The Mosaic Company (MOS) Q2 2026 earnings summary

Executive summary

• Q2 2026 net loss was $273 million, with diluted EPS of $(0.86) and adjusted EBITDA of $407 million, driven by higher input costs, lower sales volumes, and significant asset impairments.

• Phosphate and Fertilizantes segments posted operating losses, while Potash remained profitable; Mosaic Biosciences expects to double sales in 2026.

• Strategic actions included the sale of the Carlsbad potash mine, advancement of the Araxá divestiture, and cost management initiatives.

• Market conditions prompted production curtailments, especially in phosphate, due to sulfur supply disruptions and high input costs.

• Maintained strong liquidity by refinancing short-term debt with a $1 billion term loan and retaining access to a $2.5 billion revolver.

Financial highlights

• Q2 2026 net sales were $2.82 billion, down 6% year-over-year; adjusted EBITDA was $407 million, with a consolidated operating loss of $36 million.

• Phosphate: $1.25 billion net sales, $104 million operating loss, $128 million adjusted EBITDA; Potash: $650 million net sales, $195 million operating earnings, $278 million adjusted EBITDA.

• Mosaic Fertilizantes: $1.03 billion net sales, $41 million operating loss, $60 million adjusted EBITDA; Mosaic Biosciences Q2 net sales $25 million.

• Gross margin rate was 8%, down from 17% in Q2 2025; SG&A expenses dropped to $132 million from $167 million.

• Free cash flow was negative $153 million, with cash and cash equivalents at $294 million at quarter-end.

Outlook and guidance

• 2026 capital expenditures guidance reduced to $1.2 billion; SG&A for the year expected at $510–$530 million.

• Potash production for 2026 expected at 9 million tonnes; Q3 phosphate sales volumes 1.1–1.4 million tonnes, DAP prices $820–$840/tonne.

• Q3 potash sales volumes expected at 2.0–2.2 million tonnes, MOP prices $270–$290/tonne.

• Free cash flow and working capital release expected to improve in the second half as capex drops and operational cash flow recovers.

• Management expects liquidity and credit facilities to be sufficient for operational and capital needs over the next 12 months.