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Mosaic Raises Q2 DAP Price Guidance, Trims Phosphate Sales View

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Key Takeaways

  • MOS boosts Q2 DAP price forecast to $650 - $670/ton, citing strong market conditions.
  • Phosphate sales outlook cut to 1.5 - 1.6 Mt for Q2, with full-year production output lowered to 7.0 - 7.3 Mt.
  • Bartow, New Wales, and other sites driving higher production ahead of H2 2025 ramp to 8 Mt run rate.

The Mosaic Company (MOS - Free Report) has updated its guidance for the second quarter and full-year 2025. It has raised the outlook for phosphate prices. Strong market conditions have caused DAP price outlook to rise from $635-$655 per ton to $650-$670 per ton. Potash prices remain stable, with guidance for MOP prices unchanged at $230 to $250 per ton.  

The full-year phosphate production volume is predicted to be 7.0–7.3 million tons (Mt), which has been lowered from the prior estimate of 7.2–7.6 Mt. Phosphate sales volumes are forecast to be 1.5–1.6 Mt for the second quarter (down from 1.7–1.9 Mt expected earlier). The estimated sales volumes of potash remain unchanged at 2.3–2.5 Mt for the second quarter, while production volumes have been reaffirmed at 9.0–9.4 Mt for the entire year.

The Bartow phosphate facility is expected to produce more than 500,000 tons in the second quarter (annualized over 2 Mt), meeting its operational targets. New Wales phosphate facility is projected to increase production by more than 20% in the second quarter from the prior quarter. 

Planned downtimes at Riverview are expected to cause production to miss initial expectations, with production in the third quarter likely to reach a run rate corresponding to the annualized output of 1.6 Mt. The extended outage at MOS’s Louisiana facilities also led to lost production. The facility is expected to perform at its target annual run rate of 1.4 million tons in the third quarter.  MOS is optimistic about its production for the second half and expects operating rates to achieve the 8-million-ton target run rate across its U.S. phosphate assets.

Furthermore, Mosaic Fertilizantes is expected to considerably boost second-quarter results, driven by rising prices, improved distribution margins, operational efficiencies and a favorable currency environment.

Shares of Mosaic have gained 21% in the past year compared with the Zacks Fertilizers industry’s 15.2% rise.

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MOS’s Rank & Other Key Picks

MOS currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Alamos Gold Inc. (AGI - Free Report) and Hawkins, Inc. (HWKN - Free Report)

Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 11.1%. The company's shares have soared 139.2% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Alamos Gold's current-year earnings is pegged at $1.24 per share. AGI, carrying a Zacks Rank #1, surpassed the Zacks Consensus Estimate in two of the trailing four quarters, while missing twice, with an average earnings surprise of 1.4%. The company's shares have rallied 65.1% in the past year.

Hawkins, which currently carries a Zacks Rank #2, beat the consensus estimate in one of the trailing four quarters, while missing thrice. In this time frame, it has delivered an earnings surprise of roughly 8.2%, on average. The company's shares have rallied 54.6% in the past year.

 

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