CHS posts 6% rise in first-quarter net income on stronger energy segment results
While Energy delivered strong gains, CHS said its grains segment remained under pressure.
USA – CHS, Inc. reported a 6% year-on-year increase in net income for the first quarter of fiscal year 2026, supported by a strong performance in its Energy segment, even as its Grains business continued to face pressure from global trade dynamics and weaker commodity margins.
The US-based agricultural cooperative released its earnings results on Jan. 7, posting net income of US$260.5 million for the quarter ended Nov. 30, 2025, compared with US$244.8 million in the same period a year earlier.
Quarterly revenues declined to US$8.9 billion, down from US$9.3 billion in the first quarter of fiscal year 2025.
Beginning in fiscal year 2026, CHS revised its financial reporting structure to align with a new end-to-end product-line operating model. The cooperative said the change provides greater visibility across its supply chains and operating segments.
While Energy delivered strong gains, CHS said its grains segment remained under pressure. The company cited global trade factors, challenged US soybean markets and lower margins for certain commodities as ongoing headwinds.
“CHS was well positioned to serve our owners during a strong harvest, contributing to higher performance in our energy segment,” said Jay Debertin, president and chief executive officer of CHS.
However, the ag market overall continues to be challenged both by global market dynamics and a tighter spending environment for farmers. By prioritizing efficiency, diversified supply chains and operational excellence, we continue to be focused on bringing value to our owners.
“At the same time, our new operating model, which is now reflected in our financial reporting, allows us more visibility into our end-to-end supply chain, positioning CHS for long-term growth,” the company said.
The Grains segment, which includes corn, oilseeds, wheat and specialty grains, posted pretax earnings of US$36.2 million, a decline of US$130.8 million compared with the prior-year period.
CHS attributed the decrease to weaker soy crush and spring wheat margins, lower soybean export volumes and the timing impact of mark-to-market adjustments.
Despite the overall decline, the cooperative reported increased corn export volumes, higher winter and white wheat volumes, improved export margins in some markets, and strong processing margins for ethanol and canola.
In contrast, the Energy segment, which covers refined fuels, propane and lubricants, delivered pretax earnings of US$152.3 million, an increase of US$136.6 million from the same quarter last year.
CHS said the performance was driven by higher refining margins and record premium diesel sales volumes.
The Agronomy unit, including crop nutrients, crop protection and CF Nitrogen, generated pretax earnings of US$36.8 million, up US$8.7 million year on year.
CHS pointed to strong results from its CF Nitrogen equity investment, supported by favorable market conditions for urea and UAN. However, tighter purchasing decisions by US farmers and lower margins in crop nutrients and crop protection limited overall growth in the segment.
The Corporate and Services segment, which includes CHS Capital, CHS Hedging, transportation operations, and its Ardent Mills and Ventura Foods joint ventures, posted pretax earnings of US$46.8 million, down US$1.2 million from the prior-year period.
For fiscal year 2025, CHS reported net income of US$597.9 million, a decline of US$502 million from US$1.1 billion in fiscal year 2024. The 46% drop included a 28% decrease in Grains segment pretax earnings, reflecting continued volatility across global agricultural markets.
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