Mosaic's losses deepen as sulfur shortage cuts phosphate output
Sulfur shortage forces phosphate curtailments A sulfur shortage has fully idled Mosaic's Louisiana phosphate plant and slowed Florida operations, cutting third-quarter phosphate volumes to 1.1–1.4 million tons while sulfur costs jump to about $700–$710 per ton. Less product sold at higher input cost squeezes margins and pushes the stock down.
This is the core operating problem hitting Mosaic's biggest segment and its earnings power.
Q2 swung to a $273 million loss Mosaic posted a $273 million second-quarter net loss, reversing a $411 million profit a year earlier, with an operating loss of $36 million and adjusted EBITDA down to $407 million from $566 million. Phosphate and Fertilizantes both swung to operating losses; only Potash held steady.
The loss is the clearest evidence of how badly current fertilizer conditions are hurting Mosaic's bottom line.
New $450M phosphate plant would add competition CHS and OCP North America proposed a $450 million phosphate plant in Louisiana, the first new U.S. plant of its kind in over 40 years, producing over 1 million tons a year. That would add real competition for Mosaic, the largest U.S. phosphate producer, and pressure future prices.
A new domestic rival threatens Mosaic's dominant position and long-term pricing power.
Debt refinancing buys time but adds cost Mosaic tendered up to $1.4 billion of notes due 2027–2029 and issued $500 million of 5.650% notes due 2034, while also securing a $1 billion term loan, cutting 2026 capex to $1.2 billion and targeting a $300–$500 million working-capital release. This eases near-term liquidity but extends debt at higher coupons.
It shows how Mosaic is managing its balance sheet amid losses — supportive for survival, but not a fix for weak earnings.