Mosaic Co.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 3 November 2026: press release. Guidance figures: 1 raised, 2 lowered, 5 new, 5 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Net loss widened versus last year: The company reported a third quarter net loss of $72 million and diluted loss per share of $0.23, against net income of $411 million a year earlier. Source
• Phosphate posted an operating loss: Phosphate operating loss was $194 million against $102 million of earnings a year earlier, including $84 million of notable items. Segment adjusted EBITDA was $49 million. Source
• Brazil volumes fell sharply: Sales volumes were 1.9 million tonnes against 2.8 million, and net sales were $1.3 billion against $1.6 billion. Sales of produced product were 0.4 million tonnes against 1.0 million. Source
• Idle and curtailment costs rise in Q4: Phosphate idle, turnaround and unabsorbed fixed costs were $77 million, against $42 million a year earlier. They are expected to rise in the fourth quarter, then moderate in 2027. Source
• Agricultural backdrop tightened: Agricultural commodity prices have trended higher since the second quarter, increasing fertilizer demand, particularly in North America. Management expects this trend to continue into 2027. Source
• Phosphate demand outpacing expectations: Phosphate markets were described as tight, with improving demand and lingering supply disruptions. India has secured tonnes for Rabi, and Brazilian inventories are well below last year. Source
• Free cash flow reached breakeven: Free cash flow was breakeven against $(135) million a year earlier, reflecting higher operating cash flow and lower capital expenditures. Source
• Land and asset sales under way: Year-to-date land sales totaled $67 million. The Araxá facility sale process is advancing, and other non-core assets are under evaluation. Source

“We made meaningful progress during the third quarter on the actions within our control.”

President and CEO Bruce Bodine

Guidance

What changed from last quarter

• Guidance lowered: Full-year 2026 potash production guidance lowered to 8.6 million tonnes from 9.0 million tonnes, citing Esterhazy ore grades. Source
• Guidance raised: Full-year net interest expense range moved up to $240 million to $260 million. Source
• Guidance lowered: Full-year cash tax range moved down to $175 million to $225 million. Source
• Guidance lowered: Biosciences new-product launch expectation changed to up to four in the fourth quarter. Source
• New guidance: Fourth-quarter 2026 volume and price ranges given for phosphate and potash, and 2027 capital expenditure target introduced. Source
• Guidance kept: Full-year 2026 capital expenditure expectation held at $1.2 billion. Source
• New: Fourth-quarter sulfur contract settled at $615 per long ton, down from $705 per long ton for the third quarter. Source
• New: All long-term debt maturities refinanced and extended through 2028. Source

Quarter results and drivers

• Net loss widened versus last year: The company reported a third quarter net loss of $72 million and diluted loss per share of $0.23, against net income of $411 million a year earlier. Source
• Adjusted EBITDA fell on lower volumes: Adjusted EBITDA was $324 million against $806 million a year earlier. Management attributed the decline to lower sales volumes across segments and higher raw material costs. Source
• Notable items reduced pre-tax results: Notable items reduced pre-tax results by $53 million, partly offset by a positive Ma'aden valuation adjustment and changes in foreign currency. Source
• Effective tax rate was 36.7%: The effective tax rate for the third quarter was 36.7% on the pre-tax loss. Source

Potash and phosphate segments

• Potash volumes fell on lower output: Potash sales and production were each 2.1 million tonnes, down from 2.3 million a year earlier. Routine turnarounds at Colonsay and Belle Plaine also affected the quarter. Source
• Potash adjusted EBITDA declined: Potash adjusted EBITDA was $284 million against $329 million, and operating earnings were $189 million against $229 million, attributed to lower sales volumes. Source
• Phosphate posted an operating loss: Phosphate operating loss was $194 million against $102 million of earnings a year earlier, including $84 million of notable items. Segment adjusted EBITDA was $49 million. Source
• Sulfur curtailments cut phosphate volumes: Phosphate sales volumes were 1.4 million tonnes against 1.6 million, as production was curtailed because affordable sulfur was limited. Source
• Conversion cost fell with Louisiana idling: Cash cost of conversion averaged $117 per tonne, down from $131, reflecting idled higher-cost Louisiana production. Blended rock cost consumed was $91 per tonne, against $80. Source

“We aligned phosphate production with the availability of affordable sulfur, reduced costs, strengthened our financial position”

President and CEO Bruce Bodine

Mosaic Fertilizantes in Brazil

• Brazil volumes fell sharply: Sales volumes were 1.9 million tonnes against 2.8 million, and net sales were $1.3 billion against $1.6 billion. Sales of produced product were 0.4 million tonnes against 1.0 million. Source
• Brazil swung to operating loss: Operating loss was $21 million against $96 million of operating earnings a year earlier. Adjusted EBITDA was $41 million against $241 million. Source
• Conversion cost rose on lower rates: Unit cash conversion cost was $147 per tonne against $99. Higher-cost DCP animal feed output at Cajati is described as profitable in the current environment. Source
• Distribution margins recovered seasonally: Seasonal gains lifted distribution margins, which management said have recovered to normalized levels. Idle, turnaround and unabsorbed fixed costs were $70 million. Source

Costs and raw materials

• Idle and curtailment costs rise in Q4: Phosphate idle, turnaround and unabsorbed fixed costs were $77 million, against $42 million a year earlier. They are expected to rise in the fourth quarter, then moderate in 2027. Source
• Potash unit cash cost declined sequentially: MOP cash cost of production was $73 per tonne, down from $84 in the second quarter and up from $71 a year earlier. Higher operating rates improved fixed-cost absorption. Source
• SG&A held near last year: SG&A was $124 million, against $126 million a year earlier, as cost saving actions were largely offset by inflationary pressures. Source
• Sulfur and ammonia costs stayed high: Third quarter sulfur averaged $715 per long ton and ammonia averaged $619 per tonne, feeding higher phosphate and Fertilizantes raw material costs. Source

“North American inventories are expected to stay low into next year as growers and retailers re-engage for fall application.”

Mosaic Co., press release

Market demand and products

• Agricultural backdrop tightened: Agricultural commodity prices have trended higher since the second quarter, increasing fertilizer demand, particularly in North America. Management expects this trend to continue into 2027. Source
• Phosphate demand outpacing expectations: Phosphate markets were described as tight, with improving demand and lingering supply disruptions. India has secured tonnes for Rabi, and Brazilian inventories are well below last year. Source
• Black Sea shipping constrains potash exports: Potash shipping constraints from the Black Sea are likely to limit regional exports through the fourth quarter, keeping offshore North American imports muted. Source
• China phosphate exports minimal: China exported minimal DAP or MAP over the past quarter, with little to no exports expected through spring. Chinese potash imports have already exceeded last year's total. Source
• Biosciences sales doubled year to date: Year-to-date Biosciences net sales doubled against the first nine months of 2025, supported partly by six new product launches. Source

Cash flow and portfolio

• Operating cash flow rose year over year: Operating cash flow was $284 million against $229 million a year earlier, mainly from lower finished goods inventories. Source
• Free cash flow reached breakeven: Free cash flow was breakeven against $(135) million a year earlier, reflecting higher operating cash flow and lower capital expenditures. Source
• Cash taxes paid totaled $63 million: Cash taxes paid were $63 million, mainly from profits generated in the Potash segment. Source
• Regular dividend paid: A regular common dividend of $0.22 per share was paid in the third quarter. The $2.5 billion revolving credit facility remains fully available. Source
• Land and asset sales under way: Year-to-date land sales totaled $67 million. The Araxá facility sale process is advancing, and other non-core assets are under evaluation. Source

Coming up, as management said on 3 November 2026

• Sulfur contract benefit timing: Cash flow is expected to improve after the fourth-quarter sulfur contract settles, with related earnings benefits mostly in the first quarter of 2027. Source
• Potash grades expected to improve: Management said the lower ore grades at Esterhazy are temporary and are expected to improve over time. Source

Figures management reported

Risks management discussed

• Operational: Abnormal geological conditions at Esterhazy produced lower-than-expected ore grades during the quarter. Source
• Demand: Brazil volumes were also limited by customer credit availability, alongside curtailed domestic production. Source
• Regulatory: Notable charges included environmental reserve adjustments, facility closure expenses and restructuring costs. Source
• External: Management said the macroeconomic environment is clouded by Middle East tensions, Strait of Hormuz bottlenecks and Russia and Ukraine strikes. Source
• External: The timing of sulfur-driven phosphate market normalization depends on geopolitical events. Source

Earlier plans management reported on

• Not stated: Management said free cash flow improved sequentially in the third quarter and is expected to improve further in the fourth quarter. Source
• Not stated: The company continues its strategic review of its asset portfolio. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 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.