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OVERLAND PARK, Kan. - Compass Minerals (NYSE:CMP) reported better-than-expected revenue for its fiscal 2025 third quarter, though earnings fell short of analyst expectations. The essential minerals provider saw shares rise 1% following the announcement.
The company posted a quarterly adjusted loss of -$0.39 per share, missing analyst estimates of -$0.01, while revenue reached $214.6 million, exceeding the consensus estimate of $207.61 million. Revenue increased 5.8% compared to the same quarter last year, driven by higher sales volumes in both its Salt and Plant Nutrition segments.
"Compass Minerals had a strong third quarter that saw year-over-year improvement on a number of performance measures," said Edward C. Dowling Jr., president and CEO. "Our ramp up of highway deicing production is underway as we prepare for the coming deicing season. North American bid season is going well and we are seeing improvements in pricing and commitment sizes compared to last year."
Total (EPA:TTEF) company adjusted EBITDA rose 25% YoY to $41 million. The Salt business, which accounts for the majority of revenue, saw a 4% increase in sales volumes and a 10% rise in adjusted EBITDA to $45.8 million. Plant Nutrition sales volumes jumped 21% from the prior year, helping the segment swing to an operating profit of $5.2 million from a loss of $1.4 million a year earlier.
The company has refined its fiscal 2025 outlook, projecting total salt sales volumes between 10.7 million and 11 million tons, with expected revenue of $1 billion to $1.04 billion. For the upcoming North American highway deicing season, Compass expects average contract selling prices to be approximately 2-4% higher than fiscal 2025 prices, with committed bid volumes up 3-5%.
Compass Minerals also strengthened its financial position during the quarter, reducing net debt and enhancing flexibility through refinancing activities, though it recognized a $7.6 million loss from debt extinguishment.
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