Breaking Down Compass Minerals International, Inc. (CMP) Financial Health: Key Insights for Investors

You're looking at Compass Minerals International, Inc. (CMP) and trying to figure out if the core business can finally deliver after the big strategic pivot. The short answer is: the foundation is showing strength, but the growth narrative has changed defintely. While the company posted a Trailing Twelve Months (TTM) revenue of approximately $1.22 Billion as of mid-2025, their third-quarter results were a mixed bag, showing consolidated revenue up 6% to $215 million and Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization-a key measure of operating performance) surging 25% to $41.0 million, but still landing a net loss of $17.0 million for the quarter. This improvement in the core Salt and Plant Nutrition segments is real, but you can't ignore the ghost of the lithium brine project; the termination of that high-potential, high-risk venture-which incurred a roughly $77.3 million expense-means the focus is now squarely on maximizing the essential minerals business. We need to break down what that means for your investment thesis.

Revenue Analysis

You're looking for a clear picture of where Compass Minerals International, Inc. (CMP) makes its money, and the takeaway is simple: it's a story of two core, but cyclical, businesses-Salt and Plant Nutrition-with a recent strategic shift to simplify the portfolio. The company's Trailing Twelve Months (TTM) revenue, as of November 2025, stands at approximately $1.22 Billion USD, reflecting a solid year-over-year growth of +7.27%.

Management is optimistic, projecting full-year 2025 revenue to land between $1.32 billion and $1.365 billion. This growth is defintely driven by operational improvements and a stronger winter season compared to the prior year, especially in the core Salt business. Here's the quick math on the segment contributions from the fiscal third quarter of 2025 (Q3 2025) results:

Shifting Revenue Streams and Near-Term Risks

The Salt segment, which is the largest contributor, is highly dependent on winter weather severity. For instance, a stronger winter season was the primary driver behind the consolidated revenue surge in the second quarter of fiscal 2025. The Salt business saw a 4% increase in sales volumes year-over-year in Q3 2025, which helped offset a slight 1% decrease in the average sales price.

The Plant Nutrition segment is a growth story on volumes, but it faces pricing pressure. While Q3 2025 sales volumes shot up by 21%, the average sales price per ton was down 5% to approximately $659 per ton, reflecting global supply conditions for potassium-based fertilizers. This segment is a key focus for diversification, still, global commodity prices set the limit for revenue expansion.

A significant change is the exit from the fire retardant business, Fortress North America. In Q3 2025, the company sold certain assets related to this for net proceeds of $19.6 million. This move simplifies the operating structure and allows management to focus capital on the two core mineral businesses. What this estimate hides is the one-time nature of those asset sale proceeds, which won't be recurring revenue.

Geographically, the revenue base remains strongly North American. For the three months ended June 30, 2025, the breakdown was clear:

• United States: $162.0 million
• Canada: $40.1 million
• United Kingdom: $9.8 million

You need to keep a close eye on the Salt segment's North American bid season results, as pricing here dictates a large chunk of the total revenue for the coming year. For a deeper dive into who is betting on these trends, check out Exploring Compass Minerals International, Inc. (CMP) Investor Profile: Who's Buying and Why?

Profitability Metrics

You're looking for a clear picture of Compass Minerals International, Inc. (CMP)'s financial health, and the profitability metrics from the trailing twelve months (TTM) ending around mid-2025 tell a story of a company working hard to turn a corner after a tough period. The direct takeaway is that while the company is still operating at a net loss, its operational efficiency is defintely improving, especially in its core segments.

For the TTM period ending mid-2025, Compass Minerals International, Inc. (CMP) generated total revenue of approximately $1,225 million. Here's the quick math on how that revenue translated to profit:

• Gross Profit Margin: The TTM Gross Profit of $172 million translates to a margin of about 14.04%.
• Operating Profit Margin: The TTM Operating Loss of $16.5 million results in a negative margin of approximately -1.35%.
• Net Profit Margin: The TTM Net Loss of $120.9 million gives a Net Profit Margin of roughly -9.87%.

Trends in Profitability and Operational Efficiency

The headline numbers show a loss, but the trend is what matters. The move from a significantly larger annual net loss of $206.1 million in fiscal 2024 to the TTM net loss of $120.9 million as of mid-2025 indicates a material improvement in the bottom line. This isn't a quick fix, but it shows the 'back-to-basics' strategy is starting to work. You can see their commitment to strategy in their Mission Statement, Vision, & Core Values of Compass Minerals International, Inc. (CMP).

Operational efficiency is the key driver here. In the third quarter of fiscal 2025, the Salt business saw costs decline, which is critical for a high-volume commodity business. This cost control led to an expansion in the Adjusted EBITDA margin. Plus, the Plant Nutrition segment is benefiting from stronger sales volumes and lower production costs, driving its operating income to $5.2 million for the quarter, a significant swing from a loss in the prior-year quarter. This is how you start building a sustainable profit base-by tightening the screws on what you can control.

CMP vs. Industry Profitability Benchmarks

When you compare Compass Minerals International, Inc. (CMP)'s margins to the broader U.S. Chemicals and Allied Products industry, the picture is complex. The industry has been in a prolonged downcycle, with many companies posting large negative median margins in 2024. For instance, the median Gross Margin for the industry in 2024 was around 50.3%, while the median Operating Margin was a deep -56.9%. CMP's TTM Gross Margin of 14.04% is much lower than the industry median, but its TTM Operating Margin of -1.35% is substantially better than the median industry loss.

This suggests that while Compass Minerals International, Inc. (CMP)'s cost of goods sold (COGS) is proportionally higher than the industry median, its control over selling, general, and administrative (SG&A) expenses and other operating expenses is far superior, leading to a much smaller operating loss. Still, the low Gross Margin is a structural issue to watch. It signals either lower pricing power or higher-than-average production costs relative to peers. The market is currently in a profit prioritization phase, so every basis point of margin matters.

Here is a snapshot of the TTM profitability against the closest available industry median for 2024:

The immediate action for you is to monitor the Q4 2025 earnings release, specifically looking for the full-year Gross Margin. If the cost-cutting measures continue to drive that margin up, the investment thesis strengthens.

Debt vs. Equity Structure

You're looking at Compass Minerals International, Inc. (CMP) and the first thing that jumps out is how the company chooses to fund its operations-it's a story of significant debt. For a capital-intensive business like this, some debt is normal, but the current mix is a clear signal of financial leverage (using borrowed money to finance assets).

As of the quarter ending June 30, 2025, Compass Minerals International, Inc.'s debt-to-equity (D/E) ratio stood at approximately 3.37. This is a high number, meaning the company relies heavily on debt relative to the equity capital provided by shareholders. Honestly, a D/E ratio over 2.5 is often seen as a red flag for financial instability in many sectors. The industry average for Specialty Chemicals is much lower, around 0.65, and for the broader Chemicals sector, it's about 0.78. That gap tells you the company is taking on substantially more risk than its peers.

• Total Long-Term Debt (Jun 2025): $833 Million
• Total Short-Term Debt (Jun 2025): $7 Million
• Total Stockholders' Equity (Jun 2025): $250 Million

The total net debt as of June 30, 2025, was $746 million, which management is working to reduce as part of their Back-to-Basic strategy. Still, this high leverage has consequences, especially when you consider the volatility of their weather-dependent salt business.

The company has been active in managing this debt, which is a good sign, but it's been costly. In June 2025, Compass Minerals International, Inc. closed on an offering of $650 million in 8.000% senior notes due 2030. They used the proceeds to redeem roughly $350 million of their older 6.750% senior notes due 2027 and repay other credit facility amounts. Here's the quick math: they refinanced debt at a higher interest rate (8.000% vs. 6.750%), which increases their annual interest expense-a clear indicator of the market's view of their credit risk.

This debt profile led S&P Global Ratings to downgrade the company's rating in March 2025 to 'B' from 'B+', projecting that leverage would exceed 5x in fiscal 2025. This 'B' rating is deep into non-investment grade territory (junk status), which means borrowing costs will remain high. The company is defintely prioritizing debt management and operational efficiency to improve its credit standing, a critical factor for future growth. You can see how these financial decisions tie into their long-term goals by reviewing their Mission Statement, Vision, & Core Values of Compass Minerals International, Inc. (CMP).

The balancing act between debt financing and equity funding for Compass Minerals International, Inc. is currently tilted heavily toward debt. They are using debt to fund capital expenditures and manage working capital, but the high D/E ratio and recent costly refinancing mean they have less flexibility to handle unexpected downturns. Investors need to monitor their interest coverage ratio-how easily they can pay their interest expense-because that's the real pressure point right now.

Liquidity and Solvency

You need to know if Compass Minerals International, Inc. (CMP) can cover its short-term bills, and honestly, the answer is a solid yes. The company's liquidity position as of the end of the fiscal third quarter of 2025 looks defintely healthy, showing significant improvement driven by strong cash generation and strategic working capital management.

The core of this assessment lies in two key ratios: the Current Ratio and the Quick Ratio (also called the acid-test ratio). These tell you how easily a company can turn its assets into cash to pay off liabilities due within a year. Compass Minerals International, Inc. (CMP) is in a comfortable spot.

• Current Ratio: At Q3 2025, the Current Ratio stood at a robust 2.15. This means the company has $2.15 in current assets for every dollar of current liabilities.
• Quick Ratio: The Quick Ratio, which strips out inventory-often the least liquid current asset-was 1.06. A ratio over 1.0 is the gold standard, showing the company can cover all its immediate short-term debts even if it sold no more inventory.

The quick ratio is particularly reassuring for a seasonal business like this one, as it confirms liquidity isn't just tied up in salt inventory waiting for winter.

Working Capital Trends and Inventory Management

The company's management of working capital-the difference between current assets and current liabilities-has been a major positive trend in fiscal 2025. In the first half of the year, they focused on reducing North American highway deicing inventory, which successfully Mission Statement, Vision, & Core Values of Compass Minerals International, Inc. (CMP). released approximately $145 million in working capital. This is a direct, concrete action that freed up cash.

Now, as they head into the deicing season, they are in a normal seasonal inventory build-up, which will temporarily increase current assets and reduce cash, but this is expected. The strategic inventory reduction earlier in the year was a smart move to boost cash flow and reduce debt before this seasonal cycle began.

Cash Flow Statement Overview (9M 2025)

Cash flow is the lifeblood of a company, and the 2025 nine-month (9M) figures show a significant operational turnaround. Here's the quick math on the major categories:

The huge jump in cash provided by operating activities-from $27.1 million to $204.6 million year-over-year for the nine-month period-is the most important number here. It shows the core business is generating substantial cash, which is then being used to pay down debt, as seen in the $111.5 million net cash used in financing activities. This is a healthy cycle: cash-in from operations, cash-out to deleverage.

Liquidity Strengths and Near-Term Actions

The overall liquidity picture is strong. As of June 30, 2025, Compass Minerals International, Inc. (CMP) had total liquidity of $389 million. This is comprised of $79.4 million in cash and cash equivalents, plus $309.3 million available under its revolving credit facility. That's a huge cushion.

The strength is in the combination of a high Current Ratio, a Quick Ratio above 1.0, and most importantly, a massive improvement in operating cash flow. They've done the hard work of freeing up cash from inventory and using it to pay down debt, which reduced their net total debt by 13% year-over-year to $746 million as of June 30, 2025. This deleveraging enhances financial flexibility.

Action for Investors: Watch the Q4 2025 inventory levels. While the seasonal build is normal, an excessive inventory increase could signal weak early demand in the deicing season, which would put pressure on the next quarter's cash flow.

Valuation Analysis

You want to know if Compass Minerals International, Inc. (CMP) is a buy, a hold, or a sell right now. Looking at the latest data from November 2025, the stock appears to be priced near its fair value, leaning toward being slightly overvalued based on profitability metrics, but the analyst consensus is a firm Hold. The key takeaway is that the market is already pricing in a significant future turnaround, which adds risk.

The stock's performance over the last 12 months has been strong, delivering a total return of 35.05%. This is a solid run, especially considering the 52-week low was just $8.60, while the high reached $22.69. As of mid-November 2025, the stock is trading around $17.78. This price sits comfortably below the 52-week high, but the valuation ratios tell a more complex story.

Here's the quick math on the core valuation multiples:

• Price-to-Earnings (P/E) is negative, around -6.27 (TTM). Since the company is forecasting negative earnings per share (EPS) of about -$0.53 for the current fiscal year, the P/E ratio is not meaningful for valuation; you can't divide by a negative number to get a useful multiple.
• The Price-to-Book (P/B) ratio is 2.86 (TTM). For a basic materials company, this is defintely on the higher side, suggesting the stock price is trading at nearly three times the company's book value (assets minus liabilities), which signals a premium.
• The Enterprise Value-to-EBITDA (EV/EBITDA) ratio is sitting at 9.47 (TTM) as of November 2025. This is a more useful metric, and while the forward 1-Year EV/EBITDA is projected lower at 8.3, the current TTM multiple is higher than some peers, indicating a slightly stretched valuation based on current operating cash flow.

What this estimate hides is the market's expectation for their lithium project and other growth initiatives. The high P/B and the EV/EBITDA multiple suggest investors are betting heavily on future cash flows that aren't yet visible in the trailing twelve months' earnings.

The dividend situation is a clear signal of the company's focus on capital preservation and investment. The Trailing Twelve Month (TTM) dividend yield is currently 0.00%. While the company historically paid dividends, the most recent payout was $0.150 per share back in March 2024, and the TTM payout is now zero. This suspension or deep cut is common when a company shifts to a major capital-intensive growth phase, like developing new mineral assets. Don't expect a meaningful dividend check anytime soon.

The Wall Street consensus echoes this cautious optimism. The average analyst rating for Compass Minerals International, Inc. (CMP) is a Hold. The average price target is set at $20.00, which suggests an upside of about 12.49% from the current price. This is not a screaming buy, but it's not a panic sell either. It's a classic wait-and-see scenario, where the next move depends entirely on execution of their growth strategy. You can dive deeper into the institutional interest by Exploring Compass Minerals International, Inc. (CMP) Investor Profile: Who's Buying and Why?

Here is a summary of the key valuation figures:

Risk Factors

You need to know where Compass Minerals International, Inc. (CMP) is most exposed. While the company is executing its Exploring Compass Minerals International, Inc. (CMP) Investor Profile: Who's Buying and Why? 'back-to-basics' strategy, the core risks remain tied to weather, debt, and commodity pricing. These aren't abstract threats; they directly impact the company's ability to hit its fiscal 2025 guidance of $185 million to $201 million in consolidated Adjusted EBITDA.

The biggest external risk is, honestly, the weather. Since about two-thirds of the deicing product sales happen between November and March, a mild winter can crush the Salt segment's revenue, which is projected to be between $1,000 million and $1,040 million for fiscal 2025. This is a simple, high-impact factor that no one can defintely predict. Also, competition in the deicing market, particularly in the U.K., can limit pricing power, even with the company's strong supplier position.

Operational and Financial Headwinds

The primary internal challenge is the company's financial structure, specifically its net debt. Compass Minerals International, Inc. (CMP) is actively working to achieve an investment-grade balance sheet with a debt-to-EBITDA ratio of 2.5. To be fair, they are making progress, having made net debt payments of $87.0 million in the nine months ended June 30, 2025. Still, high interest expense, projected to be $70 million to $75 million for the full year, eats into profitability. That's a huge fixed cost.

Operational risks are also real, especially in the Plant Nutrition segment, which forecasts revenue of $200 million to $205 million for 2025. This segment faces pricing pressure due to softness in the MOP (Muriate of Potash) market, which is a major input. Plus, the entire operation is highly dependent on a limited number of production facilities, so any disruption, like a strike or critical equipment failure, hits hard. The company is focused on cost reductions to combat this, which is the right move.

• Salt Pricing Pressure: Average selling price for Consumer and Industrial (C&I) salt decreased 1% year-over-year in Q3 2025.
• Input Cost Volatility: Fluctuations in key raw material costs, like potassium chloride (KCL), directly impact margins.
• Regulatory Compliance: The need to maintain financial surety or performance bonds for North American deicing customers and fund mine reclamation is a continuous financial requirement.

Mitigation and Strategic Actions

Management is mapping near-term risks to clear actions. Their 'value over volume' strategy in the Salt business, coupled with the flexibility to adjust production at key mines like Goderich, helps manage inventory and pricing risk from mild winters. Here's the quick math: reducing inventory volumes by 10% year-over-year through December 2024 helped offset a slow start to the winter season.

On the corporate side, they are simplifying the business model. The sale of certain assets related to the Fortress fire retardant business in Q3 2025, which generated net proceeds of $19.6 million, is a concrete step to focus capital on the core mineral assets and reduce debt. The goal is to get a handle on the balance sheet so external shocks don't derail the whole plan. Finance: continue to monitor the debt-to-EBITDA ratio quarterly.

Growth Opportunities

You're looking for a clear path forward on Compass Minerals International, Inc. (CMP), and the takeaway is this: the company's near-term growth hinges on operational discipline in its core businesses, while the long-term story is a big bet on lithium. The management's 'back-to-basic' strategy is defintely showing results, but the market is still waiting for the full payoff.

For fiscal year 2025, the consensus revenue estimate sits at about $1.16 billion, with an expected earnings per share (EPS) of $-0.23. Here's the quick math: the focus is on margin expansion, not just top-line growth. They raised their adjusted EBITDA guidance for 2025 to a midpoint of $188 million, a clear sign that cost-cutting and efficiency are taking hold. You can see more on the ownership dynamics in Exploring Compass Minerals International, Inc. (CMP) Investor Profile: Who's Buying and Why?

The Back-to-Basic Strategy: Core Business Optimization

Compass Minerals International, Inc. is aggressively simplifying its business to boost cash flow and accelerate deleveraging (reducing debt relative to assets). This involves optimizing their core Salt and Plant Nutrition segments and shedding non-core assets. For example, they are winding down the Fortress North American business to focus resources and have cut over 10% of the corporate workforce to streamline operations. This is about being lean and mean.

The Salt business is seeing a constructive setup. Coming out of the 2025 bid season, contracted selling prices for highway deicing salt are expected to be up 2% to 4% year-over-year, with committed bid volumes also projected to rise by 3% to 5%. This is a crucial near-term opportunity, as a return to more typical winter weather drives higher demand and better pricing.

• Optimize operations: Lowering capital intensity across the platform.
• Reduce debt: Total net debt was reduced by $116 million year-over-year as of June 30, 2025.
• Cost discipline: Production costs per ton are decreasing, driving margin expansion in Salt.

High-Margin Plant Nutrition and Lithium Innovation

The Plant Nutrition segment, primarily focused on sulfate of potash (SOP)-a premium fertilizer-is a key margin driver. The company is seeing strong volume growth, with sales volumes up 21% year-over-year in the third quarter of fiscal 2025. Management is making good progress improving the cost structure at the Ogden, Utah facility, which is leading to more consistent and higher productivity.

The biggest long-term growth driver, however, is the lithium development project at the Great Salt Lake. This is a product innovation that diversifies the company beyond traditional minerals into the electric vehicle supply chain. The project's initial phase one capacity is targeted at approximately 11 kMT (thousand metric tons) of Lithium Carbonate Equivalent (LCE) coming online by 2025. This move is being supported by a $252 million strategic equity investment partnership with Koch Minerals & Trading, LLC, which provides capital and expertise to accelerate the project.

The core competitive advantage is their unique asset base-the Goderich salt mine and the Great Salt Lake brine resource. The Salt business provides stable, essential cash flow, and the Plant Nutrition and Lithium projects offer the upside. The challenge is executing the lithium project on time and budget while maintaining cost discipline in the commodity-driven salt market. You need to watch for a sustained increase in the Salt segment's per-ton margins and any updates on the lithium project's production timeline.