Compass Minerals International (CMP) Q1 2026 earnings summary

Executive summary

• Net income reached $18.6 million in Q1 2026, reversing a net loss of $23.6 million in the prior year, with diluted EPS of $0.43 compared to a loss of $0.57.

• Adjusted EBITDA rose 103% year-over-year to $65.3 million, driven by strong salt business, improved Plant Nutrition performance, and cost structure improvements.

• Leverage ratio improved to 3.6x from 5.3x year-over-year, with net debt reduced by 10% to $836.9 million.

• Full-year adjusted EBITDA guidance raised by 2% at the midpoint to $208–$240 million.

• Salt and Plant Nutrition segments both saw higher operating earnings and margins due to volume growth, pricing, and cost improvements.

Financial highlights

• Revenue rose 29% year-over-year to $396.1 million, with Salt segment revenue up 37% to $331.5 million and Plant Nutrition revenue at $60.8 million.

• Operating income increased to $36.6 million from $0.5 million a year ago, mainly due to Salt segment growth.

• Adjusted EBITDA margin improved to 16.5%, with Salt segment at 20.3% and Plant Nutrition at 21.1%.

• Cash and cash equivalents were $46.7 million at quarter-end, with total liquidity of $341.7 million including available credit.

• Net cash used in operating activities was $37.0 million, reflecting seasonal working capital and tax settlement.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance raised to $208–$240 million, with Salt segment at $230–$252 million and Plant Nutrition at $34–$39 million.

• Capital expenditures for 2026 forecasted at $90–$110 million.

• Effective tax rate guidance for 2026 is 30–34%.

• Guidance reflects strong salt demand, improved Plant Nutrition margins, and impact of Wynyard SOP sale.

• The company expects to meet liquidity needs over the next 12 months through cash flow and available credit.