The Mosaic Company

What they do

Mosaic produces and markets phosphate and potash fertilizers, serving agricultural customers. The company operates in three primary segments: Phosphates, Potash, and Mosaic Fertilizantes (Brazil). It mines and processes phosphate rock and potash, and distributes crop nutrients globally.

Revenue drivers

• Phosphates — Sales of phosphate fertilizers (e.g., DAP, MAP) and animal feed ingredients; historically the largest revenue contributor, with volumes tied to North American and global crop planting seasons.
• Potash — Sales of potash (MOP) from Canadian mines, including the Esterhazy and other Saskatchewan facilities; revenue driven by global potash prices and volumes, with a significant portion exported.
• Mosaic Fertilizantes — Brazil-based production and distribution of phosphate, potash, and blended fertilizers, plus retail operations; revenue sensitive to Brazilian agricultural demand and local currency.

Recent performance

For Q2 2026 (ended June 30, 2026), Mosaic reported a net loss of $272.8 million, or $(0.86) per diluted share, compared to net income of $410.7 million, or $1.29 per share, in Q2 2025. Net sales fell 6% year-over-year to $2.82 billion, while gross margin declined from 17% to 8%. The quarter included a $161.6 million unrealized mark-to-market loss on Ma'aden shares and ~$69 million of engineering and equipment charges for a cancelled project. Adjusted diluted EPS was $0.13 versus $0.51 a year earlier. For the first half of 2026, net loss attributable to Mosaic was $530.4 million on revenue of $5.82 billion.

Strategy

Mosaic is focused on managing input costs (especially sulfur), optimizing production across its phosphate and potash operations, and maintaining cost discipline. The company is investing in growth projects, including the Esterhazy Potash expansion, and is actively managing its Brazilian operations through Mosaic Fertilizantes. It also holds an investment in Ma'aden (Saudi Arabian mining company), with mark-to-market movements affecting earnings. The company continues to return cash to shareholders via dividends, paying $0.88 per share in 2025.

Risks

• Volatile commodity prices — Fertilizer prices (phosphate, potash, sulfur) are subject to global supply-demand and geopolitical swings, directly impacting revenue and margins.
• Foreign exchange exposure — Operations in Brazil and international sales expose Mosaic to currency fluctuations; Q2 2026 included a $39.4 million foreign currency loss.
• Input cost inflation — Higher sulfur and other raw material costs compressed gross margins in Q2 2026, from 17% to 8% year-over-year.
• Project execution and impairments — The company recorded ~$69 million in charges for a cancelled project and a $238.8 million loss on assets sold in the first half of 2026, indicating capital project risk.

Outlook

Management cites ongoing volatility from geopolitical events affecting global commodity markets. They expect continued pressure on margins from higher sulfur costs and supply constraints, but remain focused on operational efficiency and long-term growth projects. No specific numeric guidance was provided in the latest filings.