CHS net income falls to US$598M in FY2025 amid weaker Ag, energy results

USA – CHS Inc., the leading U.S. farmer-owned cooperative, posted a net income of US$597.9 million for the fiscal year ended August 31, 2025, down US$502 million from US$1.1 billion in fiscal 2024, as weaker results in its Agriculture and Energy units weighed on overall performance.

The company’s consolidated revenues declined 9.7% to US$35.5 billion, compared with US$39.3 billion a year earlier, largely due to lower global commodity prices, according to its annual financial report.

President and CEO Jay Debertin said the year was “shaped by unfavorable market conditions, including international trade pressures and tariffs,” yet CHS still achieved “strong volumes across its core businesses.”

He emphasized that the cooperative’s solid performance would enable it to return US$120 million in cash patronage and equity redemptions to its farmer-owners and member cooperatives in fiscal 2026.

Agricultural segment hit by lower crush margins

Earnings in the Agriculture segment fell by US$97 million to US$245.7 million, reflecting pressure from “unfavorable global market dynamics.”

Higher global supplies of soybean and canola meal and oil led to lower crush margins, weighing on profitability in grain and oilseeds.

However, favorable growing conditions supported strong sales volumes in crop protection and nutrient products, while CHS’s ag retail operations posted solid results backed by strategic investments and efficient execution.

CHS’s Nitrogen production unit was a bright spot, with pre-tax earnings rising to US$159.5 million, up US$8.3 million year on year.

The increase was attributed to continued strong performance from CF Nitrogen, the company’s joint venture with CF Industries, amid supportive market conditions for urea fertilizers.

Energy unit posts loss amid refining headwinds

In contrast, the Energy segment swung to a pretax loss of US$7 million, a US$436.1 million decline from the previous year. CHS said the segment’s results were affected by narrower discounts on heavy Canadian crude oil, as new export opportunities reduced U.S. refining margins.

Refining margins were further pressured by high domestic and global refined fuel supplies, while planned maintenance at the McPherson refinery in Kansas temporarily reduced the output of higher-margin products.

Partially offsetting these declines, CHS’s Corporate and Other segment delivered US$216.6 million in pre-tax earnings, up US$41.8 million, driven by strong performance from Ventura Foods, a joint venture known for its value-added food and oil products.

Looking ahead, Debertin reaffirmed CHS’s commitment to strengthening supply chains in grain, agronomy, and energy, emphasizing a continued focus on cost management, operational excellence, and strategic growth initiatives.

“CHS has a clear path forward. We’re committed to advocating for U.S. agriculture and delivering value to our owners despite market challenges” he said.

Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.