One of the world's largest makers of crop nutrients, Mosaic mines potash and phosphate and turns them into the fertilizers farmers spread on fields to grow food. Born in 2004 when IMC Global merged with Cargill's crop-nutrition division, its name reflects how the two companies' pieces came together into a single whole. A fun detail: its roots stretch back to 1909, and it later lent its name to Mosaic Stadium, the home of Saskatchewan's CFL football team.
Mosaic swung to a $272.8M net loss as a 150% increase in sulfur costs and a 32% volume drop in Brazil crushed margins.
Mosaic's nearly vanished, falling to 7.6% from 17.3% a year ago. fell 6% to $2.82 billion and the company swung to a net loss of $272.8 million as raw material costs, particularly sulfur, overwhelmed higher selling prices and volumes dropped sharply in Brazil. The company is now curtailing phosphate production to manage costs, while its Ma'aden stake added another $162 million in mark-to-market losses.
Key takeaways
Consolidated fell 9.7 points to 7.6%, the lowest in the period shown, as a $290 million increase in raw material costs in the Phosphate alone overwhelmed a 13% rise in average finished product selling prices.
The Phosphate swung to a $4.5 million gross loss from a $103 million profit a year ago, driven by sulfur costs that rose 150% and ammonia costs that also increased, forcing the company to plan temporary production curtailments in North America and Brazil for Q3 2026.
Section summaries
Management's Discussion and Analysis
Mosaic swung to a net loss of $272.8M in Q2 FY2026 as surging sulfur and ammonia costs and lower volumes crushed margins.
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Consolidated fell 59% to $214.7M, driven by higher raw material costs, particularly sulfur (up 150% in Phosphate) and ammonia, and reduced sales volumes.
Phosphate swung to a $4.5M loss from a $103M profit, as a $290M increase in raw material costs more than offset a 13% rise in average finished product selling prices.
Mosaic Fertilizantes collapsed 96% to $6.2 million, hit by a 32% drop in sales volumes, higher sulfur and ammonia costs, and $26 million in from idling the Patrocínio mine.
Potash operating earnings were flat at $196 million, as a 2% increase in average selling prices was offset by an 11% decline in sales volumes following lower production and the sale of the Carlsbad facility.
A $161.6 million on the Ma'aden share investment and a $39.4 million foreign currency transaction loss drove a swing to $163.2 million in other expense, deepening the net loss.
was $167.4 million, down 72.5% , and was negative $152.9 million, as continued to run ahead of cash generation.
What changed
The Q1 2026 watch item on sulfur and ammonia costs materialized: sulfur costs rose 150% in the Phosphate , driving its from $3 million in Q1 to a $4.5 million loss in Q2, confirming a second consecutive quarter of near-zero profitability.
The Q1 2026 watch item on Potash selling prices held: average finished product prices rose 2% to approximately $283 per tonne, extending stability above $270 for a fourth consecutive quarter, though the 11% volume decline from the Carlsbad sale and lower production offset the price benefit.
The Q1 2026 watch item on the Araxá/Patrocínio divestiture progressed: the Patrocínio mine idling generated $26 million in in Q2, adding to the $442 million in charges taken in Q1, though no closing was announced.
The Ma'aden stake, flagged in Q1 2026 for ongoing volatility, swung from a $112 million unrealized gain in Q1 to a $161.6 million loss in Q2, confirming the pattern of quarterly mark-to-market swings that now range from a $117 million loss to a $308 million gain over the past five quarters.
remained negative at negative $152.9 million, though it improved from negative $252.6 million in Q1, as the elevated capital expenditure program that began in FY2025 continued to weigh on cash generation.
What to watch
Whether the planned Q3 2026 phosphate production curtailments in North America and Brazil reduce raw material costs enough to return the Phosphate to gross profitability, or whether sulfur supply constraints and elevated ammonia costs persist.
Whether the eight-month suspension of on Moroccan phosphate fertilizers, announced in June 2026 under a national emergency declaration, alters the competitive landscape for the Phosphate when it takes effect.
Whether Mosaic Fertilizantes sales volumes recover from the 32% drop, or whether the Patrocínio mine idling and the planned Taquari mine sale signal a permanent reduction in the 's production capacity.
The trajectory of the Ma'aden share price, after a $161.6 million loss in Q2 reversed a $112 million gain in Q1, and whether the stake continues to generate earnings volatility that obscures underlying operating performance.
Potash operating earnings were flat at $196M, with a 2% increase in average selling prices offset by an 11% decline in sales volumes due to lower production and the sale of the Carlsbad facility.
Mosaic Fertilizantes collapsed 96% to $6.2M, impacted by a 32% drop in sales volumes, higher sulfur and ammonia costs, and $26M in accelerated from idling the Patrocínio mine.
A $161.6M on the Ma'aden investment and a $39.4M drove a swing to a $163.2M other expense.
The company plans to temporarily curtail additional phosphate production in North America and Brazil in Q3 2026 due to limited sulfur supply and market conditions.
Quantitative and Qualitative Disclosures About Market Risk
Mosaic hedges Canadian dollar, Brazilian real, and natural gas exposures with derivatives, reporting a $1.5M FX fair value as of Q2 2026.
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Primary currency exposures are the Canadian dollar and Brazilian real, hedged with forwards, , and futures on a declining basis up to 18 and 12 months, respectively.
As of June 30, 2026, total foreign exchange derivative fair value was $1.5 million, up from $1.0 million at year-end 2025.
The largest positions at quarter-end were short Brazilian real ($182.0M) and short China renminbi ($105.0M) via .
Natural gas swaps had zero fair value at June 30, 2026, compared to a $(0.4) million liability at December 31, 2025, with no open volume.
The company states it does not enter derivatives for speculative purposes and also faces risk from ammonia, sulfur, and freight costs.
Mosaic is defending multiple trade, environmental, and class action matters; no aggregate loss estimate is provided.
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orders on Moroccan and Russian phosphate fertilizers remain in litigation, with Mosaic and foreign producers appealing various agency determinations and review results.
In June 2026, the President temporarily suspended the CVD order on Moroccan phosphate fertilizers for eight months under a national emergency declaration.
A alleging radiation from legacy mining in Polk County, Florida was partially dismissed on jurisdictional grounds; Mosaic was not named in the refiled Polk County complaint.
Mosaic resolved an EPA Risk Management Plan enforcement at the Faustina Plant by paying a $217,085 penalty and completing two supplemental environmental projects.
Peru's environmental authority OEFA confirmed a penalty against Miski Mayo for alleged non-compliance at the Fosfatos Bayóvar site; Miski Mayo intends to seek judicial review.
EPA Region 6 referred alleged violations of a 2009 sulfuric acid plant to the DOJ for consideration of stipulated penalties; discussions are ongoing.
Volatile pricing and availability of key inputs like fertilizer, natural gas, ammonia, and sulfur, exacerbated by geopolitical conflicts, could materially harm the business.
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Prices and availability of key production inputs—fertilizer, natural gas, ammonia, and sulfur—have been and may again be volatile, materially impacting the business.
The Russia-Ukraine conflict and related sanctions continue to disrupt global markets and supply chains for these critical raw materials.
Geopolitical instability involving Iran threatens shipping through the Strait of Hormuz, a critical corridor for sulfur and ammonia, potentially worsening input costs and availability.
Because most products are , the company may be unable to pass increased input or energy costs on to customers, squeezing profitability.