"We are committed to maximizing our efficiencies; our enhanced operational framework should navigate us through these turbulent times effectively," said CEO Jay D. Huber.
— Jay D. Huber
03Detailed Report
CHSCL
CHS Inc
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 28, 2026
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Executive Summary
In Q1 2025, CHS Inc (CHSCL) reported revenues of $9.29 billion, reflecting a year-over-year decline of 18.41%, signaling significant challenges in market demand and pricing in the agricultural sector. Despite the dip in revenue, net income improved by 118.92% from the previous quarter, reaching $244.79 million, showcasing management's effective cost control measures and operational resilience. The gross profit margin remained thin at 4.31%, underscoring the need for enhanced pricing strategies and cost management to further improve profitability. Overall, the performance illustrates CHS Inc's efforts to stabilize amid fluctuating market conditions characterized by heightened competition and varying commodity prices.
Key Performance Indicators
Revenue
Decreasing
9.29B
QoQ: 1.31% | YoY: -18.41%
Gross Profit
Decreasing
400.68M
4.31% margin
QoQ: -2.53% | YoY: -38.31%
Operating Income
Decreasing
137.83M
QoQ: -0.57% | YoY: -65.25%
Net Income
Decreasing
244.79M
QoQ: 118.92% | YoY: -53.19%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue Performance: CHS Inc's revenue decreased by 18.41% YoY to $9.29 billion due to softer demand and lower pricing in agricultural products. However, revenue showed a slight recover in QoQ comparison with a growth rate of 1.31% over the previous quarter.
Profitability: The company reported a gross profit of $400.68 million, down significantly by 38.31% YoY and decreased by 2.53% QoQ. The operating income fell to $137.83 million, reflecting a 65.25% decline YoY, largely attributed to increased operational costs and lower margins. Net income, however, saw a remarkable increase of 118.92% QoQ, contributing to improved annualized financial metrics ahead of market expectations.
Balance Sheet Health: As of Q1 2025, the balance sheet indicates a total asset composition of $19.58 billion with total liabilities at $7.89 billion, leading to a robust equity position of $11.68 billion. Current and quick ratios suggest adequate liquidity, with proportions of 1.54 and 0.90 respectively, supporting short-term financial obligations.
Cash Flow Dynamics: The cash flow from operating activities was recorded at -$293.98 million, a sharp decline driven by inventory build-up and reduced cash conversion cycles. However, cash reserves remain solid with approximately $534.62 million at the end of the quarter, paving a way for potential investment and future growth initiatives.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
9.29B
-18.41%
1.31%
Gross Profit
400.68M
-38.31%
-2.53%
Operating Income
137.83M
-65.25%
-0.57%
Net Income
244.79M
-53.19%
118.92%
Key Financial Ratios
Gross Profit Margin
Weak
4.31%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
1.48%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
2.63%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
1.25%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.09%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.54
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
0.21
Debt-to-equity shows conservative leverage and low financial risk
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