Compass Minerals Reports Fiscal 2026 Third-Quarter Results

Compass Minerals (NYSE: CMP), a leading global provider of essential minerals, today reported fiscal 2026 third-quarter results.

Unless otherwise noted, it should be assumed that time periods referenced below are on a fiscal-year basis and financial amounts are in U.S. dollars.

MANAGEMENT COMMENTARY

“What we are experiencing in our Plant Nutrition business is the clearest example of what our improvement process can deliver. We produced segment Adjusted EBITDA of $15.0 million in the quarter on improved pricing and lower per-unit costs, and we have again raised our full-year expectations for this business. In Salt, we realized meaningful pricing gains in highway during the quarter, and we are seeing early signs of a constructive pricing environment within our consumer and industrial (C&I) product line as well. However, production costs at our mining operations have not yet improved at the pace we expected. Production tons are up year over year, but as we invest in maintenance, labor and associated costs have remained elevated relative to plan. We raised our full-year consolidated Adjusted EBITDA guidance midpoint to $230 million, driven by significantly stronger Plant Nutrition performance partially offset by mix, inflationary pressures and the pace of operational improvements in Salt,” said Edward C. Dowling Jr., president and CEO.

“Looking ahead, the 2026-27 highway deicing bid season has been very constructive. In our core U.S. markets, we are seeing substantial year-over-year price improvement and consistent growth in demand tenders. Coming off a strong winter, we are aligning our production and planning to the supply realities across our system. Our balance sheet continues to strengthen, with net leverage declining to 2.8 times from 4.3 times a year ago, and our recent credit upgrade from S&P reflects the progress we have made in reducing debt and building a more resilient business. There is more work ahead in our mining operations, but the direction is clear. We are committed to operational improvement, disciplined capital allocation and long-term shareholder value.”

QUARTERLY HIGHLIGHTS

• Net loss of $5.7 million for the third quarter of 2026, compared to a net loss of $17.0 million in the prior-year period;

• Total company Adjusted EBITDA for the third quarter of 2026 of $39.9 million, compared with $41.0 million in the prior-year period;

• Operating income and Adjusted EBITDA margins within the Salt business declined compared to the prior-year period, driven principally by higher per-unit product costs and distribution costs year over year;

• Continued improvements in pricing and cost structure increased Plant Nutrition segment operating income and Adjusted EBITDA on both absolute and per-ton bases;

• Total debt (defined as long-term debt, net of current) declined 13% from the prior-year period to $716.6 million as of June 30, 2026, while net debt decreased $85.6 million, or 11%, to $660.3 million over the same period; and

• Mid-point of full-year 2026 guidance for total company Adjusted EBITDA was raised within modified range of $218 million to $242 million, reflecting stronger-than-expected results in the Plant Nutrition segment and adjustments in the Salt segment related to mix dynamics, inflationary pressures and the pace of operational improvements.

QUARTERLY FINANCIAL RESULTS

SALT BUSINESS RECAP

Third quarter Salt revenue increased 5% year over year to $173.9 million, reflecting higher pricing across both highway and C&I. Combined average sales prices increased 9%, led by an 8% increase in highway prices and 6% increase in C&I prices. Total sales volumes declined 4%, as a 6% decrease in highway volumes was partially offset by a 3% increase in C&I volumes.

Salt segment operating income for the quarter decreased by 25% to $21.2 million from the prior-year period. Adjusted EBITDA decreased to $38.9 million, down 15% from the prior-year period. These financial results reflect lower sales volumes between the periods and higher per-unit product costs and distribution costs year over year, offset by the pricing dynamics described above.

PLANT NUTRITION BUSINESS RECAP

Plant Nutrition revenue was $37.6 million for the quarter, down 16% compared to the prior-year period. The decrease is primarily driven by a 19% decrease in sales volume, partially offset by a 4% increase in average sales prices. Lower sales volumes were largely attributable to the disposition of the Wynyard sulfate of potash (SOP) business in March 2026. Excluding the impacts of the disposition, sales volumes increased approximately 4% year over year.

Operating income in the Plant Nutrition segment was $7.8 million for the quarter, up 50% compared to $5.2 million in the prior-year quarter. Adjusted EBITDA improved 32% to $15.0 million compared to $11.4 million last year. These financial results reflect lower sales volumes and higher average sales prices. Both product costs and distribution costs were down on a per-unit basis year over year.

CASH FLOW AND FINANCIAL POSITION

Net cash provided by operating activities amounted to $162.8 million for the nine months ended June 30, 2026, compared to $204.6 million in the prior year. Changes in working capital reflect the seasonal decrease in inventories due to the end of the winter season and the settlement of the previously disclosed tax dispute in Ontario during the first quarter of 2026.

Net cash used in investing activities was $39.8 million for the nine months ended June 30, 2026, an increase from $34.7 million used in the prior year. Total capital spending for the nine months ended June 30, 2026, was $62.1 million compared to $53.8 million in 2025. The company received $23.3 million of cash proceeds, net of amounts held in escrow and customary closing adjustments, related to the aforementioned sale of the Wynyard SOP business.

Net cash used in financing activities was $127.1 million for the nine months ended June 30, 2026, which primarily consisted of the redemption of the remaining $150.0 million of the company’s 6.75% Senior Notes due 2027 (the 2027 Notes), partially offset by net borrowings under the revolving credit facility of $35.0 million during the nine months ended June 30, 2026. In the prior year, net cash used in financing activities was $111.5 million and reflected the issuance of $650.0 million of the company’s 8.00% Senior Notes due 2030 (the 2030 Notes), the proceeds of which were used to repurchase $350.0 million of the 2027 Notes, repay $43.5 million under our revolving credit facility, and repay $191.3 million under our term loan facility.

The company ended the quarter with $328.1 million of liquidity, comprised of $56.3 million in cash and cash equivalents and $271.8 million of availability under its $325.0 million revolving credit facility.

Total debt as of June 30, 2026, was $716.6 million compared to $825.3 million a year earlier. Net debt was $660.3 million at the end of the third quarter of 2026, down $85.6 million from $745.9 million at the end of the comparable prior year period. The net leverage ratio for the quarter ended June 30, 2026, was 2.8 times, down from 4.3 times for the comparable prior year period.

S&P GLOBAL RATINGS UPGRADE

During the third quarter, S&P Global Ratings upgraded the company’s corporate credit rating to ‘B+’ from ‘B’, with a stable outlook. S&P also upgraded the rating on the company’s senior secured debt to ‘BB’ from ‘BB-’ and senior unsecured debt to ‘B+’ from ‘B’. In addition, S&P’s ‘1’ recovery rating on the secured debt and ‘4’ recovery rating on the unsecured debt were unchanged.

The upgrade reflected the company’s debt paydown and improved profitability for leverage reduction, which lowered S&P Global Ratings-adjusted leverage from 4.2x to 3.1x for the last 12 months. S&P noted the company used “sale proceeds with cash on the balance sheet to retire $150 million of its 2027 senior unsecured notes, materially improving its debt profile and extending weighted-average maturity.”

UPDATED OPERATING AND FISCAL 2026 OUTLOOK

Based on stronger-than-expected results in the Plant Nutrition segment and adjustments related to mix dynamics, inflationary pressures and the pace of operational improvements in the Salt segment, Compass Minerals is updating its previously issued full-year fiscal 2026 outlook as follows:

Projected Corporate and Other results shown in the table above include corporate expenses in support of our core businesses and the results of DeepStore, the company’s records management business in the U.K.

Guidance for the 2026 effective income tax rate reflects the income mix by country with income recognized in foreign jurisdictions offset by losses recognized in the U.S.

CONFERENCE CALL

Compass Minerals will discuss its results on a conference call tomorrow morning, Thursday, Aug. 6, at 9:30 a.m. ET (8:30 a.m. CT). Access to the conference call will be available via webcast at investors.compassminerals.com or by dialing 1-833-461-5787. Callers must provide the conference ID number: 590 084 912. Outside of the U.S. and Canada, callers may dial 1-585-542-9983 or 1-626-884-3620. An audio replay of the conference call will be available on the company’s website.

A supporting company presentation supporting 2026 third-quarter results is available at investors.compassminerals.com.

About Compass Minerals

Compass Minerals (NYSE: CMP) is a leading global provider of essential minerals focused on safely delivering where and when it matters to help solve nature’s challenges for customers and communities. The company’s salt products help keep roadways safe during winter weather and are used in numerous other consumer, industrial, chemical and agricultural applications. Its plant nutrition products help improve the quality and yield of crops while supporting sustainable agriculture. Compass Minerals operates 11 production and packaging facilities with more than 1,800 employees throughout the U.S., Canada and the U.K. Visit compassminerals.com for more information about the company and its products.

Forward-Looking Statements and Other Disclaimers

This press release may contain forward-looking statements, including, without limitation, statements about future costs, production, debt reduction, shareholder value, and the company’s outlook for 2026, including its expectations regarding sales volumes, revenue, Adjusted EBITDA, depreciation, depletion, and amortization, interest expense, tax rates, and capital expenditures. Forward-looking statements are those that predict or describe future events or trends and that do not relate solely to historical matters. The company uses words such as “may,” “would,” “could,” “should,” “will,” “likely,” “expect,” “anticipate,” “believe,” “intend,” “plan,” “forecast,” “outlook,” “project,” “estimate” and similar expressions suggesting future outcomes or events to identify forward-looking statements or forward-looking information. These statements are based on the company’s current expectations and involve risks and uncertainties that could cause the company’s actual results to differ materially. The differences could be caused by a number of factors, including without limitation (i) weather conditions, (ii) inflation, the cost and availability of transportation for the distribution of the company’s products and foreign exchange rates, (iii) pressure on prices and impact from competitive products, and (iv) any inability by the company to successfully implement its strategic priorities or its cost-saving or enterprise optimization initiatives. For further information on these and other risks and uncertainties that may affect the company’s business, see the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the company’s Annual Report on Form 10-K for the period ended September 30, 2025, and its Quarterly Reports on Form 10-Q for the quarters ended December 31, 2025, March 31, 2026 and June 30, 2026, filed or to be filed with the SEC, as well as the company’s other SEC filings. The company undertakes no obligation to update any forward-looking statements made in this press release to reflect future events or developments, except as required by law. Because it is not possible to predict or identify all such factors, this list cannot be considered a complete set of all potential risks or uncertainties.

Non-GAAP Measures

In addition to using U.S. generally accepted accounting principles (“GAAP”) financial measures, management uses a variety of non-GAAP financial measures described below to evaluate the company’s and its operating segments’ performance. While the consolidated financial statements provide an understanding of the company’s overall results of operations, financial condition and cash flows, management analyzes components of the consolidated financial statements to identify certain trends and evaluate specific performance areas.

Management uses EBITDA, EBITDA adjusted for items which management believes are not indicative of the company’s ongoing operating performance (“Adjusted EBITDA”) and EBITDA margin to evaluate the operating performance of the company’s core business operations because its resource allocation, financing methods and cost of capital, and income tax positions are managed at a corporate level, apart from the activities of the operating segments, and the operating facilities are located in different taxing jurisdictions, which can cause considerable variation in net income. Management also uses adjusted operating income, adjusted operating margin, adjusted net (loss) income, and adjusted net (loss) income per diluted share, which eliminate the impact of certain items that management does not consider indicative of underlying operating performance. The presentation of these measures should not be construed as an inference that future results will be unaffected by unusual or non-recurring items. Management believes these non-GAAP financial measures provide management and investors with additional information that is helpful when evaluating underlying performance. EBITDA and Adjusted EBITDA exclude interest expense, income taxes and depreciation, depletion and amortization, each of which is an essential element of the company’s cost structure and cannot be eliminated. In addition, Adjusted EBITDA and Adjusted EBITDA margin exclude certain cash and non-cash items, including stock-based compensation, impairment charges and certain restructuring charges. Consequently, any measure that excludes these elements has material limitations. The non-GAAP financial measures used by management should not be considered in isolation or as a substitute for net (loss) income, operating income, cash flows or other financial data prepared in accordance with GAAP or as a measure of overall profitability or liquidity. These measures are not necessarily comparable to similarly titled measures of other companies due to potential inconsistencies in the method of calculation. The calculation of non-GAAP financial measures as used by management is set forth in the following tables. All margin numbers are defined as the relevant measure divided by sales. The company does not provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, as the company is unable to estimate significant non-recurring, unusual items and/or distinct non-core initiatives without unreasonable effort. The amounts and timing of these items are uncertain and could be material to the company’s results.

Adjusted operating income, adjusted operating margin, adjusted net (loss) income, adjusted net (loss) income per diluted share, net debt and net leverage ratio are presented as supplemental measures of the company’s performance. Management believes these measures provide management and investors with additional information that is helpful when evaluating underlying performance and comparing results on a year-over-year normalized basis. These measures eliminate the impact of certain items that management does not consider indicative of underlying operating performance. These adjustments are itemized below. Adjusted net (loss) income per diluted share is adjusted net (loss) income divided by weighted average diluted shares outstanding. Net debt is calculated as current and long-term debt minus cash and cash equivalents used to evaluate our financial position. Management defines net leverage ratio as net debt divided by Adjusted EBITDA for the previous twelve-month period (“last twelve months,” or “LTM”). You are encouraged to evaluate the adjustments itemized above and the reasons management considers them appropriate for supplemental analysis. In evaluating these measures you should be aware that in the future the company may incur expenses that are the same as or similar to some of the adjustments presented below.

GAAP