Mosaic Posts Q3 Loss as Phosphate Weighs on Results

The Mosaic Company (MOS) reported a third-quarter 2026 net loss as losses in its phosphate and Brazilian fertilizer operations outweighed a profitable potash business. The fertilizer producer generated $3.10 billion in consolidated revenue and $324 million in adjusted EBITDA, while posting a $72 million net loss attributable to Mosaic and a $97 million operating loss.

Potash was the strongest contributor, producing $284 million in adjusted EBITDA and $189 million in operating earnings on net revenue of $643 million. The segment sold and produced 2.1 million tonnes during the quarter, with its average MOP selling price at $276 per tonne on an FOB mine basis.

Potash cash production costs declined by $11 per tonne sequentially to $73, their lowest level of 2026. Mosaic attributed the improvement to stronger operations, favorable foreign-exchange movements, cost controls and higher production, which increased about 14% from the second quarter. Costs remained slightly above the third quarter of 2025 because ore-grade challenges at Esterhazy constrained output.

Phosphate operations remain under pressure

The phosphates segment recorded a $194 million operating loss, although adjusted EBITDA remained positive at $49 million. Net revenue totaled $1.30 billion. Sales volumes were 1.4 million tonnes and production volumes were 1.3 million tonnes, while the average DAP selling price was $838 per tonne on an FOB plant basis.

Phosphate cash conversion costs were $117 per tonne, with $77 million of idle, turnaround and unabsorbed fixed costs included in cost of goods sold. Mosaic said it matched production with available affordable sulfur supplies to manage working capital. The fourth-quarter Tampa sulfur contract settled at $615 per long ton, below the third-quarter contract price of $705. Management expects the settlement to benefit cash flow in the fourth quarter, with the earnings impact occurring later as inventory moves through cost of goods sold.

Mosaic Fertilizantes generated $1.25 billion in net revenue and $41 million in adjusted EBITDA but posted a $21 million operating loss. The business sold 1.9 million tonnes, including 300,000 tonnes of products produced in Brazil. Distribution margins improved sequentially, and the segment contributed to a reduction in consolidated finished-goods inventory.

Finished-goods inventory declined to $1.50 billion at the end of the third quarter from $1.94 billion in the second quarter, largely because of Mosaic Fertilizantes. That reduction supported a working-capital release and helped lift consolidated operating cash flow to $284 million from $167 million in the prior quarter. Mosaic expects operating cash flow to improve sequentially again in the fourth quarter.

Fourth-quarter and full-year outlook

For the fourth quarter, Mosaic expects phosphate sales volumes of 1.3 million to 1.6 million tonnes and DAP prices of $820 to $840 per tonne on an FOB plant basis. Potash sales volumes are projected at 2.3 million to 2.6 million tonnes, with MOP prices of $255 to $275 per tonne on an FOB mine basis. The company said its available fourth-quarter North American potash volumes were fully committed.

Mosaic maintained full-year 2026 targets that include 8.6 million tonnes of potash production and $1.2 billion of capital expenditures. It also expects depreciation, depletion and amortization of $1.1 billion to $1.2 billion, selling, general and administrative expense of $510 million to $530 million, net interest expense of $240 million to $260 million, and cash taxes of $175 million to $225 million.

Looking to 2027, the company is targeting capital expenditures below $1 billion and annualized SG&A spending below $500 million. Management also expects the improvement in potash unit cash costs seen in the third quarter to continue into 2027.

Mosaic continues to pursue asset sales and other capital-reallocation measures. It advanced the Araxá sale process during the quarter and is targeting more than $100 million in cumulative land sales by the end of 2027, including $67 million completed through the first nine months of 2026. Following a third-quarter bond refinancing, the company has no long-term debt obligations due in 2027 or 2028 and said its $2.5 billion revolving credit facility remains fully available.

Mosaic Biosciences remains on track to approximately double net sales to $135 million in 2026. The business is targeting eight to 10 product launches for the year and had launched six products through the third quarter.

The outlook remains subject to volatility in fertilizer, agricultural, raw-material, energy and transportation markets. Mosaic also identified sulfur availability and pricing, geopolitical instability, shipping disruptions, foreign-exchange movements, trade policy, adverse weather, production interruptions, regulatory changes and execution of planned asset sales as material uncertainties.