"We are doubling our efforts to streamline operations and improve the utilization of our assets."
— CFO
03Detailed Report
CHSCO
CHS Inc
Period
Q2 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 27, 2026
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Executive Summary
CHS Inc (CHSCO) reported a disappointing Q2 2025, with total revenue of $7.80 billion, reflecting a significant year-over-year (YoY) decline of 14.21% from $9.13 billion in Q2 2024, and a quarter-over-quarter (QoQ) drop of 16.12% from their previous quarter. The company's operational struggles were further exacerbated by an operating loss of $171.95 million, representing an alarming year-over-year decrease in operating income of 515.41%. Management attributed these declines to increased competition in the agricultural sector, rising input costs, and adverse market conditions impacting their operational efficiency and profitability.
Despite these results, management is actively pursuing strategic initiatives to bolster efficiency and asset utilization across their segments. Investors should closely monitor these efforts, as they may provide insight into the company's future turnaround potential. However, the immediate outlook remains cautious as the company battles with cash flow constraints, evidenced by a negative operating cash flow of $1.04 billion for the quarter, underlining the urgency for operational improvements.
Key Performance Indicators
Revenue
Decreasing
7.80B
QoQ: -16.12% | YoY: -14.21%
Gross Profit
Decreasing
76.32M
0.98% margin
QoQ: -80.95% | YoY: -77.47%
Operating Income
Decreasing
-171.95M
QoQ: -224.76% | YoY: -515.41%
Net Income
Decreasing
-75.75M
QoQ: -130.95% | YoY: -144.48%
Revenue Trend
Margin Analysis
Financial Highlights
### Key Financial Metrics and Trends
1. Revenue: $7.80 billion, down 14.21% YoY and 16.12% QoQ.
2. Gross Profit: Only $76.32 million, down a staggering 77.47% YoY, indicating severe cost pressures.
3. Operating Income: Operating loss of $171.95 million, a decline of 515.41% YoY, reflecting ongoing operational challenges.
4. Net Income: Net loss of $75.75 million, a decline of 144.48% YoY, further underscoring the company’s deteriorating profitability.
5. Current Ratio: 1.43, indicating adequate short-term financial health.
6. Debt-to-Equity Ratio: 0.328, illustrating a manageable leverage position.
Management discussed the significance of focusing on recovery and stabilizing cash flows while addressing rising costs as a primary concern impacting the bottom line. Their move towards a more agile operational structure is expected to be key in navigating the current financial landscape effectively.
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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