The Mosaic Company reported a sharp downturn in second-quarter 2026 results, posting a $273 million net loss as the fertilizer producer battled supply challenges, higher raw material costs and weaker operating performance in key segments.

 

The company reported revenue of $2.8 billion for the quarter, an operating loss of $36 million and a diluted loss per share of $0.86. Excluding notable items, adjusted EBITDA came in at $407 million and adjusted earnings per share reached $0.13.

 

Mosaic’s second-quarter performance compared with net income of $411 million in the same period a year earlier, with results hit by $351 million in pre-tax notable items. Those charges included a $162 million mark-to-market adjustment tied to Mosaic’s holdings of Ma’aden shares, $69 million in non-cash project write-offs and $49 million related to foreign currency transactions.

 

“Business conditions remained challenging in the second quarter, driven primarily by sulfur availability and affordability challenges," said President and CEO Bruce Bodine. 

 

"At Mosaic, we are focused on the things we can control. We've reduced phosphate production, cut costs, reduced capital expenditures and strengthened our financial flexibility while maintaining the ability to resume full production rates when markets improve. We also continue to reallocate underperforming capital in pursuit of stronger shareholder returns."

 

The company said adjusted EBITDA declined from $566 million in the second quarter of 2025, largely due to lower sales volumes and increased raw material costs in its Phosphates and Mosaic Fertilizantes businesses. Those pressures were partly offset by stronger phosphate and potash pricing.

 

Quarterly sales volumes totaled 1.4 million tonnes for Phosphates, 2.0 million tonnes for Potash and 1.5 million tonnes for Mosaic Fertilizantes.

 

Potash remained a bright spot, generating operating earnings of $195 million, compared with $194 million a year earlier. The Phosphates business reported an operating loss of $104 million, while Mosaic Fertilizantes recorded a $41 million operating loss.

 

Mosaic also reported progress on cost reduction and financial discipline efforts. Selling, general and administrative expenses fell to $132 million from $167 million a year ago, driven by lower bad debt expenses and savings initiatives.

 

Cash flow from operations totaled $167 million in the quarter, down from $610 million in the second quarter of 2025. Free cash flow was negative at $153 million, compared with positive free cash flow of $305 million a year earlier, reflecting the timing of capital spending.

 

The company lowered its 2026 capital expenditure outlook to $1.2 billion from its previous estimate of $1.25 billion as it continues to focus on preserving financial flexibility.

 

Mosaic completed the sale of its Carlsbad, New Mexico, potash mine during the quarter and continued evaluating strategic alternatives for its Araxa and Patrocinio assets in Brazil. The company also secured a $1 billion term loan to refinance and extend short-term commercial paper maturities.

 

Despite the challenging quarter, Mosaic maintained its shareholder return commitments, paying a regular common dividend of $0.22 per share during the period.

 

Third-quarter sulfur contracts were settled at $705 per long ton, a key development as the company continues managing raw material availability challenges.