Q2 2026 Mosaic Co Earnings Call Transcript
Key Points
- The Mosaic Co (MOS) successfully negotiated third-quarter U.S. sulfur supply at prices considerably below the spot market, leveraging long-standing relationships with Gulf Coast refiners.
- The company is aggressively managing costs, with SG&A down 20% year-over-year, and expects further declines in the second half of the year.
- The Mosaic Co (MOS) fortified its liquidity by terming out short-term debt and has full access to its untapped $2.5 billion revolver.
- Potash remains a steady earnings contributor, with the summer fill program fully subscribed and a constructive market outlook.
- The Mosaic Co (MOS) is advancing strategic portfolio optimization, including the divestiture of Araxa and growth in Mosaic Biosciences, which is on track to double revenues again this year.
- The Mosaic Co (MOS) has curtailed phosphate production in the U.S. and Brazil due to unsustainably high sulfur prices, leading to reduced volumes and elevated idle costs.
- Third-quarter phosphate earnings are expected to be impacted by higher raw material costs, including sulfur at $700-$710 per ton and ammonia at $610-$620 per tonne.
- The company faces significant working capital outflows, with a projected $500 million cash shortfall for the year, though most of it has already passed.
- Global phosphate production is expected to fall short by up to 30 million tonnes, leading to under-application and potential crop yield impacts, which could affect future demand.
- Fertilizantes profitability is expected to decline in the third quarter due to curtailed production and reduced fixed cost absorption, with Q3 EBITDA likely below the $60 million achieved in Q2.
Good morning, and welcome to The Mosaic Company's second-quarter 2026 earnings conference call. (Operator Instructions) And now I'll turn it over to Mr. Paul Massoud. Please go ahead.
Thank you, and welcome to our second quarter 2026 earnings call. Opening comments will be provided by Bruce Bodine, President and Chief Executive Officer; Luciano Siani Pires, Executive Vice President and Chief Financial Officer will review financial results. We will then welcome Jenny Wang, Executive Vice President, Commercial, to join Bruce and Luciano as we open the floor for questions. We will be making forward-looking statements during this conference call. Statements include, but are not limited to, statements about future financial and operating results.
They are based on management's beliefs and expectations as of today's date and are subject to significant risks and uncertainties. Actual results may differ materially from projected results. Factors that could cause actual results to differ materially from those in the forward-looking statements are included
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