Decreased selling prices for grains, oilseeds and refined fuels led to lower revenues.
January 13, 2025
CHS Inc. released results for its first quarter of fiscal year 2025. The agribusiness cooperative reported net income of $244.8 million and revenues of $9.3 billion for the quarter 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 the fiscal 2025 first-quarter 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 chief executive officer 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 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 is a leading global agribusiness and the largest farmer-owned cooperative in the U.S., serving customers in 65 countries. CHS provides critical crop inputs, market access and risk management services that help farmers feed the world.
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