CHS Inc. posts US$75.8 million Q2 loss on declines in energy, Ag segments

USA – CHS Inc., a farmer-owned agribusiness cooperative in the US reported a net loss of US$75.8 million in the second quarter of fiscal year 2025, a sharp downturn from net income of US$170.3 million in the same quarter a year earlier.

According to the company, the setback was largely driven by significantly weaker earnings in its Energy and Ag segments. Revenues also fell 14% year-over-year, slipping from $9.1 billion to $7.8 billion in the latest quarter.

For the first six months of fiscal 2025, CHS reported net income of US$169 million and revenues of US$17.1 billion, down from US$693.2 million in net income and US$20.5 billion in revenues during the first half of fiscal 2024.

The Energy segment experienced the largest decline, posting a pretax loss of US$83.5 million, a US$135 million drop compared to the second quarter of fiscal 2024.

CHS attributed this performance to tightening refining margins amid changing market dynamics, increased U.S. refinery capacity utilization, and lower propane margins due to hedging-related impacts.

In the Ag segment, CHS recorded a pretax loss of US$45.6 million, a decrease of US$102.4 million from the prior year’s second quarter.

The downturn was driven by reduced grain and oilseed margins amid intense global competition and the timing impact of mark-to-market accounting adjustments. Additionally, global oversupply of canola and soybean meal and oil contributed to weaker oilseed crush margins, further weighing on Ag earnings.

Earnings in the Nitrogen segment also fell, with pretax income of US$20.3 million representing a US$16.7 million year-over-year decline.

CHS said the dip was mainly due to increased natural gas costs. Meanwhile, the Corporate and Other segment saw a pretax earnings drop of US$16.3 million to US$24 million, largely due to reduced returns from its equity investment in Ventura Foods, which faced challenging market conditions in the oil-based food products space.

Despite the financial setbacks, CHS leadership remains optimistic about the company’s operational strength and market positioning.

“CHS remains focused on operational excellence and enhancing efficiency as we navigate this time of softer commodity markets, policy uncertainty and volatility,” 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,” he added.

Looking ahead, CHS says it will continue investing in core capabilities and supporting member-owners through strategic supply chain and agronomic initiatives, even as the global commodity landscape remains challenging.

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