Quarterly ResultApr 8, 2026, 11:26 AM
CHS Inc. Reports Q2 FY2026 Net Loss Widens to $147.1M, Revenues Rise to $8.4B Amid Industry Headwinds
AI Summary
CHS Inc. announced a significant increase in its net loss for the second quarter of fiscal year 2026, reaching $147.1 million, compared to a net loss of $75.8 million in the prior year period. Despite a 7.7% increase in revenues to $8.4 billion, the company faced substantial headwinds, particularly in its Energy segment due to significantly higher renewable energy credit expenses and unrealized hedging losses. The Grains segment also saw a wider loss from weaker crush margins, while Agronomy was impacted by decreased sales volumes. CEO Jay Debertin acknowledged ongoing global industry challenges but emphasized strong operational performance and a continued focus on cost discipline and operational excellence.
Key Highlights
- CHS Inc. reported a net loss of $147.1 million for Q2 FY2026, a 94.1% increase from the $75.8 million net loss in Q2 FY2025.
- Revenues for the quarter increased by 7.7% to $8.4 billion, up from $7.8 billion in the same period last year.
- The Energy segment posted a pretax loss of $133.6 million, a $54.1 million increase in loss year-over-year, primarily due to significantly higher renewable energy credit (RINs) expenses and unrealized hedging losses, partially offset by improved crack spreads.
- The Grains segment's pretax loss widened to $17.9 million, a $9.5 million decrease from the prior year, driven by lower oilseed crush margins despite increased corn export volumes and stronger retail corn margins.
- Agronomy reported a pretax loss of $11.5 million, a slight decrease of $0.1 million, impacted by decreased wholesale and retail crop nutrients margins, partially offset by strong performance from the CF Nitrogen joint venture.
- CEO Jay Debertin stated the company "continues to deliver strong operational performance for our owners, despite the significant ongoing global industry challenges that are reflected in our financial results," and highlighted a focus on cost discipline and operational excellence.