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1. Company Snapshot

1.a. Company Description

Intrepid Potash, Inc., together with its subsidiaries, engages in the extraction and production of the potash in the United States and internationally.It operates through three segments: Potash, Trio, and Oilfield Solutions.The Potash segment offers muriate of potash or potassium chloride for use as a fertilizer input in the agricultural market; as a component in drilling and fracturing fluids for oil and gas wells, as well as an input to other industrial processes in the industrial market; and as a nutrient supplement in the animal feed market.


The Trio segment provides Trio, a specialty fertilizer that delivers potassium, sulfate, and magnesium in a single particle.The Oilfield Solutions segment sells water for use in the oil and gas services industry; and offers potassium chloride real-time mixing services on location for hydraulic fracturing operations and trucking services.The company also offers salt for use in animal feeds, industrial applications, pool salts, and treatment of roads and walkways for ice melting or to manage road conditions; magnesium chloride for use in the deicing and dedusting of roads; brines for well development and completion activities in the oil and gas industry; and metal recovery salt, a combination of potash and salt to enhance the recovery of aluminum in the aluminum recycling processing facilities.


Intrepid Potash, Inc.was founded in 2000 and is based in Denver, Colorado.

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1.b. Last Insights on IPI

Intrepid Potash's recent performance was driven by improved fourth-quarter and full-year 2025 results, highlighting higher fertilizer sales volumes, better unit economics, and rising realized pricing in its specialty fertilizer product Trio. The company's record Trio sales volumes and solid demand for its fertilizer products contributed to total sales of $75 million. Additionally, Intrepid Potash made progress on its direct lithium extraction initiative at its Wendover facility and lithium development project in Utah, producing battery-grade lithium carbonate from byproduct brine.

1.c. Company Highlights

2. Intrepid Potash Posts Strong Q4 Results, Driven by Higher Sales Volumes and Pricing

Intrepid Potash, Inc. reported adjusted net income of $6.5 million and adjusted EBITDA of $18.1 million for the fourth quarter, representing significant improvements from the previous year. The company's earnings per share (EPS) came in at $0.49, beating estimates of $0.26. The strong performance was driven by a 20% increase in sales volumes of potash and Trio, with 303,000 tons of Trio sales being a company record. The average realized price of Trio in the fourth quarter was $379 per ton, 20% higher than the average price in 2025. The company's gross margin for Trio was $10.5 million in the fourth quarter, the best performance in the company's history.

Publication Date: Mar -09

📋 Highlights
  • Strong Q4 2025 Financials:: Adjusted net income reached $6.5M, and adjusted EBITDA hit $18.1M, up from prior years.
  • Year-Over-Year EBITDA Growth:: 2025 adjusted EBITDA surged to $63M, reflecting an 80% increase compared to 2024.
  • Record Trio Sales Performance:: Trio sales volumes reached 303,000 tons in 2025, with a Q4 average realized price of $379/ton (20% higher than 2025).
  • 2026 Production Outlook:: Trio production forecasted at 285,000–300,000 tons, with cost of goods sold per ton expected to modestly improve.
  • Lithium Project Momentum:: Wendover lithium project holds 119,000 tons of lithium carbonate equivalent, supporting a 25-year mine life.

Operational Highlights

The company's strong operational performance was driven by higher overall production and increasing pricing. Intrepid Potash is confident in sustaining its HB production over the next several years without the Amex cavern, which has deferred its decision to at least 2027. The company's lithium project in Wendover is gaining momentum, with a joint development agreement in place and a measured and indicated resource of approximately 119,000 tons of lithium carbonate equivalent.

Outlook and Guidance

Intrepid Potash expects its Trio production to be in the range of 285,000 to 300,000 tons in 2026, with a forecasted cost of goods sold per ton showing modest improvements from 2025. The company provided first quarter guidance for potash sales volumes between 95,000 to 105,000 tons at an average net realized sales price of $345 to $355 per ton, and for Trio sales volumes between 105,000 to 115,000 tons at an average net realized sales price of $380 to $390 per ton. Analysts estimate next year's revenue growth at 1.0%.

Valuation and Metrics

The company's current valuation metrics are as follows: P/E Ratio of 49.89, P/B Ratio of 1.14, P/S Ratio of 1.91, EV/EBITDA of 8.36, and Free Cash Flow Yield of 4.47%. The company's ROE and ROIC are 2.3% and 2.58%, respectively. With a Net Debt / EBITDA ratio of -1.37, Intrepid Potash has a strong financial position.

3. NewsRoom

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Top Fertilizer And Agriculture Stocks

Mar -16

Source: seekingalpha.com

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Intrepid Potash: Initiating Coverage, But It's Overvalued In 2026

Mar -12

Source: seekingalpha.com

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Intrepid Potash's Q4 Earnings Beat Estimates, Revenues Up Y/Y

Mar -06

Source: zacks.com

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Intrepid Potash Q4 Earnings Call Highlights

Mar -06

Source: defenseworld.net

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Intrepid Potash, Inc. (IPI) Q4 2025 Earnings Call Transcript

Mar -05

Source: seekingalpha.com

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Producing Battery-Grade Lithium From Industrial Brine: White Silver Lithium Project Clears Key Technical Milestone

Mar -05

Source: prnewswire.com

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Intrepid Announces Fourth Quarter and Full Year 2025 Results

Mar -04

Source: businesswire.com

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Intrepid Announces Date for Fourth Quarter and Full Year 2025 Earnings Release

Feb -20

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.52%)

6. Segments

Potash

Expected Growth: 2%

Intrepid Potash, Inc.'s potash segment growth is driven by increasing global demand for fertilizers, particularly in the agricultural sector. Rising crop prices and government initiatives to enhance food security also contribute to growth. Additionally, the company's low-cost production and strategic location enable it to capitalize on growing demand from Latin American markets.

Trio

Expected Growth: 3%

Intrepid Potash's Trio segment growth is driven by increasing demand for potassium magnesium chloride, a key ingredient in organic and specialty fertilizers. Rising adoption of sustainable farming practices, growing demand for organic food, and Trio's unique properties as a natural, OMRI-listed product contribute to its growth.

Oilfield Solutions

Expected Growth: 4%

Intrepid Potash's Oilfield Solutions segment growth is driven by increasing demand for drilling and completion fluids, expansion into new basins, and growing adoption of horizontal drilling. Additionally, the company's strategic partnerships, investments in research and development, and focus on operational efficiency are contributing to its 4% growth rate.

Other

Expected Growth: 1%

Intrepid Potash's 'Other' segment growth is driven by increasing sales of salt and magnesium chloride, used in road de-icing and dust control. Strong demand from municipalities and private contractors, coupled with the company's strategic pricing and cost management, contribute to this growth.

7. Detailed Products

Potash

A naturally occurring mineral that is used as a key ingredient in fertilizers, providing essential nutrients to plants

Trio

A unique blend of sulfate of potash, magnesium, and sulfate, used as a fertilizer and soil amendment

Sulfate of Potash (SOP)

A water-soluble fertilizer that provides potassium and sulfur to plants

Magnesium Chloride

A naturally occurring mineral used as a dust suppressant, ice melter, and fertilizer

8. Intrepid Potash, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Intrepid Potash, Inc. is medium due to the availability of alternative products such as potassium chloride and sulfate of potash. However, the company's focus on producing high-quality potash products reduces the threat of substitutes.

Bargaining Power Of Customers

The bargaining power of customers for Intrepid Potash, Inc. is low due to the company's strong relationships with its customers and the lack of concentration in the buyer market.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Intrepid Potash, Inc. is medium due to the presence of a few large suppliers of raw materials. However, the company's vertical integration and long-term contracts with suppliers reduce the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants for Intrepid Potash, Inc. is low due to the high barriers to entry in the potash industry, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry for Intrepid Potash, Inc. is high due to the presence of several large players in the potash industry, leading to intense competition and pricing pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.92%
Debt Cost 11.60%
Equity Weight 99.08%
Equity Cost 14.85%
WACC 14.82%
Leverage 0.93%

11. Quality Control: Intrepid Potash, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Intrepid Potash

A-Score: 3.8/10

Value: 8.1

Growth: 1.8

Quality: 3.6

Yield: 0.0

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Volatility: 4.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

41.89$

Current Price

41.9$

Potential

-0.00%

Expected Cash-Flows