Mosaic Swings to $273M Q2 Loss as Sulfur Costs Surge; Cuts Capex, Idles Plants
MOS is trading near its 52-week low of $19.795 (13% above the low).
Summary
Mosaic reported a $273 million Q2 net loss, missing revenue estimates, as sulfur costs skyrocketed and phosphate production was curtailed. The company cut capex and idled plants, with free cash flow turning negative.
Key Events · Earnings and Guidance · MOS
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Q2 Net Loss of $273M
Mosaic swung to a net loss of $273 million ($0.86 per share) from a $411 million profit a year ago, driven by $351 million in pre-tax notable items including a $162 million non-cash Ma'aden mark-to-market loss and $69 million in asset write-offs.
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Revenue Miss, Adjusted EPS Beat
Revenue of $2.8 billion missed the $3.1 billion consensus, while adjusted EPS of $0.13 edged past the $0.12 estimate. Adjusted EBITDA fell to $407 million from $566 million in Q2 2025.
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Sulfur Costs Surge, Production Curtailed
Sulfur costs averaged $522 per long ton in Q2, up from $209 a year ago. Q3 contracts settled at $705 per long ton, prompting extended phosphate curtailments: Faustina idled, Bartow at 40% capacity.
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Capex Cut to $1.2B, Free Cash Flow Negative
2026 capital expenditures reduced to $1.2 billion from $1.25 billion. Free cash flow was negative $153 million in Q2, with net debt rising to $5.56 billion.
Analysis · MOS · Industrial Applications And Services
Mosaic's second quarter swung to a $273 million net loss from a $411 million profit a year ago, driven by soaring sulfur costs and production curtailments. Revenue missed consensus by nearly $300 million, though adjusted EPS of $0.13 edged past the $0.12 estimate. The company is slashing capital spending to $1.2 billion and idling phosphate facilities as sulfur contracts spike to $705 per long ton — a cost that will hit Q4 results. Free cash flow turned deeply negative, and the balance sheet shows rising net debt. Against a backdrop of two consecutive quarterly losses and a recent $1 billion credit facility, these results underscore severe margin compression and operational stress, though potash remains a relative bright spot.
At the time of this filing, MOS was trading at $22.40 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $7.2B. The 52-week trading range was $19.80 to $37.00. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.