Executive Summary
In Q2 2025, CHS Inc (CHSCL) encountered substantial challenges, reflected in a significant revenue decline of 14.21% year-over-year and a concerning gross profit margin of only 0.00979. The company reported a net loss of $75.8 million, further emphasizing operational struggles primarily attributed to increased input costs and decreased sales volumes amidst a competitive landscape. The overall financial picture raises concerns for investors underlining the pressing need for strategic adjustments.
Key Performance Indicators
QoQ: -16.12% | YoY:-14.21%
QoQ: -80.95% | YoY:-77.47%
QoQ: -224.76% | YoY:-515.41%
QoQ: -130.95% | YoY:-144.48%
Key Insights
Revenue in Q2 2025 reached $7.8 billion, down from $9.3 billion in Q1 2025, indicating a decline of 16.12% quarter-over-quarter. Gross profit reduced dramatically to $76.3 million, showcasing a year-over-year decrease of 77.47%. Operating income fell significantly, registering a loss of $172.0 million, positioning the operating profit margin at -0.0221, highlighting deeper operational inefficiencies. Notably, the company's net income also reflected substantial losses, dropping to -$75.8 mil...
Financial Highlights
Revenue in Q2 2025 reached $7.8 billion, down from $9.3 billion in Q1 2025, indicating a decline of 16.12% quarter-over-quarter. Gross profit reduced dramatically to $76.3 million, showcasing a year-over-year decrease of 77.47%. Operating income fell significantly, registering a loss of $172.0 million, positioning the operating profit margin at -0.0221, highlighting deeper operational inefficiencies. Notably, the company's net income also reflected substantial losses, dropping to -$75.8 million from a profit of $244.8 million in the same quarter last year. Such metrics indicate a troubling trend for a company historically involved in stable agricultural products, necessitating a comprehensive evaluation for potential recovery methods.
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
operatingProfitMargin
-2.21%
dividendPayoutRatio
-55.7%
Management Commentary
Management emphasized the ongoing volatility in agricultural markets, stating, "The pressure on margins from increased input costs continues to impact our business adversely." Additionally, they noted, "We are actively exploring strategic partnerships to enhance our supply chain and mitigate these challenges going forward." These comments underline the serious market conditions affecting CHS Inc and their commitment to improving operational efficiency.
"The pressure on margins from increased input costs continues to impact our business adversely."
โ Management
"We are actively exploring strategic partnerships to enhance our supply chain and mitigate these challenges going forward."
โ Management
Forward Guidance
The management indicated cautious optimism for the future, aiming for an EBITDA recovery in the subsequent quarters as commodity prices stabilize. The targeted revenue growth is projected to reach $32 billion for the fiscal year, contingent upon improved market conditions and effective operational strategies. Investors should closely monitor movements in global agricultural commodity prices and the company's ability to implement cost management measures effectively.