Mosaic Swings to $273M Q2 Loss as Sulfur Costs Skyrocket; Idles Brazil Mines, Draws $500M Term Loan
MOS sits 20% above its 52-week low of $19.795.
Summary
Mosaic reported a $272.8 million Q2 net loss, a sharp reversal from a $410.7 million profit a year ago, as sulfur and ammonia costs surged. The company is idling production, drawing on a new $1 billion credit facility, and facing antitrust lawsuits.
Key Events · Earnings and Guidance · MOS
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Q2 Net Loss of $273M
Net loss attributable to Mosaic was $272.8 million, or $0.86 per share, compared to net income of $410.7 million, or $1.29 per share, in Q2 2025. Revenue fell 6% to $2.82 billion.
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Raw Material Costs Crush Margins
Sulfur costs more than doubled to $522 per long ton (up 150%), and ammonia rose 40% to $621 per tonne. Gross margin collapsed to $214.7 million from $518.6 million.
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Phosphate and Brazil Segments in the Red
Phosphate segment swung to a $103.8 million operating loss; Mosaic Fertilizantes posted a $40.8 million loss. Both segments were hit by lower volumes and higher input costs.
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Liquidity Bolstered by $1B Term Loan
On June 10, 2026, Mosaic entered into a $1.0 billion delayed-draw term loan facility. $500 million was drawn as of June 30, with the remaining $500 million drawn in July.
Analysis · MOS · Industrial Applications And Services
A dramatic reversal in Mosaic's second quarter saw a $411 million profit a year ago turn into a $273 million net loss, missing estimates as sulfur costs more than doubled and phosphate margins collapsed. The Phosphate segment posted a $104 million operating loss, while the Brazil business flipped to a $41 million loss. To preserve cash, management is idling additional production in Q3 and has drawn $500 million of a new $1 billion term loan. These results confirm that the raw-material cost shock flagged in Q1 has intensified, pushing the company into cash-preservation mode — cutting capex, idling mines, and tapping credit lines — even as it faces antitrust litigation and a presidential suspension of Moroccan fertilizer duties that could further pressure pricing.
At the time of this filing, MOS was trading at $23.76 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $7.6B. The 52-week trading range was $19.80 to $37.00. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.