MO recently released its 10-Q report for the quarter ended March 31, 2026. The Mosaic Company, through its subsidiaries, produces and markets phosphate* and potash-based crop nutrients. Its operations are organized into Phosphates, Potash, and Mosaic Fertilizantes, with mines, chemical plants, blending and bagging facilities, port terminals, and warehouses in the U.S., Brazil, and other international markets.
For the three months ended March 31, 2026, Mosaic reported a net loss attributable to the company of $257.6 million, or $0.81 per diluted share, compared with net income of $238.1 million, or $0.75 per diluted share, a year earlier. Net sales rose 14% to $3.0 billion from $2.62 billion, but cost of goods sold increased 30% to $2.76 billion, cutting gross margin to $235.6 million from $488.4 million and reducing gross margin as a percentage of sales to 8% from 19%.
Operating loss widened to $372.9 million from operating earnings of $338.5 million. The quarter included a $232.6 million loss on assets to be sold and $240.0 million of other operating expense, compared with $27.3 million a year earlier. Mosaic also recorded $55.3 million of net interest expense, up from $40.7 million, while other income swung to $104.7 million from an expense of $118.1 million.
The company said the quarter was hit by higher raw material and input costs, especially sulfur and ammonia. Average consumed sulfur in North America rose to $379 per long ton from $157, and average consumed ammonia rose to $626 per metric tonne from $416. Mosaic said the increase in selling prices was not enough to offset those costs.
In Phosphates, net sales increased 30% to $1.43 billion from $1.10 billion, driven by higher sales volumes of 1.94 million finished product tonnes versus 1.50 million a year earlier and a 3% increase in average finished product selling price to $653 per tonne. But gross margin fell to $3.4 million from $167.3 million, as higher sulfur and ammonia costs reduced margins sharply. Operating results for the segment shifted to a loss of $48 million from earnings of $139 million.
In Potash, net sales rose 17% to $667.4 million from $570.2 million, with average finished product selling price increasing to $277 per tonne from $234. Segment gross margin improved to $191.3 million from $168.6 million, and operating earnings rose to $177 million from $157 million. Mosaic said the segment benefited from stronger pricing and sales volumes, partly offset by higher fixed costs, inventory absorption, and Canadian resource taxes of $66.8 million versus $47.3 million.
In Mosaic Fertilizantes, net sales were essentially flat at $937.1 million versus $933.8 million, but the segment posted an operating loss of $422 million compared with operating earnings of $99 million. The company said it recorded about $442 million of charges tied to the decision to divest the Araxá mining and chemical complex and idle related mining activities at Patrocínio in Brazil, including impairment, write-offs, contract termination costs, idle facility costs, and accelerated depreciation. Higher purchased-product costs and raw material costs also weighed on results.
Mosaic said it is reviewing phosphate production plans in the U.S. and Brazil as sulfur prices remain elevated. It said it has begun steps to partially curtail production at its Louisiana and Bartow, Florida locations and to scale back production in Brazil. Following these announcements, the company's shares moved -1.98%, and are now trading at a price of $21.75. If you want to know more, read the company's complete 10-Q report here.
