Company Reports

We will discontinue analyst coverage of Compass Minerals on or about Jan. 2, 2026.

Compass Minerals' fiscal fourth-quarter results reflected an improvement versus the prior-year quarter, due to cost reductions. Compass shares were down 15% at the time of writing on Dec. 9 as the market reacted to guidance for revenue below consensus estimates due to lower salt volumes.

Compass Minerals reported improved fiscal third-quarter results as adjusted EBITDA was up 25% year over year driven by higher salt and plant nutrition profits. Yet, shares were down 13% at the time of writing as the market reacted to deicing salt bid prices below consensus implied expectations.

Compass Minerals is one of the largest salt producers in North America. Its Goderich rock salt mine in Ontario benefits from unique geology, and with access to a deep-water port, it can deliver deicing salt to customers at a lower cost than competitors. Additionally, the company controls one of only three naturally occurring brine sources that produces the specialty fertilizer sulfate of potash, or SOP. These operations at the Great Salt Lake in Utah can produce SOP at a lower cost than producers that convert standard potash.

Compass Minerals is one of the largest salt producers in North America. Its Goderich rock salt mine in Ontario benefits from unique geology, and with access to a deep-water port, it can deliver deicing salt to customers at a lower cost than competitors. Additionally, the company controls one of only three naturally occurring brine sources that produces the specialty fertilizer sulfate of potash, or SOP. These operations at the Great Salt Lake in Utah can produce SOP at a lower cost than producers that convert standard potash.

Compass Minerals reported higher salt-adjusted EBITDA as strong winter weather drove a nearly 50% volume increase versus the prior-year quarter. Compass shares were up 17% at the time of writing, as management raised guidance above consensus estimates and improved its balance sheet health.

President Donald Trump announced sweeping tariff, that featured a minimum 10% tariff on all US imports, with only limited exceptions, and higher rates for select countries. Scotts Miracle-Gro shares closed down 1% on the day, far less than the broader market selloff.

Compass Minerals shares fell 8% in Feb. 11 intraday trading. Along with the release of fiscal first-quarter results, management cut fiscal 2025 guidance following a mild start to the 2024-25 winter and lower deicing salt volumes.

Compass Minerals is one of the largest salt producers in North America. Its Goderich rock salt mine in Ontario benefits from unique geology, and with access to a deep-water port, it can deliver deicing salt to customers at a lower cost than competitors. Additionally, the company controls one of only three naturally occurring brine sources that produces the specialty fertilizer sulfate of potash, or SOP. These operations at the Great Salt Lake in Utah can produce SOP at a lower cost than marginal-cost producers that convert standard potash.

Compass Minerals shares fell after management issued fiscal 2025 guidance well below consensus expectations.

Compass Minerals is one of the largest salt producers in North America. Its Goderich rock salt mine in Ontario benefits from unique geology, and with access to a deep-water port, it can deliver deicing salt to customers at a lower cost than competitors. Additionally, the company controls one of only three naturally occurring brine sources that produces the specialty fertilizer sulfate of potash, or SOP. These operations at the Great Salt Lake in Utah can produce SOP at a lower cost than marginal-cost producers that convert standard potash.

Compass Minerals' shares rallied 25% at the time of writing after Reuters reported that the company is in talks to be purchased and taken private by a private equity firm. Reuters reported the talks valued Compass at $1.5 billion, including debt. Based on the company's last-reported financial statements, its fiscal third-quarter filing, we estimate this valuation would translate into roughly $15-$16 per share.

We're maintaining our $25 fair value estimate for Compass Minerals after updating our model to incorporate the company's preliminary fiscal third-quarter results. Our narrow moat rating is also unchanged.

Compass Minerals is one of the largest salt producers in North America. Its Goderich rock salt mine in Ontario benefits from unique geology, and with access to a deep-water port, it can deliver deicing salt to customers at a lower cost than competitors. Additionally, the company controls one of only three naturally occurring brine sources that produces the specialty fertilizer sulfate of potash, or SOP. These operations at the Great Salt Lake in Utah can produce SOP at a lower cost than marginal-cost producers that convert standard potash.

Compass Minerals' fiscal second-quarter results reflected the mild winter conditions. Salt revenue and adjusted EBITDA were down 14% and 7%, respectively, versus the prior year as a 21% volume decline and increased unit production costs were partially offset by higher average prices. In response to the mild winter weather and excess inventory, Compass temporarily shut down production at the Goderich mine. Management is also focused on cost reduction, both operating expenses and capital expenditures, as a way to improve free cash flow generation and reduce debt.

Compass Minerals is one of the largest salt producers in North America. Its Goderich rock salt mine in Ontario benefits from unique geology, and with access to a deep-water port, it can deliver deicing salt to customers at a lower cost than competitors. Additionally, the company controls one of only three naturally occurring brine sources that produces the specialty fertilizer sulfate of potash, or SOP. These operations at the Great Salt Lake in Utah can produce SOP at a lower cost than marginal-cost producers that convert standard potash.

After reviewing our outlook for Compass Minerals, we downgrade our economic moat rating to narrow from wide. Our $25 fair value estimate remains unchanged. We were already embedding our narrow moat rating impact when we updated our fair value estimate on March 25.

Compass Minerals has an enviable portfolio of cost-advantaged assets. Its Goderich rock salt mine in Ontario benefits from unique geology, and with access to a deep-water port, it can deliver deicing salt to customers at a lower cost than competitors. Additionally, the company controls one of only three naturally occurring brine sources that produces the specialty fertilizer sulfate of potash, or SOP. These operations at the Great Salt Lake in Utah can produce SOP at a lower cost than marginal-cost producers that convert standard potash.

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.

Compass Minerals has an enviable portfolio of cost-advantaged assets. Its Goderich rock salt mine in Ontario benefits from unique geology, and with access to a deep-water port, it can deliver deicing salt to customers at a lower cost than competitors. Additionally, the company controls one of only three naturally occurring brine sources that produces the specialty fertilizer sulfate of potash, or SOP. These operations at the Great Salt Lake in Utah can produce SOP at a lower cost than marginal-cost producers that convert standard potash.