Analogy 1: Imagine **Nutrien** (a global fertilizer producer) that also mines and supplies a large amount of road de-icing salt.

Analogy 2: Essentially the bulk provider of salt for roads and industrial use, like a large-scale, behind-the-scenes **Morton Salt** for cities and industries.

Major products of Compass Minerals International (CMP):

• Highway De-icing Salt: Used by government agencies and commercial customers for snow and ice control on roads and highways.
• Consumer and Industrial Salt: Includes salt for water conditioning, food processing, agricultural uses, and various other industrial applications.
• Specialty Plant Nutrition Products: A portfolio of enhanced crop nutrition products, including micronutrients and sulfate of potash (SOP), designed to improve crop yield and quality.

Major Customers of Compass Minerals International (CMP)

Compass Minerals International (CMP) primarily sells its products to other companies and governmental entities (B2B and B2G), rather than directly to individual consumers.

Based on its latest 10-K filings, CMP is required to disclose customers that account for a significant portion (typically 10% or more) of its consolidated net sales. The major customers identified are governmental entities:

• State of New York: This governmental entity accounted for approximately 11% of CMP's consolidated net sales for the year ended December 31, 2023. As a state government, it does not have a public company symbol.
• State of Ohio: This governmental entity accounted for approximately 12% of CMP's consolidated net sales for the year ended December 31, 2022. As a state government, it does not have a public company symbol.

While no other individual companies are typically disclosed as accounting for 10% or more of revenue, CMP's broader customer base within its B2B and B2G operations includes several categories:

• Governmental Agencies: Beyond the states listed above, various state and municipal departments of transportation and other governmental agencies purchase de-icing salt.
• Industrial Customers: Companies in sectors such as food processing, chemical production, and water treatment utilize CMP's salt products for various industrial applications.
• Agricultural Distributors and Growers: For its plant nutrition products (Sulfate of Potash - SOP), CMP sells to distributors and large agricultural operations.
• Retailers and Wholesalers: For consumer-facing products like water conditioning salt and consumer de-icing products, CMP sells to retail chains and wholesalers who then distribute to individual consumers.

It's important to note that the identified major customers (State of New York and State of Ohio) are governmental entities and therefore do not have public company symbols.

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Edward C. Dowling Jr. President and Chief Executive Officer

Edward C. Dowling Jr. joined Compass Minerals as President and CEO in January 2024, bringing over 30 years of leadership experience and international mining expertise. Before Compass Minerals, he served as President, CEO, and board member of SSR Mining Inc. (formerly Alacer Gold Corp.), a publicly traded hard rock mining company, from 2008 to 2012, and was its board chair from 2013 to 2020. He previously served as President and CEO of Meridian Gold Inc. from 2006 to 2007. Dowling also held executive positions at De Beers S.A., Cleveland-Cliffs Inc., Cyprus-Amax Minerals Company, and Phelps Dodge Corporation. He oversaw the development of the Çöpler Gold Mine in Turkey and Alacer Gold Company's subsequent acquisition by SSR Mining Inc. He has served as chair of the board for PJSC Polyus and Copper Mountain Mining Corporation and is currently on the board of directors for Teck Resources Ltd. Dowling earned a Bachelor of Science, Master of Science, and Doctorate in mineral processing from Pennsylvania State University and completed the Advanced Management Program at Harvard Business School.

Peter Fjellman Chief Financial Officer

Peter Fjellman became Chief Financial Officer of Compass Minerals in January 2025, overseeing all financial management aspects including accounting, reporting, tax, internal audit, treasury, financial planning and analysis, investor relations, and the IT department. With over 30 years of experience, Fjellman has led finance teams across diverse industrial, manufacturing, and logistics sectors. Most recently, he was the Senior Vice President of Finance, Americas and Asia Pacific, for GXO Logistics, a spinoff of XPO Logistics. His prior roles include CFO, Americas for ABB, Vice President of Finance, North America, at Danaher Corporation, and various positions at Newell Rubbermaid Corporation. He began his career at KPMG and holds a Bachelor of Science in accounting from Southwest Baptist University.

Patrick Merrin Chief Operations Officer

Patrick Merrin joined Compass Minerals as Chief Operations Officer in March 2025. He is responsible for global operations, including environmental, health, safety, security, and sustainability and government affairs programs across the company’s mining, packaging, and production facilities. Merrin brings over three decades of operating experience in the mining industry. Before joining Compass Minerals, he served as Executive Vice President of Technical Services at Lundin Mining Corporation and was previously CEO of Copper Mountain Mining Corporation. His experience also includes roles as COO of mining at Washington Companies and Senior Vice President of Canadian operations at Newcrest Mining and Goldcorp. Merrin holds a Bachelor of Engineering in chemical engineering from McGill University and an MBA from the University of Toronto.

Ben Nichols Chief Commercial Officer

Ben Nichols joined Compass Minerals in November 2004 as a sales and marketing analyst and has advanced through various roles, becoming Chief Commercial Officer in March 2025. In this role, he leads all commercial activities for the company's Salt and Plant Nutrition businesses, as well as the global supply chain, which includes customer experience, integrated business planning, logistics, and procurement. Prior to his current position, he served as Chief Sales Officer, Vice President, Commercial, Vice President, Plant Nutrition, and Vice President, Salt, Consumer and Industrial. Nichols holds a Bachelor of Science in management and marketing from Baker University and an MBA from Pittsburg State University.

Amy Tills Chief Human Resources Officer

Amy Tills was appointed Chief Human Resources Officer for Compass Minerals, starting September 15, 2025. She is responsible for leading the global human resources team, driving the company's people strategy, and fostering an inclusive, high-performance culture. Tills brings over 20 years of experience in human resources leadership and labor relations. Her most recent role was Global Vice President of Human Resources at Fluke Corporation. She also served as Vice President of Human Resources, Global Cooling, at SPX Corporation, and gained experience at manufacturing companies such as Honeywell, Amcor Ltd., and Goodyear Tire and Rubber Company. Tills earned a Bachelor of Science in psychology and sociology from the University of Wisconsin-Madison and a Master of Arts in human resources and industrial relations from the University of Minnesota's Carlson School of Management.

The key risks to Compass Minerals International (CMP) primarily revolve around its financial health, operational efficiency, and ongoing compliance and litigation challenges.

1. Financial Leverage and Liquidity: Compass Minerals faces significant risks due to its elevated debt burden and high interest costs. The company has experienced negative free cash flows in recent fiscal years, which has eroded its credit cushion and raised concerns about its ability to manage earnings volatility. There is a risk of potential covenant breaches, necessitating further amendments to its credit agreements. Analysts have also noted that the company operates with a significant debt burden and is quickly burning through cash.
2. Operational Underperformance and Profitability Challenges: The company has demonstrated operational underperformance, leading to disappointing financial results, including lower earnings per share and adjusted earnings per share. The Salt segment has seen significant revenue decline due to lower tonnage sold, while the Plant Nutrition segment has also experienced declines in sales volume and average price per ton. Curtailment of production at its Goderich mine has resulted in higher per-unit production costs, impacting profitability. Overall, the company's adjusted EBITDA margins are expected to decline, and it continues to face sticky expenses and increasing product costs.
3. Regulatory, Litigation, and Compliance Issues: Compass Minerals has a history of regulatory issues, including settled charges by the SEC for misleading investors about a technology upgrade at its Goderich mine and failing to properly assess financial risks related to mercury contamination in Brazil, resulting in a $12 million payment. The company is also working to remediate internal control weaknesses. More recently, Compass Minerals received a notice from the NYSE regarding a compliance issue due to a delay in filing its quarterly financial report, stemming from ongoing restatements of financial statements for previous periods. The company also faces ongoing litigation, including a securities class action settlement, and product recall liabilities related to food-grade salt.

• Milder winter weather patterns due to climate change, leading to reduced demand for de-icing salt, which is a significant portion of Compass Minerals' revenue.
• Increasing environmental scrutiny and potential regulations on road salt usage in various jurisdictions due to concerns about waterway contamination and infrastructure corrosion, which could lead to reduced demand for traditional rock salt or increased costs.

Compass Minerals International (CMP) operates in several key markets, primarily focusing on salt, plant nutrition products, and magnesium chloride. The addressable markets for their main products and services are as follows:

• Salt:
  • The global salt market was valued at approximately USD 25.98 billion in 2024 and is projected to grow to USD 36.12 billion by 2032.
  • The North American salt market reached USD 5.78 billion in 2024 and is projected to grow to approximately USD 9.51 billion by 2034.
• Plant Nutrition:
  • The global plant nutrition market size was USD 12.63 billion in 2024 and is projected to reach USD 19.89 billion by 2033.
  • North America accounted for approximately 24% of the global plant nutrition market share in 2024.
  • The broader North America fertilizer market, which includes plant nutrition, is expected to reach US$ 92.23 billion by 2033 from US$ 68.68 billion in 2024.
• Magnesium Chloride:
  • The global magnesium chloride market is projected to grow from USD 737.9 million in 2025 to USD 1,225.1 million by 2035.
  • North America holds the second-largest share of the global magnesium chloride market. In 2019, the North America market volume for magnesium chloride surged to 403.6 Kilo Tonnes. The U.S. region alone is projected to achieve a market value of $132.84 million by 2030.

Compass Minerals International (CMP) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market dynamics:

1. Growth in the Plant Nutrition Segment: The Plant Nutrition business has demonstrated strong performance, with revenue increasing by 15% year-over-year in Q3 2025 due to improved sales volumes and enhanced production efficiency. This segment also saw a 16% year-over-year revenue increase in Q2 2025, driven by robust sales volumes.
2. Improved Pricing and Volumes in the Salt Business: The company is anticipating favorable conditions in its Salt business, particularly in highway deicing. In Q3 2025, Compass Minerals realized a 1% increase in average highway deicing selling prices and a 5% increase in sales volumes year-over-year. Management has indicated that the North American bid season is progressing well, with improvements in both pricing and commitment sizes compared to the previous year.
3. Operational Efficiency and "Back-to-Basics" Strategy: Compass Minerals is focusing on an optimization-driven "back-to-basics" strategy aimed at enhancing efficiency and profitability. This strategy has already led to declining costs in the salt business, contributing to adjusted EBITDA margin expansion and per-ton growth. Improved operational efficiency can enable more competitive pricing and better market penetration, thereby boosting revenue.
4. Strategic Inventory Management and Working Capital Optimization: While not a direct revenue driver, the company's efforts in managing inventory levels are expected to positively impact its financial flexibility and ultimately support revenue growth. Significant progress was made in Q2 2025 by reducing North American highway deicing inventory values and volumes by 47% and 59%, respectively, year-over-year. This resulted in approximately $145 million in working capital release and a reduction in total debt by over $170 million, freeing up capital for potential reinvestment in growth initiatives. Furthermore, adjusted EBITDA per ton is projected to improve as highway deicing salt produced at normalized levels is sold in future periods, contributing to overall profitability that can fund growth.

Outbound Investments

• Compass Minerals acquired the remaining 55% of Fortress, its fire retardant business, prior to fiscal year 2024.
• In late March 2025, the company announced it was winding down its fire retardant business (Fortress) to focus on its core Salt and Plant Nutrition segments.
• For the nine months ended June 30, 2025, the company sold certain assets and intellectual property related to Fortress for net proceeds of $19.6 million.

Capital Expenditures

• Total capital expenditures for fiscal year 2024 were $114.2 million, which included approximately $20.2 million related to the now-terminated lithium project.
• For fiscal year 2025, capital expenditures are projected to be in the range of $75 million to $85 million. This guidance was subsequently reduced by approximately $45 million in late 2025.
• A primary focus of capital allocation has been on improving cash flow generation and returns on capital in the core Salt and Plant Nutrition businesses, alongside the termination of the lithium development project.