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SEC filingIntrepid Potash, Inc. reported net income of $11.2 million for FY 2025, a significant improvement from a net loss of $212.8 million in FY 2024. Total sales increased 17% year-over-year to $298.3 million, driven by a 37% increase in Trio® segment sales and a 12% increase in potash segment sales, partially offset by a 42% decrease in oilfield solutions segment sales. Gross margin improved to $54.8 million (18% margin) from $29.1 million (11% margin) in the prior year, primarily due to higher Trio® average net realized sales prices and increased production rates. The company generated $55.8 million in operating cash flow and ended the year with $83.5 million in cash and cash equivalents, with $150.0 million available under its credit facility. Forward-looking initiatives include a lithium development project and a potential sale of Intrepid South assets.
Intrepid Potash reported a substantial turnaround in FY 2025 with net income of $11.2 million compared to a net loss of $212.8 million in FY 2024. The improvement was driven by increased sales and improved margins. Total sales grew 17% to $298.3 million from $254.7 million in the prior year. Operating income was $10.7 million, a significant recovery from an operating loss of $19.9 million in FY 2024. The company's effective tax rate was 4.6% for FY 2025, compared to (1,049.8)% in FY 2024, with the difference primarily due to changes in the valuation allowance against deferred tax assets.
Revenue growth was driven by strong performance in the Trio® segment, which increased 37% to $144.5 million, and the potash segment, which increased 12% to $139.6 million. Trio® sales benefited from a 19% increase in tons sold and an 18% increase in average net realized sales price per ton to $367. Potash sales increased despite a 6% decrease in average net realized sales price per ton to $353, as tons sold increased 20%. The oilfield solutions segment declined 42% to $14.4 million due to reduced water sales as oil and gas operators increased their use of produced and recycled water. Byproduct sales were $25.1 million, slightly down from $25.3 million in FY 2024.
Gross margin improved significantly to $54.8 million (18.4% margin) from $29.1 million (11.4% margin) in FY 2024. The improvement was primarily driven by the Trio® segment, where gross margin increased to $33.4 million from $4.4 million, due to higher average net realized sales prices and increased production rates that lowered per-ton costs. Potash segment gross margin increased slightly to $18.2 million from $17.4 million. Selling and administrative expenses increased 11% to $36.7 million due to higher professional services and stock compensation expenses. The company recorded $1.9 million in impairment charges for long-lived assets, down from $10.7 million in FY 2024.
Operating cash flow was $55.8 million, a decrease from $72.5 million in FY 2024, primarily due to a $45 million cash payment received in January 2024 under the Third Amendment to the Cooperative Development Agreement with XTO. Investing activities used $13.3 million, including $30.2 million in capital expenditures offset by an $8.0 million deposit received related to the potential sale of Intrepid South assets. The company ended the year with $83.5 million in cash and cash equivalents, up from $41.3 million at the end of FY 2024. Total assets were $632.2 million, with stockholders' equity of $491.4 million. The company had no debt outstanding and $150.0 million available under its credit facility.
The company expects capital investments of $40 to $50 million in 2026, primarily for sustaining capital projects. Strategic initiatives include a lithium development project at the Wendover facility through a Joint Development Agreement, with a goal of reaching a final investment decision in 2026. The company received an $8.0 million deposit in December 2025 related to the potential sale of the majority of Intrepid South assets, with a potential closing in the first half of 2026. Risk factors include volatility in potash and Trio® pricing, tariff uncertainties, and legal contingencies including a class action lawsuit settlement and potential penalties related to an unpermitted discharge at the HB facility.