Mosaic Co.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 4 August 2026: press release. Guidance figures: 1 raised, 3 lowered, 4 new, 5 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net loss widened to $273 million: Net loss of $273 million, or diluted loss of $0.86 per share, compared with net income of $411 million in the second quarter of 2025. Adjusted EPS was $0.13, against $0.51. Source
• Notable items reduced reported results: Notable items totaled $351 million pre-tax, mainly a $162 million Ma'aden mark-to-market charge, a $69 million non-cash project write-off and $49 million of foreign currency losses. Source
• Phosphate loss on partial curtailment: Phosphate posted an operating loss of $104 million against $8 million a year earlier, with adjusted EBITDA of $128 million, down from $217 million. Bartow runs at 40% of target rate and Faustina is idle. Source
• Fertilizantes loss and falling volumes: Fertilizantes posted an operating loss of $41 million against earnings of $109 million, with adjusted EBITDA of $60 million, down from $159 million. Volumes fell to 1.5 million tonnes from 2.2 million tonnes. Source
• Sulfur and ammonia costs elevated: Second-quarter raw materials averaged $522 per long ton for sulfur and $621 per tonne for ammonia. Management described the disruption as affecting the global phosphate industry. Source
• Phosphate supply constrained through year: Management expects global phosphate supply to stay constrained through the rest of 2026. It described market conditions as constructive despite uneven regional demand. Source
• Free cash flow negative in quarter: Free cash flow was $(153) million against $305 million a year earlier, reflecting the timing of capital expenditures. Operating cash flow was $167 million against $610 million, with Brazil customer prepayments a factor. Source

“Business conditions remained challenging in the second quarter, driven primarily by sulfur availability and affordability challenges,”

President and CEO Bruce Bodine

Guidance

What changed from last quarter

• Guidance lowered: Full-year 2026 capital expenditure guidance reduced to $1.20 billion from $1.25 billion. Source
• Guidance lowered: Full-year SG&A range lowered to $510 to $530 million from $520 to $540 million. Source
• Guidance lowered: Full-year cash tax range lowered to $250 to $300 million from $275 to $325 million. Source
• Guidance raised: Full-year net interest expense range raised to $220 to $240 million from $200 to $220 million. Source
• New guidance: Third-quarter phosphate sales volume and DAP price ranges given. Source
• New guidance: Third-quarter potash sales volume and mine-gate MOP price ranges given. Source
• New guidance: Third-quarter Fertilizantes segment adjusted EBITDA expected below the second-quarter result. Source
• New: A $1 billion term loan was set up to refinance and extend short-term commercial paper maturities. Source
• New: Third-quarter sulfur contracts with U.S. Gulf Coast refiners settled at $705 per long ton. Source
• New: Additional phosphate curtailments were implemented at the beginning of July, which management expects to weigh on third-quarter operating rates. Source
• New: Commodity fertilizer production in Brazil is being idled because of sulfur affordability and availability. Source

Results and headline figures

• Net loss widened to $273 million: Net loss of $273 million, or diluted loss of $0.86 per share, compared with net income of $411 million in the second quarter of 2025. Adjusted EPS was $0.13, against $0.51. Source
• Notable items reduced reported results: Notable items totaled $351 million pre-tax, mainly a $162 million Ma'aden mark-to-market charge, a $69 million non-cash project write-off and $49 million of foreign currency losses. Source
• Revenue fell, operating loss recorded: Revenues were $2.8 billion against $3.0 billion a year earlier, with an operating loss of $36 million compared with operating earnings of $244 million. Source
• Adjusted EBITDA down year over year: Adjusted EBITDA was $407 million, down from $566 million a year earlier and $416 million in the first quarter. Lower volumes and higher raw material costs were partly offset by higher phosphate and potash prices. Source

Segments and regions

• Potash flat on turnaround costs: Potash operating earnings were $195 million against $194 million. Adjusted EBITDA was $278 million, equal to a year earlier, and reflected Esterhazy turnaround costs. MOP mine-gate price averaged $275 per tonne. Source
• Phosphate loss on partial curtailment: Phosphate posted an operating loss of $104 million against $8 million a year earlier, with adjusted EBITDA of $128 million, down from $217 million. Bartow runs at 40% of target rate and Faustina is idle. Source
• Fertilizantes loss and falling volumes: Fertilizantes posted an operating loss of $41 million against earnings of $109 million, with adjusted EBITDA of $60 million, down from $159 million. Volumes fell to 1.5 million tonnes from 2.2 million tonnes. Source
• Animal feed plant still operating: Management said animal feed production at the Cajati plant in Brazil remains operational and profitable, while commodity fertilizer production there is being idled. Source

“We've reduced phosphate production, cut costs, reduced capital expenditures and strengthened our financial flexibility while maintaining the ability to resume full production rates when markets improve.”

President and CEO Bruce Bodine

Costs, raw materials and margins

• Sulfur and ammonia costs elevated: Second-quarter raw materials averaged $522 per long ton for sulfur and $621 per tonne for ammonia. Management described the disruption as affecting the global phosphate industry. Source
• Phosphate conversion cost rose: Cash cost of conversion averaged $129 per tonne against $126 a year earlier. Idle, turnaround and unabsorbed fixed costs totaled $60 million, versus $84 million, as operating rates were lower. Source
• Fertilizantes unit cash cost jumped: Unit cash conversion cost was $141 per tonne against $84, and idle, turnaround and unabsorbed fixed costs were $61 million against $26 million, reflecting lower operating rates. Source
• SG&A down on lower bad debt: SG&A was $132 million against $167 million a year earlier, reflecting lower bad debt expenses and cost saving initiatives. Source
• Tax rate and cash taxes: The effective tax rate was 11.2%, and the adjusted rate was 4.5% excluding notable items. Cash taxes paid were $45 million in the quarter. Source

Demand and the market

• Phosphate supply constrained through year: Management expects global phosphate supply to stay constrained through the rest of 2026. It described market conditions as constructive despite uneven regional demand. Source
• Potash demand resilient, stocks tightening: Potash conditions are described as balanced. Brazil is replenishing inventories, Chinese imports set a first-half record, and management expects potash conditions to remain constructive through 2026. Source
• Americas buyers becoming more active: Management said buyers in the Americas are increasing purchases as crop prices climb. India is buying ahead of its Rabi season as prices rise to attract limited global supply. Source
• Crop prices rise, yield risk noted: Crop prices rose over the past month on Middle East tensions, Russia-Ukraine attacks and dry weather. Management said nutrient replenishment risk has grown in many key agricultural regions. Source

“Mosaic believes the current raw material environment is temporary, although the timing of normalization remains uncertain.”

Mosaic Co., press release

Capital, cash and shareholder returns

• Free cash flow negative in quarter: Free cash flow was $(153) million against $305 million a year earlier, reflecting the timing of capital expenditures. Operating cash flow was $167 million against $610 million, with Brazil customer prepayments a factor. Source
• Working capital release expected in Brazil: Management expects free cash flow to improve over the rest of the year, on lower capital expenditures and an expected release of working capital, mainly in Brazil. Source
• Regular dividend paid at $0.22: The company paid its regular common dividend of $0.22 per share in the second quarter. Source

Strategy, Brazil and Biosciences

• Carlsbad potash mine sale completed: The sale of the Carlsbad, New Mexico potash mine was completed in the quarter. Production in the quarter reflected the divestiture, which closed in April. Source
• Brazil asset review continues: Management said progress continued on strategic alternatives for the Araxa and Patrocinio assets. A plan to pursue these alternatives was announced in the first quarter. Source
• Biosciences sales reached $25 million: Mosaic Biosciences reported second-quarter net sales of $25 million, with five new products launched in the first half of 2026. Source

Coming up, as management said on 4 August 2026

• Potash unit costs expected to fall: Management expects potash unit production costs to trend lower over the rest of the year as Esterhazy production volumes rise, supported by the Hydrofloat project. Source
• Sulfur contract hits fourth quarter: The third-quarter sulfur contract is expected to be reflected mainly in fourth-quarter operating results. Source

Figures management reported

Risks management discussed

• Operational: Faustina is fully idled and Bartow is running at 40% of its targeted annual operating rate. Source
• Demand: Management said fertilizer affordability and availability headwinds raise the risk of nutrient under-application and yield impact. Source
• External: Sulfur and ammonia markets face widespread disruption, raising raw material costs and causing curtailments across the phosphate industry. Source
• Financial: Management expects producer economics and full-quarter curtailment effects to weigh on third-quarter financial performance. Source
• Financial: Notable items included a $162 million mark-to-market adjustment tied to the value of Mosaic's Ma'aden shares. Source

Earlier plans management reported on

• Not stated: Management continues to expect about 9 million tonnes of potash production this year, the same level as the prior quarter. Source
• Not stated: The company reported progress on strategic alternatives for Araxa and Patrocinio, which it announced as a plan in the first quarter. Source
• Not stated: Five products launched in the first half; three to five more are expected later this year, against 8-10 launches guided for 2026 in the prior quarter. Source
• Not stated: CEO said the company is keeping the ability to resume full phosphate production rates when markets improve. Source

Other quarters

• Q1 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.