We continue to face significant volatility in commodity prices, which has severely impacted our margins this quarter.
— CEO of CHS Inc
03Detailed Report
CHSCM
CHS Inc
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 28, 2026
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Executive Summary
In Q2 2025, CHS Inc reported a sharp decline in both revenues and net income, reflecting ongoing pressures in the agricultural sector. The company's revenue totaled $7.80 billion, representing a 14.21% decrease year-over-year and a staggering 16.12% drop sequentially. The gross profit margin fell to 0.00979, indicative of tight margins driven by high costs and competitive pressures.
Management indicated that the results were impacted by volatile commodity prices and operational challenges within their energy and agricultural segments. This performance raises concerns about cash flow sustainability, with net cash provided by operating activities registering at -$1.04 billion. Investors should closely monitor CHS's steps towards improving operational efficiencies and its ability to navigate the challenging market environment.
### Profitability Analysis
- Gross Profit: $76.32 million
- Gross Profit Margin: 0.00979
- Operating Income: -$171.95 million
- Net Income: -$75.75 million
- Net Income Margin: -0.00972
### Cash Flow and Balance Sheet
- Net Cash Provided by Operating Activities: -$1.04 billion
- Total Assets: $20.10 billion
- Total Liabilities: $8.61 billion
- Shareholder Equity: $11.49 billion
### Key Ratios
- Current Ratio: 1.43
- Debt to Equity Ratio: 0.37
- Return on Assets: -0.00377
The financial metrics highlight a struggling profitability position with a net income reduction and increased operating losses, exacerbated by the cost pressures in the market.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
7.80B
-14.21%
-16.12%
Gross Profit
76.32M
-77.47%
-80.95%
Operating Income
-171.95M
-515.41%
-224.76%
Net Income
-75.75M
-144.48%
-130.95%
Key Financial Ratios
Gross Profit Margin
Weak
0.98%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Weak
-0.02%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-0.01%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.00%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
-0.01%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.43
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Moderate
0.33
Debt-to-equity indicates balanced capital structure with manageable debt
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