Mosaic's Q2 Earnings and Revenues Miss, Phosphate Volumes Fall

Core Insights - The Mosaic Company (MOS) reported a net profit of $411 million or $1.29 per share for Q2 2025, a significant improvement from a loss of $162 million or $0.50 per share in the same quarter last year [1] - Adjusted earnings per share were 51 cents, down from 54 cents a year ago, and below the Zacks Consensus Estimate of 67 cents [1] - Net sales increased by nearly 6.7% year over year to $3,005.7 million, but fell short of the Zacks Consensus Estimate of $3,130.5 million [2] Segment Highlights - Potash segment net sales were $711 million, up approximately 7.2% from $663 million in the prior-year quarter, with a gross margin increase to $89 per ton from $79 per ton [3] - Phosphate division net sales remained flat at $1.2 billion, with sales volume down to 1.5 million tons from 1.7 million tons last year, and a gross margin decrease to $67 per ton from $91 per ton [4] - Mosaic Fertilizantes segment net sales were $1.2 billion, up about 20% year over year, with a gross margin increase to $73 per ton from $46 per ton [5] Financial Overview - At the end of the quarter, Mosaic had cash and cash equivalents of $286.2 million, down 11.1% year over year, and long-term debt of $3,331.3 million, up 4.3% [6] - Net cash provided by operating activities was $609.5 million in the reported quarter [6] Outlook - For full-year 2025, phosphate production volumes are expected to range between 6.9 million and 7.2 million tons, while potash production is projected at 9.3 million to 9.5 million tons [7] - Total capital expenditures are estimated at $1.2 billion to $1.3 billion, with SG&A expenses forecasted between $520 million and $550 million [8] Q3 2025 Projections - For Q3 2025, phosphate sales volumes are expected between 1.8 million and 2.0 million tons, with DAP FOB plant prices ranging from $700 to $720 [9] - Potash sales volumes are projected at 2.2 million to 2.4 million tons, with MOP FOB mine prices estimated between $270 and $290 [9] Price Performance - Mosaic's shares have declined by 34.2% over the past year, compared to a 28.5% decline in the industry [12]