<div id="readability-page-1"><div>Compass Minerals International Inc., a leading producer of essential minerals, has released its annual 10-K report, detailing the company's financial and operational performance for the fiscal year. The report highlights significant improvements in key financial metrics, strategic initiatives aimed at enhancing profitability, and the challenges and risks faced by the company in its core Salt and Plant Nutrition businesses. Financial Highlights <ul><li>Sales: $1,243.9 million, an increase of 11.3% from the previous year due to higher sales in the Salt and Plant Nutrition segments.</li><li>Gross Profit: $190.7 million, a decrease of 2.2% from the previous year, primarily due to lower average combined sales prices and higher per-unit product costs in the Salt segment.</li><li>Operating Income: $25.3 million, a significant improvement from an operating loss of $(116.8) million in the previous year, mainly due to a decrease in impairment losses and lower selling, general, and administrative expenses.</li><li>Net (Loss) Income: $(79.8) million, an improvement from a net loss of $(206.1) million in the previous year.</li><li>Diluted Net (Loss) Income Per Common Share: $(1.91), an improvement of $3.08 from a net loss of $(4.99) per common share in the prior fiscal year.</li></ul> Business Highlights <ul><li>Revenue Segments: The Salt segment accounted for approximately 82% of total sales in fiscal 2025, with highway deicing products constituting 63% of Salt segment sales. The Plant Nutrition segment saw a 14.0% increase in sales due to higher volumes.</li><li>Geographical Performance: The company operates in the U.S., Canada, and the UK, with significant production facilities including the largest underground rock salt mine in Goderich, Ontario, and the largest dedicated rock salt mine in Winsford, Cheshire. The Plant Nutrition segment's sales are primarily concentrated in the Western and Southeastern U.S.</li><li>Sales Units: Salt sales volumes increased by 16.5% to 10,848 thousand tons, driven by a 20.4% increase in highway deicing sales volumes. Plant Nutrition sales volumes increased by 19.4%, or 53,000 tons, reflecting positive production trends.</li><li>Future Outlook: The company is focused on improving cash flow and returns on capital through cost management, debt reduction, and optimizing inventory volumes. The Plant Nutrition segment is expected to benefit from long-term demand for potassium nutrients as arable land per capita decreases.</li></ul> Strategic Initiatives <ul><li>Debt Management: Compass Minerals issued $650 million in 8.00% Senior Notes due 2030 to refinance existing debt and improve liquidity. The company also completed the sale of Fortress fire retardant assets as part of a strategic refocus to enhance the profitability of its core Salt and Plant Nutrition businesses.</li><li>Capital Management: The company repaid all outstanding amounts under its senior secured credit facility and redeemed $350 million of its 6.75% Senior Notes due 2027. It also managed its capital allocation by not declaring dividends for the foreseeable future to prioritize cash flow generation and debt reduction. The company maintained a revolving credit facility with a capacity of $325 million and an AR Securitization Facility with a capacity of up to $100 million. As of September 30, 2025, the company had $845.8 million of outstanding indebtedness.</li><li>Future Outlook: Compass Minerals plans to continue focusing on debt reduction and cash flow generation. The company expects to meet its liquidity needs over the next 12 months through cash flow from operations and available borrowings under its revolving credit facility. It also plans to manage its capital allocation to support long-term strategic objectives and sustain its business operations. The company anticipates capital expenditures of approximately $90 million to $110 million for the fiscal year ending September 30, 2026.</li></ul> Challenges and Risks <ul><li>Operational Risks: The company identified material weaknesses in internal controls over financial reporting, which could lead to inaccuracies in financial statements and potential regulatory actions. Operational risks include high-risk activities in mining operations, which are subject to environmental hazards and natural disasters. Weather conditions significantly impact sales and production, particularly in the Salt segment, where demand is seasonal and dependent on winter weather.</li><li>Regulatory Risks: Compliance with environmental, health, and safety laws could lead to increased costs or operational disruptions. The company is also subject to financial assurance requirements and potential tax liabilities, which could impact profitability. International operations expose the company to currency exchange rate fluctuations and geopolitical risks.</li><li>Market Risks: The company is exposed to market risks, including fluctuations in energy prices, which affect production costs. Currency exchange rate volatility poses a risk to financial results, particularly with significant operations in Canada and the UK. The company uses hedging strategies to mitigate some of these risks but remains vulnerable to market changes.</li><li>Management Strategies: Management has focused on cost management, debt reduction, and capital expenditure optimization to improve financial performance. The company has reduced SG&amp;A expenses and capital expenditures significantly. However, challenges remain in managing inventory levels and responding to market conditions, particularly in the face of inflation and transportation cost increases.</li></ul>SEC Filing: COMPASS MINERALS INTERNATIONAL INC [ CMP ] - 10-K - Dec. 11, 2025</div></div>

Compass Minerals International Inc. released its annual 10-K report, highlighting a 11.3% sales increase to $1,243.9 million, despite a 2.2% decrease in gross profit. Operating income improved to $25.3 million from a loss of $(116.8) million. Net loss reduced to $(79.8) million. Strategic initiatives include debt management and capital allocation to enhance profitability. Challenges include operational, regulatory, and market risks. The company plans to focus on debt reduction, cash flow generation, and capital expenditures of $90-$110 million for fiscal year 2026.

COMPASS MINERALS INTERNATIONAL INC SEC 10-K Report