The Mosaic Company (MOS) Q1 2026 earnings summary

Executive summary

• Reported a net loss of $258 million for Q1 2026, with an operating loss of $373 million and adjusted EBITDA of $416 million; results were impacted by $442 million in charges from idling Araxa and Patrocinio in Brazil and volatile business conditions.

• Strategic actions included production curtailments, cost reductions, asset sales, and capital discipline, with 2026 capex reduced by $250 million to $1.25 billion.

• Potash segment delivered positive operating earnings and EBITDA, remaining robust and unaffected by geopolitical turmoil, while Fertilizantes posted a significant operating loss due to asset impairments and higher costs.

• Foreign currency gains and unrealized mark-to-market gains on Ma'aden shares partially offset losses.

Financial highlights

• Q1 2026 net sales were $2,998 million, up 14% year-over-year, but higher costs led to a net loss; adjusted EBITDA was $416 million, and free cash flow was $(253) million.

• Phosphate: $1.4 billion net sales, $(48) million operating loss, $115 million adjusted EBITDA, with gross margin per tonne dropping to $2 due to higher sulfur and ammonia costs.

• Potash: $667 million net sales, $177 million operating earnings, $275 million adjusted EBITDA, with higher prices and volumes offset by increased costs.

• Mosaic Fertilizantes: $937 million net sales, $(422) million operating loss, $79 million adjusted EBITDA, impacted by asset idling and higher costs.

• Cash and cash equivalents stood at $282 million as of March 31, 2026.

Outlook and guidance

• Q2 2026 guidance: phosphate sales volumes 1.4–1.7 million tonnes, DAP prices $760–$780/tonne; potash sales volumes 1.9–2.1 million tonnes, MOP prices $260–$280/tonne.

• Full-year 2026 capex guidance lowered to $1.25 billion, deferring less time-sensitive projects; phosphate production guidance withdrawn due to sulfur constraints.

• Potash production for 2026 expected at approximately 9 million tonnes.

• Workforce reduction and cost savings initiatives targeting $150 million in annualized savings.