Intrepid Announces Second Quarter 2026 Results
Denver, CO, August 4, 2026 - Intrepid Potash, Inc. ("Intrepid", "the Company", "we", "us", or "our") (NYSE:IPI) today reported its results for the second quarter of 2026.
Second Quarter Highlights & Management Commentary
Supportive pricing, stable Trio® sales volumes, and continued improvement in Trio® margins
drove improved profitability in the second quarter of 2026, highlighted by:
•Expanded gross margin by 35% compared with the prior-year quarter despite slightly lower sales from continuing operations.
•Increased full-year 2026 production guidance for potash to 290-300 thousand tons and Trio® to 295-305 thousand tons.
•Lowest Trio® COGS per ton since Q4 2019.
•Increased net income to $15.6 million including $13.2 million gain on sale of Intrepid South, compared with $3.3 million in the second quarter of 2025.
•Reported net income from continuing operations of $2.4 million, up from $1.4 million in the prior year quarter.
•Delivered Adjusted EBITDA(1) from continuing operations of $17.5 million, up from $13.8 million in the second quarter of 2025.
•Completed the sale of Intrepid South for $68.9 million, including $62.0 million of cash proceeds received during the second quarter of 2026.
•Lowered full-year 2026 capital expenditure guidance to approximately $40 million.
•Expanded the Company’s share repurchase authorization to $50 million.
Kevin Crutchfield, Intrepid's Chief Executive Officer, commented: “We delivered improved
profitability in the second quarter, reflecting supportive markets, disciplined execution, and
continued progress across our core fertilizer portfolio. Trio® performed particularly well, with
higher production, improved unit costs, and stronger margins as demand for chloride-free,
sulfate-containing nutrients continued to benefit from supportive market conditions. In potash,
higher production and improved pricing helped offset lower sales volumes. For both Trio® and potash, we are raising our full-year production outlook based on the operating progress achieved to date.
We remain focused on the areas within our control—operating safely, improving reliability and
efficiency, and delivering value from our core assets. With a strong balance sheet, increased
production guidance for both potash and Trio®, lower expected capital expenditures, and an
expanded share repurchase authorization, we believe Intrepid is well positioned to build on our
momentum through the remainder of 2026."
Key Financial Metrics
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | Six Months Ended June 30, |
| | 2026 | | 2025 | | 2026 | | 2025 |
| | (in millions unless otherwise stated) |
| Sales from continuing operations | | $ | 66.7 | | | $ | 67.5 | | | $ | 165.4 | | | $ | 162.1 | |
| Gross margin | | $ | 16.6 | | | $ | 12.4 | | | $ | 34.3 | | | $ | 25.7 | |
| Net income from continuing operations | | $ | 2.4 | | | $ | 1.4 | | | $ | 9.3 | | | $ | 4.8 | |
| Net income from continuing operations per diluted share | | $ | 0.18 | | | $ | 0.10 | | | $ | 0.70 | | | $ | 0.37 | |
Adjusted net income from continuing operations(1) | | $ | 7.4 | | | $ | 4.1 | | | $ | 15.6 | | | $ | 8.0 | |
Adjusted net income from continuing operations per diluted share(1) | | $ | 0.56 | | | $ | 0.30 | | | $ | 1.18 | | | $ | 0.61 | |
Adjusted EBITDA(1) | | $ | 17.5 | | | $ | 13.8 | | | $ | 36.5 | | | $ | 28.4 | |
| Cash flow from continuing operations | | $ | 34.0 | | | $ | 36.1 | | | $ | 55.3 | | | $ | 42.9 | |
Second quarter 2026 sales from continuing operations were generally consistent with the prior year quarter, as higher average realized prices for potash and Trio® and improved Trio® production were offset by lower potash sales volumes. Gross margin increased to $16.6 million in the second quarter of 2026 from $12.4 million in the same prior year period, driven primarily by improved Trio® segment margins, supportive realized pricing, and lower average Trio® COGS per ton. Adjusted net income from continuing operations increased to $7.4 million, or $0.56 per diluted share in the second quarter of 2026, compared with $4.1 million, or $0.30 per diluted share, in the second quarter of 2025, while Adjusted EBITDA increased to $17.5 million in the second quarter of 2026 from $13.8 million in the same prior year period.
Including discontinued operations, net income was $15.6 million, or $1.17 per diluted share, in the second quarter of 2026, compared with $3.3 million, or $0.25 per diluted share, in the same prior year period. Net income from discontinued operations was $13.2 million in the second quarter of 2026, primarily reflecting the completed sale of Intrepid South. We received two payments totaling $70.0 million related to the sale of Intrepid South, with an $8.0 million deposit received in December 2025, and a $62.0 million payment received on April 1, 2026, the closing date of the transaction. The final sales price after customary adjustments was $68.9 million and we recorded a gain, net of taxes, of $13.2 million during the second quarter of 2026.
For the six months ended June 30, 2026, sales from continuing operations increased to $165.4 million from $162.1 million in the same prior year period, while gross margin increased to $34.3 million from $25.7 million in the same prior year period. The year-to-date improvement reflects higher average realized sales prices, stronger Trio® margins, improved production performance, and lower cost of goods sold relative to the prior year period. Net income from continuing operations was $9.3 million, or $0.70 per diluted share in the first half of 2026, compared with $4.8 million, or $0.37 per diluted share, in the first six months of 2025. Adjusted EBITDA(1) increased to $36.5 million in the first half of 2026 from $28.4 million in the same prior year period. Including discontinued operations, net income was $23.0 million, or $1.73 per
diluted share in the first half of 2026, including $13.7 million of net income from discontinued operations, compared with net income of $7.9 million, or $0.60 per diluted share, in the same prior year period.
Cash flow from continuing operations was $34.0 million in the second quarter of 2026,
compared with $36.1 million in the same prior year period. The year-over-year decrease was
primarily due to less favorable working capital movements compared with the prior year quarter,
partially offset by higher earnings from continuing operations. For the six months ended June 30,
2026, cash flow from continuing operations increased to $55.3 million from $42.9 million in the same prior year period, reflecting improved profitability and continued working capital discipline.
Segment Highlights
Potash
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | Six Months Ended June 30, |
| | 2026 | | 2025 | | 2026 | | 2025 |
| | (in thousands, except per ton data) |
| Sales | | $ | 30,602 | | | $ | 33,994 | | | $ | 76,721 | | | $ | 77,571 | |
| Gross margin | | $ | 4,918 | | | $ | 4,858 | | | $ | 7,985 | | | $ | 7,361 | |
| | | | | | | | |
| Potash sales volumes (in tons) | | 59 | | | 69 | | | 165 | | | 172 | |
| Potash production volumes (in tons) | | 52 | | | 44 | | | 157 | | | 137 | |
| | | | | | | | |
Average potash net realized sales price per ton(1) | | $ | 391 | | | $ | 361 | | | $ | 365 | | | $ | 332 | |
In the second quarter of 2026, potash segment sales decreased $3.4 million compared to
the same prior year period. The decrease was primarily driven by a 14% decline in sales volumes
to 59 thousand tons, partially offset by an 8% increase in our average net realized sales price per
ton(1) to $391. Sales volumes were lower compared to the prior-year period as grower sentiment was pressured by the economic effects of global geopolitical events and incremental demand softened during the latter half of the quarter.
Potash production was 52 thousand tons in the second quarter of 2026, an increase of 8 thousand tons compared to the same prior year period, as we benefited from efficiency
improvements across all of our mines. The benefit of higher production was partially offset by a
production mix weighted more heavily toward our higher-cost sites, which increased our average
potash segment cost of goods sold ("COGS") per ton to $359 in the second quarter of 2026,
compared with $337 per ton in the second quarter of 2025 and $334 per ton in the first quarter of
2026.
Potash segment gross margin increased by $0.1 million in the second quarter of 2026 compared to the same prior year period, as higher average net realized sales prices were largely offset by lower sales volumes and higher average COGS per ton.
Trio®
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | Six Months Ended June 30, |
| | 2026 | | 2025 | | 2026 | | 2025 |
| | (in thousands, except per ton data) |
| Sales | | $ | 35,723 | | | $ | 33,212 | | | $ | 88,261 | | | $ | 83,054 | |
| Gross margin | | $ | 11,443 | | | $ | 8,086 | | | $ | 26,281 | | | $ | 18,520 | |
| | | | | | | | |
Trio® sales volume (in tons) | | 70 | | | 70 | | | 176 | | | 181 | |
Trio® production volume (in tons) | | 75 | | | 70 | | | 144 | | | 132 | |
| | | | | | | | |
Average Trio® net realized sales price per ton(1) | | $ | 389 | | | $ | 368 | | | $ | 388 | | | $ | 352 | |
In the second quarter of 2026, Trio® segment sales increased $2.5 million, or 8% compared to the same prior year period. The increase was largely driven by a 6% increase in our average net realized sales price per ton(1) to $389, reflecting continued supportive pricing for Trio®'s individual nutrient components, particularly sulfate and potassium. Sales volumes were flat compared to the same prior year period at 70 thousand tons.
Trio® production of 75 thousand tons in the second quarter of 2026 was 7% higher than the second quarter last year, showing the benefit of the new continuous miner commissioned earlier this year and ongoing plant optimization projects. Our Trio® segment COGS per ton totaled $205 in the second quarter of 2026, which compares to $235 per ton in the second quarter of 2025, and $229 per ton in the first quarter of 2026.
Our Trio® segment generated gross margin of $11.4 million in the second quarter of 2026, which compares to $8.1 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.
Operating Updates, Guidance and Capital Allocation
Potash Segment Production Outlook
•We are increasing our full-year 2026 potash production guidance to a range of 290 thousand to 300 thousand tons, reflecting improved recoveries from focused mill efficiency initiatives and improved brine grade and evaporation which extended the harvest season ahead of our summer shutdown.
Increased Production at East Underground Mine
•In early 2026, we commissioned a new continuous miner at our East Mine, which has improved operating efficiency and increased Trio® production. We also increased operating hours per shift and continue to advance mill improvements that support higher production of granular and premium products. For 2026, we are increasing our Trio® full-year production guidance to a range of 295 thousand to 305 thousand tons.
Wendover Lithium Project
•Our partners continue to advance engineering and related permitting activities for the Wendover lithium project. We expect to provide additional detail as those efforts progress later this year.
Pecos Water Rights Matter
•We recorded a $5.0 million loss contingency during the second quarter of 2026 related to anticipated water repayment and associated obligations. Additional costs may be incurred as the matter is resolved.
Capital Expenditures
•Capital expenditures totaled $8.5 million in the second quarter of 2026. We now expect 2026 capital expenditures of approximately $40 million. The lowered guidance is a result of the removal of AMAX spend and reduction in costs for Primary Pond 8 at Wendover.
Liquidity and Capital Allocation
•As of June 30, 2026, cash and cash equivalents totaled $185.0 million, including $62.0 million of cash proceeds received during the quarter upon completion of the sale of Intrepid South. We had no borrowings and $0.2 million in outstanding letters of credit under our revolving credit facility, leaving $149.8 million available under our $150 million facility, which matures in March 2031.
•In June 2026, Intrepid’s Board approved an expansion of the Company’s share repurchase authorization to $50 million. We expect to evaluate share repurchases opportunistically as part of our disciplined capital allocation framework, while maintaining the flexibility to fund high-return operating and efficiency projects and preserve balance sheet strength.
Guidance Summary | | | | | | | | | | | |
| Current Guidance | | Prior Guidance |
| 2026 Full year potash production | 290-300 thousand tons | | 270-285 thousand tons |
| 2026 Full year Trio® production | 295-305 thousand tons | | 285-300 thousand tons |
| 2026 Full year capital expenditures | Approximately $40 million | | $40-$50 million |
| | | |
| Q3 2026 Potash sales volume | 55-65 thousand tons | | |
Q3 2026 Potash average net realized sales price(1) | $380-$390 per ton | | |
| | | |
| | | |
| | | |
| Q3 2026 Trio® sales volume | 30-40 thousand tons | | |
Q3 2026 Trio® average net realized sales price(1) | $400-$410 per ton | | |
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 Wednesday, August 5, 2026 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 800547056. 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:
•changes in the price, demand, or supply of our products and services;
•challenges and legal proceedings related to our water rights;
•our ability to successfully identify and implement any opportunities to grow our business whether through expanded sales of water, Trio®, byproducts, and other non-potassium related products or other revenue diversification activities;
•the costs of, and our ability to successfully execute, any strategic projects;
•declines or changes in agricultural production or fertilizer application rates;
•declines in the use of potassium-related products or water by oil and gas companies in their drilling operations;
•our ability to prevail in outstanding legal proceedings;
•our ability to comply with the terms of our revolving credit facility, including any underlying covenants;
•write-downs of the carrying value of assets, including inventories;
•circumstances that disrupt or limit production, including operational difficulties or variances, geological or geotechnical variances, equipment failures, environmental hazards, and other unexpected events or problems;
•changes in reserve estimates;
•currency fluctuations;
•adverse changes in economic conditions or credit markets;
•the impact of governmental regulations, including environmental and mining regulations, the enforcement of those regulations, and governmental policy changes;
•the impact of trade tariffs and any potential changes to them we are unable to mitigate;
•adverse weather events, including events affecting precipitation and evaporation rates at our solar solution mines;
•increased labor costs or difficulties in hiring and retaining qualified employees and contractors, including workers with mining, mineral processing, or construction expertise;
•changes in management and the board of directors, and our reliance on key personnel, including our ability to identify, recruit, and retain key personnel;
•changes in the prices of raw materials, including chemicals, natural gas, and power;
•our ability to obtain and maintain any necessary governmental permits or leases relating to current or future operations;
•interruptions in rail or truck transportation services, or fluctuations in the costs of these services;
•our ability to fund necessary capital investments;
•the impact of global conflicts including the conflict involving Iran and the blockage of the Strait of Hormuz;
•the timing, amount and impact of any repurchases under our stock repurchase program;
•the impact of global health issues, and other global disruptions on our business, operations, liquidity, financial condition and results of operations; and
•the other risks, uncertainties, and assumptions described in Intrepid's periodic filings with the Securities and Exchange Commission, including in "Risk Factors" in Intrepid's Annual Report on Form 10-K for the year ended December 31, 2025, as updated by subsequent Quarterly Reports on Form 10-Q.
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.
Contact:
Ryan Schultz
Interim Investor Relations Manager
Email: ryan.schultz@intrepidpotash.com
INTREPID POTASH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025
(In thousands, except per share amounts)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | Six Months Ended June 30, |
| | 2026 | | 2025 | | 2026 | | 2025 |
| Sales | | $ | 66,685 | | | $ | 67,536 | | | $ | 165,370 | | | $ | 162,063 | |
| Less: | | | | | | | | |
| Freight costs | | 11,050 | | | 11,011 | | | 27,780 | | | 28,502 | |
| Warehousing and handling costs | | 3,046 | | | 3,114 | | | 6,890 | | | 6,604 | |
| Cost of goods sold | | 35,670 | | | 40,631 | | | 95,287 | | | 99,521 | |
| Lower of cost or net realizable value inventory adjustments | | 270 | | | 419 | | | 1,092 | | | 1,754 | |
| | | | | | | | |
| Gross Margin | | 16,649 | | | 12,361 | | | 34,321 | | | 25,682 | |
| | | | | | | | |
| Selling and administrative | | 10,022 | | | 8,925 | | | 21,295 | | | 18,080 | |
| Accretion of asset retirement obligation | | 777 | | | 650 | | | 1,553 | | | 1,299 | |
| | | | | | | | |
| | | | | | | | |
| Impairment of long-lived assets | | — | | | 1,204 | | | — | | | 1,866 | |
| Gain on sale of assets | | (6) | | | (1,262) | | | (34) | | | (1,422) | |
| Other operating income | | (1,129) | | | (1,222) | | | (2,289) | | | (2,505) | |
| Other operating expense | | 5,922 | | | 2,654 | | | 6,508 | | | 3,250 | |
| Operating Income | | 1,063 | | | 1,412 | | | 7,288 | | | 5,114 | |
| | | | | | | | |
| Other Income (Expense) | | | | | | | | |
| | | | | | | | |
| Equity in loss of unconsolidated entities | | (11) | | | (232) | | | (11) | | | (232) | |
| Interest expense, net | | — | | | (66) | | | — | | | (171) | |
| Interest income | | 1,327 | | | 651 | | | 1,994 | | | 1,026 | |
| Other income (expense) | | 73 | | | (354) | | | 121 | | | (820) | |
| | | | | | | | |
| Income from Continuing Operations Before Income Taxes | | 2,452 | | | 1,411 | | | 9,392 | | | 4,917 | |
| | | | | | | | |
| Income tax expense | | 57 | | | 35 | | | 116 | | | 113 | |
| Net Income from Continuing Operations | | $ | 2,395 | | | $ | 1,376 | | | $ | 9,276 | | | $ | 4,804 | |
| Net Income from Discontinued Operations, Net of Tax | | 13,182 | | | 1,887 | | | 13,719 | | | 3,065 | |
| Net Income | | $ | 15,577 | | | $ | 3,263 | | | $ | 22,995 | | | $ | 7,869 | |
| | | | | | | | |
| Net income per share: | | | | | | | | |
| Continuing operations - Basic | | $ | 0.18 | | | $ | 0.10 | | | $ | 0.70 | | | $ | 0.37 | |
| Discontinued operations - Basic | | $ | 1.00 | | | $ | 0.15 | | | $ | 1.04 | | | $ | 0.24 | |
| Net income - Basic | | $ | 1.18 | | | $ | 0.25 | | | $ | 1.74 | | | $ | 0.61 | |
| | | | | | | | |
| Continuing operations - Diluted | | $ | 0.18 | | | $ | 0.10 | | | $ | 0.70 | | | $ | 0.37 | |
| Discontinued operations - Diluted | | $ | 0.99 | | | $ | 0.15 | | | $ | 1.03 | | | $ | 0.23 | |
| Net income - Diluted | | $ | 1.17 | | | $ | 0.25 | | | $ | 1.73 | | | $ | 0.60 | |
| | | | | | | | |
| Weighted Average Shares Outstanding: | | | | | | | | |
| Basic | | 13,195 | | | 12,985 | | | 13,168 | | | 12,951 | |
| Diluted | | 13,272 | | | 13,174 | | | 13,280 | | | 13,131 | |
| | | | | | | | |
INTREPID POTASH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
AS OF JUNE 30, 2026 AND DECEMBER 31, 2025
(In thousands, except share and per share amounts)
| | | | | | | | | | | | | | |
| | June 30, | | December 31, |
| | 2026 | | 2025 |
| ASSETS | | | | |
| Cash and cash equivalents | | $ | 184,994 | | | $ | 83,537 | |
| | | | |
| Accounts receivable: | | | | |
| Trade, net | | 18,976 | | | 31,979 | |
| Other receivables, net | | 86 | | | 159 | |
| | | | |
| Inventory, net | | 104,881 | | | 112,191 | |
| Prepaid expenses and other current assets | | 4,158 | | | 5,312 | |
| Assets held for sale | | — | | | 59,154 | |
| Total current assets | | 313,095 | | | 292,332 | |
| | | | |
| Property, plant, equipment, and mineral properties, net | | 295,412 | | | 298,756 | |
| Water rights | | 2,311 | | | 2,311 | |
| Long-term parts inventory, net | | 30,222 | | | 31,506 | |
| Long-term investments | | 168 | | | 179 | |
| | | | |
| Other assets, net | | 8,712 | | | 7,095 | |
| | | | |
| Total Assets | | $ | 649,920 | | | $ | 632,179 | |
| | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | | |
| | | | |
| Accounts payable | | $ | 10,539 | | | $ | 9,656 | |
| | | | |
| | | | |
| Accrued liabilities | | 13,059 | | | 10,456 | |
| Accrued employee compensation and benefits | | 9,607 | | | 12,481 | |
| | | | |
| | | | |
| Other current liabilities | | 16,249 | | | 19,811 | |
| Liabilities held for sale | | — | | | 3,370 | |
| Total current liabilities | | 49,454 | | | 55,774 | |
| | | | |
| | | | |
| | | | |
| Asset retirement obligation, net of current portion | | 39,930 | | | 38,452 | |
| Operating lease liabilities | | 1,067 | | | 1,550 | |
| Finance lease liabilities | | 2,176 | | | 1,741 | |
| Deferred other income, long-term | | 42,105 | | | 43,233 | |
| | | | |
| Total Liabilities | | 134,732 | | | 140,750 | |
| | | | |
| Commitments and Contingencies | | | | |
| Common stock, $0.001 par value; 40,000,000 shares authorized; | | | | |
| 13,207,226 and 13,131,663 shares outstanding | | | | |
| at June 30, 2026, and December 31, 2025, respectively | | 14 | | | 14 | |
| Additional paid-in capital | | 675,061 | | | 674,297 | |
| | | | |
| Accumulated deficit | | (137,875) | | | (160,870) | |
| Less treasury stock, at cost | | (22,012) | | | (22,012) | |
| Total Stockholders' Equity | | 515,188 | | | 491,429 | |
| Total Liabilities and Stockholders' Equity | | $ | 649,920 | | | $ | 632,179 | |
INTREPID POTASH, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025
(In thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, | | Six Months Ended June 30, |
| | 2026 | | 2025 | | 2026 | | 2025 |
| Cash Flows from Operating Activities: | | | | | | | | |
| Net income | | $ | 15,577 | | | $ | 3,263 | | | $ | 22,995 | | | $ | 7,869 | |
| Income from discontinued operations, net of tax | | (13,182) | | | (1,887) | | | (13,719) | | | (3,065) | |
| Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
| | | | | | | | |
| Depreciation, depletion and amortization | | 9,300 | | | 8,946 | | | 19,251 | | | 18,802 | |
| Accretion of asset retirement obligation | | 777 | | | 650 | | | 1,553 | | | 1,299 | |
| Amortization of deferred financing costs | | 53 | | | 76 | | | 164 | | | 151 | |
| | | | | | | | |
| Stock-based compensation | | 1,505 | | | 1,295 | | | 2,021 | | | 2,394 | |
| Lower of cost or net realizable value inventory adjustments | | 270 | | | 419 | | | 1,092 | | | 1,754 | |
| Impairment of long-lived assets | | — | | | 1,204 | | | — | | | 1,866 | |
| Gain on disposal of assets | | (6) | | | (1,262) | | | (34) | | | (1,422) | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Allowance for parts inventory obsolescence | | 585 | | | 2,041 | | | 598 | | | 2,041 | |
| Loss on equity investment | | — | | | 414 | | | — | | | 888 | |
| Equity in loss of unconsolidated entities | | 11 | | | 232 | | | 11 | | | 232 | |
| | | | | | | | |
| Changes in operating assets and liabilities: | | | | | | | | |
| Trade accounts receivable, net | | 27,454 | | | 26,702 | | | 13,179 | | | (53) | |
| Other receivables, net | | 72 | | | (539) | | | 72 | | | (1,079) | |
| | | | | | | | |
| Inventory, net | | (8,957) | | | (5,115) | | | 6,903 | | | 11,418 | |
| Prepaid expenses and other current assets | | (144) | | | 489 | | | 59 | | | 809 | |
| | | | | | | | |
Accounts payable, accrued liabilities, and accrued employee
compensation and benefits | | (3,386) | | | (2,088) | | | (2,042) | | | (1,564) | |
| | | | | | | | |
| Operating lease liabilities | | (253) | | | (112) | | | (499) | | | (490) | |
| Deferred other income | | (564) | | | (564) | | | (1,128) | | | (1,128) | |
| Other liabilities | | 4,893 | | | 1,957 | | | 4,863 | | | 2,167 | |
| Net cash provided by operating activities of continuing operations | | 34,005 | | | 36,121 | | | 55,339 | | | 42,889 | |
| Net cash provided by operating activities of discontinued operations | | 360 | | | 3,822 | | | 2,193 | | | 7,971 | |
| Net cash provided by operating activities | | 34,365 | | | 39,943 | | | 57,532 | | | 50,860 | |
| Cash Flows from Investing Activities: | | | | | | | | |
| Additions to property, plant, equipment, mineral properties and other assets | | (8,460) | | | (3,423) | | | (13,593) | | | (11,087) | |
| | | | | | | | |
| | | | | | | | |
| Proceeds from sale of assets | | — | | | 1,357 | | | 9 | | | 1,357 | |
| | | | | | | | |
| Proceeds from redemptions/maturities of investments | | — | | | 500 | | | — | | | 1,000 | |
| Other investing, net | | — | | | 2,129 | | | — | | | 2,129 | |
| Net cash (used in) provided by investing activities of continuing operations | | (8,460) | | | 563 | | | (13,584) | | | (6,601) | |
| Net cash provided by (used in) investing activities of discontinued operations | | 60,350 | | | (693) | | | 60,323 | | | 803 | |
| Net cash provided by (used in) investing activities | | 51,890 | | | (130) | | | 46,739 | | | (5,798) | |
| Cash Flows from Financing Activities: | | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Payments of financing lease | | (275) | | | (257) | | | (869) | | | (500) | |
| Capitalized debt fees | | (152) | | | — | | | (683) | | | — | |
| Employee tax withholding paid for restricted stock upon vesting | | (91) | | | (174) | | | (1,271) | | | (856) | |
| | | | | | | | |
| Proceeds from exercise of stock options | | — | | | — | | | 14 | | | 38 | |
| Net cash used in financing activities | | (518) | | | (431) | | | (2,809) | | | (1,318) | |
| Net Change in Cash, Cash Equivalents and Restricted Cash | | 85,737 | | | 39,382 | | | 101,462 | | | 43,744 | |
| Cash, Cash Equivalents and Restricted Cash, beginning of period | | 99,860 | | | 46,260 | | | 84,135 | | | 41,898 | |
| Cash, Cash Equivalents and Restricted Cash, end of period | | $ | 185,597 | | | $ | 85,642 | | | $ | 185,597 | | | $ | 85,642 | |
INTREPID POTASH, INC.
UNAUDITED NON-GAAP RECONCILIATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 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.
INTREPID POTASH, INC.
UNAUDITED NON-GAAP RECONCILIATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025
(In thousands)
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 June 30, | | Six Months Ended June 30, |
| 2026 | | 2025 | | 2026 | | 2025 |
| (in thousands) |
| Net Income from Continuing Operations | $ | 2,395 | | | $ | 1,376 | | | $ | 9,276 | | | $ | 4,804 | |
| Adjustments | | | | | | | |
| Impairment of long-lived assets | — | | | 1,204 | | | — | | | 1,866 | |
| Gain on sale of assets | (6) | | | (1,262) | | | (34) | | | (1,422) | |
| Employee separation costs | — | | | 638 | | | 1,367 | | | 638 | |
| Unpermitted discharge penalty | — | | | 2,155 | | | — | | | 2,155 | |
| Water rights contingency | 5,000 | | | — | | | 5,000 | | | — | |
| | | | | | | |
Calculated income tax effect(1) | — | | | — | | | — | | | — | |
| Total adjustments | 4,994 | | | 2,735 | | | 6,333 | | | 3,237 | |
| Adjusted Net Income from Continuing Operations | $ | 7,389 | | | $ | 4,111 | | | $ | 15,609 | | | $ | 8,041 | |
Reconciliation of Net Income to Adjusted Net Income per Diluted Share:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended June 30, | | Six Months Ended June 30, |
| 2026 | | 2025 | | 2026 | | 2025 |
| Net Income from Continuing Operations Per Diluted Share | $ | 0.18 | | | $ | 0.10 | | | $ | 0.70 | | | $ | 0.37 | |
| Adjustments | | | | | | | |
| Impairment of long-lived assets | — | | | 0.09 | | | — | | | 0.14 | |
| Gain on sale of assets | — | | | (0.10) | | | — | | | (0.11) | |
| Employee separation costs | — | | | 0.05 | | | 0.10 | | | 0.05 | |
| Unpermitted discharge penalty | — | | | 0.16 | | | — | | | 0.16 | |
| Water rights contingency | 0.38 | | | — | | | 0.38 | | | — | |
| | | | | | | |
Calculated income tax effect(1) | — | | | — | | | — | | | — | |
| Total adjustments | 0.38 | | | 0.20 | | | 0.48 | | | 0.24 | |
| Adjusted Net Income from Continuing Operations Per Diluted Share | $ | 0.56 | | | $ | 0.30 | | | $ | 1.18 | | | $ | 0.61 | |
(1) Assumes an annual effective tax rate of 0% for 2026 and 2025.
INTREPID POTASH, INC.
UNAUDITED NON-GAAP RECONCILIATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025
(In thousands)
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 June 30, | | Six Months Ended June 30, |
| | 2026 | | 2025 | | 2026 | | 2025 |
| | (in thousands) |
| Net Income from Continuing Operations | | $ | 2,395 | | | $ | 1,376 | | | $ | 9,276 | | | $ | 4,804 | |
| Impairment of long-lived assets | | — | | | 1,204 | | | — | | | 1,866 | |
| Gain on sale of assets | | (6) | | | (1,262) | | | (34) | | | (1,422) | |
| Employee separation costs | | — | | | 638 | | | 1,367 | | | 638 | |
| Unpermitted discharge penalty | | — | | | 2,155 | | | — | | | 2,155 | |
| Water rights contingency | | 5,000 | | | — | | | 5,000 | | | — | |
| Interest expense | | — | | | 66 | | | — | | | 171 | |
| Income tax expense | | 57 | | | 35 | | | 116 | | | 113 | |
| Depreciation, depletion, and amortization | | 9,300 | | | 8,946 | | | 19,251 | | | 18,802 | |
| | | | | | | | |
| Accretion of asset retirement obligation | | 777 | | | 650 | | | 1,553 | | | 1,299 | |
| Total adjustments | | 15,128 | | | 12,432 | | | 27,253 | | | 23,622 | |
| Adjusted EBITDA | | $ | 17,523 | | | $ | 13,808 | | | $ | 36,529 | | | $ | 28,426 | |
INTREPID POTASH, INC.
UNAUDITED NON-GAAP RECONCILIATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025
(In thousands)
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 June 30, |
| | 2026 | | 2025 |
| (in thousands, except per ton amounts) | | Potash | | Trio® | | Potash | | Trio® |
| Total Segment Sales | | $ | 30,602 | | | $ | 35,723 | | | $ | 33,994 | | | $ | 33,212 | |
| Less: Segment byproduct sales | | 5,381 | | | 27 | | | 6,195 | | | 20 | |
| Freight costs | | 2,132 | | | 8,459 | | | 2,859 | | | 7,409 | |
| Subtotal | | $ | 23,089 | | | $ | 27,237 | | | $ | 24,940 | | | $ | 25,783 | |
| | | | | | | | |
| Divided by: | | | | | | | | |
| Tons sold | | 59 | | | 70 | | | 69 | | | 70 | |
| Average net realized sales price per ton | | $ | 391 | | | $ | 389 | | | $ | 361 | | | $ | 368 | |
| | | | | | | | |
| | Six Months Ended June 30, |
| | 2026 | | 2025 |
| (in thousands, except per ton amounts) | | Potash | | Trio® | | Potash | | Trio® |
| Total Segment Sales | | $ | 76,721 | | | $ | 88,261 | | | $ | 77,571 | | | $ | 83,054 | |
| Less: Segment byproduct sales | | 9,570 | | | 291 | | | 12,449 | | | 184 | |
| Freight costs | | 6,962 | | | 19,703 | | | 7,996 | | | 19,173 | |
| Subtotal | | $ | 60,189 | | | $ | 68,267 | | | $ | 57,126 | | | $ | 63,697 | |
| | | | | | | | |
| Divided by: | | | | | | | | |
| Tons sold | | 165 | | | 176 | | | 172 | | | 181 | |
| Average net realized sales price per ton | | $ | 365 | | | $ | 388 | | | $ | 332 | | | $ | 352 | |
| | | | | | | | |
INTREPID POTASH, INC.
DISAGGREGATION OF REVENUE AND SEGMENT DATA (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025
(In thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, 2026 |
| Product | | Potash Segment | | Trio® Segment | | Corporate and Other | | | | Total |
| Potash | | $ | 25,221 | | | $ | — | | | $ | — | | | | | $ | 25,221 | |
Trio® | | — | | | 35,696 | | | — | | | | | 35,696 | |
| Water | | — | | | — | | | 332 | | | | | 332 | |
| Salt | | 2,160 | | | 27 | | | — | | | | | 2,187 | |
| Magnesium Chloride | | 1,028 | | | — | | | — | | | | | 1,028 | |
| Brine Water | | 2,193 | | | — | | | — | | | | | 2,193 | |
| Other | | — | | | — | | | 28 | | | | | 28 | |
| Total Revenue | | $ | 30,602 | | | $ | 35,723 | | | $ | 360 | | | | | $ | 66,685 | |
| | | | | | | | | | |
| | Six Months Ended June 30, 2026 |
| Product | | Potash Segment | | Trio® Segment | | Corporate and Other | | | | Total |
| Potash | | $ | 67,151 | | | $ | — | | | $ | — | | | | | $ | 67,151 | |
Trio® | | — | | | 87,970 | | | — | | | | | 87,970 | |
| Water | | — | | | — | | | 343 | | | | | 343 | |
| Salt | | 4,459 | | | 291 | | | — | | | | | 4,750 | |
| Magnesium Chloride | | 1,547 | | | — | | | — | | | | | 1,547 | |
| Brine Water | | 3,564 | | | — | | | — | | | | | 3,564 | |
| Other | | — | | | — | | | 45 | | | | | 45 | |
| Total Revenue | | $ | 76,721 | | | $ | 88,261 | | | $ | 388 | | | | | $ | 165,370 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended June 30, 2025 |
| Product | | Potash Segment | | Trio® Segment | | Corporate and Other | | | | Total |
| Potash | | $ | 27,799 | | | $ | — | | | $ | (58) | | | | | $ | 27,741 | |
Trio® | | — | | | 33,192 | | | — | | | | | 33,192 | |
| Water | | — | | | — | | | 266 | | | | | 266 | |
| Salt | | 3,169 | | | 20 | | | — | | | | | 3,189 | |
| Magnesium Chloride | | 1,623 | | | — | | | — | | | | | 1,623 | |
| Brine Water | | 1,403 | | | — | | | — | | | | | 1,403 | |
| Other | | — | | | — | | | 122 | | | | | 122 | |
| Total Revenue | | $ | 33,994 | | | $ | 33,212 | | | $ | 330 | | | | | $ | 67,536 | |
| | | | | | | | | | |
| | Six Months Ended June 30, 2025 |
| Product | | Potash Segment | | Trio® Segment | | Corporate and Other | | | | Total |
| Potash | | $ | 65,122 | | | $ | — | | | $ | (117) | | | | | $ | 65,005 | |
Trio® | | — | | | 82,870 | | | — | | | | | 82,870 | |
| Water | | — | | | — | | | 1,355 | | | | | 1,355 | |
| Salt | | 6,304 | | | 184 | | | — | | | | | 6,488 | |
| Magnesium Chloride | | 2,771 | | | — | | | — | | | | | 2,771 | |
| Brine Water | | 3,374 | | | — | | | — | | | | | 3,374 | |
| Other | | — | | | — | | | 200 | | | | | 200 | |
| Total Revenue | | $ | 77,571 | | | $ | 83,054 | | | $ | 1,438 | | | | | $ | 162,063 | |
INTREPID POTASH, INC.
DISAGGREGATION OF REVENUE AND SEGMENT DATA (UNAUDITED)
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2026 AND 2025
(In thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Three Months Ended
June 30, 2026 | | Potash | | Trio® | | Corporate and Other | | | | Consolidated |
| Sales | | $ | 30,602 | | | $ | 35,723 | | | $ | 360 | | | | | $ | 66,685 | |
| Less: Freight costs | | 2,591 | | | 8,459 | | | — | | | | | 11,050 | |
Warehousing and handling
costs | | 1,632 | | | 1,414 | | | — | | | | | 3,046 | |
| Cost of goods sold | | 21,191 | | | 14,407 | | | 72 | | | | | 35,670 | |
Lower of cost or net realizable
value inventory adjustments | | 270 | | | — | | | — | | | | | 270 | |
| | | | | | | | | | |
| Gross Margin | | $ | 4,918 | | | $ | 11,443 | | | $ | 288 | | | | | $ | 16,649 | |
Depreciation, depletion, and amortization incurred1 | | $ | 7,727 | | | $ | 992 | | | $ | 581 | | | | | $ | 9,300 | |
| Six Months Ended June 30, 2026 | | Potash | | Trio® | | Corporate and Other | | | | Consolidated |
| Sales | | $ | 76,721 | | | $ | 88,261 | | | $ | 388 | | | | | $ | 165,370 | |
| Less: Freight costs | | 8,077 | | | 19,703 | | | — | | | | | 27,780 | |
Warehousing and handling
costs | | 3,339 | | | 3,551 | | | — | | | | | 6,890 | |
| Cost of goods sold | | 56,228 | | | 38,726 | | | 333 | | | | | 95,287 | |
Lower of cost or net realizable
value inventory adjustments | | 1,092 | | | — | | | — | | | | | 1,092 | |
| | | | | | | | | | |
| Gross Margin | | $ | 7,985 | | | $ | 26,281 | | | $ | 55 | | | | | $ | 34,321 | |
Depreciation, depletion, and amortization incurred1 | | $ | 16,163 | | | $ | 1,951 | | | $ | 1,137 | | | | | $ | 19,251 | |
Three Months Ended
June 30, 2025 | | Potash | | Trio® | | Corporate and Other | | | | Consolidated |
| Sales | | $ | 33,994 | | | $ | 33,212 | | | $ | 330 | | | | | $ | 67,536 | |
| Less: Freight costs | | 3,660 | | | 7,409 | | | (58) | | | | | 11,011 | |
Warehousing and handling
costs | | 1,818 | | | 1,296 | | | — | | | | | 3,114 | |
| Cost of goods sold | | 23,239 | | | 16,421 | | | 971 | | | | | 40,631 | |
Lower of cost or net realizable
value inventory adjustments | | 419 | | | — | | | — | | | | | 419 | |
| | | | | | | | | | |
| Gross Margin (Deficit) | | $ | 4,858 | | | $ | 8,086 | | | $ | (583) | | | | | $ | 12,361 | |
Depreciation, depletion, and amortization incurred1 | | $ | 7,302 | | | $ | 871 | | | $ | 773 | | | | | $ | 8,946 | |
| Six Months Ended June 30, 2025 | | Potash | | Trio® | | Corporate and Other | | | | Consolidated |
| Sales | | $ | 77,571 | | | $ | 83,054 | | | $ | 1,438 | | | | | $ | 162,063 | |
| Less: Freight costs | | 9,446 | | | 19,173 | | | (117) | | | | | 28,502 | |
Warehousing and handling
costs | | 3,529 | | | 3,075 | | | — | | | | | 6,604 | |
| Cost of goods sold | | 55,481 | | | 42,286 | | | 1,754 | | | | | 99,521 | |
Lower of cost or net realizable
value inventory adjustments | | 1,754 | | | — | | | — | | | | | 1,754 | |
| | | | | | | | | | |
| Gross Margin (Deficit) | | $ | 7,361 | | | $ | 18,520 | | | $ | (199) | | | | | $ | 25,682 | |
Depreciation, depletion and amortization incurred1 | | $ | 15,553 | | | $ | 1,715 | | | $ | 1,534 | | | | | $ | 18,802 | |
(1) Depreciation, depletion, and amortization incurred for potash and Trio® excludes depreciation, depletion, and amortization amounts absorbed in or relieved from inventory.
