Compass Minerals International, Inc. Q2 FY2026 earnings call

• Retired remaining $150 million of 2027 senior unsecured notes earlier than anticipated.
• Pushed on operational improvements at Godrich and elsewhere. Salt and plant nutrition businesses had up revenues, operating margins, EBITDA. Company-wide debt down, SG&A down.
• Deploying improvement processes in salt business, focusing on key metrics like safety, utilization, etc.
• Completed new CBA with workforce at Godrich and other sites in process. Focus on building inventory and preparing for next de-icing bid season.
• Simplified portfolio with sale of Wynyard SOP operation, strengthening cash position and allowing plant nutrition to focus on Ogden facility.
• Added four new directors to board with relevant experience in industrial manufacturing, aligned with strategy.

Salt business: Revenue was $383 million in Q2 2026 compared to $433 million in prior year Q2. Tons sold were $4.1 million, down 19% vs prior year. Per ton operating earnings were $15.85, up 21% vs prior year Q2. Plant nutrition segment: Revenue was $67 million in Q2 2026 compared to $58 million in prior year Q2. Adjusted EBITDA was $17 million, up 202% year-over-year, with adjusted EBITDA margin improving to 25.2% from 9.6% a year ago.

• Updated full-year adjusted EBITDA guidance range to $212 million to $236 million with midpoint $224 million.
• Adjusted salt segment outlook: Midpoint now $233 million vs previous $241 million, reflecting factors like product mix and operational improvements.
• Plant nutrition adjusted EBITDA now $43 million to $47 million with midpoint $45 million, up from prior midpoint. Volumes up, pricing favorable, Ogden delivering strong cost performance.
• Net debt at end of March was $639 million, down $119 million vs prior year Q2. Leverage ratio 2.7 times on trailing 12-month basis compared to 4.6 times last year.

Remarks reflect financial and operational outlooks as of May 7, 2026, which entail assumptions and expectations involving risks and uncertainties that could cause actual results to differ materially. Discussion of these risks can be found in SEC filings located online at investors.compassminerals.com.

Q: Talk about what to expect from salt costs over next couple years before mill project at Goderich.

A: Don't generally guide on costs, but unit costs at mine should continue to decrease from current level as work on operational improvements continues.

Q: In 4-year guide for salt, raised volumes but lowered margins. Talk about puts and takes.

A: Reported cost per ton reflects geographic mix, production dynamics at facility level, product mix. This year, heavier winter proportion hit served markets with limited winter impact out west and volume in higher cost served markets.

Q: Any trends in bid season coming up in terms of volumes, bids, prices for rock salt bid season and channel inventories?

A: Early days in bid season, market expected to be constructive, primary focus on maximizing value on every ton of production across facilities, better visibility at Q3 earnings call.

Q: Highlight work to do in addressing salt mine production efficiency.

A: Things like improving maintenance practices, elimination of waste, improvements in mine planning efforts. Handful of teams underway, more to come.

Q: Does current CBA at Godrich include greater flexibility on deploying labor and equipment?

A: Yes, mutually beneficial agreement, incented to improve performance.

Q: How much of improvement in Ogden SOP business is related to accessing more brine-based tons vs supplemental purchases at KCL?

A: A lot of improvement is managing ponds correctly, building up salt at right grade, getting harvest to production ratio right, putting sufficient inventory in front of wet plants. There's an upcoming capital project to further improve.

Q: Cash tax liability for fiscal 2026?

A: Complicated, within guidance, details to be updated in Q3 and Q4.

Q: Thinking on bid season heading in, industry still in scarcity mode or normalized?

A: Inventories tight in northern system, higher in west. Objective to maximize value, few data points positive for bid season, more detail at Q3 earnings call.