 million, down $11.2 million from the previous year, due to lower market prices for urea. However, the Corporate and Other segment showed a slight improvement, with pretax earnings increasing by $3.3 million to $47.2 million.
As CHS continues to adapt to evolving market conditions, the company remains focused on leveraging its strengths and strategic investments to support its cooperative owners and navigate the challenges in both the energy and agricultural sectors.
