Compass Minerals Q1 revenue up 29%, driven by Salt segment sales

Overview

• Minerals provider's fiscal Q1 revenue grew 29% yr/yr, driven by Salt segment sales

• Adjusted EBITDA for fiscal Q1 more than doubled yr/yr

• Company reduced net debt by 10% yr/yr

Outlook

• Compass Minerals raises full-year adjusted EBITDA guidance by 2% to $208 mln - $240 mln

• Company expects Salt segment revenue between $980 mln and $1,050 mln for fiscal 2026

• Plant Nutrition segment revenue projected at $170 mln to $185 mln for fiscal 2026

Result Drivers

• SALT SEGMENT GROWTH - Revenue increased 37% due to higher sales volumes in highway deicing and consumer and industrial businesses

• PLANT NUTRITION MARGIN EXPANSION - Higher pricing and cost structure improvements drove margin expansion, despite lower sales volumes

• DEBT REDUCTION - Net debt decreased by 10% year over year, reflecting focus on financial execution

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the diversified chemicals peer group is "buy."

• Wall Street's median 12-month price target for Compass Minerals International Inc is $23.00, about 12.5% below its February 3 closing price of $26.29

• The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nBw8gYmv7a

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