CHS Posts $35.5B Revenue, $597.9M Net Income in FY25

Ticker: CHSCO · Form: 10-K · Filed: Nov 5, 2025

Sentiment: neutral

Topics: Agricultural Cooperative, Energy Refining, Grain Marketing, Renewable Fuels, Commodity Markets, Preferred Stock, Cooperative Business Model

Related Tickers: CHSCP, CHSCO, CHSCN, CHSCM, CHSCL, CF

TL;DR

**CHS is a massive, stable agricultural and energy co-op, but preferred shareholders need to understand the patronage refund structure limits upside.**

AI Summary

CHS Inc., a leading integrated agricultural cooperative, reported total revenues of $35.5 billion and net income attributable to CHS of $597.9 million for the fiscal year ended August 31, 2025. The company's Energy segment generated $7.6 billion in revenues, primarily from gasoline, diesel fuel, and propane, processing 65,000 barrels of crude oil daily at its Laurel, Montana refinery and 115,000 barrels daily at its McPherson, Kansas refinery. The Ag segment, encompassing global grain and processing, ag retail, and wholesale agronomy, contributed $27.7 billion in revenues. This segment crushes 147 million bushels of soybeans and canola annually and produces 267 million gallons of fuel-grade ethanol. CHS operates approximately 400 agri-operations locations and 11 wholesale crop nutrient terminals, demonstrating its extensive reach in agricultural inputs and outputs. The Nitrogen Production segment consists of an equity method investment in CF Industries Nitrogen, LLC. Earnings are allocated to members as patronage refunds, with non-patronage earnings retained as unallocated capital reserves.

Why It Matters

CHS Inc.'s robust financial performance, with $35.5 billion in revenues and $597.9 million in net income for fiscal 2025, underscores its critical role in the global agricultural supply chain, impacting farmers, consumers, and the broader market. As the nation's largest cooperative energy company and grain marketer, its operations directly influence fuel and food prices. Investors in CHSCO and other preferred stock series should note the cooperative structure, where earnings are primarily allocated to members as patronage refunds, affecting traditional equity valuation. The company's extensive network of 400 agri-operations locations and two major refineries provides a competitive advantage in both agricultural and energy markets, but also exposes it to commodity price volatility and regulatory changes.

Risk Assessment

Risk Level: medium — The petroleum business is highly cyclical, with demand for crude oil and energy products driven by local and worldwide economies, weather patterns, and taxation, which can significantly affect refined fuel prices. Additionally, the Ag segment's profitability is exposed to commodity price fluctuations for grain, oilseeds, and renewable fuels. Governmental regulations and policies, particularly in environmental and energy sectors, also pose a significant compliance and cost risk, as detailed in the 'Regulation' section of the Energy segment.

Analyst Insight

Investors should consider CHS Inc.'s preferred stock (CHSCO, CHSCP, CHSCN, CHSCM, CHSCL) for income generation, understanding that the cooperative structure prioritizes member patronage over common equity appreciation. Monitor commodity price trends in crude oil, grain, and ethanol, as these directly impact the company's Energy and Ag segment profitability.

Financial Highlights

revenue
$35.5B
net Income
$597.9M

Revenue Breakdown

SegmentRevenueGrowth
Ag$27.7B
Energy$7.6B
Nitrogen Production
Corporate and Other

Key Numbers

Key Players & Entities

FAQ

What were CHS Inc.'s total revenues for the fiscal year ended August 31, 2025?

CHS Inc. reported total revenues of $35.5 billion for the fiscal year ended August 31, 2025, reflecting its extensive operations in agricultural and energy sectors.

How much net income did CHS Inc. attribute to itself in fiscal 2025?

Net income attributable to CHS Inc. for the fiscal year ended August 31, 2025, was $597.9 million, demonstrating profitability across its diverse business segments.

What are the primary business segments of CHS Inc. and their respective revenues for fiscal 2025?

CHS Inc. operates through its Energy segment, which generated $7.6 billion in revenues, and its Ag segment, which contributed $27.7 billion in revenues for fiscal 2025. The company also has a Nitrogen Production segment and Corporate and Other operations.

Where are CHS Inc.'s main petroleum refineries located and what are their processing capacities?

CHS Inc. operates refineries in Laurel, Montana, processing approximately 65,000 barrels of crude oil per day, and McPherson, Kansas, processing approximately 115,000 barrels of crude oil per day.

How does CHS Inc. allocate its earnings as a cooperative?

As a cooperative, CHS Inc. allocates earnings from cooperative business to its members and, to a limited extent, nonmembers, in the form of patronage refunds, which can be cash or capital equity certificates. Earnings from nonmembers are taxed and retained as unallocated capital reserves.

What types of preferred stock does CHS Inc. have listed on Nasdaq?

CHS Inc. has five series of preferred stock listed on The Nasdaq Stock Market LLC: 8% Cumulative Redeemable Preferred Stock (CHSCP), Class B Cumulative Redeemable Preferred Stock, Series 1 (CHSCO), Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 (CHSCN), Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 3 (CHSCM), and Class B Cumulative Redeemable Preferred Stock, Series 4 (CHSCL).

What are the key risks associated with CHS Inc.'s Energy segment?

The Energy segment faces significant risks from the highly cyclical petroleum business, driven by global economic conditions, weather patterns, and taxation. It is also subject to extensive governmental regulations and policies, particularly from the EPA and DOT, regarding environmental protection and transportation.

What is CHS Inc.'s role in the global grain market?

CHS Inc. is the nation's largest cooperative marketer of grain and oilseed, purchasing grain from producers and elevator operators, and facilitating its transportation globally. It operates export terminals, river terminals, and elevators across the U.S. and maintains international locations for marketing and sourcing.

Does CHS Inc. have any significant joint ventures mentioned in the filing?

Yes, CHS Inc. conducts operations through several joint ventures, including TEMCO, LLC (a 50%-owned grain export venture with Cargill), Ventura Foods, LLC (a nonconsolidated food production and distribution venture), and Ardent Mills, LLC (a nonconsolidated wheat milling venture).

How many agri-operations locations does CHS Inc.'s Ag retail business operate?

CHS Inc.'s Ag retail business operates approximately 400 agri-operations locations through 28 business units across the midwestern and western United States, providing a range of products and services including grain purchasing, agronomy, energy, feed, and seed sales.

Risk Factors

Industry Context

CHS operates within the highly competitive and integrated agricultural and energy sectors. The agricultural industry is characterized by commodity price volatility, global trade dynamics, and evolving consumer demands for food and fuel. The energy sector faces pressures from fluctuating crude oil prices, refining margins, and the transition towards renewable energy sources. As a cooperative, CHS differentiates itself by serving its farmer and rancher owners, while competing with large public and private agribusinesses and energy companies.

Regulatory Implications

CHS's operations are subject to a complex web of regulations, including environmental standards for its refineries and fuel production, agricultural regulations concerning crop inputs, and trade policies impacting its global grain business. Compliance with these regulations requires significant investment and ongoing monitoring, with potential for substantial penalties or operational restrictions in case of non-compliance.

What Investors Should Do

  1. Monitor commodity price trends
  2. Assess refinery utilization and margins
  3. Evaluate Ag segment performance drivers
  4. Review cooperative distribution policies

Glossary

Integrated agricultural cooperative
A business owned by farmers and ranchers that provides a wide range of agricultural inputs and outputs, operating on a global scale. (Defines the core business structure and ownership model of CHS Inc.)
Equity method of accounting
An accounting technique used to record investments in companies over which the investor has significant influence but not control. The investment account is increased or decreased to reflect the investor's share of the investee's net income or loss. (Explains how CHS accounts for its share of income/loss from joint ventures like CF Nitrogen, Ardent Mills, and Ventura Foods.)
Patronage refunds
Distributions of a cooperative's net earnings to its members, based on their use of the cooperative's services or products. (Key mechanism for distributing profits to CHS's farmer and cooperative owners.)
Unallocated capital reserves
Earnings retained by the cooperative that are not distributed to members as patronage refunds, often used for reinvestment or strengthening the balance sheet. (Represents earnings retained by CHS for business growth and financial stability.)
Agri-operations locations
Physical sites operated by CHS that provide agricultural products and services to farmers, such as crop nutrients, crop protection products, and grain handling. (Indicates the extensive physical footprint of CHS in serving its agricultural customer base.)

Year-Over-Year Comparison

The provided 10-K summary focuses on the fiscal year ended August 31, 2025. A direct comparison to the previous fiscal year (2024) is not possible with the given information. However, the reported total revenues of $35.5 billion and net income of $597.9 million represent the company's performance for the current period. Without prior year data, changes in revenue growth, margin trends, or the emergence of new risks cannot be assessed.

Filing Stats: 4,446 words · 18 min read · ~15 pages · Grade level 13.9 · Accepted 2025-11-05 11:32:24

Key Financial Figures

Filing Documents

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 8 Item 1B. Unresolved Staff Comments 22 Item 1C. Cybersecurity 23 Item 2.

Properties

Properties 24 Item 3.

Legal Proceedings

Legal Proceedings 25 Item 4. Mine Safety Disclosures 25 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 25 Item 6. [Reserved] 25 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 43 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 44 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 44 Item 9A.

Controls and Procedures

Controls and Procedures 44 Item 9B. Other Information 45 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 45 PART III Item 10. Directors, Executive Officers and Corporate Governance 46 Item 11.

Executive Compensation

Executive Compensation 53 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 74 Item 13. Certain Relationships and Related Transactions, and Director Independence 75 Item 14. Principal Account ant Fees and Services 77 PART IV Item 15. Exhibit and Financial Statement Schedules 78 Item 16. Form 10-K Summary 85 S i gnatures 86 Table of Contents PART I

BUSINESS

ITEM 1. BUSINESS THE COMPANY CHS Inc. (referred to herein as "CHS," "company," "we," "us" or "our") is the nation's leading integrated agricultural cooperative, providing grain, food, agronomy and energy resources to businesses and consumers on a global basis. As a cooperative, we are owned by farmers and ranchers and member cooperatives (referred to herein as "members") across the United States. We also have preferred shareholders who own shares of our five series of preferred stock, all of which are listed and traded on the Global Select Market of The Nasdaq Stock Market LLC ("Nasdaq"). We buy commodities from and provide products and services to individual agricultural producers, local cooperatives and other companies (including our members and other nonmember customers), both domestically and internationally. We provide a wide variety of products and services, ranging from initial agricultural inputs such as fuels, farm supplies, crop nutrients and crop protection products to agricultural outputs that include grain and oilseed, processed grain and oilseed, renewable fuels and food products. A portion of our operations are conducted through equity investments and joint ventures whose operating results are not fully consolidated with our results; rather, our share of the income or loss from those equity investments and joint ventures is included as a component of our net income using the equity method of accounting. For the year ended August 31, 2025, our total revenues were $35.5 billion and net income attributable to CHS was $597.9 million. We have aligned our segments based on an assessment of how our businesses operate and the products and services they sell. Our Energy segment derives its revenues through refining, wholesaling and retailing of petroleum products. Our Ag segment derives its revenues through origination and marketing of grain, including service activities conducted at export terminals; through wholesale agronomy sales of crop nutrient and

View on Read The Filing