Though we are facing headwinds from market fluctuations, our commitment to improving operational efficiency remains unwavering.
— CEO
03Detailed Report
CHSCO
CHS Inc
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 27, 2026
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Executive Summary
CHS Inc (CHSCO) reported its Q1 2025 financial results, experiencing a significant revenue decline of 18.41% year-over-year to $9.29 billion, while net income fell sharply by 53.19% to $244.79 million. Despite these challenges, the company showed resilience in cash flow management, resulting in a net cash outflow from operating activities of approximately $293.98 million due to adjustments in working capital. Management alluded to ongoing operational pressures, primarily in the agricultural segment, but remained optimistic about the long-term growth prospects driven by strategic investments in their energy and nitrogen segments.
With a gross profit margin of 4.31% and an operating income margin of 1.48%, profitability was notably constrained. However, management emphasized cost control measures and strategic pricing adjustments as key focuses moving forward, suggesting a potential for improved margins in subsequent quarters as market conditions stabilize.
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: $9.29 billion (YoY -18.41%, QoQ +1.31%)
Gross Profit: $400.68 million (YoY -38.31%, QoQ -2.53%)
Operating Income: $137.83 million (YoY -65.25%, QoQ -0.57%)
Net Income: $244.79 million (YoY -53.19%, QoQ +118.92%)
Cash flow from operating activities: -$293.98 million
The decrease in revenue primarily results from lower commodity prices, intensified competition, and changes in consumer demand patterns. In contrast, the QoQ revenue growth reflects seasonal improvement in energy demand. Overall, while operating income decline indicates strained profitability, the drastic improvement in net income QoQ reflects effective management in controlling costs and adjusting to economic shifts.
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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