Mosaic Swings to $72 Million Q3 Loss as Adjusted EBITDA Falls 59.8% to $324 Million
Mosaic swung to a third-quarter loss as expensive sulfur and production curtailments squeezed its phosphate business, with adjusted EBITDA falling 59.8% to $324 million from $806 million a year earlier, the fertilizer producer said Tuesday.
The Tampa-based company reported a net loss of $72 million, or $0.23 per diluted share, compared with net income of $411 million, or $1.29 per share, in the third quarter of 2025, according to the earnings release it filed with an 8-K. Excluding notable items, the adjusted loss was $0.19 per share, versus adjusted earnings of $1.04 a year earlier.
Net sales fell 10.2% to $3.10 billion from $3.45 billion, and the operating loss was $97 million against operating earnings of $340 million a year ago. Mosaic said results reflected lower sales volumes in every segment and higher raw material costs in Phosphate and Mosaic Fertilizantes, partly offset by higher phosphate prices.
"We made meaningful progress during the third quarter on the actions within our control," CEO Bruce Bodine said in the release. "We aligned phosphate production with the availability of affordable sulfur, reduced costs, strengthened our financial position, and continued to advance opportunities to optimize the portfolio."
Phosphate takes the hit
Phosphate net sales were $1.3 billion, equal to the prior-year period, but the segment posted a $194 million operating loss compared with $102 million of operating income a year ago. Segment adjusted EBITDA dropped to $49 million from $280 million. Volumes slipped to 1.4 million tonnes from 1.6 million as Mosaic curtailed output because of limited affordable sulfur.
Sulfur averaged $715 per long ton in the quarter. Mosaic settled its fourth-quarter sulfur contract with U.S. Gulf Coast refiners at $615 per long ton, which it expects to help fourth-quarter free cash flow, with the earnings benefit landing mainly in the first quarter of 2027. The company warned that fourth-quarter phosphate stripping margins and adjusted EBITDA should decline further as higher-cost raw materials flow through.
Potash and Brazil
Potash net sales fell 7.5% to $643 million, and segment adjusted EBITDA declined to $284 million from $329 million on lower volumes. Abnormal geological conditions at Esterhazy lowered ore grades, and Mosaic now expects 2026 potash production of 8.6 million tonnes. It said the lower grades are temporary.
Mosaic Fertilizantes in Brazil saw net sales decline 21.2% to $1.25 billion as volumes fell to 1.9 million tonnes from 2.8 million, and segment adjusted EBITDA dropped to $41 million from $241 million.
Outlook and balance sheet
For the fourth quarter, Mosaic expects phosphate volumes of 1.3 million to 1.6 million tonnes with DAP prices of $820 to $840 per tonne, and potash volumes of 2.3 million to 2.6 million tonnes with MOP prices of $255 to $275 per tonne. It now expects 2026 capital expenditures of $1.2 billion and is targeting less than $1 billion for 2027.
Operating cash flow rose to $284 million from $229 million, and free cash flow was breakeven compared with negative $135 million a year earlier. Mosaic refinanced and extended all long-term debt maturities through 2028, said its $2.5 billion revolver remains fully available, and paid a regular dividend of $0.22 per share.
By the numbers
- Net sales: $3.10 billion, down 10.2%
- Net loss: $72 million, or $0.23 per share
- Adjusted loss per share: $0.19, versus adjusted EPS of $1.04
- Adjusted EBITDA: $324 million, down 59.8%
- Q4 sulfur contract: $615 per long ton
- 2026 potash production outlook: 8.6 million tonnes
Sources
- The Mosaic Company Form 8-K with third-quarter 2026 earnings release, filed Nov. 3, 2026 (accession 0001285785-26-000139)
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