Mosaic Posts $72 Million Quarterly Loss As Costly Sulfur Squeezes Phosphate
Adjusted EBITDA fell to $324 million from $806 million a year earlier, and Mosaic cut its 2026 potash output forecast to 8.6 million tonnes.
Mosaic, the Tampa-based producer of phosphate and potash crop nutrients, lost $72 million in the third quarter, or $0.23 per share, against net income of $411 million a year earlier, the company said Tuesday. Expensive sulfur and production cutbacks drove a swing to a $194 million operating loss in its Phosphate segment.
Phosphate bears the damage
Revenue was $3.1 billion. Adjusted EBITDA, which excludes one-off items, was $324 million, down from $806 million in the third quarter of 2025 and $407 million in the second quarter. The adjusted loss was $0.19 per share.
Phosphate lost $194 million at the operating line, against $102 million of operating income a year ago. The segment carried $84 million of notable items, mostly environmental reserve adjustments, facility-closure expenses and restructuring costs. Sales volumes fell to 1.4 million tonnes from 1.6 million because of curtailments tied to limited affordable sulfur.
Idle, turnaround and unabsorbed fixed costs in Phosphate reached $77 million, versus $42 million a year earlier. Sulfur averaged $715 per long ton in the quarter. For the fourth quarter, Mosaic settled its sulfur contract with U.S. Gulf Coast refiners at $615 per long ton.
Even so, the company expects fourth-quarter Phosphate adjusted EBITDA to fall further as higher-cost materials bought in the third quarter flow through its costs. It said the earnings benefit of cheaper sulfur should come mainly in the first quarter of 2027.
Potash trims output, Brazil weakens
Mosaic, which also sells crop nutrients in Brazil and Paraguay through Mosaic Fertilizantes, now expects 2026 potash production of 8.6 million tonnes. Abnormal geological conditions at Esterhazy lowered ore grades; the company called the lower grades temporary. Potash adjusted EBITDA was $284 million, versus $329 million a year ago.
Mosaic Fertilizantes lost $21 million at the operating line, compared with $96 million of operating earnings a year earlier. Volumes dropped to 1.9 million tonnes from 2.8 million.
Cash, debt and spending plans
Free cash flow was breakeven, compared with negative $135 million a year ago, with operating cash flow of $284 million. Mosaic refinanced and extended all long-term debt maturities through 2028, and its $2.5 billion revolving credit facility remains fully available. It paid a $0.22 per share dividend.
Capital spending for 2026 is now expected at $1.2 billion, with a target below $1 billion for 2027. The company reports $67 million of land sales this year and is advancing the sale of its Araxá facility in Brazil.
For the fourth quarter, Mosaic expects potash volumes of 2.3 million to 2.6 million tonnes. CEO Bruce Bodine said the company "aligned phosphate production with the availability of affordable sulfur" and reduced costs.
Mosaic holds its earnings call Wednesday at 11:00 a.m. Eastern.
