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Compass Minerals

Compass Minerals International, Inc. is a publicly traded American company (NYSE: CMP) headquartered in , specializing in the production and distribution of essential minerals, primarily , (a specialty nutrient), and , with operations focused mainly on North American markets. The company traces its origins to early 19th-century mining ventures, with its first operational established in 1844, and was formally incorporated in 2001 following the acquisition of IMC Global's salt business by Apollo Management; subsequent expansions included the 2011 acquisition of Big Quill Resources in and the 2016 purchase of Produquímica in (divested in 2021), enhancing its global footprint in at the time. Compass Minerals operates 12 production and packaging facilities across the , , and the , employing approximately 1,900 people, and is recognized as North America's leading producer of and the largest U.S. producer of . Its segment supplies de-icing products for roads, industrial applications like chemical processing, and consumer uses such as , while the division provides for high-value crops to improve yield and quality without adding chloride. products are used for dust control on unpaved roads and as a de-icing alternative, and the company also manages secure records storage in a retired in the U.K. through its DeepStore operation. In fiscal year 2025, Compass Minerals reported quarterly revenues reflecting its diversified segments.

History

Founding and Early Development

Compass Minerals traces its origins to 1844, when the rock mine in , , began operations as one of the earliest commercial production sites in the region, initially employing small-scale underground mining techniques to extract rock for local industrial and consumer needs. This mine, discovered during coal prospecting efforts, marked the company's foundational roots in essential mineral extraction, evolving over the subsequent decades into a key supplier through incremental expansions and technological adaptations in harvesting. In , the company's heritage built upon similar early ventures, such as the 1867 establishment of operations in , which grew from rudimentary ponds to more structured regional distribution networks by the late . By the mid-20th century, Compass Minerals' predecessor entities had solidified core salt extraction methods, including room-and-pillar underground mining for rock salt and mechanical evaporation processes using vacuum pans to produce refined industrial-grade salt, alongside solar evaporation techniques in arid regions like the area for consumer products such as table salt and deicing materials. These innovations shifted operations from small-scale, labor-intensive efforts to efficient, large-volume production, emphasizing both industrial applications like chemical manufacturing and consumer uses including and . Key acquisitions in the late 20th century, such as the 1990 formation of (NASCO) incorporating Sifto Salt operations and the 1993 purchase of Minerals, further consolidated these capabilities into a cohesive regional supplier network across and the . The modern corporate structure emerged in 2001 when Apollo Management L.P. acquired the salt and soda ash businesses of IMC Global Inc., forming Compass Minerals Group as a dedicated entity focused on these core operations. Headquartered in , the company rebranded as Compass Minerals International, Inc., and launched its (IPO) on the in 2003 under the CMP, raising capital to support ongoing production initiatives. At that time, Compass Minerals employed approximately 1,541 people globally, with a production capacity exemplified by its flagship Goderich mine in , , capable of yielding 6.5 million tons of rock annually, underscoring its early emphasis on scalable, evaporation-based output for diverse markets.

Key Mergers, Acquisitions, and Restructuring

Compass Minerals was formed in 2001 through the acquisition by Apollo Management of the salt and specialty chemicals businesses from IMC Global Inc., valued at approximately $600 million, which included 13 salt-producing facilities across and the . This transaction marked a pivotal expansion, consolidating salt operations that traced back to earlier consolidations, such as IMC Global's purchase of Harris Chemical Group's salt assets. The of these assets post-2001 laid the for Compass Minerals' focus on essential minerals, enhancing its market position in and industrial salt production. In December 2003, Compass Minerals completed its on the , issuing 16.675 million shares at $13 per share, raising gross proceeds of approximately $217 million before underwriting discounts and expenses. The IPO provided capital for debt reduction and operational investments, transitioning the company from private ownership under Apollo Management to a publicly traded entity and enabling further strategic growth in its core and magnesium segments. A significant expansion into occurred in December 2015 when Compass Minerals acquired a 35% in Produquímica Indústria e Comércio S.A., a leading manufacturer of specialty products including of potash (), for approximately $114 million. This was followed by the full acquisition of the remaining interest in August 2016 for about $465 million, totaling roughly $579 million and establishing Compass Minerals' foothold in South American SOP production. The Produquímica integration expanded the company's portfolio beyond salt into agricultural nutrients, though it later underwent restructuring as part of portfolio optimization efforts. Throughout the , Compass Minerals undertook several refinancing initiatives to manage its and support growth. In April 2016, the company refinanced its $471 million s and $125 million revolving credit facility with a new $400 million senior secured and $150 million revolving facility, extending maturities and reducing interest costs. This was complemented by a November 2019 issuance of $500 million in 6.75% senior notes due 2027, alongside an amended credit agreement, which staggered maturities and improved liquidity for investments in and magnesium operations. These refinancings enhanced financial flexibility amid volatile markets. Operational consolidations in the salt and magnesium segments focused on efficiency. In 2021, Compass Minerals divested its North American plant micronutrient assets, including the Wolf Trax, Rocket Seeds, and Hydro Bullet brands, to Koch Agronomic Services, LLC, for approximately $60 million, allowing the company to streamline operations and concentrate on core and magnesium businesses. This divestiture, completed in May 2021, reduced non-core exposures and supported restructuring toward essential minerals production.

Recent Developments and Strategic Shifts

In September 2022, Compass Minerals announced the selection of EnergySource Minerals as the technology provider for its direct lithium extraction (DLE) project at the , aiming to produce approximately 11,000 metric tons of equivalent (LCE) annually in phase one. The project, located on the east side of the lake utilizing existing , projected an after-tax of $626 million to $985 million and capital costs of $262 million for the initial phase. The initiative faced challenges from evolving Utah regulations on Great Salt Lake water usage, leading to an indefinite suspension of further investments in November 2023. By February 2024, Compass Minerals terminated the project entirely, citing regulatory uncertainty and shifts in the lithium market, which resulted in approximately $20.2 million in related capital expenditures written off during fiscal 2024. In late March 2025, Compass Minerals announced the wind-down of its non-core business, Fortress , as part of broader cost reductions to refocus on essential operations; this included a $53.0 million non-cash charge recognized in the fiscal second quarter. Fiscal 2025 updates reflected operational resilience amid these changes, with second-quarter revenue reaching $494.6 million and adjusted EBITDA at $84.1 million. In the third quarter, the company reported a net loss of $17.0 million, which included a $7.6 million loss on extinguishment from activities. Following these setbacks, Compass Minerals shifted strategy toward its core and segments to navigate market volatility in commodities like . This refocus aligned with fiscal 2025 ESG goals, including a target to reduce freshwater usage by 5% from baseline levels through efficiency assessments at key facilities. In October 2025, a U.S. district court approved a of actions against Compass Minerals' , resolving claims of breaches related to past disclosures and issues.

Operations

Production Methods

Compass Minerals employs underground to extract rock salt deposits, primarily using the room-and-pillar technique. In this method, rectangular rooms are excavated into the salt formation, leaving supportive pillars to maintain structural integrity, with operations conducted at depths ranging from 500 to 1,800 feet below the surface. The company utilizes both drill-and-blast techniques, where holes are drilled, explosives are inserted to fracture the salt, and the material is crushed and conveyed to the surface, and continuous mining, which employs machines equipped with steel cutting picks to remove salt without explosives, enhancing efficiency and reducing energy use. This process yields high-purity rock salt, typically around 98% (NaCl), suitable for various applications. Annual capacity from these operations reaches approximately 12.5 million short tons. For refined and , Compass Minerals applies mechanical , involving solution mining to source . Freshwater is injected under pressure into underground beds, at least 1,500 feet deep, to dissolve the deposits and create a saturated solution extracted via wells. The is then processed in vacuum pans, where heat evaporates the water at reduced temperatures under vacuum conditions, followed by in a series of large crystallizers to form crystals. These crystals are washed to remove impurities, centrifuged, and dried, resulting in high-purity products, such as evaporated exceeding 99.8% NaCl. This ensures consistent quality but requires significant inputs, primarily and , for and processing. Solar evaporation represents Compass Minerals' lowest-energy approach for large-scale production of sulfate of potash (SOP) and magnesium chloride, particularly in arid environments. Brine, often sourced from natural saline lakes, is pumped into expansive shallow ponds where sunlight and wind naturally concentrate the solution over periods of up to three years. As water evaporates, minerals precipitate sequentially—sodium chloride first, followed by SOP feedstock, with magnesium chloride remaining in the concentrated brine. Harvested crystals undergo further processing, including slurry agitation, cooling, and drying for SOP (Protassium+®), yielding products of high purity suitable for agricultural and industrial uses. This technique minimizes mechanical energy needs, relying on solar power for evaporation, though it demands vast land areas for ponds.

Facilities and Locations

Compass Minerals operates 12 production and packaging facilities across the , , and the . As of November 2025, the company employs more than 1,800 people across these operations. In fiscal 2024 and early 2025, production at the Goderich and Cote Blanche mines was curtailed to address excess salt inventories, with planned FY2025 salt sales volumes of 10.7 to 11 million tons. The Goderich Mine in , , is the world's largest underground mine, located approximately 1,800 feet beneath and operational since 1959. Acquired by Compass Minerals in 1990, it has an annual production capacity of 8 million tons of rock , serving as a primary hub for distribution to communities around the and . In the United States, the Cote Blanche Mine in Avery Island, Louisiana, is an underground rock salt operation at a depth of about 1,500 feet, producing 3.4 million tons annually. Established in 1961 and integrated into Compass Minerals in 1990, the mine supports Gulf Coast distribution networks through connected depots along the Mississippi and other waterways. Compass Minerals' presence in Europe centers on the Winsford Mine in , U.K., the country's largest and oldest active underground mine, dating back to 1844 and situated roughly 150 meters below the surface. It has an annual capacity of 1.5 million tons of rock , playing a key role in supplying needs across the region. At the in , U.S.A., Compass Minerals manages extensive ponds operational since 1968 and acquired in 1993. These ponds yield approximately 1.5 million tons of , 350,000 tons of sulfate of potash (SOP), and 750,000 tons of each year, leveraging the lake's for mineral extraction. The Lyons facility in , U.S.A., functions as a evaporation plant, producing refined at a capacity of 450,000 tons per year. Operational for over a century and part of Compass Minerals' portfolio, it processes to support North refining needs.

Products and Business Segments

Salt Products

Compass Minerals' salt products primarily consist of sodium chloride-based offerings produced through underground mining and solar evaporation processes. These products serve diverse applications, with a focus on deicing, consumer, and industrial uses across North America and the United Kingdom. The company's salt segment operates facilities in key locations, including the Goderich mine in Canada and the Winsford rock salt mine in the UK, enabling efficient distribution to municipalities, retailers, and industrial clients. Highway deicing salt forms the core of the segment, accounting for approximately 63% of salt segment sales in recent years, primarily distributed to states, provinces, counties, and municipalities for road maintenance during winter. This includes standard rock salt, as well as treated variants enhanced with to prevent caking and improve performance in harsh conditions, such as Thawrox® blends that combine rock salt with for faster melting and reduced residue. These products meet industry standards like ASTM D632 in and BS3247:2011 in the UK, and are transported via rail, truck, barge, or vessel to ensure timely delivery during peak winter demand. For residential use, Compass Minerals offers consumer ice melt products under the Safe Step® brand, packaged in bags for homeowners to clear driveways and walkways. These include formulations like Safe Step® 4300, a dual-blend of and that melts ice effectively down to -7°F (-21°C), emphasizing safety for pets and when used as directed, with added corrosion inhibitors. Other variants, such as IceAway® made from 100% rock , provide economical options for milder conditions, working down to 5°F (-15°C). Industrial salt products cater to manufacturing and utility sectors, including high-purity evaporated and grades under the Industrial Purity® line for applications like chemical production—such as the process for and soda—and systems. These salts are supplied in bulk, bags, or totes, with brands like K-Life® and Nature’s Own® certified by NSF for residential and commercial , ensuring low impurities for effective in softening equipment. The salt segment's operations span and the , where the facility is the largest producer, supplying approximately 60% of the UK's rock salt production.

Plant Nutrition and Magnesium Products

The Plant Nutrition and Magnesium Products segment encompasses Compass Minerals' specialty fertilizers and magnesium-based solutions, primarily derived from the in via . Following the 2021 divestiture of its North American micronutrient assets to Koch Agronomic Services, the company refocused on this core area, emphasizing high-value products like sulfate of potash for and for infrastructure and industrial needs. In fiscal 2024, the segment generated $181 million in revenue, representing approximately 16% of the company's total sales. Sulfate of potash (SOP), branded as Protassium+®, serves as a premium low-chloride potassium fertilizer tailored for chloride-sensitive crops including fruits, , and tree nuts. It delivers 50% (K₂O) equivalent and 17% sulfur, acting as a dual-nutrient source that boosts plant vigor, crop yields, and resistance to , , and pests without the salinity risks associated with standard muriate of potash fertilizers, which contain high levels. Produced at the company's facility—the largest SOP plant in —Protassium+® undergoes a solar process to yield a virtually chloride-free product with a low salt index, and it is distributed globally to agricultural markets. Magnesium chloride products, offered in flake and liquid forms, support diverse applications beyond , including road maintenance and . Flake variants like IceAway® enhance by providing rapid melting action at low temperatures, while liquid forms such as FreezGard® and DustGard® enable efficient dust suppression on roads, promoting through soil , reduced , and improved air quality by minimizing particulate emissions. Additionally, MagnaPro® liquid functions as a versatile input for industrial uses, such as catalysts in chemical manufacturing and . These magnesium products, also sourced from the , underscore the segment's role in environmentally conscious infrastructure solutions.

Financial Performance

Compass Minerals' revenue has exhibited notable volatility since 2019, largely influenced by seasonal weather patterns affecting and fluctuations in commodity prices for sulfate of potash (). In 2019, the company reported annual of $1.49 billion, driven primarily by strong sales amid favorable winter conditions in . Subsequent years saw significant swings: revenue declined to $1.374 billion in 2020 due to milder winters reducing volumes, dropped further to $0.837 billion in 2021 amid ongoing weather variability and lower , then rebounded to $1.245 billion in 2022 and $1.205 billion in 2023 as recovery in highway and stable SOP pricing supported growth. By 2024, revenue settled at $1.117 billion, reflecting a 7.25% decrease year-over-year, attributed to weaker highway sales volumes and softer pricing in the segment. In fiscal 2025, Compass Minerals continued to navigate these dynamics, with consolidated for the first three quarters totaling approximately $1.02 billion. Specifically, Q1 reached $307.2 million, down 10% year-over-year due to a slow winter start and 13% lower volumes; Q2 surged to $494.6 million, up 36% from the prior year, fueled by a 39% increase in sales amid inventory optimization and stronger demand; and Q3 stood at $214.6 million, a 5.8% rise, supported by 4% higher volumes despite a 1% price decline. The company projects full-year 2025 around $1.23 billion, aligning with consensus and reflecting anticipated Q4 contributions from seasonal shipments. Adjusted EBITDA margins improved to approximately 17% in Q2, reaching $84.1 million on robust performance, though overall profitability remains pressured by cost headwinds. Profitability trends underscore the salt segment's dominance, which accounted for roughly 77% of Q3 revenue ($166 million out of $214.6 million total) and historically contributes 70-80% of overall sales, providing a stable base amid plant nutrition volatility. Key challenges include a 2024 lithium project termination, resulting in approximately $77 million in impairments and related expenses that widened net losses, and a March 2025 S&P Global Ratings downgrade to 'B' from 'B+' due to elevated leverage post-restructuring. In Q3 2025, net income reflected a $17 million loss, improved from $43.6 million the prior year, partly offset by debt refinancing efforts: the company issued $650 million in senior notes due 2030 in June 2025 to partially redeem 2027 notes and extend maturities, aiming to bolster liquidity despite ongoing debt levels around $1.3 billion. These factors highlight a focus on core operations to drive adjusted EBITDA toward $173-202 million for the full year.
Fiscal YearRevenue ($B)Key Driver
20191.49Strong deicing demand
20201.374Milder winters
20210.837Volume declines
20221.245Recovery in
20231.205Stable SOP pricing
20241.117Weaker
2025 (proj.)~1.23Seasonal rebound

Stock and Market Position

Compass Minerals International, Inc. has been publicly traded on the (NYSE) under the ticker symbol since its in 2003. As of November 2025, the company has approximately 41.7 million . In 2025, CMP experienced significant , with a notable 65% surge in February following an analysis highlighting the company's undervaluation relative to its . By August 2025, the price hovered around $19 per share, contributing to a of approximately $790 million at that time, based on prevailing trading levels. This performance reflected broader market reactions to the company's operational updates and sector dynamics, though the later moderated to about $18 by mid-November 2025 (approximately $17.78 as of November 17, 2025). Compass Minerals holds a prominent position as one of the largest producers of in , with its salt segment accounting for a substantial portion of the regional market, estimated at around 15-20% based on production volumes and industry benchmarks. Key competitors in this space include Incorporated and Stone Canyon Industries (owner of ), which together dominate de-icing and industrial supply. In the global sulfate of potash () market, Compass Minerals operates as a niche player through its segment, focusing on premium agricultural products but on a smaller scale compared to dominant producers like and SQM. Regarding investor relations, Compass Minerals maintained a quarterly of $0.15 per share through fiscal 2023, totaling $0.60 annually, before suspending payouts in 2024 amid efforts to strengthen its . The company has not resumed dividends as of late 2025. Following the release of its fiscal 2025 third-quarter earnings on August 11, 2025, which reported a net loss but improved adjusted EBITDA of $41 million, analyst ratings remained mixed, with an average consensus of "Hold" and a price target of $20.00 from four major firms, including a downgrade from citing ongoing leverage concerns.

Leadership and Sustainability

Executive Leadership

Edward C. Dowling Jr. serves as President and of Compass Minerals, a position he has held since January 18, 2024. A and with over 30 years of international experience in the industry, Dowling previously held CEO roles at Polyus Gold International and Teck Resources Limited, as well as senior operational positions at Cleveland-Cliffs Inc. His tenure has focused on operational efficiency and strategic realignment amid market challenges. Peter Fjellman was appointed effective January 27, 2025, succeeding Jeff Cathey. With more than 30 years of experience leading teams in , , and logistics sectors, Fjellman previously served as Senior Vice President of for the at XPO Logistics. In his role, he oversees financial management, including the company's 2025 restructuring efforts to reduce costs following the wind-down of non-core operations. Patrick Merrin joined as Chief Operations Officer in March 2025, bringing extensive expertise in operations. Prior to Compass Minerals, Merrin was Executive Vice President of Technical Services at Fortescue Metals Group, with a career spanning global projects and a focus on and essential minerals production. His responsibilities include ensuring safe and reliable production across the company's -focused facilities. Joseph E. Reece has been the non-executive Chair of the since 2021. A co-managing partner at SilverBox Capital, Reece emphasizes sustainability and governance in his oversight, drawing from prior roles in at and . As of late 2025, the executive team's average tenure stands at approximately 1.8 years for the CEO, reflecting recent transitions, while the broader board averages around 3.6 years. Key changes in 2025 include the appointments of Fjellman and Merrin, alongside the addition of Amy Tills as Chief Human Resources Officer in September, amid cost reductions and the wind-down of the fire retardant business announced in March. These shifts support the company's focus on core salt and plant nutrition segments.

Environmental and ESG Initiatives

Compass Minerals has established a comprehensive ESG framework, with annual sustainability reporting initiated in fiscal 2022 and aligned with standards such as the (GRI), (SASB), and Task Force on Climate-related Financial Disclosures (TCFD). The company's fiscal 2025 targets emphasize , including a 5% reduction in Scope 1 and 2 from the fiscal 2021 baseline of 315,013 metric tons CO2e, building on a 5% achievement through fiscal 2024. Biodiversity protection efforts at mining sites involve habitat preservation, such as maintaining grass snake habitats at the facility in the UK, though no quantified 2025 target is specified. In water management, Compass Minerals focuses on conservation at its Ogden, Utah facility, which sources brine from the Great Salt Lake, following the abandonment of its lithium extraction project in 2024 to prioritize sustainable practices. The company's operations at the Great Salt Lake have faced criticism from environmental groups for contributing to water level declines, leading to lawsuits invoking the public trust doctrine and state legislation imposing conservation measures as of 2025. Under a September 2024 voluntary agreement with the Utah Department of Natural Resources, the company donates 201,000 acre-feet of non-production water rights annually to support lake levels and commits to reducing or suspending diversions when elevations fall below 4,198 feet, with operations projected to use only a fraction of its 2025 brine water rights. Freshwater withdrawals have been reduced by 53% since fiscal 2021, exceeding the fiscal 2025 target of a 5% decrease from the 55,353 megaliters baseline. Brine recycling is integrated into evaporation processes through closed-loop systems at solution mines and efficiency enhancements like scrubber water pumps at the Amherst site, minimizing overall water use. Environmental impacts from salt mining operations are addressed through risk mitigation strategies, including room-and-pillar designs that leave supportive salt pillars to prevent land subsidence, as employed at facilities like Goderich and Cote Blanche. Ongoing monitoring of ground conditions and subsidence indicators ensures stability. In plant nutrition, sulfate of potash (SOP) production via solar evaporation at Ogden yields Protassium+®, a low-chloride fertilizer (less than 1% chloride content) that supports soil health by reducing chloride accumulation risks, which can harm chloride-sensitive crops and promote better water efficiency and stress tolerance. On community and governance fronts, Compass Minerals maintains a strong employee safety record, with approximately 2,000 employees across its operations and a total recordable incident rate (TRIR) of 1.28 in fiscal 2024, reflecting a 16% improvement over the three-year average and targeting a further 10% annual reduction by fiscal 2025. Diversity initiatives include a goal of 40% diverse representation at the management level by fiscal 2025, which was achieved in fiscal 2024, alongside a companywide female-to-male pay ratio of 102%.