Compass Minerals: Wildfire Retardants Business Does Not Secure US Forest Service Contract in 2024

Compass Minerals announced the company did not secure a wildfire retardants contract from the United States Forest Service in 2024. The USFS cited corrosion issues in the airtankers that had used Compass' magnesium chloride-based product during the 2023 wildfire season. As a result, Compass management said the wildfire retardants will not be used for the foreseeable future. We updated our model to assume no wildfire retardants revenue or profits going forward. Separately, we slightly reduced our salt outlook to assume Compass' salt business generates volumes, revenue, and profits in line with management's mild winter scenario, as we assume the 2023-24 winter will continue to see below-average snowfall throughout Compass' largely US Midwest footprint.