Intrepid Potash (IPI -7.46%), the nation’s only U.S.-based producer of muriate of potash fertilizer, published its second quarter 2025 financial results on August 6, 2025. The company reported GAAP revenue of $71.5 million and non-GAAP earnings per share of $0.45. Both figures substantially surpassed the consensus estimates of $61.6 million for revenue (GAAP) and $0.19 for EPS (non-GAAP). Results were propelled by robust demand, volume growth in Potash and Trio® mineral fertilizers. However, Intrepid also announced lower production targets for 2025 and 2026, reflecting material impacts from weather and operational setbacks, especially at its New Mexico facilities. Overall, the second quarter saw standout operational progress.
| Metric | Q2 2025 | Q2 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.45 | $0.19 | $0.00 | — |
| Revenue (GAAP) | $71.5 million | $61.6 million | $62.1 million | 15.2 % |
| Adjusted EBITDA | $16.4 million | $9.2 million | 78.3 % | |
| Cash Flow from Operations | $39.9 million | $27.7 million | 44.0 % | |
| Gross Margin | $14.3 million | $7.6 million | 88.2 % |
Source: Analyst estimates for the quarter provided by FactSet.
Company Overview and Key Success Factors
Intrepid Potash specializes in producing potash and Trio® mineral fertilizers from facilities in New Mexico and Utah. As the primary U.S. supplier, it has a strategic advantage through close proximity to key agricultural markets and transportation cost efficiencies. Its Trio® product, made from langbeinite, provides nutrients like potassium, magnesium, and sulfate for specialized crop needs.
Recently, the company sharpened its focus on operational efficiency, margin improvement, and better asset utilization across all facilities. Key drivers for its ongoing performance include maximizing production volumes, improving cost discipline, and expanding product offerings. Intrepid’s diversification into oilfield water services adds a supplemental revenue stream but remains a smaller contributor compared to its core fertilizer products. Environmental compliance and sustainability also remain material priorities for ongoing operations.
Quarterly Highlights: Financial and Operating Review
This quarter, Intrepid delivered much higher revenue (GAAP) and profit (non-GAAP) compared to the prior year and analyst forecasts. Non-GAAP earnings per share came in at $0.45, handily topping the $0.19 non-GAAP EPS estimate, and well above the year-ago break-even (non-GAAP). Adjusted EBITDA was $16.4 million, roughly 75% higher than last year’s second quarter.
Performance in the Potash segment was notable. Potash segment sales increased 13.2% to $34.0 million. as Potash sales volumes rose 25% to 69,000 tons, outpacing weaker per-ton pricing compared to Q2 2024. Lower production costs, with cost of goods sold per ton falling to $337 from $386 year over year, allowed segment gross margin to grow to $4.9 million. The company attributed these improvements to increased production and tighter operational controls: “We sold more tons of potash as we had more potash to sell due to an increase in production during the second half of 2024 and the first half of 2025.”
The Trio® segment, focused on a specialty fertilizer blending potassium, magnesium, and sulfate, showed substantial gains. Sales rose 25% to $33.2 million. Both volume and price contributed, with average net realized price (non-GAAP) up 17% to $368 per ton and sales volumes up 11% year over year. Gross margin for Trio® (GAAP) soared to $8.1 million from $2.2 million in Q2 2024, with continuing benefits from recent capital investments and miner upgrades.
The Oilfield Solutions segment, which sells water rights and related services to the Permian Basin oil and gas sector, saw falling revenue and margins on reduced activity. Segment revenue slipped to $4.3 million from $5.5 million in Q2 2024, and gross margin fell to $1.3 million. Management indicated “lower oilfield activity on and around the Intrepid South Ranch, and from reduced sales from our Caprock wells” as the main headwinds.
Potash production was 44,000 tons, four thousand tons higher than the same prior year period, while Trio® sales volumes increased 11% to 70,000 tons compared to the same prior year period. Improved capacity utilization contributed to better unit economics and overall gross margin improvement. However, late-quarter weather impacts and project delays affected inventory and future production outlooks. The company faces a decrease in its 2026 production by approximately 25,000 tons at the HB facility, in addition to the weather impact discussed above, due to high precipitation and setbacks with the brine pool project.
There were several one-time events affecting results. Intrepid recorded a $2.2 million environmental penalty related to an unpermitted discharge, as well as $1.2 million in asset impairments (GAAP) and $0.6 million in employee separation costs (non-GAAP).
Balance sheet strength continued. As of August 1, 2025, Intrepid held $87 million in cash and cash equivalents, with no outstanding borrowings and a $150 million revolving credit facility undrawn. Capital spending remained modest at $4.1 million for the quarter, in line with plans to prioritize maintenance over expansion. CapEx guidance for fiscal 2025 remains at $32–37 million.
No dividend was declared, a continuation of prior practice. The company remains focused on reinvesting in operations and maintaining financial flexibility.
Looking Ahead: Guidance and Key Watch Points
Management highlighted strong cash flow and solid demand trends for the balance of the year, but also took a conservative tone on future output. Guidance for potash production in both fiscal 2025 and 2026 was lowered to 270,000–280,000 tons per year due to poor weather and operational issues at the HB site. Previous guidance targeted up to 310,000 tons for 2026. No specific forecast was given for full-year revenue or earnings.
Investors and observers should monitor production rates at core sites and progress on mitigating weather and environmental challenges, as these will drive future earnings, costs, and capacity utilization for Intrepid Potash.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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