Mosaic Company (The) (MOS) Earnings Date & Reports
Mosaic is one of the largest phosphate and potash producers in the world... Show more
MOS is expected to report earnings to rise 222.40% to 16 cents per share on August 03
The Mosaic Company (MOS) Q1 2026 Earnings Recap: EPS Misses on Higher Costs, Revenue Beats
Key Takeaways
- The Mosaic Company reported Q1 2026 net sales of $3.0 billion, up from $2.6 billion year-over-year and beating consensus estimates of $2.93 billion.
- Adjusted EPS came in at $0.05, missing analyst expectations of $0.20, while diluted EPS showed a loss of $(0.81) due to notable items.
- Adjusted EBITDA totaled $416 million, down from $544 million in Q1 2025, impacted by elevated raw material costs in phosphates.
- Potash segment performed strongly with $177 million in operating earnings, while phosphate and Mosaic Fertilizantes faced margin pressures.
- Company withdrew full-year phosphate production guidance amid sulfur cost spikes; cut 2026 CapEx to $1.25 billion.
- Shares slipped around 2% post-earnings, trading near 52-week lows amid investor concerns over profitability.
Earnings Context and Why It Matters
The Mosaic Company (MOS), a leading producer of phosphate and potash fertilizers, released its first quarter 2026 results (January–March) on May 11, amid volatile global fertilizer markets. Soaring raw material costs, particularly sulfur, pressured margins in the phosphate segment, a key revenue driver. This earnings report matters as it sheds light on demand from agriculture amid geopolitical tensions and supply chain issues, while highlighting cost management in a cyclical industry. Investors watch closely for signals on global crop planting, pricing trends, and Mosaic's ability to navigate input inflation, which could influence stock valuation in a sector sensitive to commodity swings.
Mosaic reported net sales of $3.0 billion for Q1 2026, flat sequentially but up from $2.6 billion in Q1 2025, surpassing consensus estimates of $2.93 billion. The increase stemmed from higher volumes and prices in phosphates (1.9 million tonnes sold vs. 1.5 million) and potash (2.2 million tonnes vs. 2.1 million), offset by softer Mosaic Fertilizantes volumes.
Adjusted EPS was $0.05, well below the $0.20 consensus, reflecting an 89.8% year-over-year decline from $0.49. Diluted EPS showed a $(0.81) loss due to $323 million in pre-tax notable items. Adjusted EBITDA fell to $416 million from $544 million year-over-year.
Segment highlights: Potash delivered $275 million adjusted EBITDA (up from $240 million), with MOP prices at $265/tonne. Phosphates posted $115 million adjusted EBITDA (down from $276 million), hurt by $86/tonne rock costs. Mosaic Fertilizantes EBITDA dropped to $79 million on lower margins. Gross margin was $236 million overall.
Operating loss widened to $373 million from earnings in the prior year, driven by input costs and impairments. Cash from operations improved to $104 million.
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Market Reaction and Investor Sentiment
Post-earnings, MOS shares declined about 2%, trading around $21.90 midday on May 11, near the 52-week low of $21.17 after opening lower. Volume surged past average, reflecting selling on the EPS miss despite revenue beat. Sentiment soured on margin compression from record sulfur prices and withdrawn phosphate guidance, though potash strength and CapEx cuts offered some offset. Analysts note ongoing volatility in fertilizer inputs amid global events.
Forward Outlook and Key Factors to Monitor
Mosaic provided Q2 2026 sales guidance: phosphate volumes of 1.4–1.7 million tonnes at DAP prices of $760–$780/tonne FOB plant; potash volumes of 1.9–2.1 million tonnes at MOP prices of $260–$280/tonne FOB mine. Full-year potash production remains at 9.0 million tonnes, but phosphate production guidance was withdrawn due to raw material constraints, with curtailments starting in May at U.S. (Louisiana, Bartow) and Brazil facilities.
Capital expenditures were lowered to $1.25 billion for 2026, deferring non-urgent projects without impacting medium-term rates. Other full-year items include depreciation & amortization of $1.1–$1.2 billion, SG&A of $520–$540 million, net interest of $200–$220 million, adjusted tax rate in high 20s to low 30s, and cash taxes of $275–$325 million. Sensitivities: $10/tonne DAP change impacts adjusted EBITDA by $60 million; same for MOP adds $83 million including Canadian resource taxes.
Investors should monitor sulfur and other input costs, global fertilizer demand tied to planting seasons, potash price stability, and progress on $50 million annualized cost savings (including workforce reductions). Geopolitical factors affecting supply chains remain critical.
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General Information
a producer of phosphate and potash
Industry ChemicalsAgricultural