CHS Inc.

What they do

CHS is a Minnesota-based cooperative owned by farmers, ranchers and member cooperatives, with five series of preferred stock listed on Nasdaq. It buys commodities from and sells products to agricultural producers, local cooperatives and other companies domestically and internationally. Operations span petroleum refining and retailing, grain origination and marketing, agronomy inputs, renewable fuels, food production and financial hedging services. Fiscal 2025 revenues were $35.5 billion with net income attributable to CHS of $597.9 million.

Revenue drivers

• Energy — Refined fuels, propane and lubricants product lines, including petroleum refining, pipelines and terminals, marketed under the Cenex brand to member cooperatives and independent retailers.
• Grains — Global grain marketing and processing across feed grains, oilseeds, wheat and specialty grains, with grain facilities and trading offices on five continents and ethanol and oilseed crush operations.
• Agronomy — Wholesale and retail crop nutrients, crop protection and seed, plus equity income from the CF Nitrogen investment and a supply agreement for granular urea and urea ammonium nitrate.
• Corporate and Services — Financing and hedging businesses (CHS Capital and CHS Hedging) plus nonconsolidated joint ventures Ventura Foods and Ardent Mills.

Recent performance

Fiscal 2026 third quarter net income attributable to CHS was $267.4 million on revenues of $11.6 billion, compared to $232.2 million and $9.8 billion in the prior-year quarter. Energy pretax earnings rose $66.6 million year over year to $10.1 million, driven by stronger refining margins and seasonal diesel volumes but mostly offset by record-high renewable energy credit costs. Grains posted a pretax loss of $33.6 million, a $0.7 million decrease, on reduced global grain margins and higher transportation costs, partly offset by strong corn export and oilseed crush margins. Agronomy pretax earnings rose $27.6 million to $275.0 million on strong CF Nitrogen results, though fertilizer volumes fell amid a weak U.S. farm economy. Corporate and Services pretax earnings fell $70.2 million to $30.6 million, as the prior year included a Ventura Foods gain on sale.

Strategy

Management focuses on gross profit and income before income taxes because global commodity pricing and trade volumes are highly volatile. The company emphasizes balance sheet strength through liquidity, leverage, capital allocation and cash flow management. Effective September 1, 2025, CHS reorganized into three reportable segments—Energy, Grains and Agronomy—under a new end-to-end product line operating model, with ag retail folded into these segments by product sold. Remaining operations, including Ventura Foods and Ardent Mills, are reported in Corporate and Services.

Risks

• Commodity and margin volatility — Global commodity price swings, trade volumes and refining or grain margins directly drive segment results, as seen in reduced grain margins and lower fertilizer volumes this quarter.
• Renewable energy credit costs — Record-high RIN expenses mostly offset strong refining margins in Energy during the third quarter of fiscal 2026.
• Weak U.S. farm economy — Farm sector weakness has reduced agronomy product sales volumes and creates a challenging environment for farmers and member cooperatives.
• Cooperative patronage structure — Earnings from cooperative business are allocated to members as patronage refunds in cash or capital equity certificates, which are redeemable at the Board's discretion and limit retained capital.

Outlook

Management states that the diversity of its ag and energy businesses remains a key strength as shifting policy and market conditions create both headwinds and tailwinds. CEO Jay Debertin cited strong operational execution during the spring planting season but acknowledged ongoing market volatility creates a challenging environment for farmers and member cooperatives. CHS says it remains focused on operating efficiently, managing costs and providing needed products while seeking to create additional value for owners.