Financial Analysis

COMMITMENTS AND CONTINGENCIES Contingent Obligations The Company is subject to legal and administrative proceedings and claims of various types from the ordinary course of the Companys business. If management believes that a loss arising from these actions is probable and can reasonably be estimated, the Company records the amount of the loss or the minimum estimated liability when the loss is estimated using a range and no point is more probable than another. As additional information becomes available, any potential liability related to these actions is assessed and the estimates are revised, if necessary. Management cannot predict the outcome of legal claims and proceedings with certainty. Nevertheless, management believes that the outcome of legal proceedings and claims, which are pending or known to be threatened, even if determined adversely, will not, individually or in the aggregate, have a material adverse effect on the Companys results of operations, cash flows or financial position given current insurance coverage, except as otherwise described in Note 8. Income Taxes and this Note 11. On October 21, 2022, a putative securities class action was filed in the United States District Court for the District of Kansas. The lawsuit alleges that the Company and certain former executives of the Company made misleading statements and that shareholders were damaged by these statements. Plaintiffs filed an Amended Complaint on March 13, 2023. On February 7, 2025, the parties r …

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Disaggregated revenue by product type is as follows (in millions): Fiscal Year Ended September 30, 2025 Salt Plant Nutrition Corporate & Other (a) Total Highway Deicing Salt $ 642.7 $ $ $ 642.7 Consumer & Industrial Salt 379.8 379.8 SOP 218.8 218.8 Eliminations & Other (12.5) 15.1 2.6 Sales to external customers $ 1,022.5 $ 206.3 $ 15.1 $ 1,243.9 Fiscal Year Ended September 30, 2024 Salt Plant Nutrition Corporate & Other (a) Total Highway Deicing Salt $ 546.4 $ $ $ 546.4 Consumer & Industrial Salt 361.4 361.4 SOP 189.0 189.0 Fire Retardant Products 14.2 14.2 Revenue from Services 0.5 0.5 Eliminations & Other (8.0) 13.9 5.9 Sales to external customers $ 907.8 $ 181.0 $ 28.6 $ 1,117.4 Fiscal Year Ended September 30, 2023 Salt Plant Nutrition Corporate & Other (a) Total Highway Deicing Salt $ 641.7 $ $ $ 641.7 Consumer & Industrial Salt 369.1 369.1 SOP 181.8 181.8 Fire Retardant Products 8.6 8.6 Revenue from Services 1.8 1.8 Eliminations & Other (9.7) 11.4 1.7 Sales to external customers $ 1,010.8 $ 172.1 $ 21.8 1,204.7 (a) Corporate and Other includes corporate entities, records management operations, Fortress, equity method investments, prior year lithium-related costs and other incidental operations and eliminations. Operating income (loss) for corporate and other includes indirect corporate overhead, including costs for general corporate governance and oversight, prior year lithium-related expenses, as well as costs for the human resources …

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FAIR VALUE MEASUREMENTS The Companys financial instruments are measured and reported at their estimated fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction. When available, the Company uses quoted prices in active markets to determine the fair values for its financial instruments (Level 1 inputs), or absent quoted market prices, observable market-corroborated inputs over the term of the financial instruments (Level 2 inputs). Level 3 inputs are unobservable inputs that are not corroborated by market data. Recurring Fair Value Measurements The following table summarizes the fair value hierarchy for each type of instrument carried at fair value on a recurring basis (in millions): Fair Value Measurements at September 30, 2025 Total Carrying Value at September 30, 2025 Quoted Prices in Active Market (Level One) Significant Other Observable Inputs (Level Two) Significant Unobservable Inputs (Level Three) Asset Class: Mutual fund investments in a non-qualified savings plan (a)(b) $ 3.5 $ 3.5 $ $ Derivatives designated as hedging instruments - natural gas instruments, net 7.9 7.9 Total assets $ 11.4 $ 3.5 $ 7.9 $ Liability Class: Derivatives designated as hedging instruments - natural gas instruments, net $ (8.7) $ $ (8.7) $ Liabilities related to non-qualified savings plan (3.5) (3.5) Total liabilities $ (12.2) $ (3.5) $ (8.7) $ (a) Includes mutual fund investments of approximately 29% in the common s …

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GOODWILL AND OTHER INTANGIBLE ASSETS Changes in the carrying amount of goodwill are summarized as follows (in millions): Salt Plant Nutrition Corporate & Other Consolidated Balance as of September 30, 2023 (a) $ $ 51.1 $ 37.7 $ 88.8 Foreign currency translation adjustment (0.1) 0.3 0.2 Impairments (51.0) (32.0) (83.0) Balance as of September 30, 2024 6.0 6.0 Foreign currency translation adjustment Balance as of September 30, 2025 (b) $ $ $ 6.0 $ 6.0 (a) As of September 30, 2023, there were no accumulative impairment losses recorded. (b) As of September 30, 2025, the Salt, Plant Nutrition, and Corporate & Other goodwill is presented net of accumulated impairment losses of $0, $51.0 million, and $32.0 million, respectively. In the second quarter of fiscal 2024, there were indicators necessitating an interim impairment test of the Companys goodwill based on the Companys review of its operating performance, among other factors, for the relevant reporting units. As a result the Company recorded goodwill impairment losses related to the Plant Nutrition reporting unit and the Fortress reporting unit (included in the Corporate and Other segment) of $51.0 million and $32.0 million, respectively. See Note 2. Summary of Significant Accounting Policies and Note 15. Fair Value Measurements for additional details. The details of definite and indefinite-lived intangible assets are as follows (in millions): September 30, 2025 September 30, 2024 Weighted Average Lives Gross Carrying A …

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INCOME TAXES The Company files tax returns in the U.S., Canada, the UK and Brazil at the federal and local taxing jurisdictional levels. The Companys U.S. federal tax returns for tax years 2017 forward remain open and subject to examination. Generally, the Companys state, local and foreign tax returns for years as early as 2002 forward remain open and subject to examination, depending on the jurisdiction. The following table summarizes the Companys income tax provision (in millions): Fiscal Year Ended September 30, 2025 September 30, 2024 September 30, 2023 Current: Federal $ (0.2) $ (0.3) $ (1.4) State (0.1) (0.4) 0.9 Foreign 27.9 21.3 22.6 Total current 27.6 20.6 22.1 Deferred: Federal 3.2 6.8 (0.8) State (4.9) (8.8) (2.0) Foreign 0.2 (0.7) (2.2) Total deferred (1.5) (2.7) (5.0) Total provision for income taxes $ 26.1 $ 17.9 $ 17.1 The following table summarizes components of (loss) income before income taxes and shows the tax effects of significant adjustments from the expected income tax expense computed at the federal statutory rate (in millions): Fiscal Year Ended September 30, 2025 September 30, 2024 September 30, 2023 U.S. loss $ (127.3) $ (226.2) $ (22.7) Foreign income 73.6 38.0 50.3 (Loss) income before income taxes $ (53.7) $ (188.2) $ 27.6 Computed tax at the U.S. federal statutory rate of 21% $ (11.3) $ (39.5) $ 5.8 Foreign income rate differential, mining, and withholding taxes, net of U.S. federal deduction 12.7 11.3 9.6 Benefit recognized on Canadian law chan …

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LEASES The Company enters into leases for warehouses and depots, rail cars, vehicles, mobile equipment, office space and certain other types of property and equipment. The Company determines whether an arrangement is or contains a lease at the inception of the contract. The right-of-use asset and lease liability are recognized based on the present value of the future minimum lease payments over the estimated lease term. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company estimates its incremental borrowing rate for each lease based upon the estimated lease term, the type of asset and the location of the leased asset. The most significant judgments in the application of the FASB guidance include whether a contract contains a lease and the lease term. Leases with an initial term of 12 months or less are not recorded on the Companys Consolidated Balance Sheets. The Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. Many of the Companys leases include one or more options to renew and extend the initial lease term. The exercise of lease renewal options is generally at the Companys discretion. The lease term includes renewal periods in only those instances in which the Company determines it is reasonably assured of renewal. The depreciable lives of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchas …

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LONG TERM DEBT AND FINANCE LEASE LIABILITIES Total long-term carrying value of debt and finance lease liabilities consists of the following (in millions): September 30, 2025 September 30, 2024 Secured Debt: Term Loan due May 2028 $ $ 193.8 Revolving Credit Facility due May 2028 190.1 Subordinated Debt: 8.00% Senior Notes due June 2030 650.0 6.75% Senior Notes due December 2027 150.0 500.0 AR Securitization Facility expires March 2027 45.8 38.9 Total principal amount of debt 845.8 922.8 Finance lease liabilities 15.5 16.4 Unamortized deferred financing costs (13.6) (5.3) Total carrying value of debt and finance lease liabilities 847.7 933.9 Current portion of long-term debt (7.5) Current portion of finance lease liabilities (7.9) (5.2) Total long-term carrying value of debt and finance lease liabilities $ 839.8 $ 921.2 8.00% Senior Notes due 2030 On June 16, 2025, the Company issued $650.0 million aggregate principal amount of its 8.00% Senior Notes due 2030 in a private offering, pursuant to an indenture, dated June 16, 2025 (the 2030 Notes), among the Company, the subsidiary guarantors named therein and Computershare Trust Company, N.A., as trustee. The 2030 Notes are senior unsecured obligations, with interest payable semi-annually on January 1 and July 1, commencing January 1, 2026. The Notes are guaranteed by certain of the Companys domestic subsidiaries. The 2030 Notes will mature on June 16, 2030. The Company incurred $13.0 million in deferred financing costs, including …

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Accounting Pronouncement Recently Adopted Segment Reporting. In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily to include enhanced disclosures about significant segment expenses. The Company adopted ASU 2023-07 in fiscal 2025 and applied the amendment retrospectively to all periods presented in the Companys consolidated financial statements. See Note 12. Operating Segments for more information. Accounting Pronouncements Issued Not Yet Adopted Income Tax Disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which updates income tax disclosures by requiring consistent categories and additional disaggregation of information in the rate reconciliation and income taxes paid by jurisdiction. The ASU is effective for fiscal years beginning after December 15, 2024, and is effective for the Company beginning in the annual report for the fiscal year ended September 30, 2026. Early adoption is permitted. The amendments should be applied prospectively; however, retrospective application is permitted. Management is currently evaluating this ASU to determine its impact on the Companys disclosures. Disaggregation of Income Statement Expenses. In November 2024, the FASB issued amended guidance related to disclosu …

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PENSION PLANS AND OTHER BENEFITS UK Pension The Company has a defined benefit pension plan for certain of its former UK employees. Benefits of this pension plan are based on a combination of years of service and compensation levels. This plan was closed to new participants in 1992. Beginning December 1, 2008, future benefits ceased to accrue for the remaining active employee participants in the pension plan concurrent with the establishment of a defined contribution plan for these employees. The following table sets forth pension obligations and plan assets for the Companys UK pension plan (in millions): September 30, 2025 September 30, 2024 Change in benefit obligation: Benefit obligation at beginning of period $ 45.0 $ 39.7 Interest cost 2.1 2.2 Actuarial (gain) loss (1.9) 2.0 Benefits paid (3.2) (2.9) Currency fluctuation adjustment 4.0 Benefit obligation at end of period 42.0 45.0 Change in plan assets: Fair value at beginning of period 47.2 41.5 Actual return (0.7) 4.3 Company contributions Currency fluctuation adjustment (0.1) 4.3 Benefits paid (3.2) (2.9) Fair value of plan assets at end of period 43.2 47.2 Overfunded status of the plan $ 1.2 $ 2.2 The Companys UK pension plan was overfunded as of September 30, 2025 and September 30, 2024, and accordingly, $1.2 million and $2.2 million has been recorded as a noncurrent asset, respectively, in the Companys Consolidated Balance Sheets. The accumulated benefit obligation for the UK pension plan was $42.0 million and $45.0 …

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RELATED PARTY TRANSACTIONS As discussed in Note 13. Stockholders Equity and Equity Instruments, on October 18, 2022, Koch, through its KM&T subsidiary, purchased common stock representing an ownership interest of approximately 17% of the outstanding common stock of the Company. During the fiscal years ended September 30, 2025, September 30, 2024, and September 30, 2023, the Company recorded SOP sales of approximately $3.6 million, $3.4 million, and $4.3 million, respectively, to certain subsidiaries of Koch. As of September 30, 2025 and September 30, 2024, the Company had approximately $0.2 million and $0.3 million, respectively, of receivables from related parties on its Consolidated Balance Sheets. There were no outstanding amounts payable as of September 30, 2025 or September 30, 2024. …

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REVENUES Nature of Products and Services. The Companys Salt segment products include salt and magnesium chloride for use in road deicing and dust control, food processing, water softening, and agricultural and industrial applications. The Companys plant nutrition segment produces and markets SOP in various grades worldwide to distributors and retailers of crop inputs, as well as growers and for industrial uses. The Company also operates a records management business utilizing excavated areas of its Winsford salt mine with one other location in London, England. Identifying the Contract. The Company accounts for a customer contract when there is approval and commitment from both parties, the rights of the parties and payment terms are identified, the contract has commercial substance and collectability of consideration is probable. Identifying the Performance Obligations. At contract inception, the Company assesses the goods and services it has promised to its customers and identifies a performance obligation for each promise to transfer to the customer a distinct good or service (or bundle of goods or services). Determining whether products and services are considered distinct performance obligations that should be accounted for separately or aggregated together may require significant judgment. Identifying and Allocating the Transaction Price. The Companys revenues are measured based on consideration specified in the customer contract, net of any sales incentives and amounts …

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OPERATING SEGMENTS The Companys reportable segments are strategic business units that offer different products and services, and each business requires different technology and marketing strategies. For all periods presented in this Form 10-K, the Company has two reportable segments in its Consolidated Financial Statements: Salt and Plant Nutrition. The Salt segment produces and markets salt, consisting primarily of sodium chloride and magnesium chloride, for use in road deicing for winter roadway safety and for dust control, food processing, water softeners and other consumer, agricultural and industrial applications. The Plant Nutrition segment produces and markets various grades of SOP. The results of operations for the Companys records management business and former fire retardant business are included in Corporate and Other in the tables below. The chief operating decision maker (CODM) is the Companys President and Chief Executive Officer. The primary measure of segment profit or loss used by the CODM to regularly evaluate performance, make key operating decisions and determine resource allocation of and among each operating segment is operating income. The CODM assesses segment performance by comparing actual operating income to budgeted and/or forecasted performance, and making decisions such as whether and when to invest resources for future capital expenditures and for general corporate purposes. Segment operating income is based upon segment sales less expenses attr …

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SUBSEQUENT EVENT Canadian Provincial Tax. In November 2025, the Company reached a settlement with a Canadian provincial tax authority regarding a tax dispute for fiscal years 2002 - 2018. The Canadian provincial tax authority had challenged tax positions claimed by one of the Companys Canadian subsidiaries and have issued tax reassessments for fiscal years 2002-2019 . The reassessments were the result of ongoing audits and total $209.8 million , including interest. The settlement resolved the dispute for tax years 2002 - 2018 for a total expected cash outlay of $10M, net of federal refunds and deductions associated with the agreed upon tax and interest. The total impacts of the settlement, net of federal benefits and subsequent year adjustments, as compared to the accrual recorded as of September 30, 2025 are expected to be immaterial. The settlement amount related to tax years 2002 - 2018 was paid in the first quarter of fiscal 2026 and the Company is in the process of amending the relevant tax returns to obtain the associated federal refunds. With the settlement, the bonds posted as collateral for the 2002-2018 period were released. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing