The Mosaic Company (MOS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues were $2.82 billion, with adjusted EBITDA of $584 million and a net loss of $162 million, mainly due to notable after-tax items including significant FX and derivative losses.

• Adjusted EPS was $0.54, down from $1.04 in Q2 2023, with notable items negatively impacting EPS by $1.04.

• Over one-third of a $150 million annual cost savings target achieved, with unit production costs declining across all segments.

• Mosaic Biosciences products covered 5 million acres in North and Central America for the 2024 crop year.

• Nearly $300 million returned to shareholders in the first half, including $160 million in share repurchases.

Financial highlights

• Q2 2024 net loss of $162 million vs. net income of $369 million in Q2 2023; adjusted EBITDA of $584 million vs. $744 million year-over-year.

• Adjusted EPS was $0.54, with notable items negatively impacting EPS by $1.04.

• Potash: net revenues $663 million, operating earnings $174 million, adjusted EBITDA $271 million.

• Phosphate: net revenues $1.18 billion, operating earnings $133 million, adjusted EBITDA $308 million.

• Mosaic Fertilizantes: net revenues $1.05 billion, operating earnings $61 million, adjusted EBITDA $96 million.

Outlook and guidance

• Q3 2024 potash sales volumes expected at 2.1–2.3 million tonnes, with realized MOP prices of $200–$220/tonne.

• Q3 phosphate sales volumes expected at 1.7–1.9 million tonnes, with DAP prices at $555–$575/tonne; stripping margins to remain above historical levels.

• Full-year 2024 capex expected at $1.1–$1.2 billion; SG&A $470–$500 million; effective tax rate in high 20s%.

• Distribution margins in Brazil expected to remain in the $30–$40/ton range in Q3.

• Pending exchange of 25% MWSPC stake for $1.5 billion in Ma'aden shares expected to close in 2024.