Highlights

  • Second quarter net sales fell 6% to $2.82 billion, and the company reported a net loss of $272.8 million.
  • The Phosphate segment posted an operating loss of $104 million, while Potash operating earnings edged up to $196 million.
  • Mosaic is divesting its Araxá complex in Brazil, after recording an impairment of about $233 million in the first quarter.
  • Cash stood at $294.0 million, with $2.0 billion available under a commercial paper program backed by the revolving credit facility.

The Mosaic Company (NYSE:MOS) shares were trading near their 52-week low at USD 17.80 on October 21, 2026, down 0.36%. The crop nutrient producer committed in March to divest its Araxá complex in Brazil, sold its Carlsbad potash mine on April 30, and reported a second quarter net loss of $272.8 million in a quarterly report filed on August 5.

Based in Tampa, Florida, Mosaic is a Delaware corporation that produces and markets concentrated phosphate and potash crop nutrients. Its Phosphate segment runs mines and plants in Florida and Louisiana and holds a 75% interest in the Miski Mayo mine in Peru. Potash operates mines in Canada and sells outside North America through the Canpotex export association. Mosaic Fertilizantes covers phosphate mines, chemical plants and distribution in Brazil and Paraguay.

Quarter Marked by a Net Loss and Higher Input Costs

For the three months ended June 30, 2026, net sales were $2.82 billion, down from $3.01 billion a year earlier. Gross margin fell to $214.7 million, or 8% of sales, from $518.6 million, or 17%. Mosaic reported an operating loss of $35.5 million against operating earnings of $244.4 million. The net loss attributable to Mosaic was $272.8 million, or $0.86 per diluted share, compared with net income of $410.7 million, or $1.29 per share.

The filing cites higher raw material costs, led by sulfur and ammonia, and lower sales volumes, and says geopolitical conflict has restricted exports of fertilizers and inputs. Sulfur cost in Phosphate averaged $522 per long ton against $209. Mosaic booked about $69 million of charges after deciding not to proceed with a project, a foreign currency transaction loss of $39.4 million and an unrealized loss of about $161.6 million on its holding of Ma'aden shares.

For the six months, the net loss attributable to Mosaic was $530.4 million, or $1.67 per diluted share, against net income of $648.8 million a year earlier.

Segments: Phosphate and Brazil Weaker, Potash Steady

Phosphate net sales rose 6% to $1.25 billion, and the average finished product price climbed 13% to $754 per tonne. Even so, gross margin was a loss of $4.5 million and the segment operating loss widened to $104 million from $8 million. Finished product volumes declined 9% to 1.4 million tonnes, which the company tied to affordability challenges weakening demand.

Potash held up better, with operating earnings of $196 million against $194 million and an average price of $280 per tonne. Volumes slipped to 2.0 million tonnes from 2.3 million because of lower output at the Esterhazy, Saskatchewan mine and the Carlsbad sale.

Mosaic Fertilizantes recorded an operating loss of $41 million versus earnings of $109 million a year earlier. Volumes fell 32%, which the company linked to constrained raw material availability and limited customer credit in Brazil. In March, Mosaic committed to divest Araxá and idle related mining at Patrocínio, producing a first quarter charge of about $442 million and roughly $40 million more in the second quarter. It expects to complete the sale within one year of classification.

Balance Sheet and Cash Flow

At June 30, 2026, Mosaic held $294.0 million of cash and equivalents, $1.0 billion of short-term debt and about $4.8 billion of long-term debt including current maturities, with stockholders' equity of about $11.6 billion. It reported compliance with its credit facility financial ratios. Six-month operating cash flow was $271.6 million, down from $652.4 million, with capital expenditures of $677.1 million. A $1.0 billion delayed-draw term loan signed on June 10 has two $500 million tranches, drawn by quarter end and on July 14.

Outlook and Stated Priorities

The quarterly report contains no numerical financial guidance. Management says it is taking, and may continue to take, steps in the third quarter of 2026 to temporarily curtail additional phosphate production in North America and Brazil, and blending units in Brazil, citing market conditions and limited sulfur supply. It expects cash on hand, operations and credit facilities to meet its needs for the next 12 months, with no assurance on future cash flow levels.