Mosaic Co's Q2 Earnings Call Highlights Growth, Raises Potash Production Guidance to 9.3-9.5 Million Tonnes

Mosaic Co reported a Q2 net income of $411mln, up from a net loss of $162mln in the same quarter of 2024. The company raised its annual potash production guidance to 9.3-9.5mln tonnes, citing strong global demand. Mosaic achieved $106mln of its $150mln cost reduction target in Brazil and aims to reach $250mln by 2026. Despite optimistic projections, the company acknowledged challenges such as extraordinary maintenance costs, production delays, and credit issues in Brazil.

Mosaic Co (MOS) reported its Q2 2025 earnings on July 2, 2025, showcasing a mixed bag of results. The company's net income surged to $411 million, a significant improvement from the net loss of $162 million recorded in the same quarter of 2024 [1]. Mosaic's adjusted earnings per share (EPS) for the quarter stood at $1.29, surpassing the mean analyst expectation of $0.73 [1].

Revenue for the quarter stood at $3.01 billion, a 6.7% increase year-over-year, but this was below the analysts' expectations of $3.10 billion [1]. The company's net sales of $3,005 million in Q2 2025 also fell short of the estimated $3,123.63 million [3].

Mosaic's operational performance was marked by significant cost-cutting efforts. The company achieved $106 million of its $150 million cost reduction target in Brazil, and aims to reach $250 million by 2026 [2]. These cost savings are part of the company's broader strategy to balance growth and efficiency in volatile commodity markets.

One of the standout elements of Mosaic's Q2 report was its raised annual potash production guidance. The company now expects to produce between 9.3 and 9.5 million tonnes of potash in 2025, citing strong global demand [2]. This increase is driven by robust performance in Mosaic's potash segment, which reported operating earnings of $194 million and adjusted EBITDA of $278 million [2].

However, Mosaic also acknowledged several challenges that could impact future profitability. These include extraordinary maintenance costs, production delays, and credit issues in Brazil. The company's phosphate segment, which posted an operating loss of $8 million, was particularly affected by non-recurring charges related to legal reserves, land reclamation, and environmental compliance [2].

Mosaic's entry into the biosciences sector is another notable development. The company's biosciences revenue doubled in the first half of 2025 compared to 2024, and the segment is expected to contribute positively to adjusted EBITDA in Q4 2025 [2]. This diversification away from traditional commodity cycles could become a significant growth driver in the mid-2030s.

Investors should monitor Mosaic's ability to sustain its cost-reduction momentum and execute its Brazil growth plan. A key inflection point will be the performance of the biosciences segment in 2025 and beyond. Despite near-term execution challenges, Mosaic's strategic investments in Brazil and biosciences position it to thrive in a volatile sector [2].

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TY01Y:0-mosaic-co-reports-results-for-the-quarter-ended-june-30-earnings-summary/
[2] https://www.ainvest.com/news/mosaic-q2-earnings-navigating-commodity-volatility-strategic-resilience-2508/
[3] https://www.gurufocus.com/news/3037836/the-mosaic-co-q2-2025-earnings-eps-of-129-beats-estimates-revenue-of-3005-million-misses-expectations