Mosaic's Phosphate Loss Widens as Sulfur Curtailments Bite

The Tip Desk · November 4, 2026 · 4 min read

The fertilizer maker posted a $72 million net loss and $324 million of adjusted EBITDA in the third quarter as phosphate volumes stayed at 1.4 million tonnes.

The Mosaic Company (MOS), a leading producer of potash and phosphate fertilizer, reported a third-quarter net loss of $72 million, or $0.23 a share, as sulfur-constrained phosphate production and higher raw-material costs outweighed firmer DAP prices.

Net sales were $3.1 billion, up from $2.8 billion in the second quarter after a sequential decline from $3.0 billion in the first quarter. Adjusted EBITDA was $324 million. The company said results were negatively impacted by $53 million of pre-tax notable items, primarily environmental reserve adjustments, facility-closure expenses and restructuring costs, partly offset by a Ma’aden mark-to-market gain and foreign-currency items.

President and CEO Bruce Bodine said the company aligned phosphate production with affordable sulfur, reduced costs and strengthened its financial position.

Phosphate remained the pressure point. The segment posted a $194 million operating loss and $49 million of adjusted EBITDA, down from $128 million in the second quarter. Sales volumes held at 1.4 million tonnes, matching the prior quarter, after production curtailments tied to limited affordable sulfur. DAP selling prices FOB plant rose to $838 a tonne from $773. Cash cost of conversion fell to $117 a tonne from $129 after idling higher-cost Louisiana fertilizer production. Idle, turnaround and unabsorbed fixed costs were $77 million. Gross margin was a $105 a tonne loss.

The company said those idle costs are expected to increase further in the fourth quarter with additional curtailments at the South Fort Meade and Miski Mayo mines, before moderating in 2027 as cost improvements are realized. Fourth-quarter phosphate sales volumes are expected at 1.3 to 1.6 million tonnes, with DAP FOB plant prices of $820 to $840 a tonne. Stripping margins and adjusted EBITDA are expected to decline further as higher-cost raw materials purchased in the third quarter flow through cost of goods sold.

Potash sales volumes were 2.1 million tonnes, up from 2.0 million tonnes in the second quarter. Net sales were $643 million. Operating earnings were $189 million and adjusted EBITDA was $284 million. MOP selling prices FOB mine were $276 a tonne. Cash cost of production fell to $73 a tonne from $84 in the second quarter, which the company attributed to higher sequential operating rates at Esterhazy and Colonsay improving fixed-cost absorption despite abnormal geological conditions that lowered ore grades. Full-year 2026 potash production is now expected at 8.6 million tonnes. Fourth-quarter sales volumes are expected at 2.3 to 2.6 million tonnes, with MOP FOB mine prices of $255 to $275 a tonne.

Mosaic Fertilizantes net sales were $1.3 billion, up from $1.0 billion in the second quarter. Sales volumes were 1.9 million tonnes. The segment posted a $21 million operating loss and $41 million of adjusted EBITDA. Average finished-product selling prices rose to $625 a tonne from $585. Cash cost of conversion was $147 a tonne. The company said lower sales volumes and fixed-cost absorption were partly offset by higher distribution margins, which it said have recovered to normalized levels. Fourth-quarter segment adjusted EBITDA is expected below third-quarter levels, reflecting the full-quarter impact of production curtailments and typical seasonality.

Cash flow from operations was $284 million, compared with $167 million in the second quarter, which the company said was driven primarily by lower finished-goods inventories. Free cash flow was breakeven, versus a $153 million outflow in the second quarter. The company settled a fourth-quarter sulfur contract at $615 a long ton, down from $705 a long ton for third-quarter contracts, and said that settlement is expected to contribute positively to fourth-quarter free cash flow, with related earnings benefits expected primarily in the first quarter of 2027.

Capital expenditures in 2026 remain expected at $1.2 billion, with 2027 targeted below $1 billion. Mosaic refinanced and extended all long-term debt maturities through 2028 and said its $2.5 billion revolving credit facility remains fully available. It paid a regular common dividend of $0.22 a share in the third quarter. Year-to-date land sales totaled $67 million as the company continued a strategic review of its asset portfolio, including the Araxá facility in Brazil.