Mosaic Co.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 11 May 2026: press release. Guidance figures: 1 raised, 4 lowered, 6 new, 5 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net loss and diluted loss per share: Net loss of $258 million and diluted EPS of $(0.81), against net income of $238 million and $0.75 a year earlier. Adjusted EPS was $0.05, against $0.49. Source
• Adjusted EBITDA down year on year: Adjusted EBITDA was $416 million against $544 million. Higher phosphate volumes, lower conversion costs and higher potash prices were offset by lower Fertilizantes volumes and margins and higher phosphate raw material costs. Source
• Notable items weighed on results: Pre-tax notable items totaled $323 million. The largest negative item was $302 million of restructuring and cost reduction actions; a $112 million Ma'aden mark-to-market gain was the largest positive item. Source
• Phosphate swung to an operating loss: Phosphate operating loss of $48 million against operating profit of $139 million a year earlier. Adjusted EBITDA was $115 million against $276 million, with net sales of $1.4 billion against $1.1 billion. Source
• Fertilizantes operating loss on Araxa charges: Operating loss of $422 million after $442 million of charges to idle Araxa and Patrocinio. Adjusted EBITDA was $79 million against $122 million; sales volumes were 1.6 million tonnes against 1.8 million. Source
• Raw material costs rose sharply: Sulfur averaged $379 per long ton and ammonia $626 per tonne in cost of goods sold. Raw material costs rose $280 million in phosphate, and raw material prices have continued to rise. Source
• Free cash flow negative but improved: Operating cash flow was $104 million against $43 million. Free cash flow was $(253) million against $(298) million, reflecting normal seasonality and working capital. Source

“Business conditions were volatile in the first quarter. We responded by curtailing uneconomic production, carefully managing working capital and using our market access to meet customer demand,”

President and CEO Bruce Bodine

Guidance

What changed from last quarter

• Guidance lowered: Capital expenditure guidance for 2026 cut to $1.25 billion from approximately $1.5 billion. Source
• Guidance withdrawn: Full-year 2026 phosphate production guidance withdrawn; previously at or above 7 million tonnes. Source
• Guidance lowered: SG&A guidance range lowered to $520 to $540 million from $530 to $550 million. Source
• Guidance lowered: Adjusted effective tax rate range restated to high 20s to low 30s percent from low-to-mid 30s percent. Source
• New guidance: Second quarter 2026 ranges given for phosphate and potash sales volumes and for DAP and MOP prices. Source
• New: Cost-saving initiative to streamline support functions, with annualized savings of $50 million. Source
• New: Plan announced last month to pursue strategic alternatives for Araxa and Patrocinio, including a potential sale of Araxa. Source
• Ended: Carlsbad, New Mexico potash mine sale completed in April. Source
• New: Real estate transactions in Florida in the first quarter generated cash proceeds of $31 million. Source
• New: Partial curtailments started at Louisiana and Bartow, and Brazil production is being scaled back. Source

Results and growth drivers

• Net loss and diluted loss per share: Net loss of $258 million and diluted EPS of $(0.81), against net income of $238 million and $0.75 a year earlier. Adjusted EPS was $0.05, against $0.49. Source
• Adjusted EBITDA down year on year: Adjusted EBITDA was $416 million against $544 million. Higher phosphate volumes, lower conversion costs and higher potash prices were offset by lower Fertilizantes volumes and margins and higher phosphate raw material costs. Source
• Notable items weighed on results: Pre-tax notable items totaled $323 million. The largest negative item was $302 million of restructuring and cost reduction actions; a $112 million Ma'aden mark-to-market gain was the largest positive item. Source

Segments and regions

• Potash earnings rose on higher prices: Potash net sales were $667 million and operating earnings $177 million, against $570 million and $157 million. Segment adjusted EBITDA was $275 million against $240 million; MOP cash cost was $84 per tonne against $78. Source
• Potash sales volumes slightly higher: Potash sales volumes were 2.2 million tonnes against 2.1 million a year earlier. MOP realized FOB mine price was $265 per tonne against $223. Source
• Phosphate swung to an operating loss: Phosphate operating loss of $48 million against operating profit of $139 million a year earlier. Adjusted EBITDA was $115 million against $276 million, with net sales of $1.4 billion against $1.1 billion. Source
• Phosphate inventories drawn down: Phosphate sales volumes were 1.9 million tonnes against 1.5 million a year earlier. International demand reduced finished product inventory by about 300,000 tonnes. Source
• Fertilizantes operating loss on Araxa charges: Operating loss of $422 million after $442 million of charges to idle Araxa and Patrocinio. Adjusted EBITDA was $79 million against $122 million; sales volumes were 1.6 million tonnes against 1.8 million. Source

“As we look to the rest of the year, we are prepared to take additional actions to ensure we navigate effectively for the short term while preserving our ability to benefit when market dynamics improve.”

President and CEO Bruce Bodine

Costs, margins and pricing

• Raw material costs rose sharply: Sulfur averaged $379 per long ton and ammonia $626 per tonne in cost of goods sold. Raw material costs rose $280 million in phosphate, and raw material prices have continued to rise. Source
• Conversion cost fell, still above fourth quarter: Phosphate cash cost of conversion was $124 per tonne, down from $134 a year earlier but above $112 in the fourth quarter. Idle and turnaround costs totaled $50 million during the quarter. Source
• SG&A rose on bad debt and currency: SG&A was $136 million against $123 million, reflecting a small bad debt reserve for a Brazilian customer and an adverse foreign exchange impact. Source
• Support-function savings added: Streamlining of support functions is expected to produce annualized savings of $50 million, in addition to the previously announced value capture effort. Source
• Fertilizantes margin per tonne compressed: Segment gross margin was $22 per tonne against $69 a year earlier. Brazilian credit constraints compressed distribution margins, and higher sulfur costs reduced production margins. Source
• Effective tax rate was low: The reported effective tax rate was 10.8%, and the adjusted rate excluding notable items was 45.1%. The reconciliation table shows the reported rate as 10.9%. Source

Demand and the order book

• Agricultural prices rising on grain demand: Agricultural commodity prices have risen since the start of the year, with markets factoring in healthy global demand for grains and oilseeds and near-term productivity risks. Source
• Sulfur and ammonia prices rose sharply: Sulfur reached levels above $1,200 per tonne, and ammonia supply was disrupted. Finished phosphate prices rose, partly offsetting raw material costs. Source
• Regional phosphate demand diverges: Global demand is constrained by supply, and regional trends diverge: cautious purchasing in the Americas is offset by stronger Asian demand, particularly India, which has signaled subsidy support. Source
• Potash balanced with record import pace: Potash fundamentals remain balanced and prices rose through spring planting. China and Brazil set first quarter potash import records as they rebuilt inventories. Source
• Growers see value in potash: Management said growers find good value at current potash prices relative to other nutrients, which has supported demand worldwide. Source

Capital, cash and returns to shareholders

• Free cash flow negative but improved: Operating cash flow was $104 million against $43 million. Free cash flow was $(253) million against $(298) million, reflecting normal seasonality and working capital. Source
• Inventory reduction supported cash: A $122 million fall in phosphate finished product inventories supported operating cash flow, partly offset by higher raw material prices and a seasonal Fertilizantes working capital build. Source
• Regular dividend maintained: A regular common dividend of $0.22 per share was paid in the first quarter, with cash dividends of $70.8 million in the cash flow statement. Source
• Cash taxes paid: Cash taxes paid in the quarter were $64 million, per the release. Source

Strategy and investment

• Non-cash share of idling charges: Of the $442 million of charges from idling Araxa and Patrocinio, $328 million is non-cash. Wind-down-related charges are reflected in first quarter totals. Source
• Biosciences launches under way: Mosaic Biosciences launched two products in the first quarter, inclusive of the 2026 plan. Source
• Phosphate production plan under review: Phosphate production plans in the U.S. and Brazil are under review because of raw material constraints, with partial curtailments beginning in May. Source

Operations and plant performance

• Phosphoric acid plants at target: Riverview, Bartow and Faustina phosphoric acid production rates were at target in the first quarter, and the New Wales turnaround was completed in March. Source
• Phosphate output hit by New Wales turnaround: Phosphate production was 1.6 million tonnes. The New Wales turnaround reduced output, and the mix shifted toward products needing more phosphoric acid. Source
• Remaining U.S. acid plants near 80%: The three remaining U.S. phosphate plants averaged about 80% operating rates for phosphoric acid, described as aligned with normalized targeted rates. Source
• Potash output flat year on year: Potash production was 2.2 million tonnes, flat against the first quarter of 2025. Source

Coming up, as management said on 11 May 2026

• Araxa and Patrocinio sale review: Management plans to pursue strategic alternatives for Araxa and Patrocinio, including a potential sale of Araxa. Source
• Esterhazy costs expected to fall: Potash production costs are expected to trend lower for the rest of the year as Esterhazy volumes rise once the hydrofloat project reaches full production rates. Source
• Raw material prices flow into costs: Recent raw material price rises are expected to be reflected in cost of goods sold over the coming quarters. Source
• Second quarter curtailments at two plants: Second quarter phosphate sales volumes reflect partial curtailments at Louisiana and Bartow. Source

Figures management reported

Risks management discussed

• External: Sulfur prices hit record levels because of limited availability, and management is closely monitoring raw material markets. Source
• Operational: Winding down Araxa and Patrocinio carries accelerated depreciation and idle plant costs into the second quarter. Source
• Demand: Benchmark stripping margins are under pressure, leading to global phosphate production curtailments and export bans. Source
• Financial: Ongoing Brazilian credit constraints compressed segment distribution margins below historical levels during the quarter. Source
• External: Management said the current raw material and geopolitical environment appears temporary, but the timing of resolution is uncertain. Source

Earlier plans management reported on

• Met: Write-offs, severance and contract terminations were within the $350-400 million range from the April 8 release; the total first quarter impact is higher from added period costs. Source
• Not stated: The $50 million support-function savings are in addition to the previously announced $100 million value capture effort across operations and SG&A. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.