Salt producer Compass Minerals' Q4 net loss narrows on Plant Nutrition strength

Overview

• Compass Minerals Q4 revenue beats analyst expectations, reaching $227.5 mln

• Net loss for Q4 reduced to $7.2 mln from $48.3 mln year-over-year

• Adjusted EBITDA for Q4 rises to $41.6 mln, reflecting strategic changes

Outlook

• Compass Minerals projects 2026 adjusted EBITDA between $200 mln and $240 mln

• Salt segment 2026 adjusted EBITDA expected between $225 mln and $255 mln

• Plant Nutrition segment 2026 adjusted EBITDA forecasted at $31 mln to $36 mln

Result Drivers

• BACK-TO-BASICS STRATEGY - Co attributes improved performance to execution of back-to-basics strategy focusing on core Salt and Plant Nutrition businesses

• INVENTORY OPTIMIZATION - Successful initiatives reduced North American highway deicing inventory value and volumes by 33% and 36%, respectively

• PLANT NUTRITION PROFITABILITY - Improved profitability in Plant Nutrition segment due to increased sales volumes and cost structure reduction

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "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 $20.00, about 1.4% below its December 5 closing price of $20.28

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nBw15j6pva

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)