Key Highlights

● The company recorded a second-quarter net loss of $273 million, versus income a year earlier.

● Potash operating earnings were $195 million on 2.0 million tonnes sold.

● Phosphates posted an operating loss of $104 million on idle and turnaround costs.

● Operating cash flow fell to $167 million from $610 million, leaving free cash flow negative.

The Mosaic Company (NYSE:MOS), the fertiliser producer listed on the New York Stock Exchange as MOS, reported second-quarter 2026 results on 4 August 2026. Net sales were $2,824 million, compared with $3,006 million a year earlier, and the company recorded a net loss attributable to Mosaic of $273 million, or $0.86 per diluted share, against net income of $411 million in the second quarter of 2025. Adjusted measures were less severe but still lower. Adjusted earnings per share were $0.13 against $0.51, and adjusted EBITDA was $407 million against $566 million. Pre-tax notable items totalled $351 million, including a $162 million mark-to-market loss on the company's holding in Ma'aden and a $69 million non-cash project write-off.

Three segments, three outcomes

Potash was the clear contributor, with operating earnings of $195 million on 2.0 million tonnes sold at an average mine-gate price of $275 per tonne. Phosphates recorded an operating loss of $104 million on 1.4 million tonnes sold, with idle, turnaround and unabsorbed fixed costs of $60 million. Mosaic Fertilizantes, the Brazilian business, lost $41 million at the operating level on 1.5 million tonnes. Chief executive Bruce Bodine said conditions remained challenging, driven by sulfur availability and affordability. The release says commodity fertiliser production in Brazil is being idled for that reason, while animal feed output at Cajati continues. Independent trade coverage published on 7 August 2026 describes the company as reviewing strategic options for its Araxá and Patrocínio assets.

Cash flow and funding

Cash generation was the main weakness. Operating cash flow was $167 million, down from $610 million, and capital expenditure of $320 million left free cash flow negative at $153 million. The company paid a dividend of $0.22 per share, costing about $70 million. On the balance sheet, short-term debt rose to $1,021 million from $760 million at the end of 2025, and long-term debt rose to $4,768 million from $4,251 million. Cash stood at $294 million. Our own calculation from the balance sheet gives total debt of roughly $5.9 billion. Mosaic said it established a $1 billion term loan to refinance and extend commercial paper, and it completed the sale of its Carlsbad potash mine in the quarter.

Sulfur Costs Are the Variable to Watch Next

Mosaic's quarter split sharply by segment: Potash delivered solid earnings while Phosphates swung to a loss and the Brazilian Mosaic Fertilizantes business lost money as sulfur availability and cost forced some commodity fertiliser production to idle. Third-quarter sulfur contracts were already settled at $705 per long ton versus $522 in the second quarter, with the cost impact mostly still to hit the fourth quarter, so sulfur economics, not potash pricing, look like the most immediate swing factor for the next report.