INVER GROVE HEIGHTS, MINNESOTA, US — Weaker earnings in its Energy and Ag segments contributed to a loss of $75.8 million for CHS Inc. in the second quarter of fiscal year 2025, down from income of $170.3 million in last year’s second quarter, the agribusiness cooperative said this week.

CHS saw revenues slip 14% year on year from $9.1 billion to $7.8 billion, the company said. For the first six months of fiscal year 2025, the company posted net income of $169 million and revenues of $17.1 billion, which compared with net income of $693.2 million and revenues of $20.5 billion in the first half of fiscal year 2024.

Despite strong volumes, Energy segment earnings declined substantially in the second quarter from the prior fiscal year due to evolving market conditions that negatively impacted refining margins, CHS said.

Ag segment earnings were weaker due to lower grain and oilseed margins, attributed to a more competitive global marketplace and the timing impact of mark-to-market adjustments, CHS said. Equity method investments continued to perform well, with CF Nitrogen being the largest contributor.

“CHS remains focused on operational excellence and enhancing efficiency as we navigate this time of softer commodity markets, policy uncertainty and volatility,” said Jay Debertin, president and chief executive officer of CHS Inc. “I commend our employees around the world for their commitment to strong execution in this challenging environment. While margin and pricing pressure on Ag and Energy product categories continues, our sales volumes remain strong. We are well positioned to help meet our owners’ spring planting needs with inputs, services and local expertise.”

A pretax loss of $83.5 million in the Energy segment for the second quarter of fiscal year 2025 represented a $135 million decrease versus the prior-year period and reflects higher US refinery capacity utilization and global supply and demand factors and a decrease in propane margins, mostly attributable to hedging-related impacts.

In the Ag segment, CHS sustained a second-quarter pretax loss of $45.6 million, a $102.4 million decrease versus the same period in 2024.

The company cited decreased margins for the grain and oilseeds product category, primarily due to the timing impact of mark-to-market adjustments and global market conditions. A larger global supply of canola and soybean meal and oil, resulting in weaker oilseed crush margins compared to the prior fiscal year, was also a contributing factor, CHS said.

Pretax earnings of $20.3 million in the company’s Nitrogen segment represented a $16.7 million decrease versus the prior-year period, primarily due to the unfavorable impact of increased natural gas costs.

CHS also saw a decline in its Corporate and Other category, with pretax earnings of $24 million representing a $16.3 million decrease versus the prior-year period. This was mostly reflected by lower income from the company's equity investment in Ventura Foods, which experienced less favorable market conditions for oil-based food products.