The Mosaic Company
11/04/2026 | Press release | Distributed by Public on 11/04/2026 13:31
Quarterly Report for Quarter Ending September 30, 2026 (Form 10-Q)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the material under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in the Annual Report on Form 10-K of The Mosaic Company filed with the Securities and Exchange Commission for the year ended December 31, 2025 (the "10-K Report") and the material under Item 1 of Part I of this report.
Throughout the discussion below, we measure units of production, sales and raw materials in metric tonnes, which are the equivalent of 2,205 pounds, unless we specifically state we mean long ton(s), which are the equivalent of 2,240 pounds. In the following tables, there are certain percentages that are not considered to be meaningful and are represented by "NM." Our operating rate percentages are calculated based on our annual operational capacity as stated in the 10-K Report. Operational capacity is our estimated long-term capacity based on an average amount of scheduled down time, including maintenance and scheduled turnaround time, and product mix, and no significant modifications to the operating conditions, equipment or facilities.
Results of Operations
The following table shows the results of operations for the three and nine months ended September 30, 2026 and September 30, 2025:
| Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||
| September 30, | 2026-2025 | September 30, | 2026-2025 | ||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except per share data) | 2026 | 2025 | Change | Percent | 2026 | 2025 | Change | Percent | |||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 3,100.6 | $ | 3,452.1 | $ | (351.5) | (10) | % | $ | 8,922.7 | $ | 9,078.7 | $ | (156.0) | (2) | % | |||||||||||||||||||||||||||||||
| Cost of goods sold | 3,016.5 | 2,899.8 | 116.7 | 4 | % | 8,388.3 | 7,519.4 | 868.9 | 12 | % | |||||||||||||||||||||||||||||||||||||
| Gross margin | 84.1 | 552.3 | (468.2) | (85) | % | 534.4 | 1,559.3 | (1,024.9) | (66) | % | |||||||||||||||||||||||||||||||||||||
| Gross margin percentage | 3% | 16% | (13) | % | 6% | 17% | |||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 124.4 | 125.5 | (1.1) | (1) | % | 391.9 | 415.3 | (23.4) | (6) | % | |||||||||||||||||||||||||||||||||||||
| Loss on assets sold and to be sold | - | 73.1 | (73.1) | (100) | % | 238.8 | 73.1 | 165.7 | NM | ||||||||||||||||||||||||||||||||||||||
| Other operating expense | 56.3 | 13.9 | 42.4 | NM | 408.7 | 148.2 | 260.5 | 176 | % | ||||||||||||||||||||||||||||||||||||||
| Operating earnings (loss) | (96.6) | 339.8 | (436.4) | (128) | % | (505.0) | 922.7 | (1,427.7) | NM | ||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (59.5) | (45.6) | (13.9) | 30 | % | (177.6) | (139.3) | (38.3) | 27 | % | |||||||||||||||||||||||||||||||||||||
| Foreign currency transaction gain (loss) | 38.3 | (1.2) | 39.5 | NM | 36.5 | 301.3 | (264.8) | (88) | % | ||||||||||||||||||||||||||||||||||||||
| Other income (expense) | 14.5 | 306.3 | (291.8) | (95) | % | (44.0) | 391.7 | (435.7) | NM | ||||||||||||||||||||||||||||||||||||||
| Earnings (loss) from consolidated companies before income taxes | (103.3) | 599.3 | (702.6) | (117) | % | (690.1) | 1,476.4 | (2,166.5) | NM | ||||||||||||||||||||||||||||||||||||||
| (Benefit) provision for income taxes | (37.9) | 175.5 | (213.4) | (122) | % | (102.7) | 384.8 | (487.5) | NM | ||||||||||||||||||||||||||||||||||||||
| Earnings (loss) from consolidated companies | (65.4) | 423.8 | (489.2) | (115) | % | (587.4) | 1,091.6 | (1,679.0) | NM | ||||||||||||||||||||||||||||||||||||||
| Equity in net earnings of nonconsolidated companies | 0.1 | 0.3 | (0.2) | (67) | % | 2.1 | 2.2 | (0.1) | (5) | % | |||||||||||||||||||||||||||||||||||||
| Net earnings (loss) including noncontrolling interests | (65.3) | 424.1 | (489.4) | (115) | % | (585.3) | 1,093.8 | (1,679.1) | NM | ||||||||||||||||||||||||||||||||||||||
| Less: Net earnings attributable to noncontrolling interests | 6.8 | 12.7 | (5.9) | (46) | % | 17.2 | 33.6 | (16.4) | (49) | % | |||||||||||||||||||||||||||||||||||||
| Net earnings (loss) attributable to Mosaic | $ | (72.1) | $ | 411.4 | $ | (483.5) | (118) | % | $ | (602.5) | $ | 1,060.2 | $ | (1,662.7) | NM | ||||||||||||||||||||||||||||||||
| Diluted net earnings (loss) per share attributable to Mosaic | $ | (0.23) | $ | 1.29 | $ | (1.52) | (118) | % | $ | (1.90) | $ | 3.33 | $ | (5.23) | NM | ||||||||||||||||||||||||||||||||
| Diluted weighted average number of shares outstanding | 317.9 | 319.4 | 317.8 | 318.8 | |||||||||||||||||||||||||||||||||||||||||||
Overview of Consolidated Results for the three months ended September 30, 2026 and 2025
For the three months ended September 30, 2026, Mosaic incurred a net loss of $72.1 million, or $(0.23) per diluted share, compared to net income of $411.4 million, or $1.29 per diluted share, for the same period last year. Gross margin for the current year period was unfavorably impacted by higher raw material and input costs, as well as reduced sales volumes, driven largely by increased sulfur prices and supply constraints in the current period as discussed further below. Unfavorable impacts to net income were partially offset by an unrealized mark-to-market gain of approximately $38.0 million on the investment in Ma'aden shares, included in other income (expense) and a foreign currency transaction gain of $38.3 million.
Significant factors affecting our results of operations and financial condition are listed below. Certain of these factors are discussed in more detail in the following sections of this Management's Discussion and Analysis of Financial Condition and Results of Operations.
In 2026, geopolitical events continue to drive supply constraints and volatility throughout global commodity markets. The continued conflict in the Middle East and attacks on the Russian and Ukraine commodities industrial assets have restricted exports of fertilizers and raw materials (namely sulfur and ammonia), further tightening global supplies, driving input costs higher and pressuring affordability of fertilizer products. While average selling prices increased in the current year periods, compared to the prior year, the increases were more than offset by elevated input costs, particularly sulfur and ammonia, which also pressured margins.
In our Phosphate segment, the operating loss for the three months ended September 30, 2026 was $194 million compared to operating earnings of $102 million in the prior year period. In the current year period, operating results were negatively impacted by higher raw material costs of sulfur, ammonia and blended rock, compared to the prior year period. The increased raw materials costs reflect the tightened global supply conditions mentioned above. Operating results were also unfavorably impacted by decreased sales volumes, driven by customers' affordability challenges weakening global demand. Sales volumes were further impacted by our decision to temporarily curtail production at certain facilities in response to market conditions and continuing high input costs in the current year period. In addition, operating results were unfavorably impacted by an increase in environmental reserves in the current period. The unfavorable impact of increased costs was partially offset by favorable sales prices in the current year period which were driven by tight global supply conditions.
In our Potash segment, operating earnings for the three months ended September 30, 2026 were $188 million, compared to $229 million in the prior year. Operating results were unfavorably impacted by reduced sales volumes, which were driven by lower product availability. Product availability was reduced due to lower production at our Belle Plaine and Esterhazy, Saskatchewan mines and the sale of our Carlsbad, New Mexico facility in April of the current year. These unfavorable impacts were partially offset by higher average selling prices, which have increased due to ongoing global supply challenges.
In our Mosaic Fertilizantes segment, the operating loss for the three months ended September 30, 2026 was $22 million, compared to operating earnings of $96 million in the prior year. The decrease was primarily driven by lower sales volumes, reflecting reduced production resulting from constrained raw material availability and limited customer credit availability in Brazil during the current-year period. During the current-year period, production was temporarily curtailed at certain facilities in response to market conditions. Operating results were also adversely affected by higher costs of purchased products for resale, increased raw material costs, primarily sulfur, and higher idle costs associated with production curtailments. These unfavorable impacts were partially offset by higher average selling prices in the current-year period, reflecting tight global supply conditions.
Corporate, Eliminations and Other had an operating loss of $70 million for the three months ended September 30, 2026, compared to a loss of $87 million in the prior year. Corporate, Eliminations and Other includes the results of the China and India distribution businesses, the Mosaic Bioscience business (other than Brazil), intersegment eliminations, including profit on intersegment sales, unrealized mark-to-market gains and unrealized losses on derivatives and debt expenses.
Other Business Developments:
•On August 17, 2026, we issued $2 billion of new senior notes consisting of $1.0 billion aggregate principal amount of 5.350% senior notes due 2031, $500 million aggregate principal amount of 5.650% senior notes due 2034 and $500 million aggregate principal amount of 5.900% senior notes due 2036. We used a portion of the net proceeds from these notes to extinguish $1.4 billion aggregate principal amount of our 4.050% senior notes due 2027, 7.300% debentures due 2028, 5.375% senior notes due 2028 and 4.350% senior notes due 2029, through cash tender offers and
make-whole redemptions. As a result, we recognized a loss on extinguishment of debt of $13.1 million, consisting of premiums paid, transaction fees and the write-off of unamortized debt issuance costs and discounts, which is included in other income (expense) in the Condensed Consolidated Statements of Earnings (Loss). We also used a portion of the proceeds to repay a $500 million term loan that was entered into during the quarter.
•In response to current market conditions and limited sulfur supply, we decided to temporarily curtail production at additional phosphate production facilities in North America, as well as extend curtailed phosphate production in North America and Brazil. The Company continues to evaluate the impact of market conditions on its business and will take appropriate actions in response to evolving circumstances.
•On September 15, 2026, we entered into an agreement to sell approximately 11,858 acres of land near Kronau, Saskatchewan, for approximately $36 million. As of September 30, 2026, the land was classified as held for sale. The transaction closed on October 28, 2026, resulting in a gain that we will recognize in the fourth quarter of 2026.
Overview of Consolidated Results for the nine months ended September 30, 2026 and 2025
For the nine months ended September 30, 2026, Mosaic incurred a net loss of $602.5 million, or $(1.90) per diluted share, compared to net income of $1,060.2 million, or $3.33 per diluted share, for the same period a year ago. Gross margin for the nine months ended September 30, 2026 decreased 66% compared to the same period of the prior year. This result was primarily driven by higher raw material and input costs, as well as reduced sales volumes, driven largely by increased sulfur prices and supply constraints in the current period as discussed above in the three-month discussion and reduced sales volumes, reflecting product availability constraints and continued affordability challenges. Net income for the nine months ended September 30, 2026, was also negatively impacted by the strategic decision to idle and divest the Araxá mining and chemical complex and idle the related mining activities at the Patrocínio complex in Brazil, which resulted in additional expense of approximately $496 million. Net income was also impacted by a loss of $15 million on marketable securities held in the RCRA Trusts, the loss on the extinguishment of debt of $13 million and an unrealized mark-to-market loss of $11.1 million on the investment in Ma'aden shares, included in other income (expense). The unfavorable impacts to net income were partially offset by a foreign currency transaction gain of $36.5 million.
Results for the nine months ended September 30, 2026 reflected the factors discussed above in the discussion for the three months ended September 30, 2026, in addition to those noted below. Certain of these factors are discussed in more detail in the following sections of this Management's Discussion and Analysis of Financial Condition and Results of Operations.
Operating results in our Phosphate segment for the nine months ended September 30, 2026 declined from earnings in the prior year of $234 million to a loss of $345 million in the current year period. Higher input costs of sulfur, ammonia and blended rock primarily drove the unfavorable impact to lower segment earnings in the current year period. Phosphate operating earnings also reflect the unfavorable impact of increased expenses as a result of underutilized and idle plants. The unfavorable impacts of higher input costs and operating expenses in the current year period were partially offset by favorable sales prices and increased sales volumes, reflecting increased global demand and stronger starting inventories that enabled fulfillment of export demand in the current year period.
Operating results in our Potash segment for the nine months ended September 30, 2026 were earnings of $561 million in the current year period compared to $580 million in the prior year period. Results were unfavorably impacted by lower sales volumes, which were driven by lower product availability from reduced production and the sale of our Carlsbad mine in April of the current year period. Higher average selling prices driven by global supply conditions partially offset the unfavorable impacts to current year results.
For the nine months ended September 30, 2026, operating results in our Mosaic Fertilizantes segment generated an operating loss of $(484.6) million compared to earnings of $304 million in the same period in the prior year. As mentioned above, in the first quarter of 2026, we committed to a plan to divest the Araxá mining and chemical complex and idle the related mining activities at the Patrocínio complex, in Brazil. This decision resulted in additional expense of approximately $496 million in the current nine-month period. In addition, year-over-year performance reflects higher costs of purchased products for resale and higher raw material costs, primarily sulfur, due to global supply conditions. Sales volumes were also unfavorably impacted due to reduced production resulting from constrained raw material availability and limited customer credit availability in Brazil.
Increased costs due to our decision to curtail production at certain facilities further impacted operating results. These impacts were partially offset by the global pricing environment, which drove an increase in average selling prices.
Corporate, Eliminations and Other had an operating loss of $236 million for the nine months ended September 30, 2026 compared to a loss of $194 million in the prior year period. Corporate, Eliminations and Other includes the results of the China and India distribution businesses, the Mosaic Bioscience business (other than Brazil), intersegment eliminations, including profit on intersegment sales, unrealized mark-to-market gains and unrealized losses on derivatives and debt expenses.
Other Business Developments:
•On April 30, 2026, we completed the sale of our Carlsbad potash mine in New Mexico for a total purchase price $20 million, subject to adjustment, along with a deferred payment of $10 million payable in three installments from 2029 to 2031. Upon completion of the transaction, we received cash proceeds of approximately $2 million along with the deferred payment of $10 million and recognized an additional impairment loss of $6.2 million in the second quarter of 2026.
Phosphate Net Sales and Gross Margin
The following table summarizes the Phosphate segment's net sales, gross margin, sales volume, selling prices and raw material prices:
| Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||
| September 30, | 2026-2025 | September 30, | 2026-2025 | ||||||||||||||||||||||||||||||||||||||||||||
|
(in millions, except price per tonne or unit)
|
2026 | 2025 | Change | Percent | 2026 | 2025 | Change | Percent | |||||||||||||||||||||||||||||||||||||||
| Net sales: | |||||||||||||||||||||||||||||||||||||||||||||||
| North America | $ | 653.7 | $ | 869.4 | $ | (215.7) | (25) | % | $ | 2,196.0 | $ | 2,530.4 | $ | (334.4) | (13) | % | |||||||||||||||||||||||||||||||
| International | 641.2 | 420.8 | 220.4 | 52 | % | 1,771.2 | 1,031.4 | 739.8 | 72 | % | |||||||||||||||||||||||||||||||||||||
| Total | 1,294.9 | 1,290.2 | 4.7 | - | % | 3,967.2 | 3,561.8 | 405.4 | 11 | % | |||||||||||||||||||||||||||||||||||||
| Cost of goods sold | 1,442.7 | 1,146.3 | 296.4 | 26 | % | 4,116.1 | 3,147.6 | 968.5 | 31 | % | |||||||||||||||||||||||||||||||||||||
| Gross margin | $ | (147.8) | $ | 143.9 | $ | (291.7) | NM | $ | (148.9) | $ | 414.2 | $ | (563.1) | NM | |||||||||||||||||||||||||||||||||
| Gross margin as a percentage of net sales | (11) | % | 11 | % | (4) | % | 12 | % | |||||||||||||||||||||||||||||||||||||||
|
Sales volumes(a) (in thousands of metric tonnes)
|
|||||||||||||||||||||||||||||||||||||||||||||||
| DAP/MAP | 898 | 760 | 138 | 18 | % | 2,791 | 2,317 | 474 | 20 | % | |||||||||||||||||||||||||||||||||||||
|
Performance and Other(b)
|
505 | 811 | (306) | (38) | % | 1,954 | 2,298 | (344) | (15) | % | |||||||||||||||||||||||||||||||||||||
| Total finished product tonnes | 1,403 | 1,571 | (168) | (11) | % | 4,745 | 4,615 | 130 | 3 | % | |||||||||||||||||||||||||||||||||||||
| Rock | 230 | 539 | (309) | (57) | % | 1,118 | 1,298 | (180) | (14) | % | |||||||||||||||||||||||||||||||||||||
|
Total Phosphate Segment Tonnes(a)
|
1,633 | 2,110 | (477) | (23) | % | 5,863 | 5,913 | (50) | (1) | % | |||||||||||||||||||||||||||||||||||||
| Realized prices ($/tonne) | |||||||||||||||||||||||||||||||||||||||||||||||
|
Average finished product selling price(c)
|
$ | 814 | $ | 712 | $ | 102 | 14 | % | $ | 730 | $ | 670 | $ | 60 | 9 | % | |||||||||||||||||||||||||||||||
| DAP selling price (fob plant) | $ | 838 | $ | 714 | $ | 124 | 17 | % | $ | 758 | $ | 666 | $ | 92 | 14 | % | |||||||||||||||||||||||||||||||
| Average cost per unit consumed in cost of goods sold: | |||||||||||||||||||||||||||||||||||||||||||||||
| Ammonia (metric tonne) | $ | 619 | $ | 455 | $ | 164 | 36 | % | $ | 622 | $ | 444 | $ | 178 | 40 | % | |||||||||||||||||||||||||||||||
| Sulfur (long ton) | $ | 715 | $ | 272 | $ | 443 | 163 | % | $ | 524 | $ | 220 | $ | 304 | 138 | % | |||||||||||||||||||||||||||||||
| Blended rock (metric tonne) | $ | 91 | $ | 80 | $ | 11 | 14 | % | $ | 88 | $ | 78 | $ | 10 | 13 | % | |||||||||||||||||||||||||||||||
| Production volume (in thousands of metric tonnes) - North America | 1,289 | 1,678 | (389) | (23) | % | 4,363 | 4,606 | (243) | (5) | % | |||||||||||||||||||||||||||||||||||||
____________________________
(a) Includes intersegment sales volumes.
(b) Includes sales volumes of MicroEssentials® and animal feed ingredients.
(c) Excludes sales revenue and tonnes associated with rock sales. Average finished product selling price is calculated as finished goods sales revenue divided by finished goods sales volumes.
Three months ended September 30, 2026 and September 30, 2025
The Phosphate segment's net sales were $1,294.9 million for the three months ended September 30, 2026, compared to $1,290.2 million for the three months ended September 30, 2025. The year-over-year increase was primarily driven by higher sales prices, which contributed approximately $145 million to net sales compared to the prior year period. This impact was substantially offset by decreased sales volumes of approximately $120 million compared to the prior year period. Additionally, reduced sales of other products, including rock and raw materials, and reduced freight revenue combined to have an unfavorable impact of approximately $20 million compared to the prior year period.
Our average finished product selling price increased 14% to $814 per tonne for the three months ended September 30, 2026, compared to $712 per tonne in the prior year period, due to the factors discussed in the Overview.
The Phosphate segment's sales volumes of finished products decreased to 1.4 million for the three months ended September 30, 2026, compared to 1.6 million in the prior year period due to the factors discussed in the Overview.
Gross margin for the Phosphate segment decreased to a loss of $147.8 million for the three months ended September 30, 2026, from a positive $143.9 million for the three months ended September 30, 2025. Gross margin in the current year period was negatively impacted by higher raw material costs, primarily sulfur, of approximately $380 million. In addition, gross margin was negatively affected by reduced sales volume impacts of approximately $35 million and increased idle expense and unabsorbed fixed costs of approximately $50 million, compared to the prior year period. These negative impacts were partially offset by higher average selling prices of approximately $145 million and lower turnaround costs of approximately $15 million in the current year period, compared to the prior year. Also, the prior year period included costs of approximately $15 million related to tariffs and dry dock expense that did not repeat in the current year.
The average consumed price for ammonia for our North America operations increased 36%, to $619 per tonne, for the three months ended September 30, 2026, from $455 in the same period a year ago. The average consumed sulfur price for our North America operations increased 163%, to $715 per long ton, for the three months ended September 30, 2026, from $272 in the same period a year ago. The purchase prices of these raw materials are driven by global supply and demand. The consumed ammonia and sulfur prices also include transportation, transformation and storage costs.
The average consumed cost of purchased and produced phosphate rock increased to $91 per tonne for the three months ended September 30, 2026, from $80 per tonne for the three months ended September 30, 2025 due to additional costs associated with bench mining methods, where deeper phosphate reserves and thicker overburden require additional material removal. For the three months ended September 30, 2026 our North America phosphate rock production was 2.1 million tonnes compared to 2.2 million tonnes in the prior year period.
The Phosphate segment's production of crop nutrient dry concentrates and animal feed ingredients for the three months ended September 30, 2026 was unfavorably impacted by raw material availability, primarily sulfur, which resulted in a decrease of 23% from the prior year period. These ongoing availability constraints resulted in our decision to further curtail production, which resulted in an operating rate for processed phosphate production of 52% for the three months ended September 30, 2026, down from 68% for the same period in 2025.
Nine months ended September 30, 2026 and September 30, 2025
The Phosphate segment's net sales were $3,967.2 million for the nine months ended September 30, 2026, compared to $3,561.8 million for the nine months ended September 30, 2025. The year-over-year increase was driven by higher average finished goods sales prices, which contributed approximately $285 million, and increased sales volumes, which contributed approximately $90 million, to net sales compared to the prior year period. Net sales were also positively impacted by higher freight and other product revenue of approximately $30 million compared to the prior year period.
Our average finished product selling price was $730 per tonne for the nine months ended September 30, 2026, an increase of $60 per tonne from the same period a year ago, due to the factors discussed in the Overview.
The Phosphate segment's sales volumes of finished products increased by 3% for the nine months ended September 30, 2026, compared to the same period in the prior year due to the factors discussed in the Overview.
Gross margin for the Phosphate segment decreased to a loss of $148.9 million for the nine months ended September 30, 2026, from a positive $414.2 million for the nine months ended September 30, 2025. The decrease was primarily attributable to
approximately $910 million of unfavorable production cost impacts, driven largely by higher sulfur, ammonia and blended rock input costs. In addition, increased idle and unabsorbed fixed costs negatively impacted gross margin by approximately $65 million compared to the prior year period. These unfavorable impacts were partially offset by approximately $285 million from higher average selling prices, approximately $50 million from higher finished goods sales volumes, and approximately $30 million from increased margins on other products compared to the prior year period. In addition, lower turnaround costs of approximately $50 million in the current year period favorably impacted gross margin compared to the prior year.
The average consumed price for ammonia for our North America operations was $622 per tonne for the nine months ended September 30, 2026, compared to $444 per tonne in the same period a year ago. The average consumed price for sulfur for our North America operations increased to $524 per long ton for the nine months ended September 30, 2026, from $220 per long ton in the same period a year ago. The purchase prices of these raw materials are driven by global supply and demand. The consumed ammonia and sulfur prices also include transportation, transformation and storage costs.
The average consumed cost of purchased and produced phosphate rock increased to $88 per tonne for the nine months ended September 30, 2026, compared to $78 per tonne for the prior year period. Our North America phosphate rock production was unfavorably impacted by moving into new mining areas and production curtailments which resulted in production of 6.0 million tonnes for the nine months ended September 30, 2026, compared to 7.2 million for the nine months ended September 30, 2025.
The Phosphate segment's production of crop nutrient dry concentrates and animal feed ingredients decreased to 4.4 million tonnes for the nine months ended September 30, 2026, compared to 4.6 million tonnes in the prior year period primarily due to the production curtailments discussed above in the three-month discussion. Our operating rate for processed phosphate production decreased to 59% for the nine months ended September 30, 2026, from 62% for the prior year period.
Potash Net Sales and Gross Margin
The following table summarizes the Potash segment's net sales, gross margin, sales volume and selling price:
| Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||
| September 30, | 2026-2025 | September 30, | 2026-2025 | ||||||||||||||||||||||||||||||||||||||||||||
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(in millions, except price per tonne or unit)
|
2026 | 2025 | Change | Percent | 2026 | 2025 | Change | Percent | |||||||||||||||||||||||||||||||||||||||
| Net sales: | |||||||||||||||||||||||||||||||||||||||||||||||
| North America | $ | 292.3 | $ | 320.4 | $ | (28.1) | (9) | % | $ | 980.7 | $ | 1,039.5 | $ | (58.8) | (6) | % | |||||||||||||||||||||||||||||||
|
International (a)
|
351.1 | 374.4 | (23.3) | (6) | % | 980.4 | 936.0 | 44.4 | 5 | % | |||||||||||||||||||||||||||||||||||||
| Total | 643.4 | 694.8 | (51.4) | (7) | % | 1,961.1 | 1,975.5 | (14.4) | (1) | % | |||||||||||||||||||||||||||||||||||||
| Cost of goods sold | 443.9 | 458.9 | (15.0) | (3) | % | 1,363.0 | 1,361.6 | 1.4 | - | % | |||||||||||||||||||||||||||||||||||||
| Gross margin | $ | 199.5 | $ | 235.9 | $ | (36.4) | (15) | % | $ | 598.1 | $ | 613.9 | $ | (15.8) | (3) | % | |||||||||||||||||||||||||||||||
| Gross margin as a percentage of net sales | 31 | % | 34 | % | 30 | % | 31 | % | |||||||||||||||||||||||||||||||||||||||
|
Sales volume(b) (in thousands of metric tonnes)
|
|||||||||||||||||||||||||||||||||||||||||||||||
| MOP | 2,009 | 2,110 | (101) | (5) | % | 5,872 | 6,179 | (307) | (5) | % | |||||||||||||||||||||||||||||||||||||
|
Performance and Other(c)
|
59 | 169 | (110) | (65) | % | 374 | 556 | (182) | (33) | % | |||||||||||||||||||||||||||||||||||||
| Total Potash Segment Tonnes | 2,068 | 2,279 | (211) | (9) | % | 6,246 | 6,735 | (489) | (7) | % | |||||||||||||||||||||||||||||||||||||
| Realized prices ($/tonne) | |||||||||||||||||||||||||||||||||||||||||||||||
|
Average finished product selling price(d)
|
$ | 280 | $ | 278 | $ | 2 | 1 | % | $ | 279 | $ | 263 | $ | 16 | 6 | % | |||||||||||||||||||||||||||||||
| MOP selling price (fob mine) | $ | 276 | $ | 271 | $ | 5 | 2 | % | $ | 272 | $ | 252 | $ | 20 | 8 | % | |||||||||||||||||||||||||||||||
| Production volume (in thousands of metric tonnes) | 2,103 | 2,258 | (155) | (7) | % | 6,157 | 6,608 | (451) | (7) | % | |||||||||||||||||||||||||||||||||||||
______________________________
(a) Includes Canpotex sales to international customers.
(b) Includes intersegment sales volumes.
(c) Includes sales volumes of K-Mag®, Aspire® and animal feed ingredients.
(d)Average finished product selling price is calculated as finished goods sales revenue divided by finished goods sales volumes.
Three months ended September 30, 2026 and September 30, 2025
The Potash segment's net sales decreased to $643.4 million for the three months ended September 30, 2026, compared to $694.8 million in the same period a year ago. The decrease was primarily due to lower sales volumes, which unfavorably impacted net sales by approximately $60 million. This was partially offset by higher average selling prices which had a favorable impact on net sales of approximately $5 million compared to the prior year period.
Our average finished product selling price was $280 per tonne for the three months ended September 30, 2026, compared to $278 per tonne for the same period a year ago, due to the factors described in the Overview.
The Potash segment's sales volumes of finished products were 2.1 million tonnes for the three months ended September 30, 2026, compared to 2.3 million tonnes for the same period a year ago due to lower production and the sale of the Carlsbad facility in the second quarter of 2026.
Gross margin for the Potash segment decreased to $199.5 million for the three months ended September 30, 2026, from $235.9 million in the prior year period. The decrease was primarily attributable to lower sales volume impacts, which negatively impacted gross margin by approximately $35 million. In addition, increased turnaround and other plant costs of approximately $15 million unfavorably impacted gross margin compared to the prior year period. These impacts were partially offset by the benefits of higher average prices of approximately $5 million and lower freight costs of approximately $5 million compared to the prior year period.
We incurred $85.1 million in Canadian resource taxes for the three months ended September 30, 2026, compared to $86.8 million in the same period a year ago. Canadian royalty expense decreased to $11.2 million for the three months ended September 30, 2026, compared to $12.4 million for the three months ended September 30, 2025. The fluctuations in Canadian resource taxes and royalties are primarily due to decreases in sales revenues and margin.
Our operating rate for potash production was 73% for the three months ended September 30, 2026, compared to 79% for the same period in 2025. Current period production was impacted by lower production at our Esterhazy and Belle Plaine, Saskatchewan mines due to downtime.
Nine months ended September 30, 2026 and September 30, 2025
The Potash segment's net sales were $1,961.1 million for the nine months ended September 30, 2026, compared to $1,975.5 million in the same period a year ago. The decrease was primarily attributable to lower sales volumes, which unfavorably impacted net sales by approximately $125 million. This was partially offset by higher average selling prices of approximately $100 million compared to the prior year period. Additionally, other sales revenue favorably impacted net sales by approximately $10 million compared to the same period in the prior year.
Our average potash selling price was $279 per tonne for the nine months ended September 30, 2026, compared to $263 per tonne for the same period a year ago, due to the factors discussed above in the Overview.
The Potash segment's sales volumes for the nine months ended September 30, 2026 decreased 7%, compared to the same period a year ago, due to the factors discussed above in the Overview.
Gross margin for the Potash segment decreased to $598.1 million for the nine months ended September 30, 2026, from $613.9 million for the same period last year. The decrease primarily reflected lower sales volumes impacts of approximately $60 million, higher fixed costs of approximately $30 million and higher Canadian resource taxes of approximately $25 million compared to the same period in the prior year. These unfavorable impacts were largely offset by higher average selling prices of approximately $100 million compared to the prior year period.
We incurred $222.3 million in Canadian resource taxes for the nine months ended September 30, 2026, compared to $195.8 million in the same period a year ago. Canadian royalty expense increased to $33.0 million for the nine months ended September 30, 2026, compared to $31.7 million for the nine months ended September 30, 2025. The fluctuations in Canadian resource taxes and royalties are due to sales mix and the increases in margin subject to resource taxes.
Our operating rate decreased to 71% for the current year period, compared to 77% in the prior year period primarily due to the sale of our Carlsbad, New Mexico mine and lower production at the Esterhazy and Belle Plaine mines as discussed in the three-month discussion above.
Mosaic Fertilizantes Net Sales and Gross Margin
The following table summarizes the Mosaic Fertilizantes segment's net sales, gross margin, sales volume and selling price.
| Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||
| September 30, | 2026-2025 | September 30, | 2026-2025 | ||||||||||||||||||||||||||||||||||||||||||||
|
(in millions, except price per tonne or unit)
|
2026 | 2025 | Change | Percent | 2026 | 2025 | Change | Percent | |||||||||||||||||||||||||||||||||||||||
| Net Sales | $ | 1,254.0 | $ | 1,592.2 | $ | (338.2) | (21) | % | $ | 3,224.9 | $ | 3,700.9 | $ | (476.0) | (13) | % | |||||||||||||||||||||||||||||||
| Cost of goods sold | 1,227.3 | 1,409.8 | (182.5) | (13) | % | 3,157.4 | 3,229.8 | (72.4) | (2) | % | |||||||||||||||||||||||||||||||||||||
| Gross margin | $ | 26.7 | $ | 182.4 | $ | (155.7) | (85) | % | $ | 67.5 | $ | 471.1 | $ | (403.6) | (86) | % | |||||||||||||||||||||||||||||||
| Gross margin as a percent of net sales | 2 | % | 11 | % | 2 | % | 13 | % | |||||||||||||||||||||||||||||||||||||||
| Sales volume (in thousands of metric tonnes) | |||||||||||||||||||||||||||||||||||||||||||||||
|
Fertilizer produced in Brazil sold to third parties(a)
|
116 | 363 | (247) | (68) | % | 663 | 1,081 | (418) | (39) | % | |||||||||||||||||||||||||||||||||||||
| Fertilizer produced in Brazil sold through distribution | 291 | 685 | (394) | (58) | % | 982 | 1,709 | (727) | (43) | % | |||||||||||||||||||||||||||||||||||||
| Purchased nutrients for distribution | 1,487 | 1,755 | (268) | (15) | % | 3,387 | 4,092 | (705) | (17) | % | |||||||||||||||||||||||||||||||||||||
| Total Mosaic Fertilizantes Segment Tonnes | 1,894 | 2,803 | (909) | (32) | % | 5,032 | 6,882 | (1,850) | (27) | % | |||||||||||||||||||||||||||||||||||||
| Realized prices ($/tonne) | |||||||||||||||||||||||||||||||||||||||||||||||
|
Average finished product selling price(b)
|
$ | 625 | $ | 518 | $ | 107 | 21 | % | $ | 581 | $ | 486 | $ | 95 | 20 | % | |||||||||||||||||||||||||||||||
| Brazil MAP price (delivered price to third party) | $ | 850 | $ | 738 | $ | 112 | 15 | % | $ | 794 | $ | 713 | $ | 81 | 11 | % | |||||||||||||||||||||||||||||||
| Purchases ('000 tonnes) | |||||||||||||||||||||||||||||||||||||||||||||||
| DAP/MAP from Mosaic | 102 | 45 | 57 | 127 | % | 221 | 128 | 93 | 73 | % | |||||||||||||||||||||||||||||||||||||
|
MicroEssentials® from Mosaic
|
96 | 270 | (174) | (64) | % | 629 | 672 | (43) | (6) | % | |||||||||||||||||||||||||||||||||||||
| Potash from Mosaic/Canpotex | 252 | 919 | (667) | (73) | % | 1,454 | 1,781 | (327) | (18) | % | |||||||||||||||||||||||||||||||||||||
| Average cost per unit consumed in cost of goods sold: | |||||||||||||||||||||||||||||||||||||||||||||||
| Ammonia (metric tonne) | $ | 926 | $ | 576 | $ | 350 | 61 | % | $ | 794 | $ | 619 | $ | 175 | 28 | % | |||||||||||||||||||||||||||||||
| Sulfur (long ton) | $ | 723 | $ | 325 | $ | 398 | 122 | % | $ | 532 | $ | 275 | $ | 257 | 93 | % | |||||||||||||||||||||||||||||||
| Blended rock (metric tonne) | $ | 121 | $ | 99 | $ | 22 | 22 | % | $ | 108 | $ | 97 | $ | 11 | 11 | % | |||||||||||||||||||||||||||||||
| Production volume (in thousands of metric tonnes) | 273 | 938 | (665) | (71) | % | 1,395 | 2,779 | (1,384) | (50) | % | |||||||||||||||||||||||||||||||||||||
______________________________
(a) Excludes internally produced volumes used in purchased nutrients for distribution.
(b) Average finished product selling price is calculated as finished goods sales revenue divided by finished goods sales volumes.
Three months ended September 30, 2026 and September 30, 2025
The Mosaic Fertilizantes segment's net sales decreased to $1,254.0 million for the three months ended September 30, 2026, compared to the prior year period of $1,592.2 million. The $338.2 million decrease in net sales from the prior year period was driven by lower finished good sales volumes, which unfavorably impacted net sales by approximately $480 million. In addition, decreased sales volumes and selling prices of other products, primarily gypsum, unfavorably impacted net sales by approximately $70 million. These impacts were partially offset by higher finished product sales prices, which favorably impacted net sales by approximately $210 million.
Our average finished product selling price was $625 per tonne for the three months ended September 30, 2026, compared to $518 per tonne for the same period a year ago, due to the factors discussed in the Overview.
The Mosaic Fertilizantes segment's sales volumes of finished products decreased 32% for the three months ended September 30, 2026, compared to the same period a year ago, due to the factors discussed in the Overview.
Gross margin for the Mosaic Fertilizantes segment decreased to $26.7 million for the three months ended September 30, 2026, from $182.4 million in the same period of the previous year. The decrease in gross margin was primarily attributable to
unfavorable sales volume impacts of approximately $120 million compared to the prior year period. In addition, gross margin was negatively impacted by approximately $140 million of higher product costs in our distribution operations and approximately $70 million of increased raw material costs, primarily sulfur and ammonia, in our production operations. Gross margin was further affected by approximately $40 million of higher turnaround, idle and unabsorbed fixed costs associated with lower production levels in the current-year period and lower margins of approximately $20 million on other product sales. These impacts were partially offset by higher average selling prices, which contributed approximately $210 million to gross margin and lower freight expense of approximately $25 million compared with the prior-year period.
The average consumed price for ammonia for our Brazilian operations increased to $926 per tonne for the three months ended September 30, 2026, compared to $576 per tonne in the prior year period. The average consumed sulfur price for our Brazilian operations increased to $723 per long ton for the three months ended September 30, 2026, compared to $325 per long ton in the prior year period. The purchase prices of ammonia and sulfur are driven by global supply and demand, and also include transportation, transformation and storage costs.
The Mosaic Fertilizantes segment's production of crop nutrient dry concentrates and animal feed ingredients decreased 71% for the three months ended September 30, 2026, compared to the prior year period. This was primarily due to idling the Araxá, Fospar and Catalão facilities and lower production at the Uberaba facility, due to limited sulfur availability in the current year period. For the three months ended September 30, 2026 our phosphate operating rate decreased to 27%, compared to 84% in the same period of the prior year.
For the three months ended September 30, 2026 our Brazilian phosphate rock production decreased to 0.2 million tonnes compared to 1.1 million in the prior year period, due to idling the Patrocínio mine and curtailing production at the Catalão and Tapira mines in Brazil in the current year period.
Nine months ended September 30, 2026 and 2025
The Mosaic Fertilizantes segment's net sales were $3,224.9 million for the nine months ended September 30, 2026, compared to $3,700.9 million in the same period of the prior year. The decrease from the prior year period was primarily the result of lower finished goods sales volumes, which reduced net sales by approximately $910 million, partially offset by the favorable impact of higher average selling prices of approximately $490 million. In addition, lower sales volumes of other products, primarily gypsum, negatively impacted net sales by approximately $55 million in the current year period.
The average finished product selling price increased $95 per tonne, to $581 per tonne for the nine months ended September 30, 2026, compared to $486 per tonne in the prior year period, primarily due to the global pricing environment mentioned in the Overview.
The Mosaic Fertilizantes segment's sales volume decreased to 5.0 million tonnes for the nine months ended September 30, 2026, from 6.9 million tonnes in the same period a year ago, due to factors discussed in the Overview.
Gross margin for the nine months ended September 30, 2026 decreased to $67.5 million from $471.1 million in the same period in the prior year. The decrease was primarily attributable to higher product costs of approximately $350 million in our distribution operations, higher raw material costs, primarily sulfur, of approximately $220 million in our production operations and lower sales volume impacts of approximately $200 million in the current year period. Additionally, gross margin was unfavorably impacted by approximately $80 million of higher turnaround, idle and unabsorbed fixed costs resulting from lower production levels in the current year period and lower margins of approximately $20 million on other product sales. The accelerated depreciation expense associated with the idling of mining operations at Patrocínio further impacted gross margin by approximately $50 million in the current year period. These impacts were partially offset by the higher average sales prices of approximately $490 million and lower freight expenses of approximately $30 million compared to the prior year period.
The average consumed price for ammonia for our Brazilian operations increased to $794 per tonne for the nine months ended September 30, 2026, compared to $619 per tonne in the prior year period. The average consumed sulfur price for our Brazilian operations increased to $532 per long ton for the nine months ended September 30, 2026, compared to $275 per long ton in the prior year period. The purchase prices of ammonia and sulfur are driven by global supply and demand, and also include transportation, transformation and storage costs.
The Mosaic Fertilizantes segment's production of crop nutrient dry concentrates and animal feed ingredients decreased 50% compared to the prior year period. This was primarily due to idling our Araxá and Fospar facilities in the first quarter of 2026
and lower production at our Uberaba and Catalão facilities due to limited sulfur availability in the current year period. This resulted in our phosphate operating rate decreasing to 46% for the nine months ended September 30, 2026 compared to 82% in the same period of the prior year.
For the nine month period ended September 30, 2026, our Brazilian phosphate rock production decreased to 1.6 million tonnes, from 3.1 million tonnes in the prior year period due to idling the Patrocínio mine and curtailing production at the Catalão and Tapira mines in Brazil in the current year period.
Corporate, Eliminations and Other
In addition to our three operating segments, we assign certain costs to Corporate, Eliminations and Other, which is presented separately in Note 17 to our Notes to Condensed Consolidated Financial Statements. The Corporate, Eliminations and Other category includes intersegment eliminations, including profit on intersegment sales, unrealized mark-to-market gains and losses on derivatives and the investment in equity securities of Ma'aden, debt expenses, corporate functional costs, the results of the China and India distribution businesses and Mosaic Biosciences sales in China, India and North America.
For the three months ended September 30, 2026, gross margin for Corporate, Eliminations and Other was $5.7 million, compared to $(9.9) million for the same period in the prior year. The increase was primarily attributable to the absence of net unrealized loss on derivatives in the current year period, as the prior year period included approximately $25 million of such loss. This favorable impact was partially offset by an unfavorable $5 million change in the elimination of profit on intersegment sales and other costs of approximately $5 million.
For the three months ended September 30, 2026, sales in China and India, collectively, resulted in revenue of $83.0 million and gross margin of $9.0 million in the current year period, compared to revenue of $112.4 million and gross margin of $13.2 million in the prior year period. The China and India gross margin was unfavorably impacted by lower sales volumes.
For the nine months ended September 30, 2026, gross margin for Corporate, Eliminations and Other was $17.7 million, compared to $60.1 million for the same period in the prior year. The decrease was primarily attributable to an unfavorable change of approximately $80 million in net unrealized derivative gains and losses as the current year period included approximately $3 million of net unrealized loss compared to approximately $83 million of net unrealized gains in the prior-year period. This unfavorable impact was partially offset by a favorable change in the elimination of profit on intersegment sales, which increased gross margin by approximately $40 million compared to the prior year period.
Sales in China and India, collectively, resulted in revenue of $439.9 million and gross margin of $50.6 million, in the current year period, compared to revenue of $392.3 million and gross margin of $53.2 million in the prior year period. The China and India gross margin was unfavorably impacted by higher product costs in the current year period, mostly offset by higher average selling prices compared to the prior year period.
Other Income Statement Items
| Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||
| September 30, | 2026-2025 | September 30, | 2026-2025 | ||||||||||||||||||||||||||||||||||||||||||||
| (in millions) | 2026 | 2025 | Change | Percent | 2026 | 2025 | Change | Percent | |||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | $ | 124.4 | $ | 125.5 | $ | (1.1) | (1) | % | $ | 391.9 | $ | 415.3 | $ | (23.4) | (6) | % | |||||||||||||||||||||||||||||||
| Loss on assets sold and to be sold | - | 73.1 | (73.1) | (100) | % | 238.8 | 73.1 | $ | 165.7 | NM | |||||||||||||||||||||||||||||||||||||
| Other operating expense | 56.3 | 13.9 | 42.4 | NM | 408.7 | 148.2 | 260.5 | 176 | % | ||||||||||||||||||||||||||||||||||||||
| Interest expense | (79.7) | (59.3) | (20.4) | 34 | % | (222.4) | (177.7) | (44.7) | 25 | % | |||||||||||||||||||||||||||||||||||||
| Interest income | 20.2 | 13.7 | 6.5 | 47 | % | 44.8 | 38.4 | 6.4 | 17 | % | |||||||||||||||||||||||||||||||||||||
| Interest expense, net | (59.5) | (45.6) | (13.9) | 30 | % | (177.6) | (139.3) | (38.3) | 27 | % | |||||||||||||||||||||||||||||||||||||
| Foreign currency transaction gain (loss) | 38.3 | (1.2) | 39.5 | NM | 36.5 | 301.3 | (264.8) | (88) | % | ||||||||||||||||||||||||||||||||||||||
| Other income (expense) | 14.5 | 306.3 | (291.8) | (95) | % | (44.0) | 391.7 | (435.7) | NM | ||||||||||||||||||||||||||||||||||||||
| (Benefit) provision for income taxes | (37.9) | 175.5 | (213.4) | NM | (102.7) | 384.8 | (487.5) | NM | |||||||||||||||||||||||||||||||||||||||
Selling, General and Administrative Expenses
Selling, general and administrative expenses for the three months ended September 30, 2026 decreased slightly by $1.1 million compared to the same period of the prior year. The current period reflects cost reduction efforts mostly offset by the impact of inflation.
Selling, general and administrative expenses for the nine months ended September 30, 2026 decreased by $23.4 million compared to the same period of prior year. The current year period includes approximately $6 million related to bad debt reserves in the Mosaic Fertilizantes segment compared to approximately $33 million in the prior year. The current period also reflects cost reduction efforts mostly offset by the impact of inflation mentioned above.
Loss On Assets Sold and To Be Sold
For the nine months ended September 30, 2026, the Company recorded losses on assets to be sold of $238.8 million. During the nine months ended September 30, 2026, the Company completed the sale of the Carlsbad, New Mexico facility, which resulted an impairment loss of $6.2 million related to the finalization of the transaction. In the first quarter of 2026, the Company committed to a plan to dispose of the Araxá mining and chemical complex in Brazil and classified the disposal group as held for sale. This resulted in an impairment loss of approximately $232.6 million in the nine months ended September 30, 2026. See further discussion in Note 18 of our Notes to Consolidated Financial Statements. The prior year amount included an impairment loss of approximately $73 million related to the sale of the Taquari potash mine in Brazil.
Other Operating Expense
For the three months ended September 30, 2026, other operating expenses were $56.3 million, up from $13.9 million reported for the same period of the prior year. In the current year period, the Company incurred approximately $20 million of higher environmental reserves compared to the prior year period, higher costs of approximately $14 million related to indefinitely idled facilities in Brazil and restructuring expense of approximately $10 million. These impacts were partially offset by approximately $18 million related to a legal settlement and approximately $18 million related to the refund of tariffs in the current year period. In addition, the prior year period benefitted from the recovery of customer receivables in Brazil of approximately $27 million, which did not recur in the current year period.
For the nine months ended September 30, 2026, other operating expense was $408.7 million, up from $148.2 million reported for the same period of the prior year. In the nine months ended September 30, 2026, the Company recorded charges of approximately $69 million related to engineering and equipment costs associated with the decision to not proceed with a project based on finalization of assessments made in the second quarter of 2026 and restructuring charges of approximately $15 million. Additionally, the Company recorded charges totaling approximately $159 million in connection with the decision to divest of the Araxá mining and chemical complex and idle the related mining activities at the Patrocínio complex in Brazil. These expenses consisted of approximately $72 million for contract terminations, $56 million for impairment of property, plant and equipment, $21 million for write-off of inventory and other costs, and $10 million for severance and other employee costs. The Company also incurred approximately $51 million of idle costs related to these sites. Partially offsetting these expenses was a gain on the sale of land in Florida of approximately $31 million recorded in the current year period as well as the legal
settlement and tariff refund mentioned above in the three-month discussion. The prior year period benefitted from the recovery of customer receivables in Brazil mentioned in the three-month discussion.
Interest Expense, Net
For the three and nine months ended September 30, 2026, net interest expense was $59.5 million and $177.6 million, respectively, compared to $45.6 million and $139.3 million for the three and nine months ended September 30, 2025, respectively. The increase was primarily due to higher debt levels in the current year periods.
Foreign Currency Transaction Gain
For the three and nine months ended September 30, 2026, fluctuations in foreign currency rates of the Canadian dollar and Brazilian real relative to the U.S. dollar led to transaction gains of $38.3 million and $36.5 million compared to a loss of $1.2 million and a gain of $301.3 million for the same periods of the prior year.
Other Income (Expense)
For the three months ended September 30, 2026, we reported other income of $14.5 million compared to other income of $306.3 million for the same period in the prior year. The decrease in other income was driven by an unrealized mark-to-market gain of $38 million on our investment in Ma'aden shares for the three months ended September 30, 2026 compared to an unrealized gain of $308 million in the prior year period. For the three months ended September 30, 2026, we also incurred a loss on the extinguishment of debt of approximately $13 million and realized a loss of approximately $12 million on marketable securities held in the RCRA Trusts.
For the nine months ended September 30, 2026, we reported other expense of $44.0 million, compared to other income of $391.7 million for the same period in the prior year. The decrease in other income was driven by an unrealized mark-to-market loss of $11 million on our investment in Ma'aden shares for the nine months ended September 30, 2026, compared to unrealized gains of $408 million in the prior year period. We also realized a loss of approximately $15 million on marketable securities held in the RCRA Trusts and incurred a loss on the extinguishment of debt of approximately $13 million in the current year period.
Provision for Income Taxes
| Three months ended | Effective Tax Rate | Provision for Income Taxes | ||||||||||||
| September 30, 2026 | 36.7 | % | $ | (37.9) | ||||||||||
| September 30, 2025 | 29.3 | % | $ | 175.5 | ||||||||||
| Nine months ended | Effective Tax Rate | Provision for Income Taxes | ||||||||||||
| September 30, 2026 | 14.9 | % | $ | (102.7) | ||||||||||
| September 30, 2025 | 26.1 | % | $ | 384.8 | ||||||||||
Income tax expense was a benefit of $37.9 million and $102.7 million, and the effective tax rate was 36.7% and 14.9%, for the three and nine months ended September 30, 2026.
For the three and nine months ended September 30, 2026, discrete tax items recorded in tax expense was an expense of approximately $10.7 million and $17.8 million. The net tax expense consisted primarily of changes in valuation allowance, share-based excess costs and the true-up of estimates, partially offset by the tax effects of notable items recorded as discrete. In addition to items specific to the period, our income tax rate is impacted by the mix of earnings across the jurisdictions in which we operate, by a benefit associated with depletion, and by the impact of certain entities being taxed in both their foreign jurisdiction and the U.S., including foreign tax credits for various taxes incurred.
On July 4, 2025, the U.S. enacted budget reconciliation package H.R. 1 otherwise known as the One Big Beautiful Bill Act ("OBBBA"). The OBBBA includes a broad range of tax law changes, including the permanent extension of certain expired or expiring provisions of the Tax Cuts and Jobs Act and changes to certain other U.S. tax provisions. The legislation has multiple
effective dates, with provisions effective beginning in 2025 and 2026. The Company reflects the impact of the enacted provisions as they become effective. There is no material change to our effective tax rates.
Critical Accounting Estimates
The Condensed Consolidated Financial Statements are prepared in conformity with GAAP. In preparing the Condensed Consolidated Financial Statements, we are required to make various judgments, estimates and assumptions that could have a significant impact on the results reported in the Condensed Consolidated Financial Statements. We base these estimates on historical experience and other assumptions believed to be reasonable by management under the circumstances. Changes in these estimates could have a material effect on our Condensed Consolidated Financial Statements.
The basis for our financial statement presentation, including our significant accounting estimates, is summarized in Note 2 to the Condensed Consolidated Financial Statements in this report. A summary description of our significant accounting policies is included in Note 2 to the Consolidated Financial Statements in our 10-K Report. Further detailed information regarding our critical accounting estimates is included in Management's Discussion and Analysis of Results of Operations and Financial Condition in our 10-K Report.
Liquidity and Capital Resources
As of September 30, 2026, we had cash and cash equivalents of $272.6 million, short-term debt of $0.5 billion, long-term debt, including current maturities, of approximately $5.4 billion, and stockholders' equity of approximately $11.5 billion. We have a target liquidity buffer of up to $3.0 billion, including cash and available committed and uncommitted credit lines. We expect our liquidity to fluctuate from time to time, especially in the first quarter of each year, to manage through the seasonality of our business. We also target debt leverage ratios that are consistent with investment grade credit metrics. Our capital allocation priorities include maintaining our target investment grade metrics and financial strength, sustaining our assets, including ensuring the safety of our employees and reliability of our assets, investing to grow our business, either through organic growth or taking advantage of strategic opportunities, and returning excess cash to shareholders, including by paying dividends. During the nine months ended September 30, 2026, we paid cash dividends of $210.6 million and invested $1.0 billion in capital expenditures.
Funds generated by operating activities, available cash and cash equivalents, and our credit facilities continue to be our most significant sources of liquidity. We believe funds generated from the expected results of operations and available cash, cash equivalents and borrowings under our committed and uncommitted credit facilities, as needed, will be sufficient to finance our operations, including our capital expenditures, existing strategic initiatives, debt repayments and expected dividend payments, for the next 12 months and beyond. There can be no assurance, however, that we will continue to generate cash flows at or above current levels. As of September 30, 2026, we had approximately $0.6 billion available under our uncommitted facilities and $2.5 billion available under our $2.5 billion commercial paper program that is backed by the revolving credit facility. We consider amounts borrowed under our commercial paper program as a reduction of availability under our revolving credit facility. Our credit facilities, including the revolving credit facility, require us to maintain certain financial ratios, as discussed in Note 11 of our Notes to Consolidated Financial Statements in our 10-K Report and as discussed in Note 9 to our Condensed Consolidated Financial Statements in this report. We were in compliance with these ratios as of September 30, 2026.
All of our cash equivalents are diversified in highly rated investment vehicles. Our cash and cash equivalents are held either in the U.S. or held by non-U.S. subsidiaries and are not subject to significant foreign currency exposures, as the majority are held in investments denominated in U.S. dollars as of September 30, 2026. These funds may create foreign currency transaction gains or losses, however, depending on the functional currency of the entity holding the cash. In addition, there are no significant restrictions that would preclude us from bringing these funds back to the U.S., aside from withholding taxes.
The following table represents a comparison of the net cash provided by operating activities, net cash used in investing activities and net cash provided by financing activities for the nine months ended September 30, 2026 and September 30, 2025:
| (in millions) | Nine months ended | ||||||||||||||||||||||
| September 30, | 2026-2025 | ||||||||||||||||||||||
| Cash Flow | 2026 | 2025 | Change | Percent | |||||||||||||||||||
| Net cash provided by operating activities | $ | 556.0 | $ | 880.9 | $ | (324.9) | (37) | % | |||||||||||||||
| Net cash used in investing activities | (953.9) | (1,022.2) | 68.3 | (7) | % | ||||||||||||||||||
| Net cash provided by (used in) financing activities | 419.3 | (9.4) | 428.7 | NM | |||||||||||||||||||
Operating Activities
During the nine months ended September 30, 2026, net cash provided by operating activities was $556.0 million, compared to net cash provided by operating activities of $880.9 million for the same period in the prior year. Our results of operations, after non-cash adjustments, contributed $636.8 million to cash flows from operating activities during the nine months ended September 30, 2026, compared to $1,479.8 million as computed on the same basis as the prior year period. During the nine months ended September 30, 2026, we had an unfavorable change in assets and liabilities of $80.8 million, compared to an unfavorable change of $598.9 million during the nine months ended September 30, 2025.
The change in assets and liabilities for the nine months ended September 30, 2026 was primarily driven by unfavorable changes in accounts payable and accrued liabilities of $280.2 million and a change in asset retirement obligations ("AROs") of $132.9 million, partially offset by favorable impacts from decreases in accounts receivable of $69.6 million and inventories of $187.9 million. The decrease in accounts payable and accrued liabilities was primarily due to lower inventory purchases and timing of payments while the change in AROs was primarily due to payments for our ongoing obligations. Accounts receivable decreased primarily due to lower sales volumes at the end of the third quarter of 2026 compared to the fourth quarter of 2025. The decrease in inventories was primarily related to a decrease in inventory volumes in Mosaic Fertilizantes due to seasonality and recent production curtailments caused by the lack of sulfur availability.
Investing Activities
Net cash used in investing activities was $953.9 million for the nine months ended September 30, 2026, compared to $1,022.2 million for the same period a year ago. We had capital expenditures of $958.6 million for the nine months ended September 30, 2026, compared to $1,009.8 million in the prior year period. For the nine months ended September 30, 2026, we received proceeds from the sale of assets of $34.7 million compared to $6.0 million in the prior year period.
Financing Activities
Net cash provided by financing activities for the nine months ended September 30, 2026 was $419.3 million, compared to net cash used in financing activities of $9.4 million for the same period in the prior year. During the nine months ended September 30, 2026, we received net proceeds of $1,011.1 million from long-term debt, primarily due to our issuing new senior notes of $2 billion and accessing a $500 million term loan. In addition, we received net proceeds of $203.5 million under our inventory financing arrangement. During the current year period, we had net payments of $451.9 million under other short-term debt arrangements, paid dividends of $210.6 million and made net payments on our structured accounts payable arrangements of $90.6 million.
Debt Instruments, Guarantees and Related Covenants
See Notes 11 and 17 to the Consolidated Financial Statements in our 10-K Report.
Financial Assurance Requirements
In addition to various operational and environmental regulations related to our Phosphate segment, we are subject to financial assurance requirements. In various jurisdictions in which we operate, particularly Florida and Louisiana, we are required to pass a financial strength test or provide credit support, typically in the form of surety bonds, letters of credit, certificates of deposit or trust funds. Further information regarding financial assurance requirements is included in Management's Discussion and Analysis of Results of Operations and Financial Condition in our 10-K Report, under "EPA RCRA Initiative," and in Note 8 to our Condensed Consolidated Financial Statements in this report.
Off-Balance Sheet Arrangements and Obligations
Information regarding off-balance sheet arrangements and obligations is included in Management's Discussion and Analysis of Results of Operations and Financial Condition in our 10-K Report and Note 16 to our Condensed Consolidated Financial Statements in this report.
Contingencies
Information regarding contingencies is hereby incorporated by reference to Note 16 to our Condensed Consolidated Financial Statements in this report.
Forward-Looking Statements
Cautionary Statement Regarding Forward Looking Information
All statements, other than statements of historical fact, appearing in this report constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements about our expectations, beliefs, intentions or strategies for the future, including statements about proposed or pending future transactions or strategic plans, statements concerning our future operations, financial condition and prospects, statements regarding our expectations for capital expenditures, and other information, and any statements of assumptions regarding any of the foregoing. In particular, forward-looking statements may include words such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "potential", "predict", "project" or "should". These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this filing.
Factors that could cause reported results to differ materially from those expressed or implied by the forward-looking statements include, but are not limited to, the following:
•business and economic conditions and governmental policies affecting the agricultural industry where we or our customers operate, including price and demand volatility resulting from periodic imbalances of supply and demand;
•because of political and economic instability, civil unrest or changes in government policies in Brazil, Peru, Paraguay or other countries in which we do business, our operations could be disrupted as higher costs of doing business could result, including those associated with implementation of new freight tables and new mining legislation;
•the ongoing conflict between Russia and Ukraine, related sanctions and other governmental actions, and their effects on global markets, supply chains, and the pricing and availability of key inputs, raw materials and commodities;
•geopolitical instability and escalating tensions involving Iran, including disruptions to global shipping routes and trade flows, particularly through the Strait of Hormuz;
•potential changes in trade policies, including the impact of U.S. tariffs and retaliatory tariffs on prices of raw materials and commodities and other economic conditions;
•changes in farmers' application rates for crop nutrients;
•changes in the operation of world phosphate or potash markets, including consolidation in the crop nutrient industry, particularly if we do not participate in the consolidation;
•the expansion or contraction of production capacity or selling efforts by competitors or new entrants in the industries in which we operate, including the effects of actions by the other member of Canpotex to prove the production capacity of potash expansion projects, through proving runs or otherwise;
•the effect of future product innovations or development of new technologies on demand for our products;
•seasonality in our business that results in the need to carry significant amounts of inventory and seasonal peaks in working capital requirements, which may result in excess inventory or product shortages;
•changes in the costs, or constraints on supplies, of raw materials or energy used in manufacturing our products, or in the costs or availability of transportation for our products;
•economic and market conditions, including supply chain challenges and increased costs and delays caused by transportation and labor shortages;
•declines in our selling prices or significant increases in costs that can require us to write down our inventories to the lower of cost or market, or require us to impair goodwill or other long-lived assets, or establish a valuation allowance against deferred tax assets;
•the lag in realizing the benefit of falling market prices for the raw materials we use to produce our products that can occur while we consume raw materials that we purchased or committed to purchase in the past at higher prices;
•disruptions of our operations at any of our key production, distribution, transportation or terminaling facilities, including those of Canpotex or any joint venture in which we participate;
•shortages or other unavailability of trucks, railcars, tugs, barges and ships for carrying our products and raw materials;
•the effects of and change in trade, monetary, environmental, tax and fiscal policies, laws and regulations, other than tariffs;
•a material adverse change in our Ma'aden investment with respect to the financial position, performance, operations or prospects of Ma'aden;
•foreign exchange rates and fluctuations in those rates;
•tax regulations, currency exchange controls and other restrictions that may affect our ability to optimize the use of our liquidity;
•adverse weather and climate conditions affecting our operations, including the impact of potential hurricanes, excessive heat, cold, snow, rainfall or drought;
•difficulties or delays in receiving, challenges to, increased costs of obtaining or satisfying conditions of, or revocation or withdrawal of required governmental and regulatory approvals, including permitting activities;
•changes in the environmental and other governmental regulations that apply to our operations, including federal legislation or regulatory action expanding the types and extent of water resources regulated under federal law and the possibility of further federal or state legislation or regulatory action affecting or related to greenhouse gas emissions, including carbon taxes or other measures that may be implemented in Canada or other jurisdictions in which we operate, or of restrictions or liabilities related to elevated levels of naturally-occurring radiation that arise from disturbing the ground in the course of mining activities or possible efforts to reduce the flow of nutrients into the Gulf of America, the Mississippi River basin or elsewhere;
•the potential costs and effects of implementation of federal or state water quality standards for the discharge of nitrogen and/or phosphorus into Florida waterways;
•the financial resources of our competitors, including state-owned and government-subsidized entities in other countries;
•the possibility of defaults by our customers on trade credit that we extend to them or on indebtedness that they incur to purchase our products and that we guarantee;
•any significant reduction in customers' liquidity or access to credit that they need to purchase our products;
•the effectiveness of the processes we put in place to manage our significant strategic priorities and to successfully integrate and grow acquired businesses;
•actual costs of various items differing from management's current estimates, including, among others, asset retirement, environmental remediation, reclamation or other environmental obligations;
•the costs and effects of legal and administrative proceedings and regulatory matters affecting us, including environmental, tax or administrative proceedings, complaints that our operations are adversely impacting nearby farms, businesses, other property uses or properties, settlements thereof and actions taken by courts with respect to approvals of settlements, costs related to defending and resolving global audit, appeal or court activity and other further developments in legal proceedings and regulatory matters;
•the success of our efforts to attract and retain highly qualified and motivated employees;
•strikes, labor stoppages or slowdowns by our work force or increased costs resulting from unsuccessful labor contract negotiations, and the potential costs and effects of compliance with new regulations affecting our workforce, which increasingly focus on wages and hours, healthcare, retirement and other employee benefits;
•brine inflows at our potash mines;
•accidents or other incidents involving our properties or operations, including potential fires, explosions, seismic events, sinkholes, unsuccessful tailings management, ineffective mine safety procedures or releases of hazardous or volatile chemicals;
•terrorism, armed conflict, disruptions associated with geopolitical conflict, or other malicious intentional acts, including cybersecurity risks such as attempts to gain unauthorized access to, or disable, our information technology systems, or our costs of addressing malicious intentional acts;
•actions by the holders of controlling equity interests in businesses in which we hold a noncontrolling interest;
•changes in our relationships with the other member of Canpotex or any joint venture in which we participate or its or our exit from participation in Canpotex or any such export association or joint venture, and other changes in our commercial arrangements with unrelated third parties; and
•other risk factors reported from time to time in our SEC reports.
Material uncertainties and other factors known to us are discussed in Item 1A, "Risk Factors," of our 10-K Report, and of this report, and incorporated by reference herein as if fully stated herein.
We base our forward-looking statements on information currently available to us, and we undertake no obligation to update or revise any of these statements, whether as a result of changes in underlying factors, new information, future events or other developments.
The Mosaic Company published this content on November 04, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on November 04, 2026 at 19:32 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]