Mosaic Company (The)

Mosaic's Q1 2026 was dominated by the Persian Gulf conflict's devastating impact on global sulfur supply, pushing marginal sulfur costs to $1,200 per ton and compressing phosphate stripping margins below variable costs at the margin. Despite revenue growing 14.39% on 1.9 million tons of phosphate sales — the highest quarterly volume in five years — GAAP results swung to a net loss driven by $442 million in charges for the permanent idling of Araxa and Patrocinio in Brazil. Management initiated production curtailments at Bartow and Louisiana, cut CAPEX by $250 million, and launched a $50 million workforce reduction, while describing the raw material environment as 'unsustainable.' The potash business proved resilient with Canpotex on pace for record 2026 shipments, and three of four U.S. phosphate facilities had reached target operating rates before curtailments, but the path to full normalization was again deferred as management confronted an environment where both producer margins and farmer affordability were simultaneously under severe pressure.