The Mosaic Company reported a $194 million operating loss in its Phosphate segment for the third quarter, citing curtailed production amid limited affordable sulfur and higher raw-material costs that pressured results.
The segment’s results reflected $84 million in notable items, mainly adjustments to environmental reserves, facility closures and restructuring costs, Mosaic said in its Nov. 3 results release. Higher selling prices provided some offset to costs and lower volumes. The company also said growers’ economics and fertilizer demand had improved.
Phosphate sales volumes fell to 1.4 million tonnes from 1.6 million a year earlier. The DAP selling price, FOB plant, rose to $838 per tonne from $714. Mosaic reported sulfur costs of $715 per long ton and ammonia costs of $619 per tonne. Phosphate adjusted EBITDA was $49 million, compared with $280 million in the year-earlier quarter.
Companywide, Mosaic recorded a net loss of $72 million, or 23 cents per diluted share, versus net income of $411 million a year earlier. Its adjusted diluted loss per share was 19 cents. Adjusted EBITDA fell to $324 million from $806 million. Potash operating earnings were $189 million, down from $229 million in the prior-year quarter.
Mosaic expects fourth-quarter stripping margins and adjusted EBITDA to decline further as higher-cost materials purchased and consumed in the third quarter move through cost of goods sold. The company said its inventory cycle takes two to three months, carrying those input costs into the next quarter. It settled a fourth-quarter sulfur contract at $615 per long ton, which is expected to support fourth-quarter free cash flow. The main earnings benefit from that supply is expected in the first quarter of 2027, so the cash-flow and earnings effects are expected on different timelines.
Mosaic scheduled a call on its results for 11 a.m. ET on Wednesday, Nov. 4.
