Q3 2026 Compass Minerals International Inc Earnings Call

August 6, 2026

Operator 3: Hello, everyone. Thank you for joining us. Welcome to Compass Minerals' Fiscal Q3 2026 Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Tripp Sullivan, Investor Relations. Please go ahead.

Operator: Hello, everyone. Thank you for joining us, and welcome to Compass Minerals' Fiscal Q3 2026 Earnings Conference Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Tripp Sullivan, Investor Relations. Please go ahead.

Speaker #1: If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Trip Sullivan, investor relations, please go ahead.

Speaker #2: Thank you, operator. Good morning and welcome to the COMPASS MINERALS fiscal third quarter of 2026 earnings conference call. Today we will discuss our most recent quarterly results.

Tripp Sullivan: Thank you, operator. Good morning. Welcome to the Compass Minerals Fiscal Q3 2026 Earnings Conference Call. Today, we will discuss our most recent quarterly results. We will begin with prepared remarks from our President and CEO, Edward Dowling, and our CFO, Peter Fjellman. Joining in for the question and answer portion of the call will be Ben Nichols, our Chief Commercial Officer. Before we get started, I will remind everyone that the remarks we make today reflect financial and operational outlooks as of today's date, 06 August 2026. These outlooks entail assumptions and expectations that involve risks and uncertainties that could cause the company's actual results to differ materially. A discussion of these risks can be found in our SEC filings located online at investors.compassminerals.com. Our remarks today also include certain non-GAAP financial measures.

Speaker #2: We will begin with prepared remarks from our president and CEO, Edward Dowling, and our CFO, Peter Fjellman. Joining in for the question-and-answer portion of the call will be Ben Nichols, our chief commercial officer.

Speaker #2: Before we get started, I will remind everyone that the remarks we make today reflect financial and operational outlooks as of today's date, August 6, 2026.

Tripp Sullivan: Before we get started, I will remind everyone that the remarks we make today reflect financial and operational outlooks as of today's date, 06 August 2026. These outlooks entail assumptions and expectations that involve risks and uncertainties that could cause the company's actual results to differ materially. A discussion of these risks can be found in our SEC filings located online at investors.compassminerals.com.

Speaker #2: These outlooks entail assumptions and expectations that involve risk and uncertainties that could cause the company's actual results to differ materially. The discussion of these risks can be found in our SEC filings located online at investors.compassminerals.com.

Speaker #2: Our remarks today also include certain non-GAAP financial measures. You can find reconciliations of these items in our earnings release or in our presentations, both of which are also available online.

Tripp Sullivan: Our remarks today also include certain non-GAAP financial measures. You can find reconciliations of these items in our earnings release or in our presentation, both of which are also available online. With that, I'll now turn the call over to Ed.

Tripp Sullivan: You can find reconciliations of these items in our earnings release or in our presentation, both of which are also available online. With that, I'll now turn the call over to Ed.

Speaker #2: And with that, I'll now turn the call over to Ed.

Speaker #3: Thank you, Trip. Good morning, everyone. I'll start with the plant nutrition business because it's earned the lead. At Ogden, we produce segment-adjusted EBITDA of $15 million in the quarter, on improved pricing and lower per-unit costs.

Edward C. Dowling Jr.: Thank you, Tripp. Good morning, everyone. I'll start with the Plant Nutrition business because it's earned the lead. At Ogden, we produced segment adjusted EBITDA of $15 million in the quarter on improved pricing and lower per-unit costs. We've again raised our full-year guidance for this business. Operational improvements we put in place two years ago are compounding. The team was determined to restore the business to the $40 to $50 million adjusted EBITDA range per year and have now exceeded that level. We continue to invest in Ogden with the dryer project underway that we expect to complete by the end of next fiscal year. That investment will allow us to improve product yield, further improve production volume and cost profile of this operation, as well as finished good product quality.

Edward Dowling: Thank you, Tripp. Good morning, everyone. I'll start with the Plant Nutrition business because it's earned the lead. At Ogden, we produced segment adjusted EBITDA of $15 million in the quarter on improved pricing and lower per-unit costs. We've again raised our full-year guidance for this business. Operational improvements we put in place two years ago are compounding. The team was determined to restore the business to the $40 to $50 million adjusted EBITDA range per year and have now exceeded that level.

Speaker #3: We've again raised our full-year guidance for this business. Operational improvements we've put in place two years ago are compounding. The team has determined to restore the business to the 40 to 50 million adjusted EBITDA range per year, and have now exceeded that level.

Speaker #3: We continue to invest in Ogden with a drier project underway that we expect to complete by the end of next fiscal year. That investment will allow us to improve product yield, further improve production, volume, and cost profile of this operation, as well as finish good product quality.

Edward Dowling: We continue to invest in Ogden with the dryer project underway that we expect to complete by the end of next fiscal year. That investment will allow us to improve product yield, further improve production volume and cost profile of this operation, as well as finished good product quality. We're excited about the continued momentum at our Ogden site and solidifying our position as the leading North American producer of sulfate of potash.

Speaker #3: We're excited about the continued momentum at our Ogden site, and solidifying our position as the leading North American producer of sulfate of potash. In our salt business, the commercial story is strong.

Edward C. Dowling Jr.: We're excited about the continued momentum at our Ogden site and solidifying our position as the leading North American producer of sulfate of potash. In our salt business, the commercial story is strong. We realized meaningful price gains in the highway deicing during the quarter and beginning to see a constructive pricing environment in our C&I product line as well. These are encouragements, I want to put them into context. When comparing the salt costs in our P&L between periods, there are a number of factors that must be considered, including production costs, logistics costs, regional and product mix. As the winter unfolds, where we sell our products, where they are produced, how to ship to the customer, and our production costs all have various levels of impact, particularly in a season like this past one where inventory levels became very tight.

Edward Dowling: In our salt business, the commercial story is strong. We realized meaningful price gains in the highway deicing during the quarter and beginning to see a constructive pricing environment in our C&I product line as well. These are encouragements, I want to put them into context. When comparing the salt costs in our P&L between periods, there are a number of factors that must be considered, including production costs, logistics costs, regional and product mix.

Speaker #3: We realize meaningful price gains in the highway de-icing during the quarter and beginning to see a constructive pricing environment in our CNI product line, as well.

Speaker #3: These are encouraging, and I want to put them into context. When comparing the salt costs in our P&L between periods, there are a number of factors that must be considered, including production costs, logistic costs, regional and product mix.

Speaker #3: As a winner unfolds, where we sell our products, where they are produced, how it is shipped to the customer, and our production costs all have various levels of impact, particularly in a season like this past one where inventory levels became very tight.

Edward Dowling: As the winter unfolds, where we sell our products, where they are produced, how to ship to the customer, and our production costs all have various levels of impact, particularly in a season like this past one where inventory levels became very tight. Production tons at our mine are up year over year. That's a positive. Costs, while lower than last year, as our original guidance had anticipated, have not come down the way we expected, and I want to address that directly. There are three factors driving higher than anticipated production costs.

Speaker #3: Production tons that are mined are up year over year. That's a positive. But costs, while lower than last year, as original guidance had anticipated, have not come down the way we expected and I want to address that directly.

Edward C. Dowling Jr.: Production tons at our mine are up year over year. That's a positive. Costs, while lower than last year, as our original guidance had anticipated, have not come down the way we expected, and I want to address that directly. There are three factors driving higher than anticipated production costs. First, despite the above, we're not hoisting enough tons out of Goderich at the cost we had planned. Second, we have increased our maintenance spending at both US mines to improve operational uptime and stability, which has been guided by the implementation of a preventative maintenance system. Lastly, we've increased the headcount to maximize every opportunity to produce more tons out of the mines. In terms of logistics, our total cost metric was burdened by global fuel costs and increased rates due to tightening of truck capacity.

Speaker #3: There are three factors driving higher-than-anticipated production costs. First, despite the above, we're not hoisting enough tons out of the garbage at the cost we had planned.

Edward Dowling: First, despite the above, we're not hoisting enough tons out of Goderich at the cost we had planned. Second, we have increased our maintenance spending at both US mines to improve operational uptime and stability, which has been guided by the implementation of a preventative maintenance system. Lastly, we've increased the headcount to maximize every opportunity to produce more tons out of the mines. In terms of logistics, our total cost metric was burdened by global fuel costs and increased rates due to tightening of truck capacity.

Speaker #3: Second, we've increased our maintenance spending at both U.S. mines to improve operational uptime and stability, which has been guided by the implementation of a preventative maintenance system.

Speaker #3: Lastly, we've increased the headcount to maximize every opportunity to produce more tons out of the mines. In terms of logistics, our total cost metric was burdened by global fuel costs and increased rates due to tightening of truck capacity.

Speaker #3: We had three accelerator teams working at Godrich, focused on specific operational improvements. We're working on improving our cut times and rates, and investing in training required to sustain those improvements.

Edward C. Dowling Jr.: We have three accelerator teams working at Goderich focused on specific operational improvements and working on improving our cut times and rates and investing in training required to sustain those improvements, as well as overall mine design and sequencing. Our maintenance program is delivering results focused on quicker turnarounds and improved equipment availability. Let me be direct about the trade-off that we're making. We're spending incremental dollars on labor and maintenance in the current period costs for longer-term operational stability, production volumes, and profitability. This is the right decision for the business, also means that our cost metrics have not yet reflected the efficiency gains we're targeting. In addition, we have other accelerator teams working on logistics and enterprise-wide improvements, including network optimization, procurement efficiency, contract management. All of these are focused on sustainable cost improvement and risk mitigation.

Edward Dowling: We have three accelerator teams working at Goderich focused on specific operational improvements and working on improving our cut times and rates and investing in training required to sustain those improvements, as well as overall mine design and sequencing. Our maintenance program is delivering results focused on quicker turnarounds and improved equipment availability. Let me be direct about the trade-off that we're making.

Speaker #3: As well as overall mine design and sequencing. Our maintenance program is delivering results, focused on quicker turnarounds and improved equipment availability. Let me be direct about the trade-off that we're making.

Speaker #3: We're spending incremental dollars on labor and maintenance in the current period costs for longer-term operational stability, production volumes, and profitability. This is the right decision for the business, but also means that our cost metrics have not yet reflected the efficiency gains we're targeting.

Edward Dowling: We're spending incremental dollars on labor and maintenance in the current period costs for longer-term operational stability, production volumes, and profitability. This is the right decision for the business, also means that our cost metrics have not yet reflected the efficiency gains we're targeting. In addition, we have other accelerator teams working on logistics and enterprise-wide improvements, including network optimization, procurement efficiency, contract management. All of these are focused on sustainable cost improvement and risk mitigation.

Speaker #3: In addition, we have other accelerator teams working on logistics and enterprise-wide improvements including network optimization, procurement efficiency, contract management, all of these are focused on sustainable costs improvement and risk mitigation.

Speaker #3: As we think about the future of the company and sustainable improvement, we have made an operational leadership change. Patrick Marin is no longer with the company, and I'd like to thank Pat for his service and wish him the best.

Edward C. Dowling Jr.: As we think about the future of the company and the sustainable improvement, we have made an operational leadership change. Patrick Meren is no longer with the company, and I'd like to thank Pat for his service and wish him the best. Brandon Risner has been promoted to Chief Operating Officer. He's led impressive operational improvements in our Plant Nutrition segment and in the operational leadership of our C&I product line. A combination of prior mining experience and a track record of leading positive outcomes make him a natural fit to lead our operations. Turning to the bid season, the 2026, 2027 highway deicing bid season has been very constructive. In our core US markets, we're seeing substantial price improvement year over year, in some cases well into the double digits, with consistent growth in demand tenders. North American highway deicing markets remain structurally tight.

Edward Dowling: As we think about the future of the company and the sustainable improvement, we have made an operational leadership change. Patrick Meren is no longer with the company, and I'd like to thank Pat for his service and wish him the best. Brandon Risner has been promoted to Chief Operating Officer. He's led impressive operational improvements in our Plant Nutrition segment and in the operational leadership of our C&I product line.

Speaker #3: Brandon Reisner has been promoted to chief operating officer, he's led impressive operational improvements in our plant nutrition segment and in the operational leadership of our CNI product line.

Speaker #3: A combination of prior mining experience and a track record of leading positive outcomes make him a natural fit to lead our operations. Turning to the bid season, the 2026–2027 highway de-icing bid season has been very constructive.

Edward Dowling: A combination of prior mining experience and a track record of leading positive outcomes make him a natural fit to lead our operations. Turning to the bid season, the 2026, 2027 highway deicing bid season has been very constructive. In our core US markets, we're seeing substantial price improvement year over year, in some cases well into the double digits, with consistent growth in demand tenders. North American highway deicing markets remain structurally tight.

Speaker #3: In our core U.S. markets, we're seeing substantial price improvement year over year, in some cases well into the double digits. With consistent growth and demand tenders, North America and highway de-icing markets remain structurally tight.

Speaker #3: Inventories across the industry are low following the past winter, and it is supporting both pricing and tender sizes. As we look forward into fiscal 2027, let me give a sense of what we are thinking about volume.

Edward C. Dowling Jr.: Inventories across the industry are low following the past winter, and it is supporting both pricing and tender sizes. As we look forward into fiscal 2027, let me give a sense of what we are thinking about volume. The 2025-2026 winter season trended ahead of seasonal averages with snowfall events in our key markets higher than the recent past. That strong demand, coupled with our disciplined approach to working capital and the current production constraints at Goderich, has left us and the industry with historically low inventories across the system. Given those realities, along with an assumption of more normalized winter weather, we expect to commit to a reduced mine profile for fiscal 2027 relative to the past seasons. We will provide tighter guidance when we report Q4 results.

Edward Dowling: Inventories across the industry are low following the past winter, and it is supporting both pricing and tender sizes. As we look forward into fiscal 2027, let me give a sense of what we are thinking about volume. The 2025-2026 winter season trended ahead of seasonal averages with snowfall events in our key markets higher than the recent past. That strong demand, coupled with our disciplined approach to working capital and the current production constraints at Goderich, has left us and the industry with historically low inventories across the system.

Speaker #3: The 2025-26 winter season trended ahead of seasonal averages with snowfall events in our key markets higher than the recent past. That's strong demand, coupled with our dissonant approach to working capital in the current production constraints at Godrich, has left us and the industry with historically low inventories across the system.

Speaker #3: Given those realities, along with an assumption of more normalized winter weather, we expect to commit to a reduced man profile for fiscal 2027 relative to the past seasons.

Edward Dowling: Given those realities, along with an assumption of more normalized winter weather, we expect to commit to a reduced mine profile for fiscal 2027 relative to the past seasons. We will provide tighter guidance when we report Q4 results. Pricing gains we have secured for the business, combined with continued focus on production increases and cost per ton improvement, should position us to improve our per unit margins headed into next year.

Speaker #3: We will provide tighter guidance when we report the fourth quarter results. But pricing gains we have secured for the business, combined with continued focus on production increases and cost per ton improvement, should position us to improve our per-unit margins headed into next year.

Edward C. Dowling Jr.: Pricing gains we have secured for the business, combined with continued focus on production increases and cost per ton improvement, should position us to improve our per unit margins headed into next year. Let me address tariffs briefly. As you're aware, tariffs on Canadian goods shipped to the United States are set to take effect on 19 August. A large majority of the gross annualized exposure relates to the highway deicing salt shipped from our Goderich mine into the United States. Through proactive measures within our commercial agreements, including pass-through provisions that are now standard in several of our key contracts, we believe we meaningfully reduce our exposure to those risks. The situation remains fluid, and we're closely monitoring it. We believe that we're in a stronger position to manage this than a year ago, given our proactive measures, constructing pricing environment, and our improved balance sheet.

Speaker #3: Let me address tariffs briefly. As you're aware, tariffs on Canadian goods shipped to the United States are set to take effect on August 19th.

Edward Dowling: Let me address tariffs briefly. As you're aware, tariffs on Canadian goods shipped to the United States are set to take effect on 19 August. A large majority of the gross annualized exposure relates to the highway deicing salt shipped from our Goderich mine into the United States. Through proactive measures within our commercial agreements, including pass-through provisions that are now standard in several of our key contracts, we believe we meaningfully reduce our exposure to those risks. The situation remains fluid, and we're closely monitoring it.

Speaker #3: A large majority of the gross annualized exposure released to the highway de-icing salt ship from our Godrich mine into the United States. Through proactive measures within our commercial agreements, including pass-through provisions that are now standard in several of our key contracts, we believe we meaningfully reduced our exposure to those risks.

Speaker #3: The situation remains fluid, and we're closely monitoring it. We believe that we're in a stronger position to manage this than a year ago, given our proactive measures, constructing pricing environment, and our improved balance sheet.

Edward Dowling: We believe that we're in a stronger position to manage this than a year ago, given our proactive measures, constructing pricing environment, and our improved balance sheet. In addition to potential impact of tariffs, we're closely monitoring the variability within the fuel market, which is incorporated into our 2026 guidance. We expect to provide clearer understanding of the anticipated fuel impact and sensitivity within our detailed 2027 guidance when we report Q4. We wanted to note our current focus on mitigation efforts moving into next year.

Speaker #3: In addition to potential impact of tariffs, we're closely monitoring the variability within the fuel market, which is incorporated into our 2026 guidance. We expect to provide clear understanding of the anticipated fuel impact and sensitivity within our detailed 2027 guidance when we report Q4.

Edward C. Dowling Jr.: In addition to potential impact of tariffs, we're closely monitoring the variability within the fuel market, which is incorporated into our 2026 guidance. We expect to provide clearer understanding of the anticipated fuel impact and sensitivity within our detailed 2027 guidance when we report Q4. We wanted to note our current focus on mitigation efforts moving into next year. On capital projects, as part of our ongoing investment in the future of Goderich, we have been planning to construct a new mill. Given the complexity of executing a project of this scale within an operating underground mine, we're taking additional time to evaluate the engineering, sequencing, and timing, as well as establishing appropriate project governance. We cannot afford disruption to the production during a period where we're focused on improving output and rebuilding inventory. We expect to provide a more detailed update on the project timeline early next year.

Speaker #3: But we wanted to note our current focus on mitigation efforts moving into next year. On capital projects, as part of our ongoing investment in the future of Godrich, we have been planning to construct a new mill.

Edward Dowling: On capital projects, as part of our ongoing investment in the future of Goderich, we have been planning to construct a new mill. Given the complexity of executing a project of this scale within an operating underground mine, we're taking additional time to evaluate the engineering, sequencing, and timing, as well as establishing appropriate project governance. We cannot afford disruption to the production during a period where we're focused on improving output and rebuilding inventory. We expect to provide a more detailed update on the project timeline early next year.

Speaker #3: Given the complexity of executing a project of this scale within an operating underground mine, we're taking additional time to evaluate the engineering sequencing and timing as well as establishing appropriate project governance.

Speaker #3: We cannot afford disruption to the production during a period where we're focused on improving output and rebuilding inventory. We expect to provide more detailed update on the project timeline early next year.

Speaker #3: I'd like to take a quick moment to clarify some news that was issued earlier in the quarter about a potential Utah lithium project. To be clear, we have no plans to get back into the lithium market.

Edward C. Dowling Jr.: I'd like to take a quick moment to clarify some news that was issued earlier in the quarter about a potential Utah lithium project. To be clear, we have no plans to get back into the lithium market. This announcement that EnergyX was a non-binding MOU where we're evaluating leasing them land and brine used in our Utah operations. We would have no capital commitment or operational expenses. Nothing in these negotiations has been finalized. Turning to the balance sheet. Net leverage has declined to 2.8 times from 4.3 times a year ago. Total net debt is down 13% year over year. A recent credit upgrade from S&P is a direct reflection of the work we've done to reduce debt and strengthen the business. I know there are questions about how we plan to allocate capital going forward, and I want to signal how we're thinking about it.

Edward Dowling: I'd like to take a quick moment to clarify some news that was issued earlier in the quarter about a potential Utah lithium project. To be clear, we have no plans to get back into the lithium market. This announcement that EnergyX was a non-binding MOU where we're evaluating leasing them land and brine used in our Utah operations. We would have no capital commitment or operational expenses. Nothing in these negotiations has been finalized.

Speaker #3: This announcement with Energy X was for a non-binding MOU, where we're evaluating leasing them land and brine used in our Utah operations. We would have no capital commitment or operational expenses.

Speaker #3: Nothing in these negotiations has been finalized. Turning to the balance sheet, net leverage has declined to 2.8 times from 4.3 times a year ago.

Edward Dowling: Turning to the balance sheet. Net leverage has declined to 2.8 times from 4.3 times a year ago. Total net debt is down 13% year over year. A recent credit upgrade from S&P is a direct reflection of the work we've done to reduce debt and strengthen the business. I know there are questions about how we plan to allocate capital going forward, and I want to signal how we're thinking about it. Our near-term priorities are clear. Investment in our assets, continued debt reduction where it makes sense.

Speaker #3: Total net debt is down 13% year over year. A recent credit upgrade from S&P is a direct reflection of the work we've done to reduce debt and strengthen the business.

Speaker #3: I know there are questions about how we plan to allocate capital going forward, and I want to signal how we're thinking about it. Our near-term priorities are clear.

Edward C. Dowling Jr.: Our near-term priorities are clear. Investment in our assets, continued debt reduction where it makes sense. As our balance sheet strengthens and our operations stabilize, the opportunity to consider other uses of capital become more real. The board is engaged in this discussion, and we expect to share more on this topic when we report full-year results. Before I hand it over to Peter, let me step back for a moment. Two years ago, we laid out a back-to-basics framework on what we're going to improve this company. At Ogden, the process is delivering the results that speak for themselves. In salt, commercial execution is strong, the market is constructive, the balance sheet is in a very different position than it was even a year ago. The work in our mining operations is taking longer than planned, and we are being direct about that. The process is the same.

Speaker #3: Investment in our assets, continued debt reduction where it makes sense, as our balance sheet strengthens, and our operations stabilize, the opportunity to consider other uses of capital to become more real.

Edward Dowling: As our balance sheet strengthens and our operations stabilize, the opportunity to consider other uses of capital become more real. The board is engaged in this discussion, and we expect to share more on this topic when we report full-year results. Before I hand it over to Peter, let me step back for a moment. Two years ago, we laid out a back-to-basics framework on what we're going to improve this company. At Ogden, the process is delivering the results that speak for themselves.

Speaker #3: The board is engaged in this discussion, and we expect to share more on this topic when we report full year results. Before I hand it over to Peter, let me step back for a moment.

Speaker #3: Two years ago, we laid out a back-to-basis framework on what we were going to improve this company. At Ogden, the process of delivering the results and speak for themselves.

Speaker #3: In salt, commercial execution is strong, the market is constructive, the balance sheet is in a very different position than it was even a year ago.

Edward Dowling: In salt, commercial execution is strong, the market is constructive, the balance sheet is in a very different position than it was even a year ago. The work in our mining operations is taking longer than planned, and we are being direct about that. The process is the same. The team is engaged, and the work will continue. We are really excited about the future of this business and organic opportunities this work has created. Peter?

Speaker #3: The work in our mining operations is taking longer than planned, and we are being direct about that. But the process is the same. The team is engaged, and the work will continue.

Edward C. Dowling Jr.: The team is engaged, and the work will continue. We are really excited about the future of this business and organic opportunities this work has created. Peter?

Speaker #3: We are really excited about the future. This business and organic opportunities this work has created. Peter?

Speaker #2: Thanks, Ed. Good morning, everyone. I'll walk through our third quarter results and the updated outlook. All comparisons are to the prior year quarter unless otherwise noted.

Peter Fjellman: Thanks, Ed. Good morning, everyone. I'll walk through our Q3 results and the updated outlook. All comparisons are to the prior year quarter, unless otherwise noted. For the Q3, total company adjusted EBITDA was $39.9 million, compared with $41 million in the prior year. We reported a net loss of $5.7 million, compared to a net loss of $17 million in the prior year. In Salt, Q3 revenue increased 5% year over year to $173.9 million. Segment pricing was up 9% overall, highway pricing was up 8%, and C&I pricing was up 6%. Highway sales volumes declined 6%, while C&I volumes increased 3%. Salt adjusted EBITDA was $38.9 million for the quarter, down 15%, and operating earnings decreased 25% to $21.2 million. The decline reflects lower highway sales volumes and higher per unit production and distribution costs within the segment, partially offset by the pricing gain.

Speaker #2: For the third quarter, total company adjusted EBITDA was $39.9 million, compared with $41.0 million in the prior year. We reported a net loss of $5.7 million, compared to a net loss of $17.0 million in the prior year.

Speaker #2: In salt, third quarter revenue increased 5% year over year to $173.9 million. Segment pricing was up 9% overall. In highway pricing was up 8%, and C&I pricing was up 6%.

Peter Fjellman: Segment pricing was up 9% overall, highway pricing was up 8%, and C&I pricing was up 6%. Highway sales volumes declined 6%, while C&I volumes increased 3%. Salt adjusted EBITDA was $38.9 million for the quarter, down 15%, and operating earnings decreased 25% to $21.2 million. The decline reflects lower highway sales volumes and higher per unit production and distribution costs within the segment, partially offset by the pricing gain.

Speaker #2: Highway sales volumes declined 6%, while C&I volumes increased 3%. Salt adjusted EBITDA was $38.9 million for the quarter, down 15%. Operating earnings decreased 25% to $21.2 million.

Speaker #2: The decline reflects lower highway sales volumes and higher per unit production and distribution costs within the segment. Partially offset by the pricing gains. In plant nutrition, revenue was $37.6 million for the quarter, down 16%, compared to the prior year period.

Peter Fjellman: In Plant Nutrition, revenue was $37.6 million for the quarter, down 16% compared to the prior year period. The decrease is primarily driven by a 19% decrease in sales volumes attributable to the Windward SOP asset sale in March 2026, partially offset by a 4% increase in average sales prices. Excluding the impact of the Windward sales volumes increase approximately 4% year over year. Despite the sale, operating earnings were $7.8 million, up 50% from $5.2 million a year ago. Adjusted EBITDA improved 32% to $15 million from $11.4 million. Both product costs and distribution costs declined on a per unit basis year over year, driving the margin expansion at Ogden that Ed described earlier. Turning to cash flow and the balance sheet, operating cash flow for the first 9 months was $162.8 million, compared to $204.6 million in the prior year period.

Speaker #2: The decrease is primarily driven by a 19% decrease in sales volumes attributable to the windward SOP asset sale in March 2026, partially offset by a 4% increase in average sales prices.

Speaker #2: Excluding the impacts of the windward sales volumes increased approximately 4% year over year. Despite the sale, operating earnings were $7.8 million up 50% from $5.2 million a year ago.

Speaker #2: Adjusted EBITDA improved 32% to $15.0 million from $11.4 million. Both product costs and distribution costs declined on a per unit basis year over year.

Peter Fjellman: Adjusted EBITDA improved 32% to $15 million from $11.4 million. Both product costs and distribution costs declined on a per unit basis year over year, driving the margin expansion at Ogden that Ed described earlier. Turning to cash flow and the balance sheet, operating cash flow for the first 9 months was $162.8 million, compared to $204.6 million in the prior year period. Capital expenditures for 9 months totaled $62.1 million, compared to the $53.8 million in the prior year, reflecting planned investments across our operations.

Speaker #2: Driving the margin expansion at Ogden that Ed described earlier. Turning to cash flow and the balance sheet, operating cash flow for the first nine months was $162.8 million, compared to $204.6 million in the prior year period.

Speaker #2: Capital expenditures for nine months totaled $62.1 million, compared to the 53.8 million in the prior year, reflecting planned investments across our operations. Total debt as of June 30th was $716.6 million, down from $825.3 million a year ago.

Peter Fjellman: Capital expenditures for 9 months totaled $62.1 million, compared to the $53.8 million in the prior year, reflecting planned investments across our operations. Total debt as of 30 June was $716.6 million, down from $825.3 million a year ago. Net debt was $660.3 million, a reduction of $85.6 million year over year. Total liquidity was $328.1 million, consisting of $56.3 million in cash and $271.8 million of availability under our revolving credit facility. As Ed noted, our net leverage ratio improved to 2.8 times from 4.3 times a year ago. Now let me walk you through our updated fiscal 2026 outlook. We are raising our full-year consolidated adjusted EBITDA guidance midpoint to $230 million, with a range of $218 to 242 million.

Peter Fjellman: Total debt as of 30 June was $716.6 million, down from $825.3 million a year ago. Net debt was $660.3 million, a reduction of $85.6 million year over year. Total liquidity was $328.1 million, consisting of $56.3 million in cash and $271.8 million of availability under our revolving credit facility. As Ed noted, our net leverage ratio improved to 2.8 times from 4.3 times a year ago. Now let me walk you through our updated fiscal 2026 outlook. We are raising our full-year consolidated adjusted EBITDA guidance midpoint to $230 million, with a range of $218 to 242 million.

Speaker #2: Net debt was $660.3 million, a reduction of 85.6 million year over year. Total liquidity was $328.1 million, consisting of $56.3 million in cash and $271.8 million of availability under our revolving credit facility.

Speaker #2: As Ed noted, our net leverage ratio improved to 2.8 times from 4.3 times a year ago. Now let me walk you through our updated fiscal 2026 outlook.

Speaker #2: We are raising our full year consolidated adjusted EBITDA guidance midpoint to $230 million, with a range of $218 million to $242 million. In plant nutrition, we're raising segment adjusted EBITDA guidance to a range of $49 million to $57 million.

Peter Fjellman: In Plant Nutrition, we're raising segment adjusted EBITDA guidance to a range of $49 to 57 million, up from $43 to 47 million previously, primarily reflecting the continued strength in our pricing and cost performance at Ogden. In Salt, our current adjusted EBITDA guidance range is $225 to 236 million, narrowed from $225 to 240 million previously to reflect the mix dynamic, inflationary pressures, and the pace of operational improvements that Ed previously discussed. Our expectations for corporate and other costs remain unchanged in the range of $51 to 56 million for the full year, along with full-year capital expenditures in the range of $90 to 110 million. In closing, I'd like to note that we are in a stronger financial position and Plant Nutrition is outperforming our expectations.

Speaker #2: Up from $43 to $47 million previously. Primarily reflecting the continuous strength in our pricing and cost performance at Ogden. In salt, our current adjusted EBITDA guidance range is $225 million to $236 million.

Speaker #2: Narrowed from $225 million to $240 million previously, to reflect the mixed dynamics, inflationary pressures, and the pace of operational improvements that Ed previously discussed. Our expectations for corporate and other costs remain unchanged in the range of $51 million to $56 million for the full year, along with full-year capital expenditures in the range of $90 million to $110 million.

Peter Fjellman: Our expectations for corporate and other costs remain unchanged in the range of $51 to 56 million for the full year, along with full-year capital expenditures in the range of $90 to 110 million. In closing, I'd like to note that we are in a stronger financial position and Plant Nutrition is outperforming our expectations. Salt pricing and demand remain very constructive, we are laser focused on converting operational work at Goderich and sustainable cost improvement across the platform.

Speaker #2: In closing, I'd like to note that we are in a stronger financial position in plant nutrition, as we are outperforming our expectations. Salt pricing and demand remain very constructive, and we are laser-focused on converting operational work at Godrej into sustainable cost improvement across the platform.

Peter Fjellman: Salt pricing and demand remain very constructive, we are laser focused on converting operational work at Goderich and sustainable cost improvement across the platform. We are also continuing to deploy capital with discipline, including reducing leverage where it makes sense. That concludes our prepared remarks. Operator, we're ready to take some questions.

Speaker #2: We are also continuing to deploy capital with discipline, including reducing leverage where it makes sense. That concludes our prepared remarks. Operator, we're ready to take some questions.

Peter Fjellman: We are also continuing to deploy capital with discipline, including reducing leverage where it makes sense. That concludes our prepared remarks. Operator, we're ready to take some questions.

Speaker #1: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand.

Operator 3: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Your first question comes from the line of Joel Jackson with BMO Capital Markets. Your line is open. Please go ahead. A gentle reminder to unmute locally.

Operator: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Your first question comes from the line of Joel Jackson with BMO Capital Markets. Your line is open. Please go ahead. A gentle reminder to unmute locally.

Speaker #1: To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Speaker #1: If you are muted locally, please remember to unmute your device. Your first question comes from the line of Joel Jackson with BMO Capital Markets.

Speaker #1: Your line is open. Please go ahead. A gentle reminder to unmute locally.

Speaker #3: Sorry, I was muted. Thanks for taking my question. Just thinking about your guidance around busy season and early into '27 here, when we think about how well salt this season's going, Rockwell Baltic busy season's going here, does that imply when we think about your entire business maybe high single-digit price growth next year, maybe mid to high?

Joel Jackson: Sorry, I was muted. Thanks for taking my question. Just thinking about your guidance around bid season early in 2027 here. When you think about how well salt bid season's going, rock salt bid season's going here, does that imply when you think about your entire business, maybe high single-digit price growth next year, maybe mid to high? It seems like you're saying that base volumes might be a little bit lower if you get normalized weather, what you're actually going to sell. What are costs looking like in 2027? Should we see costs up a little? It's really thinking about more net back expansions here when you think about price versus cost. Thanks.

Speaker #3: It seems like you're saying that volumes might be a little bit lower. If you get normalized weather, what you're actually going to sell, and then what are costs looking like in '27?

Joel Jackson: What are costs looking like in 2027? Should we see costs up a little? It's really thinking about more net back expansions here when you think about price versus cost. Thanks.

Speaker #3: Should we see costs up a little, it's really speaking about more net back expansions here when you think about price versus cost things.

Speaker #4: Good morning, Joel. Nice to hear your voice when you're unmuted. I appreciate the question. The busy season's been really great, really based on the previous winter and the inventory management and discipline that have been established in the market.

Edward C. Dowling Jr.: Good morning, Joel. Nice to hear your voice when you're unmuted. Appreciate the question. The bid season's been really great, really based on the previous winter and really the inventory management discipline have been established in the market. Most of the bids, of course, are transparent and we see a wide range of outcomes depending on where you are. Our focus has really been to really dive in and really try to serve those markets who we maximize our margin with and not trying to serve everything everywhere, albeit we do try to spread it out just because you never know exactly where winter's going to be. It'd be safe to say, overall, we're around double digits in price increase. Okay. With regard to looking at costs, et cetera, going forward, this is an important point. We're working really hard on our mine costs.

Edward Dowling: Good morning, Joel. Nice to hear your voice when you're unmuted. Appreciate the question. The bid season's been really great, really based on the previous winter and really the inventory management discipline have been established in the market. Most of the bids, of course, are transparent and we see a wide range of outcomes depending on where you are.

Speaker #4: Most of the bids, of course, are transparent, and we see a wide range of outcomes depending on where you are. Our focus has really been to dive in and try to serve those markets where we can maximize our margin.

Edward Dowling: Our focus has really been to really dive in and really try to serve those markets who we maximize our margin with and not trying to serve everything everywhere, albeit we do try to spread it out just because you never know exactly where winter's going to be. It'd be safe to say, overall, we're around double digits in price increase. Okay. With regard to looking at costs, et cetera, going forward, this is an important point. We're working really hard on our mine costs. We've got this fantastic mine, Goderich mine, the world's largest underground salt mine.

Speaker #4: And not trying to serve everything everywhere, albeit we do try to spread it out just because you never know exactly where winter's going to be.

Speaker #4: It'd be safe to say, overall, we're kind of around double digits in price increase. Okay? With regard to looking at cost, etc., going forward, this is an important point.

Speaker #4: We're working really hard on our mine costs. We've got this fantastic mine on Godrej Mine, the world's largest underground salt mine. And the cost production is up.

Edward C. Dowling Jr.: We've got this fantastic mine, Goderich mine, the world's largest underground salt mine. The production is up, costs are down, these are unit costs, are down. On the logistics side, we're battling fuel and truck carrier a bit, but we're laser focused on this. We'll provide guidance in Q4.

Edward Dowling: The production is up, costs are down, these are unit costs, are down. On the logistics side, we're battling fuel and truck carrier a bit, but we're laser focused on this. We'll provide guidance in Q4.

Speaker #4: Costs are down. These unit costs are down. On the logistics side, we're battling fuel and truck carrier a bit. But we're laser-focused on this.

Speaker #4: We'll provide guidance in the fourth quarter.

Speaker #3: Okay. But it seemed like, in your prepared remarks, you were speaking about what you would expect with normal weather— that '27 volumes' could be lower, based on the reasons you gave.

Joel Jackson: Okay. It seemed like in your prepared remarks, you were speaking about you would expect with normal weather that 2027 volume could be lower based on the reads you gave. Just also, Ed, there's been a lot of churn at the CEO level at Compass the last number of years, and you have a lot of objectives, Ed, that you came in with, right? Lower costs. You had a lot of things you did, working capital management, inventory management. Things weren't great when you took over a few years ago, and you've got some aggressive targets on costs. Like I said, you've had a lot of churn at the CEO level, and you're talking about delaying some of the decisions on the mill project and not getting the costs as fast as you wanted. I can't help but think it's all tied together.

Speaker #3: And then just also, you know, Ed, there's been a lot of churn at the CEO level at COMPASS the last number of years, and you have a lot of objectives at that you came in with, right?

Speaker #3: Lower costs. You had a lot of things. Did you work in capital management, inventory management? Things weren't great when you took over a few years ago.

Speaker #3: And you've got some aggressive targets on costs. But like I said, you've had a lot of churn at the CEO level. And you're talking about delaying some of the decisions on the mill project, not getting the costs as fast as you wanted.

Joel Jackson: Like I said, you've had a lot of churn at the CEO level, and you're talking about delaying some of the decisions on the mill project and not getting the costs as fast as you wanted. I can't help but think it's all tied together. Can you sort of speak about your journey here and what has to get done to achieve what you want to do?

Speaker #3: I can't help but think it's all tied together. Can you sort of speak about your journey here and what has to get done to achieve what you want to do?

Joel Jackson: Can you sort of speak about your journey here and what has to get done to achieve what you want to do?

Speaker #4: Yeah. Look, appreciate the question. First of all, let me just say we're very grateful for Pat and the service. And wish them the best in the future.

Edward C. Dowling Jr.: Yeah, look, appreciate the question. First of all, let me just say we're very grateful for Pat and his service and wish him the best in the future. This is Pat Merrin. We're really pushing hard, and we need to have an organization that's really fit for purpose. We're really focused on our costs. Brandon Risner, Joel, I don't know whether you've had a chance to meet him yet, but we'll make sure you do. Brandon has been leading the efforts with Plant Nutrition, which is a fantastic story for the company. In addition, he's been our operational leader in our C&I product line and also done a really good job in increasing the earnings from that part of our business. Even before, he brings a history of success, whether it was in Compass.

Edward Dowling: Yeah, look, appreciate the question. First of all, let me just say we're very grateful for Pat and his service and wish him the best in the future. This is Pat Merrin. We're really pushing hard, and we need to have an organization that's really fit for purpose. We're really focused on our costs. Brandon Risner, Joel, I don't know whether you've had a chance to meet him yet, but we'll make sure you do. Brandon has been leading the efforts with Plant Nutrition, which is a fantastic story for the company.

Speaker #4: This is Pat Marin. What we're really pushing hard and we need to have an organization that's really fit for purpose. And we're really focused on our costs.

Speaker #4: Brendan Reisner, Joel, I don't know whether you've had a chance to meet him yet, but we'll make sure you do. But Brendan has been leading the efforts with plant nutrition.

Speaker #4: Which is a fantastic story for the company. In addition, he's been our operational leader in our CNI product line and also done a really good job in increasing the earnings from that part of our business.

Edward Dowling: In addition, he's been our operational leader in our C&I product line and also done a really good job in increasing the earnings from that part of our business. Even before, he brings a history of success, whether it was in Compass. He's the guy that started really the way we look at capital allocation for capital investments, project capital investment, and even before that with Peabody, with great track record of operational improvements and just that's what we need right now.

Speaker #4: And even before, he brings a history of success, whether it was in COMPASS. He's the guy that started, really, the way we look at capital allocation for capital investment.

Edward C. Dowling Jr.: He's the guy that started really the way we look at capital allocation for capital investments, project capital investment, and even before that with Peabody, with great track record of operational improvements and just that's what we need right now. As much as I like Pat, the needs of the company are more important than any individual. That's what we're doing. With regard to the project, it'd be one thing if we were building this mill in a parking lot and it'd be pretty easy. Given the fact that we're doing this in an operating underground mine and with all materials, everything coming down the same shaft as our operating people and our operating materials, it's very complex.

Speaker #4: Project capital investment. And even before that, with Peabody, he's a great track record of operational improvements. And just that's what we need right now.

Speaker #4: And so as much as I like Pat, the needs of the company are more important than any individual. So that's what we're doing. With regard to the project, it'd be one thing if we're building this mill in a parking lot and it'd be pretty easy.

Edward Dowling: As much as I like Pat, the needs of the company are more important than any individual. That's what we're doing. With regard to the project, it'd be one thing if we were building this mill in a parking lot and it'd be pretty easy. Given the fact that we're doing this in an operating underground mine and with all materials, everything coming down the same shaft as our operating people and our operating materials, it's very complex.

Speaker #4: But given the fact that we're doing this in an operating underground mine, and with all materials—everything—coming down the same shaft as our operating people and our operating materials, it's very complex.

Speaker #4: And so, we need to make sure that we have a very high degree of front-end loading in terms of our engineering, our project execution plan, and all of the logistics that go around that.

Edward C. Dowling Jr.: We need to make sure that we have a very high degree of front-end loading in terms of our engineering, our project execution plan, all of the logistics that go around that. We have a rock solid owners team. We really need to put this all in place before I'm ready to take it to the board of directors. I think I hit your points, Joel.

Edward Dowling: We need to make sure that we have a very high degree of front-end loading in terms of our engineering, our project execution plan, all of the logistics that go around that. We have a rock solid owners team. We really need to put this all in place before I'm ready to take it to the board of directors. I think I hit your points, Joel.

Speaker #4: We have a rock solid owner's team. And we really need to put this all in place before I'm ready to take it to the board of directors.

Speaker #4: I think I hit your points, Joel.

Speaker #3: Thank you.

Joel Jackson: Thank you.

Speaker #1: As a final reminder, if you would like to ask a question, please press star one will now go to David Silver of Freedom Capital Markets, your line is open.

Operator 3: As a final reminder, if you would like to ask a question, please press star one. We'll now go to David Silver of Freedom Capital Markets. Your line is open. Please go ahead.

Operator: As a final reminder, if you would like to ask a question, please press star one. We'll now go to David Silver of Freedom Capital Markets. Your line is open. Please go ahead.

Speaker #1: Please go ahead.

Speaker #3: Questions here maybe. Let's just start with the progress at plant nutrition. So first of all, I mean, congratulations. I mean, there's especially most recently, there's been a significant kind of step down in cash costs, I'll call it.

David Silver: Questions here. Maybe let's just start with the progress at Plant Nutrition. First of all, congratulations. Especially most recently, there's been a significant kind of step down in cash costs, I'll call it. To achieve those, I had a couple of questions. To what extent is the plan there to just rely on pond-based tons? How much of maybe the bottom line progress to date has been from supplementing with purchased potash? Then maybe bigger picture, again, my models go back more than a decade here. Is the progress to date, maybe, would you say it reflects kind of getting back to the operating environment that was in effect, let's say, in the late 2010s or very early 2020s? Or is there something qualitatively different being done to kind of significantly boost the per ton economics, production economics?

Speaker #3: But to achieve those, I had a couple of questions. To what extent is the plan there to just rely on pond-based tons? And how much of maybe the bottom line progress to date has been from supplementing with purchased potash?

Speaker #3: And then maybe bigger picture—again, my models go back more than a decade here—but would you say that the progress to date maybe reflects kind of getting back to the operating environment that was in effect, let's say, in the late 2010s or very early 2020s?

David Silver: Is the progress to date, maybe, would you say it reflects kind of getting back to the operating environment that was in effect, let's say, in the late 2010s or very early 2020s? Or is there something qualitatively different being done to kind of significantly boost the per ton economics, production economics?

Speaker #3: Or is there something qualitatively different being done to kind of significantly boost the per ton economics production economics?

Speaker #4: Okay. David, thanks. Great question. Look, it's been a fantastic story for the company in terms of the restoration of that business to where it really should be.

Edward C. Dowling Jr.: Okay. David, thanks. Great question. Look, it's been a fantastic story for the company in terms of the restoration of that business to where it really should be. Recognize that before when we reported Plant Nutrition also included our Wolf Trax up at

Edward Dowling: Okay. David, thanks. Great question. Look, it's been a fantastic story for the company in terms of the restoration of that business to where it really should be. Recognize that before when we reported Plant Nutrition also included our Wolf Trax up at

Speaker #4: And recognize that before, when we reported plant nutrition, also included our vineyard mine up in.

David Silver: Vineyard

Speaker #3: Vineyards.

Speaker #4: These results are without. And so it's really a great story for our Utah partners and our colleagues out there in terms of restoring this business.

Edward C. Dowling Jr.: these results are without it. It's really a great story for our Utah partners and our colleagues out there in terms of restoring this business. There's more to go because as you know, we're executing the dryer compaction plant where we have a lot of yield loss there. We're executing a project there, which will be done about this time next year, to really make a better product. We'll see additional yield come from that. Well, that'll happen at a lower cost. Basically, it's an incremental cost. We either put the product in today, we either put the product into what we sell or it blows away as dust. That's not quite the right way to say it, but we lose it. We'll capture that going forward, and we'll produce a much higher quality product for our customer base.

Edward Dowling: these results are without it. It's really a great story for our Utah partners and our colleagues out there in terms of restoring this business. There's more to go because as you know, we're executing the dryer compaction plant where we have a lot of yield loss there. We're executing a project there, which will be done about this time next year, to really make a better product. We'll see additional yield come from that. Well, that'll happen at a lower cost.

Speaker #4: To and there's more to go. Because we're, as you know, we're executing a the drier compaction plant where we lose we have a lot of yield loss there.

Speaker #4: We're executing a project there, which will be done about this time next year, to really make a better product. So we'll see additional yield come from that.

Speaker #4: That'll happen at a lower cost. Basically, it's an incremental cost. We'll either put the product in today, either put the product into what we sell or blows away as dust.

Edward Dowling: Basically, it's an incremental cost. We either put the product in today, we either put the product into what we sell or it blows away as dust. That's not quite the right way to say it, but we lose it. We'll capture that going forward, and we'll produce a much higher quality product for our customer base. The improvement, we expect that to continue to improve, at least through We should start seeing that about this time next year. Let's see. In terms of the last part of your question, I wasn't here 10 years ago, we restored the outcomes to that.

Speaker #4: And that's not quite the right way to say it, but we lose it. But we'll capture that going forward, and we'll produce a much higher-quality product for our customer base.

Speaker #4: So the improvement, we expect that to continue to improve. At least through and we should start seeing that about this time next year. Let's see.

Edward C. Dowling Jr.: The improvement, we expect that to continue to improve, at least through We should start seeing that about this time next year. Let's see. In terms of the last part of your question, I wasn't here 10 years ago, we restored the outcomes to that. The answer to that is if that got that back to where it was, the answer to that is yes. Are you doing anything different? The answer to that is yes, too. It's the way that we manage or harvest the tons, and Brandon, for example, led that. It's the way that we manage that from a stockpile into the plant, really reducing variability in the plant. It's some things that we've done within the plant itself, to improve recovery, beyond sort of historical levels.

Speaker #4: In terms of the last part of your question, I wasn't here 10 years ago, but we restored the outcomes to that. But really, the answer to that is we got that back to where it was.

Edward Dowling: The answer to that is if that got that back to where it was, the answer to that is yes. Are you doing anything different? The answer to that is yes, too. It's the way that we manage or harvest the tons, and Brandon, for example, led that. It's the way that we manage that from a stockpile into the plant, really reducing variability in the plant. It's some things that we've done within the plant itself, to improve recovery, beyond sort of historical levels. It's really a number of things that we've done to make this improvement over and above the success the company had in the past.

Speaker #4: Answer that, yes. But are you doing anything different? The answer to that, yes too. And it's a way that we manage our harvest the tons and Brendan, for example, led that.

Speaker #4: It's a way that we manage that from a stockpile into the plant, really reducing variability in the plant. It's some things that we've done within the plant itself to improve recovery.

Speaker #4: Beyond sort of historical levels. So it's really a number of things that we've done to make this improvement over and above the success the company had in the past.

Edward C. Dowling Jr.: It's really a number of things that we've done to make this improvement over and above the success the company had in the past.

Speaker #3: And then maybe just a comment on the plan to supplement pond-based tons with purchased potash. Or just yeah. Thank you.

David Silver: Maybe just a comment on the plan to supplement pond-based tons with purchased potash.

Edward C. Dowling Jr.: Oh, yeah. Sorry

Edward Dowling: Oh, yeah. Sorry

David Silver: Just Yeah. Thank you.

Speaker #4: Yeah. Thank you. Thanks, David. Yeah, we are thanks for reminding me of that. We are supplementing this year with KCL. And we never really guided on this.

Edward C. Dowling Jr.: Yeah. Thanks, David. Thanks for reminding me that. We are supplementing this year with KCL, and we've never really guided on this, but I think from your thinking, our plan is to do about the same amount next year. Okay?

Edward Dowling: Yeah. Thanks, David. Thanks for reminding me that. We are supplementing this year with KCL, and we've never really guided on this, but I think from your thinking, our plan is to do about the same amount next year. Okay?

Speaker #4: But I think from your thinking, we'll be our plan is to do about the same amount next year. Okay?

Speaker #3: Yeah, David, this has been, and just to add to what Ed said, the utilization of MOP in our process is always going to be a part of what we do.

Ben Nichols: Yeah, David, this is Ben. Just to add to what Ed said, the utilization of MOP in our process is always gonna be a part of what we do. I think to Ed's point, what we're doing differently is we better understand the leading indicators on the chemistry of the pond. Our ability to flex that utilization and that cost profile is much tighter than it has been historically, hence the confidence in where we're headed.

Speaker #3: I think to Ed's point, what we're doing differently is we better understand the leading indicators on the chemistry of the pond. And so our ability to flex that utilization and that cost profile is much tighter than it has been historically.

Speaker #3: And so that's hence the confidence in where we're headed. Okay, great. I'd like to ask you I guess maybe more of a I don't know, philosophical question about the bid season results to date.

David Silver: Okay, great. I'd like to ask you, I guess maybe more of a, I don't know, philosophical question about the bid season results to date. I always assume that your company probably has pretty much encyclopedic knowledge of your marketing areas and bid histories and competitor tendencies and things like that. Based on the mostly qualitative discussion thus far, it seems like you've identified some pockets where either volume or price or both can be pushed a little more. Further, last point, my assumption is that to a certain extent, you are responding to what you see in the bid season results to date. In other words, competitor behavior. For the balance of the bid season, which should be mostly done, I guess, by September, is this the case where you'll be able to bid a little more aggressively for the balance of the season?

Speaker #3: But I always assume that your company probably has pretty much encyclopedic knowledge of your marketing areas, bid histories, and competitor tendencies, and things like that.

Speaker #3: And based on the mostly qualitative discussion thus far, I mean, it seems like you’ve identified some pockets where either volume or price, or both, can be pushed a little more.

Speaker #3: And further, last point, my assumption is that to a certain extent, you are responding to what you see in the bid season results to date.

David Silver: Further, last point, my assumption is that to a certain extent, you are responding to what you see in the bid season results to date. In other words, competitor behavior. For the balance of the bid season, which should be mostly done, I guess, by September, is this the case where you'll be able to bid a little more aggressively for the balance of the season? Are you maybe altering or, what's the word, structuring your bidding profile, both tons and price, based on your mining plan? In other words, what's going into your kind of virtual or in season kind of bidding strategy?

Speaker #3: In other words, competitor behavior. So for the balance of the bid season, which should be mostly done, I guess, next by September, is this the case where you'll be able to bid a little more aggressively for the balance of the season?

Speaker #3: Or are you maybe altering—or, what's the word—structuring your bidding profile, both tons and price, based on your mining plan? In other words, what's going into your kind of virtual or in-season bidding strategy?

David Silver: Are you maybe altering or, what's the word, structuring your bidding profile, both tons and price, based on your mining plan? In other words, what's going into your kind of virtual or in season kind of bidding strategy?

Speaker #4: Okay, let me try to field that, and I'll have Ben help me out as well. We do have a deep understanding of our markets and really the distribution network—really looking at our focus in terms of, every year, we come up with a bid strategy.

Edward C. Dowling Jr.: Okay. Let me try to field that, and I'll have Ben help me out as well. We do have a deep understanding of our markets and really the distribution network, really looking at our focus in terms of our. Every year we come up with a bid strategy. Part of our strategy this year was to really maximize the margins, recognizing that the market was really tight. Where do we really want to serve that we can maximize our margins? That's really what we've been doing. That's sort of delivered cost subtracted from the price. That's worked out well. We'll see what winter does and how we're able to bring that home, as you know that we have the variability due to mix and regional sales.

Edward Dowling: Okay. Let me try to field that, and I'll have Ben help me out as well. We do have a deep understanding of our markets and really the distribution network, really looking at our focus in terms of our. Every year we come up with a bid strategy. Part of our strategy this year was to really maximize the margins, recognizing that the market was really tight. Where do we really want to serve that we can maximize our margins? That's really what we've been doing. That's sort of delivered cost subtracted from the price. That's worked out well.

Speaker #4: Part of our strategy this year was to really maximize the margins, focusing on recognizing that the market was really tight. Where do we really want to serve so that we can maximize our margins?

Speaker #4: And that's really what we've been—that's what we've really been doing. So that's sort of delivered cost subtracted from the price, and that's worked out well.

Speaker #4: And we'll see what winter does. And how we're able to bring that home is that we have the variability due to mix and regional sales.

Edward Dowling: We'll see what winter does and how we're able to bring that home, as you know that we have the variability due to mix and regional sales. Our focus at this point, we're largely through our big state contracts, albeit there's still some states that are coming back and rebidding areas that they weren't able to fill. There shouldn't be any surprise about that. Largely our focus right now are really our commercial customers, which we should be wrapping up in the next couple of weeks. Ben, you want to add something to that?

Speaker #4: But the our focus at this point, we're largely through our big state contracts. Albeit there's still some states that are coming back and rebidding areas that they weren't able to fill.

Edward C. Dowling Jr.: Our focus at this point, we're largely through our big state contracts, albeit there's still some states that are coming back and rebidding areas that they weren't able to fill. There shouldn't be any surprise about that. Largely our focus right now are really our commercial customers, which we should be wrapping up in the next couple of weeks. Ben, you want to add something to that?

Speaker #4: There shouldn't be any surprise about that. The and largely our focus right now are really our commercial customers which we should be wrapping up in the next couple of weeks.

Speaker #4: Ben, you want to add something to that?

Speaker #3: No, yeah. Thanks, Ed. And David, thanks for the question. I think going into this bid season, our overwhelming focus was the value of our product in the market and coming off of a season.

Ben Nichols: No. Yeah, thanks, Ed, and David, thanks for the question. I think, going into this bid season, our overwhelming focus was the value of our product in the market, coming off of a big winter like the last season, we were excited to see the market had a renewed understanding of how important our product is relative to public safety. Focus number one was value of every ton that we sell. In addition to that, we've spent a lot of time working with our key customers on our terms and ensuring that the way we operate our business fits the terms that we need, specifically around minimum takes and having a higher level of confidence in what we commit and what's going to move through the pipeline. We're really excited about the results we've seen.

Speaker #3: We were excited to see the market had a renewed understanding of how important our product is relative to public safety. And so focus number one was value of every ton that we sell.

Speaker #3: In addition to that, we've spent a lot of time working with our key customers on our terms and ensuring that the way we operate our business fits the terms that we need, specifically around minimum takes and having a higher level of confidence in what we commit and what's going to move through the pipeline.

Ben Nichols: In addition to that, we've spent a lot of time working with our key customers on our terms and ensuring that the way we operate our business fits the terms that we need, specifically around minimum takes and having a higher level of confidence in what we commit and what's going to move through the pipeline. We're really excited about the results we've seen. The market has a lot of momentum, we're looking forward to the next season.

Speaker #3: So we're really excited about the results we've seen. The market has a lot of momentum and we're looking forward to the next season. Okay.

Ben Nichols: The market has a lot of momentum, we're looking forward to the next season.

David Silver: Okay, one last one, maybe kind of a clarification on how you're thinking about the looming tariffs on Canadian shipments to the US. I don't know. I guess a little over a year ago, there was another round of tariffs that were going to impact cross-border trade, Canada and the US. It turned out, I guess, because of the essential nature of the products or other steps that you or others took, those tariffs were kind of negated. They didn't apply to Goderich shipments to the US. Is there something qualitatively different about this round of tariffs? In other words, what has to happen for a repeat? In other words, the cross-border trade from Goderich not being impacted by this latest announced round of tariffs.

Speaker #3: And then one last one, maybe just a clarification on how you're thinking about the looming tariffs on Canadian shipments to the U.S. But I don't know.

Speaker #3: I guess a little over a year ago, there was another round of tariffs that were going to impact cross-border trade Canada and the US.

Speaker #3: And it turned out, I guess, because of the essential nature of the products or other steps took, those tariffs were kind of negated. They didn't apply to gutterage shipments to the US.

Speaker #3: Is there something qualitatively different about this round of tariffs? In other words, what has to happen for a repeat? In other words, the cross-border trade from gutterage not being impacted by this latest announced round of tariffs?

David Silver: In other words, what has to happen for a repeat? In other words, the cross-border trade from Goderich not being impacted by this latest announced round of tariffs.

Speaker #4: Yeah. The real difference from a year ago to today from the tariff standpoint is the USMCA, the United States Mexico Canada Trade Agreement, where certain cross-border materials etc.

Edward C. Dowling Jr.: Yeah. The real difference from a year ago to today, from the tariff standpoint, is the USMCA, the United States-Mexico-Canada Agreement, where certain cross-border materials, et cetera, were exempted from tariffs and things like that. Once that was clarified a year ago, or more than a year ago, a year and a quarter ago, we really just started up the ramp-up at Goderich Mine. What's also different is recognize that potential exposure our commercial team and the company here has been working on, how do we minimize the impact on the company if something like that happens again? Ben and his team have been really looking at contract terms. He just mentioned terms of the market, how we're trying to tighten up min-maxes and those sort of things and having success on that.

Edward Dowling: Yeah. The real difference from a year ago to today, from the tariff standpoint, is the USMCA, the United States-Mexico-Canada Agreement, where certain cross-border materials, et cetera, were exempted from tariffs and things like that. Once that was clarified a year ago, or more than a year ago, a year and a quarter ago, we really just started up the ramp-up at Goderich Mine.

Speaker #4: were exempted from tariffs and things like that. And so once that so once that was clarified a year ago or more than a year ago, a year and a quarter ago, we really just started up the ramp up at gutterage mine.

Speaker #4: What's also different is recognize that potential exposure our commercial team and the company here has been working on how do we minimize the impact on the company of something like that happens again.

Edward Dowling: What's also different is recognize that potential exposure our commercial team and the company here has been working on, how do we minimize the impact on the company if something like that happens again? Ben and his team have been really looking at contract terms. He just mentioned terms of the market, how we're trying to tighten up min-maxes and those sort of things and having success on that. Really being able to pass through costs like this to customers has really been the focus. We understand the exposure.

Speaker #4: And so Ben and his team have been really looking at contract terms. He just mentioned terms of the market, how we're trying to tighten up min-maxes and those sort of things and having success on that.

Speaker #4: But really being able to pass through costs like this to customers is really been the focus. And so we understand exposure. We look at we've looked at ways to mitigate that.

Edward C. Dowling Jr.: Really being able to pass through costs like this to customers has really been the focus. We understand the exposure. We've looked at ways to mitigate that, and a big part of that has been mitigated. We continue to work to try to really underscore the message to the government about we have this great, amazing asset in Ontario, which is critical to interstate commerce, public safety in the United States, and that the market in the United States cannot be fully served without Goderich Mine, and that it is a truly essential and critical mineral for our economies, and we're highly engaged in that effort right now.

Edward Dowling: We've looked at ways to mitigate that, and a big part of that has been mitigated. We continue to work to try to really underscore the message to the government about we have this great, amazing asset in Ontario, which is critical to interstate commerce, public safety in the United States, and that the market in the United States cannot be fully served without Goderich Mine, and that it is a truly essential and critical mineral for our economies, and we're highly engaged in that effort right now.

Speaker #4: And a big part of that has been mitigated. We continue to work to try to really underscore the message to the government about we have this great amazing asset in Ontario which is critical to interstate commerce, public safety, in the United States.

Speaker #4: And that the market in the United States cannot be served without gutterage mine, fully served without gutterage mine. And that it is a truly essential and critical mineral.

Speaker #4: For our economies and we're highly engaged in that effort right now.

Speaker #3: Okay. Great. And I'm just going to sneak one last one in if that's okay. But this relates to the outlook and guidance for the salt segment in particular for 2026.

David Silver: Okay, great. I'm just going to sneak one last one in, if that's okay. This relates to the outlook and guidance for the salt segment, in particular for 2026. I'll just say, for the highway deicing volumes, you did bump up the low end of your guidance range by 150,000 tons. Should I assume that that's all just going to be pre-buy or pre-season shipment increases from your mid-season customers, or is there some chemical volume in there or something else? Just kind of unusual for the highway salt volumes to move up Q3 to Q4. Just a comment on that, please.

Speaker #3: And I'll just say for the highway de-icing volumes, you did bump up the low end of your guidance range by 150,000 tons. Should I assume that that's all just going to be pre-buy or pre-season shipment increases from your bid season customers or is there some chemical volume in there or something else?

Speaker #3: But just kind of unusual for the salt volume the highway salt volumes to move up third quarter to fourth quarter.

Speaker #4: Yeah.

Speaker #3: Just to comment on that, please.

Speaker #4: Yeah. We don't really talk about that sort of stuff generally. But what we're doing is remember our warehousing where many of them were scraped clean last year.

Edward C. Dowling Jr.: We don't really talk about that sort of stuff generally. What we're doing is, remember, our warehousing, many of them were scraped clean last year. Been a long time since that's happening. We're really part of normal course of business here. We're working very hard to reestablish inventories where they need to be to serve the contracts that we've committed to. There's really nothing unusual about that in our plan here.

Edward Dowling: We don't really talk about that sort of stuff generally. What we're doing is, remember, our warehousing, many of them were scraped clean last year. Been a long time since that's happening. We're really part of normal course of business here. We're working very hard to reestablish inventories where they need to be to serve the contracts that we've committed to. There's really nothing unusual about that in our plan here.

Speaker #4: It's been a long time since that's happening. And so we're really trying our normal course of business here. We're working very hard to reestablish inventories where they need to be to serve the contracts.

Speaker #4: That we've committed to. And so there's really nothing unusual about that in our plan here.

Speaker #3: Okay. Great. Thank you very much. Appreciate

David Silver: Okay, great. Thank you very much. Appreciate it.

Speaker #4: Okay. You too, David.

Edward C. Dowling Jr.: Yeah, you too, David.

Edward Dowling: Yeah, you too, David.

Speaker #2: There appear to be no further questions. I will now turn the call back to Ed Dowling for closing remarks.

Operator 3: There appear to be no further questions. I will now turn the call back to Ed Dowling for closing remarks.

Operator: There appear to be no further questions. I will now turn the call back to Ed Dowling for closing remarks.

Speaker #4: Okay. Thank you all for joining us. And we're excited about the future here at COMPASS MINERALS. And we look forward to speaking to you again when we have a chance to catch up.

Edward C. Dowling Jr.: Okay. Thank you all for joining us. We're excited about the future here at Compass Minerals. We look forward to speaking to you again when we have a chance to catch up. We have a number of investor calls coming up. I'm sure we'll be chatting with many of you here over the next couple of days. Thanks very much.

Edward Dowling: Okay. Thank you all for joining us. We're excited about the future here at Compass Minerals. We look forward to speaking to you again when we have a chance to catch up. We have a number of investor calls coming up. I'm sure we'll be chatting with many of you here over the next couple of days. Thanks very much.

Speaker #4: And we have a number of investor calls coming up. I'm sure we'll be chatting with many of you here over the next couple of days.

Speaker #4: Thanks very much.

Speaker #2: This concludes today's call. Thank you for attending. You may now disconnect.

Operator 3: This concludes today's call. Thank you for attending. You may now disconnect. This event has now concluded. Thank you for joining Compass Minerals Q3 fiscal 2026 earnings call. The line will disconnect automatically.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

Operator: This event has now concluded. Thank you for joining Compass Minerals Q3 fiscal 2026 earnings call. The line will disconnect automatically.

Q3 2026 Compass Minerals International Inc Earnings Call

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