Mosaic(US:MOS)2025-11-05 20:49Financial Performance - For the three months ended September 30, 2025, net sales increased to $3,452.1 million, a 23% increase from $2,810.9 million in the prior year[119] - Gross margin for the same period rose by 33% to $552.3 million, driven by higher average selling prices across all segments[120] - Operating earnings for the three months ended September 30, 2025, were $339.8 million, a significant increase of 194% compared to $115.4 million in the prior year[119] - Net income attributable to Mosaic for the nine months ended September 30, 2025, was $1,060.2 million, compared to a net loss of $5.9 million in the same period a year ago[128] - A foreign currency transaction gain of $301.3 million positively impacted net income for the nine months ended September 30, 2025, compared to a loss of $(267.3) million in the prior year[128] Segment Performance - The Phosphate segment's operating earnings for the three months ended September 30, 2025, were $102 million, up from $8 million in the prior year, supported by higher selling prices and sales volumes[122] - The Potash segment reported operating earnings of $229 million for the three months ended September 30, 2025, compared to $109 million in the prior year, benefiting from improved global supply conditions[123] - Mosaic Fertilizantes segment's operating earnings increased to $96 million for the three months ended September 30, 2025, from $56 million in the prior year, despite a slight decline in sales volumes[125] - The Phosphate segment's net sales increased to $1.3 billion for the three months ended September 30, 2025, up from $1.0 billion in the same period of 2024, driven by higher average finished goods sales prices contributing approximately $210 million[135] - The Potash segment's net sales reached $694.8 million for the three months ended September 30, 2025, a 32% increase from $525.7 million in the same period of 2024[149] - The Mosaic Fertilizantes segment's net sales increased to $1.6 billion for the three months ended September 30, 2025, from $1.4 billion during the same period of the prior year, driven by higher finished product sales prices[164] Pricing and Costs - Average finished product selling price rose 23% to $712 per tonne for the three months ended September 30, 2025, compared to $579 per tonne in the prior year[136] - The average finished product selling price for the Potash segment was $278 per tonne for the three months ended September 30, 2025, compared to $233 per tonne for the same period last year[151] - The average finished product selling price for the Mosaic Fertilizantes segment was $518 per tonne for the three months ended September 30, 2025, compared to $447 per tonne for the same period a year ago[165] - The average consumed price for ammonia decreased 6% to $455 per tonne for the three months ended September 30, 2025, while the average consumed sulfur price increased 116% to $272 per long ton[139] - The average consumed cost of purchased and produced phosphate rock decreased to $80 per tonne for the three months ended September 30, 2025, down from $87 per tonne in the prior year[140] Operational Metrics - The Phosphate segment's production of crop nutrient dry concentrates and animal feed ingredients increased 3% for the three months ended September 30, 2025, resulting in an operating rate of 68%[141] - The production of crop nutrient dry concentrates and animal feed ingredients for the Mosaic Fertilizantes segment increased by 6% for the three months ended September 30, 2025, compared to the prior year period[169] Expenses and Financial Position - Selling, general and administrative expenses for the nine months increased by $31.9 million, primarily due to higher incentive compensation and employee benefit costs of approximately $27 million[181] - Other operating expenses decreased to $221.3 million from $305.0 million in the prior year, mainly due to timing of annual asset retirement obligation adjustments[183] - Net interest expense for the nine months increased to $139.3 million from $136.1 million, attributed to higher short-term debt levels[185] - Cash and cash equivalents as of September 30, 2025, were $153.3 million, with short-term debt of $1.2 billion and long-term debt of approximately $3.4 billion[195] - Net cash provided by operating activities was $880.9 million, down 18% from $1,079.9 million in the prior year[198] Capital and Financing Activities - Capital expenditures for the nine months were $1,009.8 million, compared to $957.7 million in the prior year[201] - Net cash used in financing activities for the nine months ended September 30, 2025, was $9.4 million, a significant decrease from $168.6 million for the same period in the prior year[202] - Dividends paid during the nine months ended September 30, 2025, totaled $210.5 million, with long-term debt payments net of borrowings amounting to $49.8 million[202] Risk Management - The company is exposed to fluctuations in the relative value of currencies, interest rates, and commodity prices, and uses derivatives to mitigate these risks[212] - The company has significant foreign currency exposures primarily to the Canadian dollar and Brazilian real, utilizing financial instruments to hedge these risks[213] - The company anticipates potential changes in trade policies and economic conditions that could impact its operations and financial performance[208] - The company is subject to financial assurance requirements in various jurisdictions, including Florida and Louisiana, which may affect its operational flexibility[204]