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MOS Q2 Earnings Beat Estimates, Sales Miss on Lower Volumes
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Key Takeaways
Mosaic's Q2 adjusted earnings beat estimates, but sales missed as volumes fell and input costs increased.
MOS cut 2026 capex guidance while maintaining potash production outlook of about 9 million tons.
Mosaic expects Q3 phosphate and potash sales within guided ranges with higher projected DAP prices.
The Mosaic Company (MOS - Free Report) posted second-quarter 2026 net loss of $273 million or 86 cents per share, down sharply from a profit of $411 million or $1.29 per share in the year-ago quarter.
Barring one-time items, adjusted earnings were 13 cents per share, down 74.5% from adjusted earnings of 51 cents a year ago. The figure beat the Zacks Consensus Estimate of 9 cents.
Net sales declined 6% year over year to $2,824.1 million from $3,005.7 million in the prior-year quarter. Revenue missed the Zacks Consensus Estimate of $3,046.4 million. Lower sales volumes and elevated raw material costs, particularly sulfur, more than offset the benefit of higher phosphate and potash prices.
The Mosaic Company Price, Consensus and EPS Surprise
MOS’ Phosphate segment generated net sales of $1.25 billion, up from $1.17 billion a year ago. Sales volumes declined to 1.4 million tons from 1.5 million tons due to production curtailments. Net sales missed our estimate of $1.27 billion. Gross margin deteriorated to negative $4 per ton from $67 per ton a year ago as higher sulfur and ammonia costs offset stronger DAP pricing. The average DAP selling price increased to $773 per ton from $668 per ton.
The Potash segment delivered net sales of $650 million, down from $711 million a year ago. Sales volumes fell to 2 million tons from 2.3 million tons because of turnaround activities and the Carlsbad divestiture. However, net sales beat our estimate of $603.8 million. Gross margin improved to $103 per ton from $89 per ton, supported by higher realized prices. The average MOP selling price rose to $275 per ton from $261 per ton.
Mosaic Fertilizantes reported net sales of $1.03 billion, down from $1.18 billion in the year-ago quarter. Sales volumes declined to 1.5 million tons from 2.2 million tons, reflecting curtailed domestic production and softer demand. Revenue missed our estimate of $1.21 billion. Gross margin fell to $4 per ton from $73 per ton, while the average finished product selling price increased to $585 per ton from $474 per ton. Higher sulfur costs and lower production volumes weighed on profitability.
MOS' Financials
Mosaic ended the quarter with cash and cash equivalents of $294 million compared with $276.6 million at the end of 2025. Long-term debt (net of current maturities) increased to $4,767.7 million from $4,250.9 million at year-end 2025.
Cash flow from operating activities totaled $167.4 million in the second quarter, down from $609.5 million a year ago. Capital expenditures were $320.3 million, resulting in negative free cash flow of $152.9 million. Mosaic paid a regular dividend of 22 cents per share during the quarter.
MOS 2026 Outlook
Mosaic reduced its 2026 capital expenditure guidance to $1.2 billion from the prior expectation of $1.25 billion while maintaining its potash production outlook of about 9 million tons. For the third quarter, phosphate sales volumes are expected to be 1.1-1.4 million tons with DAP prices of $820-$840 per ton, while potash sales volumes are projected at 2-2.2 million tons with MOP prices of $270-$290 per ton. The company now expects SG&A expenses of $510-$530 million, net interest expense of $220-$240 million and cash taxes of $250-$300 million for 2026.
MOS’s Price Performance
MOS shares have lost 26.5% in the past year compared with the industry's 47.6% decline.
Image Source: Zacks Investment Research
MOS’s Zacks Rank & Key Picks
MOS currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Basic Materials space are Avient Corporation (AVNT - Free Report) , Neo Performance Materials Inc. (NOPMF - Free Report) and Skeena Resources Limited (SKE - Free Report) .
Avient is scheduled to report second-quarter results on Aug. 6. The Zacks Consensus Estimate for AVNT’s second-quarter earnings is pegged at 89 cents per share. It carries a Zacks Rank #2 (Buy) at present.
NOPMF is slated to report second-quarter results on Aug. 11. The Zacks Consensus Estimate for earnings is pegged at 5 cents per share. NOPMF has a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Skeena Resources is expected to report second-quarter results on Aug. 13. The Zacks Consensus Estimate for SKE’s second-quarter loss is pegged at 11 cents per share. It currently carries a Zacks Rank #2.
View the Zacks #1 Rank List
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MOS Q2 Earnings Beat Estimates, Sales Miss on Lower Volumes
Key Takeaways
The Mosaic Company (MOS - Free Report) posted second-quarter 2026 net loss of $273 million or 86 cents per share, down sharply from a profit of $411 million or $1.29 per share in the year-ago quarter.
Barring one-time items, adjusted earnings were 13 cents per share, down 74.5% from adjusted earnings of 51 cents a year ago. The figure beat the Zacks Consensus Estimate of 9 cents.
Net sales declined 6% year over year to $2,824.1 million from $3,005.7 million in the prior-year quarter. Revenue missed the Zacks Consensus Estimate of $3,046.4 million. Lower sales volumes and elevated raw material costs, particularly sulfur, more than offset the benefit of higher phosphate and potash prices.
The Mosaic Company Price, Consensus and EPS Surprise
The Mosaic Company price-consensus-eps-surprise-chart | The Mosaic Company Quote
MOS' Segment Highlights
MOS’ Phosphate segment generated net sales of $1.25 billion, up from $1.17 billion a year ago. Sales volumes declined to 1.4 million tons from 1.5 million tons due to production curtailments. Net sales missed our estimate of $1.27 billion. Gross margin deteriorated to negative $4 per ton from $67 per ton a year ago as higher sulfur and ammonia costs offset stronger DAP pricing. The average DAP selling price increased to $773 per ton from $668 per ton.
The Potash segment delivered net sales of $650 million, down from $711 million a year ago. Sales volumes fell to 2 million tons from 2.3 million tons because of turnaround activities and the Carlsbad divestiture. However, net sales beat our estimate of $603.8 million. Gross margin improved to $103 per ton from $89 per ton, supported by higher realized prices. The average MOP selling price rose to $275 per ton from $261 per ton.
Mosaic Fertilizantes reported net sales of $1.03 billion, down from $1.18 billion in the year-ago quarter. Sales volumes declined to 1.5 million tons from 2.2 million tons, reflecting curtailed domestic production and softer demand. Revenue missed our estimate of $1.21 billion. Gross margin fell to $4 per ton from $73 per ton, while the average finished product selling price increased to $585 per ton from $474 per ton. Higher sulfur costs and lower production volumes weighed on profitability.
MOS' Financials
Mosaic ended the quarter with cash and cash equivalents of $294 million compared with $276.6 million at the end of 2025. Long-term debt (net of current maturities) increased to $4,767.7 million from $4,250.9 million at year-end 2025.
Cash flow from operating activities totaled $167.4 million in the second quarter, down from $609.5 million a year ago. Capital expenditures were $320.3 million, resulting in negative free cash flow of $152.9 million. Mosaic paid a regular dividend of 22 cents per share during the quarter.
MOS 2026 Outlook
Mosaic reduced its 2026 capital expenditure guidance to $1.2 billion from the prior expectation of $1.25 billion while maintaining its potash production outlook of about 9 million tons. For the third quarter, phosphate sales volumes are expected to be 1.1-1.4 million tons with DAP prices of $820-$840 per ton, while potash sales volumes are projected at 2-2.2 million tons with MOP prices of $270-$290 per ton. The company now expects SG&A expenses of $510-$530 million, net interest expense of $220-$240 million and cash taxes of $250-$300 million for 2026.
MOS’s Price Performance
MOS shares have lost 26.5% in the past year compared with the industry's 47.6% decline.
MOS’s Zacks Rank & Key Picks
MOS currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Basic Materials space are Avient Corporation (AVNT - Free Report) , Neo Performance Materials Inc. (NOPMF - Free Report) and Skeena Resources Limited (SKE - Free Report) .
Avient is scheduled to report second-quarter results on Aug. 6. The Zacks Consensus Estimate for AVNT’s second-quarter earnings is pegged at 89 cents per share. It carries a Zacks Rank #2 (Buy) at present.
NOPMF is slated to report second-quarter results on Aug. 11. The Zacks Consensus Estimate for earnings is pegged at 5 cents per share. NOPMF has a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Skeena Resources is expected to report second-quarter results on Aug. 13. The Zacks Consensus Estimate for SKE’s second-quarter loss is pegged at 11 cents per share. It currently carries a Zacks Rank #2.