MOS · The Mosaic Company

The Mosaic Company posted a Q1 2026 net loss of $258 million versus net income of $238 million in Q1 2025, primarily due to $442 million in pre-tax charges ($328 million non-cash) from idling high-cost Araxa and Patrocinio operations in Brazil, exceeding prior estimates due to additional accelerated depreciation and idle costs continuing into Q2. Adjusted EBITDA fell to $416 million from $544 million YoY, with Phosphate EBITDA at $115 million (down from $276 million) hit by $280 million higher raw material costs despite volume gains to 1.9 million tonnes; Potash improved to $275 million (from $240 million) on higher prices ($265/tonne vs. $223/tonne) at 2.2 million tonnes; Mosaic Fertilizantes dropped to $79 million (from $122 million) amid lower volumes and margins. SG&A rose to $136 million from $123 million due to bad debt and FX impacts, prompting a new $50 million annualized cost savings initiative on top of $100 million prior efforts. Cash from operations rose to $104 million from $43 million, driven by phosphate inventory drawdown, though free cash flow was negative $253 million seasonally. Management highlighted volatile conditions, uneconomic production cuts, and working capital management. Guidance adjustments reflect sulfur supply tightness at record prices: full-year phosphate production withdrawn, partial U.S./Brazil curtailments from May, capex cut to $1.25 billion via deferrals without medium-term rate impacts. Potash remains on track for 9 million tonnes annually. Q2 outlooks signal pricing strength in Phosphate but volume pressure. Strategic moves include Carlsbad potash sale, Araxa sale exploration, and real estate cash of $31 million.