Intrepid Raises Trio Production Outlook After East Mine Gains

The Tip Desk · November 10, 2026 · 4 min read

Third-quarter sales from continuing operations were $51.0 million as Trio gross margin rose about 33% and full-year Trio output guidance moved to 305-315 thousand tons.

Intrepid Potash (IPI), a diversified mineral producer of potassium, magnesium, sulfur and salt products, reported third-quarter sales from continuing operations of $51.0 million, in line with the year-earlier period, as higher average realized prices for potash and Trio® were offset by lower potash sales volumes.

Net income from continuing operations rose to $1.7 million, or $0.13 a share, from $0.7 million, or $0.05 a share, a year earlier. Adjusted EBITDA from continuing operations increased to $11.7 million from $10.7 million. Gross margin of $10.0 million was in line with the prior-year third quarter, as improved Trio® segment margins were partially offset by a higher cost of goods sold per ton for potash.

Chief Executive Officer Kevin Crutchfield said the company delivered improved profitability supported by higher Trio® production volumes, pricing strength and a 33% increase in Trio® gross margin.

Trio® sales increased 5% to $19.1 million from $18.1 million a year earlier, largely on an average net realized sales price of $408 a ton versus $402, while sales volumes were flat at 36 thousand tons. Trio® production increased 19% to 83 thousand tons from 70 thousand tons, which the company said was largely driven by continued improvements in operating performance at East. Trio® gross margin increased approximately 33% to $5.8 million from $4.4 million, with Trio® cost of goods sold per ton declining to $224 from $257.

Potash sales were $31.3 million, down modestly from $32.5 million a year earlier, with sales volumes down 5% to 59 thousand tons from 62 thousand tons on late-September shipment timing. Average potash net realized sales price per ton rose 3% to $394 from $381. Potash production decreased to 34 thousand tons from 41 thousand tons as the company delayed the start of the Moab harvest season to allow additional evaporation. Potash gross margin declined to $3.6 million from $6.3 million as a sales mix weighted more heavily toward higher-cost sites raised average potash cost of goods sold per ton to $384 from $340.

Cash flow used in continuing operations was $4.8 million, an improvement from $5.6 million used in the same period last year. Capital expenditures were $11.3 million in the third quarter, up from $7.7 million in the prior-year quarter, attributable to reliability and efficiency investments across both segments. As of September 30, 2026, the company had net cash and short-term investments of $161.4 million and no borrowings.

Intrepid is increasing full-year 2026 Trio® production guidance to 305 thousand to 315 thousand tons from 295 thousand to 305 thousand tons. The company said the increase is primarily attributable to improved operating efficiency and increased production from a new continuous miner commissioned at East Mine earlier this year, higher operating hours per shift, and mill improvements. Full-year 2026 capital expenditure guidance was raised to approximately $45 million from approximately $40 million.

In early October the company offered a one-week Trio® fall fill program at a list price of $410 a ton for orders scheduled to ship by year-end. Following completion, it increased Trio® list price by $30 a ton to $440. Fourth-quarter average net realized sales price guidance for Trio® is $385 to $395 a ton. Fourth-quarter potash sales volume guidance is 63 thousand to 73 thousand tons and average net realized sales price $385 to $395 a ton; Trio® sales volume guidance is 83 thousand to 93 thousand tons.

The company repurchased approximately 22 thousand shares for about $0.8 million in the third quarter and an additional 66 thousand shares for about $2.1 million through October 31, 2026, under an expanded $50 million authorization.

Subsequent to quarter-end, Intrepid was selected by the U.S. Department of Agriculture for approximately $139 million in proposed matching funding under its FIELDS program to support a potential sulfate of potash manufacturing facility near Carlsbad, New Mexico, with annual production capacity of approximately 220 thousand tons. The company said a final investment decision is currently targeted for late 2027 and that the proposed funding remains subject to completion of the award process and applicable conditions.