CHS Reports First Quarter Fiscal Year 2025 Earnings 
 
 
   $244.8 Million in First Quarter Net Income Reflects Market Conditions 
 
 
ST. PAUL, Minn.--(BUSINESS WIRE)--January 08, 2025-- 
 
   CHS Inc., the nation's leading agribusiness cooperative, today released 
results for its first quarter of fiscal year 2025. The company reported 
net income of $244.8 million and revenues of $9.3 billion for the 
quarter that ended Nov. 30, 2024, compared to net income of $522.9 
million and revenues of $11.4 billion in the first quarter of fiscal 
year 2024. 
 
 
   Key highlights for first quarter fiscal year 2025 financial results: 
 
   -- 

Decreased selling prices for grains, oilseeds and refined fuels led to

      lower revenues. 
 
 
   -- 

Despite strong sales volumes, Energy segment earnings declined due to

      evolving market conditions negatively impacting refining margins. 
 
 
   -- 

Ag segment earnings were moderately lower due to softening oilseed

      crush margins compared to historically high margins in the first quarter 
      of the prior fiscal year. 
 
 
   -- 

Equity method investments continued to perform well, with the CF

      Nitrogen investment being the largest contributor. 
 
 
 
   "The energy industry is experiencing compressed refinery margins at the 
same time that U.S. agriculture is seeing a weaker farm economy with a 
globally competitive marketplace for grains and oilseeds," said Jay 
Debertin, president and CEO of CHS Inc. "Just as we have for nearly 100 
years, CHS is leveraging our efficient global supply chain, strong 
relationships and expertise to navigate these changing markets, while 
strategically investing to meet our owners' future needs." 
 
 
   Energy 
 
 
   Pretax earnings of $19.8 million for the first quarter of fiscal year 
2025 represent a $247.1 million decrease versus the prior year period 
and reflect: 
 
   -- 

Lower refined fuel margins due to less favorable market conditions,

      including higher U.S. refinery capacity utilization and global 
      production 
 
 
   -- 

The positive impact of lower costs for renewable fuel credits, which

      partially offset lower income from refined fuels 
 
 
 
   Ag 
 
 
   Pretax earnings of $166.7 million represent a $3.1 million decrease 
versus the prior year period and reflect: 
 
   -- 

Decreased margins in oilseed processing due to a larger supply of

      canola and soybean meal and oil across global markets, somewhat offset by 
      the timing impact of market adjustments 
 
 
   -- 

Market-driven price decreases in wholesale and retail agronomy

 
 
 
   Nitrogen Production 
 
 
   Decreased market prices for urea, partially offset by lower natural gas 
costs, contributed to pretax earnings of $25.2 million -- an $11.2 
million decrease versus the prior year period. 
 
 
   Corporate and Other 
 
 
   Pretax earnings of $47.2 million represent a $3.3 million increase 
versus the prior year period, primarily reflecting improved equity 
method investment income. 
 
 
                             CHS Inc. Earnings* 
                                 by Segment 
                              (in thousands $) 
 
                                         Three Months Ended November 30, 
                                     --------------------------------------- 
                                             2024               2023 
                                         -------------      ------------- 
Energy                                $         19,763   $        266,835 
Ag                                             166,652            169,720 
Nitrogen Production                             25,241             36,459 
Corporate and Other                             47,181             43,832 
                                         -------------      ------------- 
   Income before income taxes                  258,837            516,846 
Income tax expense (benefit)                    13,244             (6,522) 
                                         -------------      ------------- 
   Net income                                  245,593            523,368 
Net income attributable to 
 noncontrolling interests                          803                445 
                                         -------------      ------------- 
   Net income attributable to CHS 
    Inc.                              $        244,790   $        522,923 
                                         =============      ============= 
 
*Earnings is defined as income 
 (loss) before income taxes. 
 
 
   CHS Inc. (www.chsinc.com) creates connections to empower agriculture. As 
a leading global agribusiness and the largest farmer-owned cooperative 
in the United States, CHS serves customers in 65 countries and employs 
approximately 10,000 people worldwide. We provide critical crop inputs, 
market access and risk management services that help farmers feed the 
world. Our diversified agronomy, grains, foods and energy businesses 
recorded revenues of approximately $39 billion in fiscal year 2024. CHS 
is committed to reducing our impact on the planet, finding and 
developing new solutions in agriculture and energy, and investing in 
ways to build a better future for our owners, customers, employees and 
communities. 
 
 
   This document and other CHS Inc. publicly available documents contain, 
and CHS officers, directors and representatives may from time to time 
make "forward-looking statements" within the meaning of the safe harbor 
provisions of the U.S. Private Securities Litigation Reform Act of 1995. 
Forward-looking statements can be identified by words such as 
"anticipate," "intend," "plan," "goal," "seek," "believe," "project," 
"estimate," "expect," "strategy," "future," "likely," "may," "should," 
"will" and similar references to future periods. Forward-looking 
statements are neither historical facts nor assurances of future 
performance. Instead, they are based only on CHS current beliefs, 
expectations and assumptions regarding the future of CHS businesses, 
financial condition and results of operations, future plans and 
strategies, projections, anticipated events and trends, the economy and 
other future conditions. Because forward-looking statements relate to 
the future, they are subject to inherent uncertainties, risks and 
changes in circumstances that are difficult to predict and many of which 
are outside of CHS control. CHS actual results and financial condition 
may differ materially from those indicated in the forward-looking 
statements. Therefore, you should not place undue reliance on any of 
these forward-looking statements. Important factors that could cause our 
actual results and financial condition to differ materially from those 
indicated in the forward-looking statements are discussed or identified 
in CHS filings made with the U.S. Securities and Exchange Commission, 
including in the "Risk Factors" discussion in Item 1A of CHS Annual 
Report on Form 10-K for the fiscal year ended August 31, 2024. These 
factors may include changes in commodity prices; political, economic, 
legal and other risks of doing business globally; ongoing wars and 
global conflicts; global and regional factors impacting demand for CHS 
products; the impact of inflation; the impact of competitive business 
markets; any loss of members who choose to do business with other 
companies instead of CHS; the impact of market acceptance of 
alternatives to refined petroleum products; consolidation among CHS 
suppliers and customers; nonperformance or nonpayment by contractual 
counterparties; deterioration in credit quality of third parties who owe 
CHS money; the effectiveness of CHS risk management strategies; actual 
or perceived quality, safety or health risks associated with CHS 
products; business interruptions, casualty losses and supply chain 
issues; the impact of epidemics, pandemics, outbreaks of disease and 
other adverse public health developments; the impact of workforce 
factors; technological improvements and sustainability initiatives that 
decrease demand for CHS products; security breaches or other disruptions 
in CHS information technology systems or assets; increased scrutiny and 
changing expectations with respect to environmental, social and 
governance practices; failures or delays in achieving strategies or 
expectations related to climate change or other environmental matters; 
CHS ability to complete, integrate and benefit from acquisitions, 
strategic alliances, joint ventures, divestitures and other nonordinary 
course-of-business events; the impact of government policies, mandates, 
regulations and trade agreements; changes in federal income tax laws or 
CHS tax status; the impact and costs of compliance or noncompliance with 
applicable laws and regulations; the costs of compliance with 
environmental and energy laws and regulations; the impact of 
environmental liabilities and litigation; the impact of seasonality; the 
impairment of long-lived assets; CHS funding needs and financing 
sources; financial institutions' and other capital sources' policies 
concerning energy-related businesses; limits on CHS ability to access 
equity capital due to its cooperative structure; and other factors 
affecting CHS businesses generally. Any forward-looking statements made 
by CHS in this document are based only on information currently 
available to CHS and speak only as of the date on which the statement is 
made. CHS undertakes no obligation to update any forward-looking 
statement, whether written or oral, that may be made from time to time, 
whether as a result of new information, future developments or otherwise 
except as required by applicable law. 
 
 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250108805120/en/

 
 
    CONTACT:    Krysta Larson 
 
   (651) 355-4587 
 
 
   Krysta.Larson@chsinc.com 
 
 
 
 
 
 

(END) Dow Jones Newswires

January 08, 2025 11:20 ET (16:20 GMT)