A lack of snow and ice might mean easier winter driving, but for a minerals company that provides salt for winter weather conditions, it can result in a loss of business and money.
Compass Minerals, a Kansas City-area provider of essential minerals reported a downturn in its fiscal 2025 first-quarter results and it blamed good winter weather last year.
“Winter weather was late in arriving in the first quarter, with minimal snow event activity occurring in the company’s served markets in October and November. With customer inventories full following last year’s exceptionally mild deicing season, the slow start to winter weather resulted in lower sales volumes during the first quarter of fiscal 2025 compared to prior year,” stated the firm in announcing its results.
Revenue fell from $341.7 million in the first quarter of 2024 to $307.2 million in 2025. Adjusted EBITDA was half of what it was a year earlier, $32.1 million compared to $62.2 million.
“Salt revenue totaled $242.2 million and was down 12% year over year, driven by a 13% year-over-year sales volume decline, partially offset by a 1% increase in average sales price. In the highway deicing business, the company’s disciplined approach to pricing throughout the 2025 deicing bid season resulted in only a 1% decrease in average highway deicing selling price despite high inventory levels across the broader market following two mild winters, including one of the mildest winters in the company’s served markets in nearly a quarter century. Sales volumes declined 12% due to a combination of low pre-fill activity and mild weather in October and November.”
Source: Business Wire
