cmp-20251231

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________________ to __________________________

Commission File Number 001-31921

Compass Minerals International, Inc.

(Exact name of registrant as specified in its charter)


Delaware			36-3972986
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification Number)

9900 West 109th Street

Suite 100

Overland Park, KS 66210

(913) 344-9200

(Address of principal executive offices, zip code and telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common stock, $0.01 par value

CMP

The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such

reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

☑

☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that

the registrant was required to submit such files).

Yes

☑

☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☐

Accelerated filer

☑

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

☐

☑

The number of shares outstanding of the registrant’s common stock, $0.01 par value per share, as of January 30, 2026, was 41,863,273 shares.


						COMPASS MINERALS INTERNATIONAL, INC.

TABLE OF CONTENTS


	PART I. FINANCIAL INFORMATION	Page

Item 1.	Financial Statements

	C ondensed C onsolidated Balance Sheets as of December 3 1 , 2025 (unaudited) and September 30, 202 5	2

	C ondensed C onsolidated Statements of Operations for the three months ended December 3 1 , 2025 and December 3 1 , 2024 (unaudited)	3

	C ondensed C onsolidated Statements of Comprehensive Income (Loss) for the three months ended December 3 1 , 2025 and December 3 1 , 2024 (unaudited)	4

	C ondensed C onsolidated Statements of Stockholders’ Equity for the three months ended December 3 1 , 2025 and December 3 1 , 2024 (unaudited)	5

	C ondensed C onsolidated Statements of Cash Flows for the three months ended December 3 1 , 2025 and December 3 1 , 2024 (unaudited)	6

	Notes to Condensed Consolidated Financial Statements (unaudited)	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	30

Item 4.	Controls and Procedures	30

	PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	33

Item 1A.	Risk Factors	33

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33

Item 3.	Defaults Upon Senior Securities	33

Item 4.	Mine Safety Disclosures	33

Item 5.	Other Information	33

Item 6.	Exhibits	34

SIGNATURES		35


Table of Contents						COMPASS MINERALS INTERNATIONAL, INC.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except share data)


	(Unaudited)
	December 31, 2025		September 30, 2025
ASSETS
Current assets:
Cash and cash equivalents	$	46.7	$	59.7
Receivables, less allowance for credit losses and rebates of $3.4 and $2.2 at December 31, 2025 and September 30, 2025, respectively	278.6		179.6
Inventories, less allowance of $6.6 and $7.7 at December 31, 2025 and September 30, 2025, respectively	258.4		312.0

Other current assets	48.5		20.9
Total current assets	632.2		572.2
Property, plant and equipment, net	766.2		770.1
Intangible assets, net	23.7		23.8
Goodwill	6.0		6.0

Other noncurrent assets	98.6		147.3
Total assets	$	1,526.7	$	1,519.4

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	100.6	$	96.0
Accrued salaries and wages	16.6		26.4

Current portion of finance lease liabilities	6.9		7.9
Income taxes payable	—		5.6
Accrued interest	1.6		19.0

Accrued expenses and other current liabilities	118.0		110.7
Total current liabilities	243.7		265.6
Long-term debt, net of current portion	883.6		832.2
Finance lease liabilities, net of current portion	6.4		7.6
Deferred income taxes, net	59.1		53.9
Other noncurrent liabilities	73.4		126.0
Commitments and contingencies (Note 7)
Stockholders’ equity:
Common stock: $0.01 par value, 200,000,000 authorized shares; 42,197,964 issued shares at December 31, 2025 and September 30, 2025	0.4		0.4
Additional paid-in capital	431.9		430.0
Treasury stock, at cost — 371,828 shares at December 31, 2025 and 497,420 shares at September 30, 2025	(11.6)		(10.8)
Accumulated deficit	(59.0)		(77.6)
Accumulated other comprehensive loss	(101.2)		(107.9)
Total stockholders’ equity	260.5		234.1
Total liabilities and stockholders’ equity	$	1,526.7	$	1,519.4

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.


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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in millions, except share and per share data)


	Three Months Ended December 31,
	2025		2024
Sales	$	396.1	$	307.2
Shipping and handling cost	112.1		80.6
Product cost	220.8		192.3
Gross profit	63.2		34.3
Selling, general and administrative expenses	26.6		33.3

Other operating expense	—		0.5
Operating income	36.6		0.5

Other expense (income):
Interest income	(0.3)		(0.4)
Interest expense	18.1		16.9
Loss (gain) on foreign exchange	2.1		(5.2)


Other expense, net	0.3		3.1
Net income (loss) before income taxes	16.4		(13.9)
Income tax (benefit) expense	(2.2)		9.7
Net income (loss)	$	18.6	$	(23.6)





Basic net income (loss) per common share	$	0.43	$	(0.57)



Diluted net income (loss) per common share	$	0.43	$	(0.57)

Weighted-average common shares outstanding (in thousands):
Basic	42,083		41,441
Diluted	42,267		41,441

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.


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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in millions)


	Three Months Ended December 31,
	2025		2024
Net income (loss)	$	18.6	$	(23.6)
Other comprehensive income (loss):
Unrealized gain from change in pension obligations, net of tax of $(0.1) for both the three months ended December 31, 2025 and December 31, 2024	0.2		0.2
Unrealized loss from change in other postretirement benefits, net of tax of $0.0 for both the three months ended December 31, 2025 and December 31, 2024	—		(0.1)
Unrealized loss on cash flow hedges, net of tax of $0.0 for both the three months ended December 31, 2025 and December 31, 2024	(0.5)		(0.3)
Unrealized foreign currency translation adjustments	7.0		(33.3)
Other comprehensive income (loss)	6.7		(33.5)
Total comprehensive income (loss)	$	25.3	$	(57.1)

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.


Table of Contents						COMPASS MINERALS INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited, in millions)



	Common Stock		Additional Paid-In Capital		Treasury Stock		Retained Earnings (Loss)		Accumulated Other Comprehensive Loss		Total
Balance, September 30, 2025	$	0.4	$	430.0	$	(10.8)	$	(77.6)	$	(107.9)	$	234.1
Total comprehensive income	—		—		—		18.6		6.7		25.3

Shares issued for stock units, net of shares withheld for taxes	—		(0.4)		(0.8)		—		—		(1.2)

Stock-based compensation	—		2.3		—		—		—		2.3
Balance, December 31, 2025	$	0.4	$	431.9	$	(11.6)	$	(59.0)	$	(101.2)	$	260.5



	Common Stock		Additional Paid-In Capital		Treasury Stock		Retained Earnings (Loss)		Accumulated Other Comprehensive Loss		Total
Balance, September 30, 2024	$	0.4	$	420.6	$	(10.2)	$	2.2	$	(96.4)	$	316.6
Total comprehensive loss	—		—		—		(23.6)		(33.5)		(57.1)

Shares issued for stock units, net of shares withheld for taxes	—		(0.2)		(0.2)		—		—		(0.4)

Stock-based compensation	—		3.9		—		—		—		3.9
Balance, December 31, 2024	$	0.4	$	424.3	$	(10.4)	$	(21.4)	$	(129.9)	$	263.0

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.


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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in millions)


	Three Months Ended December 31,
	2025		2024
Cash flows from operating activities:
Net income (loss)	$	18.6	$	(23.6)
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities:
Depreciation, depletion and amortization	26.4		26.8
Amortization of deferred financing costs	1.0		0.8

Non-cash portion of stock-based compensation	2.3		3.9
Deferred income taxes	4.5		2.7
Unrealized foreign exchange loss (gain)	2.1		(5.7)





Other, net	1.7		(0.9)
Changes in operating assets and liabilities:
Receivables	(98.8)		(61.3)
Inventories	51.7		39.1
Other assets	21.6		(2.0)
Accounts payable and accrued expenses and other current liabilities	(13.6)		9.1
Other liabilities	(54.5)		7.0
Net cash used in operating activities	(37.0)		(4.1)
Cash flows from investing activities:
Capital expenditures	(22.8)		(21.8)



Other, net	(0.5)		(0.4)
Net cash used in investing activities	(23.3)		(22.2)
Cash flows from financing activities:
Borrowings under revolving credit facility	47.0		140.3
Repayments under revolving credit facility	(37.0)		(100.8)
Proceeds from issuance of long-term debt	42.8		19.6
Principal payments on long-term debt	(2.1)		(1.6)







Payment of deferred financing costs	—		(2.4)

Shares withheld to satisfy employee tax obligations	(1.2)		(0.4)
Other, net	(2.4)		(1.6)
Net cash provided by financing activities	47.1		53.1
Effect of exchange rate changes on cash and cash equivalents	0.2		(1.2)
Net change in cash and cash equivalents	(13.0)		25.6
Cash and cash equivalents, beginning of the year	59.7		20.2
Cash and cash equivalents, end of period	$	46.7	$	45.8


Supplemental cash flow information:
Interest paid, net of amounts capitalized	$	34.4	$	23.4
Income taxes paid, net of refunds	$	28.7	$	8.0
Non-cash activities:


Right-of-use assets obtained in exchange for new operating lease liabilities	$	1.9	$	6.8
Right-of use assets obtained in exchange for new finance lease liabilities	$	—	$	6.0

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.


Table of Contents						COMPASS MINERALS INTERNATIONAL, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. ACCOUNTING POLICIES AND BASIS OF PRESENTATION

Compass Minerals International, Inc. (“CMI”), through its subsidiaries (collectively, the “Company”), is a leading global provider of essential minerals focused on safely delivering where and when it matters to help solve nature’s challenges for customers and communities. The Company’s salt products help keep roadways safe during winter weather and are used in numerous other consumer, industrial, chemical and agricultural applications. Its plant nutrition business is the leading North American producer of sulfate of potash (“SOP”), which is used in the production of specialty fertilizers for high-value crops and turf and helps improve the quality and yield of crops, while supporting sustainable agriculture. The Company’s principal products are salt, consisting of sodium chloride and magnesium chloride, and SOP. The Company’s production sites are located in the United States (“U.S.”), Canada and the United Kingdom (“U.K.”). The Company also provides records management services in the U.K. Except where otherwise noted, references to North America include only the continental U.S. and Canada, and references to the U.K. include only England, Scotland and Wales. References to “Compass Minerals,” “our,” “us” and “we” refer to CMI and its consolidated subsidiaries.

CMI is a holding company with no significant operations other than those of its wholly-owned subsidiaries. The consolidated financial statements include the accounts of CMI and its wholly-owned domestic and foreign subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.

The accompanying condensed consolidated balance sheet as of September 30, 2025, which was derived from audited financial statements, and the unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. As a result, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2025 (“2025-K”). In the opinion of management, these interim financial statements reflect all adjustments, consisting of normal recurring adjustments considered necessary for a fair presentation of the Company’s financial position and results of operations.

Accounting Pronouncements Issued Not Yet Adopted

Income Tax Disclosures. In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which updates income tax disclosures by requiring consistent categories and additional disaggregation of information in the rate reconciliation and income taxes paid by jurisdiction. The ASU is effective for fiscal years beginning after December 15, 2024, and is effective for the Company beginning in the annual report for the fiscal year ended September 30, 2026. Early adoption is permitted. The amendments should be applied prospectively; however, retrospective application is permitted. Management is currently evaluating this ASU to determine its impact on the Company’s disclosures.

Disaggregation of Income Statement Expenses. In November 2024, the FASB issued amended guidance related to disclosure of disaggregated expenses (“ASU 2024-03”). This amendment requires public business entities to provide detailed disclosures in the notes to financial statements disaggregating specific expense categories, including employee compensation, depreciation, and intangible asset amortization, as well as certain other disclosures to provide enhanced transparency into the nature and function of expenses. This guidance is effective for annual periods beginning in the Company’s annual report for the fiscal year ended September 30, 2028 and interim periods following annual adoption, with early adoption permitted. This guidance will be applied on a prospective basis with retrospective application permitted. Management is currently evaluating ASU 2024-03 to determine its impact on the Company’s disclosures.

Interim Reporting. In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (“ASU 2025-11”), to improve the guidance for interim reporting and clarify when that guidance is applicable. This ASU provides a comprehensive list of required interim disclosures and also requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. For the Company, the guidance becomes effective in the first interim period of the fiscal year ended September 30, 2029. Early adoption is permitted. Management is currently evaluating ASU 2025-11 to determine its impact on the Company’s disclosures.


Table of Contents						COMPASS MINERALS INTERNATIONAL, INC.

2. REVENUES

Disaggregation of Revenue

Revenue is disaggregated in the following table by timing of revenue recognition (in millions):


	Three Months Ended December 31,
	2025		2024
Timing of revenue recognition:
Products and services transferred at a point in time	$	393.3	$	304.6
Products and services transferred over time(a)	2.8		2.6
Total revenues	$	396.1	$	307.2

(a) Amounts include records management business utilizing excavated areas of its Winsford salt mine with one other location in London, England.

For disaggregation of sales by segment and type, see Note 8. Operating Segments.

Receivables

The following table provides the balances of receivables (in millions):


	December 31, 2025		September 30, 2025
Current Assets:
Receivables related to contracts with customers	$	226.4	$	127.3
Miscellaneous receivables(a)	52.2		52.3
Total receivables	$	278.6	$	179.6

(a)Refer to Note 7. Commitments and Contingencies for additional information.

Deferred Revenue

Deferred revenue represents collections under non-cancellable contracts before the related product or service is transferred to the customer. The portion of deferred revenue that is anticipated to be recognized as revenue during the succeeding twelve-month period is recorded in accrued expenses and other current liabilities on the Consolidated Balance Sheets. Deferred revenue included in Accrued expenses and other current liabilities as of both December 31, 2025 and September 30, 2025 was approximately $1.6 million. Of the total deferred revenues in the Condensed Consolidated Balance Sheet as of September 30, 2025 that were reclassified to revenue as the result of performance obligations being satisfied during the three months ended December 31, 2025 was de minimis.

3. INVENTORIES

Inventories consist of the following (in millions):


	December 31, 2025		September 30, 2025
Finished goods	$	162.5	$	219.1
Work in process	5.9		5.9
Raw materials and supplies(a)	90.0		87.0
Total inventories	$	258.4	$	312.0

(a)Excludes certain raw materials and supplies of $33.2 million and $33.0 million as of December 31, 2025 and September 30, 2025, respectively, that are not expected to be consumed within the next twelve months, included in Other noncurrent assets in the Condensed Consolidated Balance Sheets.


Table of Contents						COMPASS MINERALS INTERNATIONAL, INC.

4. PROPERTY, PLANT AND EQUIPMENT, NET

Property, plant and equipment, net, consists of the following (in millions):


	December 31, 2025		September 30, 2025
Land, buildings and structures, and leasehold improvements	$	559.1	$	554.1
Machinery and equipment	1,171.9		1,154.9
Office furniture and equipment

SEC Form 10-Q filed by Compass Minerals Intl Inc