Key Highlights

  • Mosaic (NYSE:MOS) reported a third quarter 2026 net loss of USD 72 million, or USD 0.23 per diluted share, against Net Income of USD 411 million a year earlier.
  • Adjusted EBITDA was USD 324 million, down from USD 806 million in the third quarter of 2025 and USD 407 million in the second quarter.
  • The Phosphate segment lost USD 194 million at the operating level even as the DAP selling price rose to USD 838 per tonne from USD 714.
  • Free Cash Flow was breakeven, and the company settled its fourth quarter sulfur contract at USD 615 per long ton.

Phosphate Losses Outweigh Higher DAP Prices

Mosaic (NYSE:MOS) reported third quarter results on November 3, 2026. Revenue was USD 3.1 billion, the operating loss was USD 97 million, and the net loss was USD 72 million, compared with net income of USD 411 million a year earlier. Adjusted EBITDA excludes USD 53 million of pre-tax notable items, mainly environmental reserve adjustments, Facility closure expenses and restructuring costs, partly offset by gains on its Ma'aden Investment and currency changes. Phosphate sales volumes fell to 1.4 million tonnes from 1.6 million because of curtailments linked to limited affordable sulfur, and gross Margin was negative USD 105 per tonne. Adjusted loss per share was USD 0.19, and the effective tax rate was 36.7%.

Sulfur Costs, Curtailments and Potash Ore Grades

Raw materials explain the squeeze: sulfur averaged USD 715 per long ton and ammonia USD 619 per tonne, so higher DAP prices did not cover costs. Idle, turnaround and unabsorbed fixed costs in Phosphate were USD 77 million, versus USD 42 million a year earlier, and more curtailments are planned at South Fort Meade and Miski Mayo. Potash earned USD 189 million at the operating level on 2.1 million tonnes, but abnormal geological conditions at Esterhazy reduced ore grades, cutting full-year production guidance to 8.6 million tonnes. Mosaic Fertilizantes lost USD 21 million as volumes fell to 1.9 million tonnes from 2.8 million. Management expects fourth quarter Phosphate and Fertilizantes Earnings to decline further.

Capital Spending, Debt and Portfolio Review

Cash flow from operations was USD 284 million, helped by lower finished goods inventories. Capital expenditures are now expected at USD 1.2 billion in 2026 and below USD 1 billion in 2027. Mosaic has refinanced all long-term maturities through 2028, its USD 2.5 billion revolver is fully available, and it paid a regular Dividend of USD 0.22 per share. A strategic portfolio review continues, with year-to-date land sales of USD 67 million and a sale process for the Araxa facility in Brazil. Fourth quarter guidance includes potash volumes of 2.3 to 2.6 million tonnes at USD 255 to USD 275 per tonne, and DAP at USD 820 to USD 840 per tonne.

Where Things Stand

Higher DAP prices were not enough because sulfur and ammonia costs rose faster, production was cut back to match affordable sulfur supply, and fixed costs were spread over fewer tonnes. Mosaic (NYSE:MOS) also took USD 53 million of notable items. Management argues that fertilizer Demand is improving and that a lower fourth quarter sulfur price should help cash flow, with most earnings benefit expected in the first quarter of 2027. The fourth quarter itself is guided lower, so the recovery is not yet visible in reported numbers.