The Mosaic Company (MOS) Q1 2026 earnings summary

Executive summary

• Reported a Q1 2026 net loss of $258 million and operating loss of $373 million, with adjusted EBITDA at $416 million, reflecting significant charges from idling Brazilian assets and volatile business conditions.

• Strategic actions included divesting and idling underperforming assets in Brazil, resulting in $442 million in related charges, and advancing portfolio optimization through asset sales.

• Potash segment delivered positive operating earnings and EBITDA, while Fertilizantes posted a significant operating loss; U.S. phosphate assets improved production rates at key facilities.

• Foreign currency and mark-to-market gains on Ma'aden shares partially offset losses; land sale proceeds contributed positively.

• Operating in a highly volatile environment due to geopolitical conflicts impacting global phosphate supply and raw material availability, especially sulfur and ammonia.

Financial highlights

• Q1 2026 net sales were $2,998 million, up 14% year-over-year, but higher input costs led to a net loss of $258 million; adjusted EBITDA was $416 million.

• Free cash flow was negative $253 million, reflecting seasonal working capital build; cash flow from operations was $104 million.

• Gross margin declined to $235.6 million (8% margin), and diluted EPS was $(0.81).

• Cash and cash equivalents stood at $282 million at quarter-end; net debt increased to $4.3 billion.

• $442 million in charges related to idling Brazilian assets, with $328 million non-cash.

Outlook and guidance

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

• Withdrew 2026 phosphate production guidance due to sulfur constraints and production curtailments in the U.S. and Brazil.

• 2026 capital expenditures revised to $1.25 billion, deferring less time-sensitive projects; workforce reduction expected to generate $50 million in annualized savings.

• No Q2 adjusted EBITDA guidance for Mosaic Fertilizantes due to market uncertainty.

• Mosaic Biosciences expects to double net sales in 2026, driven by new product launches.