Intrepid Announces First Quarter 2026 Results

Published: 2026-05-06 16:33:05 ET IPI

Published on 05/06/2026 at 04:33 pm EDT

Intrepid Potash, Inc. ("Intrepid", "the Company", "we", "us", or "our") (NYSE:IPI) today reported its results for the first quarter of 2026.

First Quarter Highlights & Management Commentary

Supportive prices, resilient demand for potash and Trio®, and continued improvement in Trio® margins led to another quarter of strong financial results, highlighted by:

Kevin Crutchfield, Intrepid's Chief Executive Officer, commented: "We started 2026 with a great quarter and I want to thank our entire team for their commitment to safety and hard work. Our first quarter net income from continuing operations of $6.9 million and adjusted EBITDA of $19.0 million validates our focus on consistent execution across our core fertilizer business.

Combined potash and Trio® sales volumes were 211 thousand tons, our second highest quarterly sales total since idling the West mine in 2016. Trio® continues to be our strongest segment, as we posted the highest quarterly margin for the segment since 2022. Prices remained supportive in the spring and our investments in operational efficiency showed their worth as per-ton costs improved 5% compared to Q4.

Overall, potash market fundamentals remain constructive and the U.S. agriculture market has shown resiliency despite uncertainty from rising input costs. As we redouble our focus on core operations to serve these markets and to unlock the value of all the critical minerals we produce, the future is bright for Intrepid."

Key Financial & Operational Metrics Summary

Three Months Ended March 31,

2026

2025

(in millions unless otherwise stated)

Sales from continuing operations

98.7

94.5

Gross margin

17.7

13.3

Net income from continuing operations

6.9

3.4

Net income from continuing operations per diluted share

0.52

0.26

Adjusted net income from continuing operations(1)

8.2

3.9

Adjusted net income from continuing operations per diluted share(1)

0.62

0.30

Adjusted EBITDA(1)

19.0

14.6

Cash flow from continuing operations

21.3

6.8

Potash sales volumes (in thousands and tons)

105

103

Average potash net realized sales price per ton(1)

353

312

Trio® sales volumes (in thousands and tons)

106

110

Average Trio® net realized sales price per ton(1)

387

345

Project Updates

Sale of Intrepid South Ranch

Increased Production at East Underground Mine

Wendover Lithium Project

Capital Expenditures

Liquidity

Segment Highlights

Potash

Three Months Ended March 31,

2026

2025

(in thousands, except per ton data)

Sales

46,119

43,577

Gross margin

3,067

2,503

Potash sales volumes (in tons)

105

103

Potash production volumes (in tons)

104

Average potash net realized sales price per ton(1)

353

312

In the first quarter of 2026, our potash segment sales increased $2.5 million compared to the same prior year period. This was primarily driven by a 13% increase in our average net realized sales price per ton(1) to $353, as 2026 winter fill prices were $40 per ton higher than the 2025 winter fill program.

In the first quarter of 2026, our potash production of 104 thousand tons was 11 thousand tons higher than the same prior year period, as we benefited from efficiency improvements across all our mines. Increased production from our higher-cost sites led to an increase in our average potash segment cost of goods sold ("COGS") per ton, which totaled $334 in the first quarter of 2026. This compares to $313 per ton in the first quarter of 2025 and $332 per ton in the fourth quarter of 2025.

Our segment gross margin increased by $0.6 million compared to the same prior year period, which was primarily a result of higher sales pricing partially offset by higher costs on a similar volume.

In the first quarter of 2026, we recorded $0.8 million in lower of cost or net realizable value inventory adjustments for certain potash products as our weighted average carry cost per ton exceeded our expected net realizable value per potash ton for certain products. In first quarter of 2025, we recorded $1.3 million in lower of cost or net realizable value inventory adjustments

Trio®

Three Months Ended March 31,

2026

2025

(in thousands, except per ton data)

Sales

52,538

49,842

Gross margin

14,838

10,434

Trio® sales volume (in tons)

106

110

Trio® production volume (in tons)

Average Trio® net realized sales price per ton(1)

387

345

In the first quarter of 2026, Trio® segment sales increased $2.7 million, or 5% compared to the same prior year period. This was largely driven by a 12% increase in our average net realized sales price per ton(1) to $387 due to continued supportive prices of the individual nutrient components of Trio®, particularly sulfate and potassium, partially offset by a 4% decline in tons sold.

Our Trio® production of 69 thousand tons was 10% higher than the first quarter last year despite weather-related production interruptions early in the quarter, showing the benefit of the new continuous miner commissioned earlier this year and ongoing plant optimization projects. Our Trio® segment COGS per ton totaled $229, which compares to $235 per ton in the first quarter of 2025, and $242 per ton in the fourth quarter of 2025.

Our Trio® segment generated gross margin of $14.8 million in the first quarter of 2026, which compares to $10.4 million in the same prior year period, with the increase primarily attributable to the higher average net realized sales price per ton, as well as an improvement in our Trio® segment COGS per ton, which helped offset a slight decline in sales volume.

Notes

1 Adjusted net income from continuing operations, adjusted net income from continuing operations per diluted share, adjusted earnings before interest, taxes, depreciation, and amortization (or adjusted EBITDA) and average net realized sales price per ton are non-GAAP financial measures. See the non-GAAP reconciliations set forth later in this press release for additional information.

Unless expressly stated otherwise or the context otherwise requires, references to tons in this press release refer to short tons. One short ton equals 2,000 pounds. One metric tonne, which many international competitors use, equals 1,000 kilograms or 2,204.62 pounds.

Conference Call Information

Intrepid will host a conference call on Thursday, May 7, at 12:00 p.m. Eastern Time to discuss the results and other operating and financial matters and answer investor questions. Management invites you to listen to the conference call by using the toll-free dial-in number 1 (833) 461-5787 or International dial-in number 1 (585) 542-9983; please use meeting ID 357989383. The call will also be streamed on the Intrepid website, intrepidpotash.com. A recording of the conference call will be available approximately two hours after the completion of the call via webcast. The recording will be available for 12 months following the call.

About Intrepid

Intrepid is a diversified mineral company that delivers potassium, magnesium, sulfur, and salt products essential for customer success in the agriculture and animal feed industries. Intrepid is the only U.S. producer of muriate of potash, which is applied as an essential nutrient for healthy crop development, utilized in several industrial applications, and used as an ingredient in animal feed. In addition, Intrepid produces a specialty fertilizer, Trio®, which delivers three key nutrients, potassium, magnesium, and sulfate, in a single particle.

Intrepid serves diverse customers in markets where a logistical advantage exists and is a leader in the use of solar evaporation for potash production, resulting in lower cost and more environmentally friendly production. Intrepid’s mineral production comes from three solar solution potash facilities and one conventional underground Trio® mine.

Intrepid routinely posts important information, including information about upcoming investor presentations and press releases, on its website under the Investor Relations tab. Investors and other interested parties are encouraged to enroll at intrepidpotash.com, to receive automatic email alerts for new postings.

Forward-looking Statements

This document contains forward-looking statements - that is, statements about future, not past, events. The forward-looking statements in this document relate to, among other things, statements about Intrepid's future financial performance and cash flows, water sales, production costs, and its market outlook. These statements are based on assumptions that Intrepid believes are reasonable. Forward-looking statements by their nature address matters that are uncertain. The particular uncertainties that could cause Intrepid's actual results to be materially different from its forward-looking statements include the following:

In addition, new risks emerge from time to time. It is not possible for Intrepid to predict all risks that may cause actual results to differ materially from those contained in any forward-looking statements Intrepid may make.

All information in this document speaks as of the date of this release. New information or events after that date may cause our forward-looking statements in this document to change. We undertake no obligation to update or revise publicly any forward-looking statements to conform the statements to actual results or to reflect new information or future events.

INTREPID POTASH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

(In thousands, except per share amounts)

Three Months Ended March 31,

2026

2025

Sales

98,685

94,527

Less:

Freight costs

16,730

17,491

Warehousing and handling costs

3,844

3,490

Cost of goods sold

59,617

58,890

Lower of cost or net realizable value inventory adjustments

822

1,335

Gross Margin

17,672

13,321

Selling and administrative

11,273

9,155

Accretion of asset retirement obligation

776

649

Impairment of long-lived assets

—

662

Gain on sale of assets

(28

)

(160

)

Other operating income

(1,160

)

(1,283

)

Other operating expense

586

596

Operating Income

6,225

3,702

Other Income (Expense)

Interest expense, net

—

(105

)

Interest income

667

375

Other income (expense)

(466

)

Income from Continuing Operations Before Income Taxes

6,940

3,506

Income tax expense

(59

)

(78

)

Net Income from Continuing Operations

6,881

3,428

Net Income from Discontinued Operations, Net of Tax

537

1,178

Net Income

7,418

4,606

Net income per share:

Continuing operations - Basic

0.52

0.27

Discontinued operations - Basic

0.04

0.09

Net income - Basic

0.56

0.36

Continuing operations - Diluted

0.52

0.26

Discontinued operations - Diluted

0.04

0.09

Net income - Diluted

0.56

0.35

Weighted Average Shares Outstanding:

Basic

13,141

12,917

Diluted

13,287

13,088

INTREPID POTASH, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

AS OF MARCH 31, 2026 AND DECEMBER 31, 2025

(In thousands, except share and per share amounts)

March 31,

December 31,

2026

2025

ASSETS

Cash and cash equivalents

99,259

83,537

Accounts receivable:

Trade, net

46,255

31,979

Other receivables, net

158

159

Inventory, net

95,685

112,191

Prepaid expenses and other current assets

4,535

5,312

Assets held for sale

57,752

59,154

Total current assets

303,644

292,332

Property, plant, equipment, and mineral properties, net

296,001

298,756

Water rights

2,311

Long-term parts inventory, net

31,316

31,506

Long-term investments

179

Other assets, net

8,091

7,095

Total Assets

641,542

632,179

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable

13,953

9,656

Accrued liabilities

11,976

10,456

Accrued employee compensation and benefits

9,169

12,481

Other current liabilities

19,432

19,811

Liabilities held for sale

3,238

3,370

Total current liabilities

57,768

55,774

Asset retirement obligation, net of current portion

39,228

38,452

Operating lease liabilities

1,310

1,550

Finance lease liabilities

2,370

1,741

Deferred other income, long-term

42,669

43,233

Total Liabilities

143,345

140,750

Commitments and Contingencies

Common stock, $0.001 par value; 40,000,000 shares authorized; 13,186,538 and 13,131,663 shares outstanding at March 31, 2026, and December 31, 2025, respectively

Additional paid-in capital

673,647

674,297

Accumulated deficit

(153,452

)

(160,870

)

Less treasury stock, at cost

(22,012

)

(22,012

)

Total Stockholders' Equity

498,197

491,429

Total Liabilities and Stockholders' Equity

641,542

632,179

INTREPID POTASH, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

(In thousands)

Three Months Ended March 31,

2026

2025

Cash Flows from Operating Activities:

Net income

7,418

4,606

Income from discontinued operations, net of tax

(537

)

(1,178

)

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, depletion and amortization

9,949

9,854

Accretion of asset retirement obligation

776

649

Amortization of deferred financing costs

111

Amortization of intangible assets

Stock-based compensation

516

1,099

Lower of cost or net realizable value inventory adjustments

822

1,335

Impairment of long-lived assets

—

662

Gain on disposal of assets

(28

)

(160

)

Allowance for doubtful accounts

—

137

Allowance for parts inventory obsolescence

—

Loss on equity investment

—

474

Changes in operating assets and liabilities:

Trade accounts receivable, net

(14,275

)

(26,892

)

Other receivables, net

—

(540

)

Inventory, net

15,860

16,533

Prepaid expenses and other current assets

203

320

Accounts payable, accrued liabilities, and accrued employee compensation and benefits

1,344

524

Operating lease liabilities

(246

)

(378

)

Deferred other income

(564

)

(564

)

Other liabilities

(30

)

210

Net cash provided by operating activities of continuing operations

21,334

6,768

Net cash provided by operating activities of discontinued operations

1,833

4,149

Net cash provided by operating activities

23,167

10,917

Cash Flows from Investing Activities:

Additions to property, plant, equipment, mineral properties and other assets

(5,133

)

(7,664

)

Proceeds from sale of assets

—

Proceeds from redemptions/maturities of investments

—

500

Net cash used in investing activities of continuing operations

(5,124

)

(7,164

)

Net cash (used in) provided by investing activities of discontinued operations

(27

)

1,496

Net cash used in investing activities

(5,151

)

(5,668

)

Cash Flows from Financing Activities:

Payments of financing lease

(594

)

(243

)

Capitalized debt fees

(531

)

—

Employee tax withholding paid for restricted stock upon vesting

(1,180

)

(682

)

Proceeds from exercise of stock options

Net cash used in financing activities

(2,291

)

(887

)

Net Change in Cash, Cash Equivalents and Restricted Cash

15,725

4,362

Cash, Cash Equivalents and Restricted Cash, beginning of period

84,135

41,898

Cash, Cash Equivalents and Restricted Cash, end of period

99,860

46,260

INTREPID POTASH, INC. UNAUDITED NON-GAAP RECONCILIATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025 (In thousands)

To supplement Intrepid's consolidated financial statements, which are prepared and presented in accordance with GAAP, Intrepid uses several non-GAAP financial measures to monitor and evaluate its performance. These non-GAAP financial measures include adjusted net income, adjusted net income per diluted share, adjusted EBITDA, and average net realized sales price per ton. These non-GAAP financial measures should not be considered in isolation, or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. In addition, because the presentation of these non-GAAP financial measures varies among companies, these non-GAAP financial measures may not be comparable to similarly titled measures used by other companies.

Intrepid believes these non-GAAP financial measures provide useful information to investors for analysis of its business. Intrepid uses these non-GAAP financial measures as one of its tools in comparing period-over-period performance on a consistent basis and when planning, forecasting, and analyzing future periods. Intrepid believes these non-GAAP financial measures are used by professional research analysts and others in the valuation, comparison, and investment recommendations of companies in the potash mining industry. Many investors use the published research reports of these professional research analysts and others in making investment decisions.

Adjusted Net Income and Adjusted Net Income Per Diluted Share

Adjusted net income and adjusted net income per diluted share are calculated as net income or net income per diluted share adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliation below. Intrepid considers these non-GAAP financial measures to be useful because they allow for period-to-period comparisons of its operating results excluding items that Intrepid believes are not indicative of its fundamental ongoing operations.

Reconciliation of Net Income from Continuing Operations to Adjusted Net Income from Continuing Operations:

Three Months Ended March 31,

2026

2025

(in thousands)

Net Income from Continuing Operations

6,881

3,428

Adjustments

Impairment of long-lived assets

—

662

Gain on sale of assets

(28

)

(160

)

Employee separation costs

1,367

—

Calculated income tax effect(1)

—

Total adjustments

1,339

502

Adjusted Net Income from Continuing Operations

8,220

3,930

Reconciliation of Net Income to Adjusted Net Income per Share:

Three Months Ended March 31,

2026

2025

Net Income from Continuing Operations Per Diluted Share

0.52

0.26

Adjustments

Impairment of long-lived assets

—

0.05

Gain on sale of assets

—

(0.01

)

Employee separation costs

0.10

—

Calculated income tax effect(1)

—

Total adjustments

0.10

0.04

Adjusted Net Income from Continuing Operations Per Diluted Share

0.62

0.30

(1) Assumes an annual effective tax rate of 0% for 2026 and 2025.

Adjusted EBITDA

Adjusted earnings before interest, taxes, depreciation, and amortization (or adjusted EBITDA) is calculated as net income from continuing operations adjusted for certain items that impact the comparability of results from period to period, as set forth in the reconciliation below. Intrepid considers adjusted EBITDA to be useful, and believe it to be useful for investors, because the measure reflects Intrepid's operating performance before the effects of certain non-cash items and other items that Intrepid believes are not indicative of its core operations. Intrepid uses adjusted EBITDA to assess operating performance.

Reconciliation of Net Income to Adjusted EBITDA:

Three Months Ended March 31,

2026

2025

(in thousands)

Net Income from Continuing Operations

6,881

3,428

Impairment of long-lived assets

—

662

Gain on sale of assets

(28

)

(160

)

Employee separation costs

1,367

—

Interest expense

—

105

Income tax expense

Depreciation, depletion, and amortization

9,949

9,854

Amortization of intangible assets

Accretion of asset retirement obligation

776

649

Total adjustments

12,125

11,190

Adjusted EBITDA

19,006

14,618

Average Potash and Trio® Net Realized Sales Price per Ton

Average net realized sales price per ton for potash is calculated as potash segment sales less potash segment byproduct sales and potash freight costs and then dividing that difference by the number of tons of potash sold in the period. Likewise, average net realized sales price per ton for Trio® is calculated as Trio® segment sales less Trio® segment byproduct sales and Trio® freight costs and then dividing that difference by Trio® tons sold. Intrepid considers average net realized sales price per ton to be useful, and believe it to be useful for investors, because it shows Intrepid's potash and Trio® average per ton pricing without the effect of certain transportation and delivery costs. When Intrepid arranges transportation and delivery for a customer, it includes in revenue and in freight costs the costs associated with transportation and delivery. However, some of Intrepid's customers arrange for and pay their own transportation and delivery costs, in which case these costs are not included in Intrepid's revenue and freight costs. Intrepid uses average net realized sales price per ton as a key performance indicator to analyze potash and Trio® sales and price trends.

Reconciliation of Sales to Average Net Realized Sales Price per Ton:

Three Months Ended March 31,

2026

2025

(in thousands, except per ton amounts)

Potash

Trio®

Potash

Trio®

Total Segment Sales

46,119

52,538

43,577

49,842

Less: Segment byproduct sales

4,189

264

6,254

164

Freight costs

4,830

11,244

5,137

11,764

Subtotal

37,100

41,030

32,186

37,914

Divided by:

Tons sold

105

106

103

110

Average net realized sales price per ton

353

387

312

345

INTREPID POTASH, INC.

DISAGGREGATION OF REVENUE AND SEGMENT DATA (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

(In thousands)

Three Months Ended March 31, 2026

Product

Potash Segment

Trio® Segment

Corporate and Other

Total

Potash

41,930

—

41,930

Trio®

—

52,274

—

52,274

Water

—

Salt

2,299

264

—

2,563

Magnesium Chloride

519

—

519

Brine Water

1,371

—

1,371

Other

—

Total Revenue

46,119

52,538

98,685

Three Months Ended March 31, 2025

Product

Potash Segment

Trio® Segment

Corporate and Other

Total

Potash

37,323

—

(59

)

37,264

Trio®

—

49,678

—

49,678

Water

—

1,087

Salt

3,135

164

—

3,299

Magnesium Chloride

1,148

—

1,148

Brine Water

1,971

—

1,971

Other

—

Total Revenue

43,577

49,842

1,108

94,527

INTREPID POTASH, INC.

DISAGGREGATION OF REVENUE AND SEGMENT DATA (UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

(In thousands)

Three Months Ended

March 31, 2026

Potash

Trio®

Corporate and Other

Consolidated

Sales

46,119

52,538

98,685

Less: Freight costs

5,486

11,244

—

16,730

Warehousing and handling costs

1,707

2,137

—

3,844

Cost of goods sold

35,037

24,319

261

59,617

Lower of cost or net realizable value inventory adjustments

822

—

822

Gross Margin (Deficit)

3,067

14,838

(233

)

17,672

Depreciation, depletion, and amortization incurred1

8,436

959

556

9,951

Three Months Ended

March 31, 2025

Potash

Trio®

Corporate and Other

Consolidated

Sales

43,577

49,842

1,108

94,527

Less: Freight costs

5,786

11,764

(59

)

17,491

Warehousing and handling costs

1,711

1,779

—

3,490

Cost of goods sold

32,242

25,865

783

58,890

Lower of cost or net realizable value inventory adjustments

1,335

—

1,335

Gross Margin

2,503

10,434

384

13,321

Depreciation, depletion, and amortization incurred1

8,251

844

761

9,856

(1) Depreciation, depletion, and amortization incurred for potash and Trio® excludes depreciation, depletion, and amortization amounts absorbed in or relieved from inventory.

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