The Mosaic Company Reports Q2 2025 Results: Net Income at $411 Million, Adjusted EBITDA at $566 Million
08 August 2025, Tampa: The Mosaic Company today announced its financial results for the second quarter of 2025, reporting net income of $411 million and diluted earnings per share (EPS) of $1.29. Adjusted EBITDA for the quarter stood at $566 million, while adjusted EPS was $0.51.
President and CEO Bruce Bodine stated, “Mosaic’s second quarter performance reflects extensive maintenance activity and several discrete items. The work we completed in the first half of the year sets the stage for a strong second half, supported by improved operating performance, reduced turnaround activity, our excellent execution in Brazil, and compelling fertilizer market fundamentals. We expect to generate significant free cash flow through the balance of the year.”
Consolidated Results
| In millions $ except as noted below | Q2 2025 | Q1 2025 | Q2 2024 |
| Net Sales (Billions) | $3.0 | $2.6 | $2.8 |
| Selling, General and Administrative Expenses | $167 | $123 | $128 |
| Operating Earnings | $244 | $339 | $233 |
| Operating Earnings – Phosphate | $(8) | $139 | $133 |
| Operating Earnings – Potash | $194 | $157 | $174 |
| Operating Earnings – Mosaic Fertilizantes | $109 | $98 | $61 |
| Operating Earnings (Loss) – Corporate and Other | $(51) | $(56) | $(135) |
| Net Income (Loss) | $411 | $238 | $(162) |
| Adjusted EBITDA | $566 | $544 | $584 |
| Adjusted EBITDA – Phosphate | $217 | $276 | $308 |
| Adjusted EBITDA – Potash | $278 | $240 | $271 |
| Adjusted EBITDA – Mosaic Fertilizantes | $159 | $122 | $96 |
| Adjusted EBITDA – Corporate and Other | $(88) | $(94) | $(91) |
Net Income and Key Drivers
Net income for the second quarter rose to $411 million from a net loss of $162 million in the same quarter last year. The increase was driven primarily by higher average selling prices across all business segments and cost efficiencies in the Mosaic Fertilizantes segment. The company’s Q2 net income included $339 million in notable pre-tax items, mainly from unrealized gains of $220 million related to foreign currency transactions and derivatives due to the appreciation of the Brazilian Real and the Canadian dollar, as well as a $216 million mark-to-market unrealized gain on the value of Ma’aden shares. These gains were partially offset by $76 million in adjustments for asset retirement obligations (ARO) and environmental reserves in the Phosphate segment.
Adjusted EBITDA and Operating Factors
Adjusted EBITDA for Q2 2025 was $566 million, slightly down from $584 million in Q2 2024. This reflects the impact of $130 million from larger-than-usual provisions and higher idle and turnaround expenses compared to the prior year. Of the $130 million, $64 million related to non-cash provisions including bad debt in the Mosaic Fertilizantes segment (net of recoveries), inventory adjustments, legal and environmental reserves, tax contingencies, and other minor provisions in both the Phosphate and Mosaic Fertilizantes segments. Idle and turnaround expenses totaled $144 million in the quarter, which was $66 million higher than the same period last year. Lower phosphate production and sales volumes, along with lower fixed cost absorption, also contributed to the decline in adjusted EBITDA. These factors were partially offset by higher prices and efficiency improvements in the Mosaic Fertilizantes business.
SG&A and Tax Overview
Selling, general, and administrative (SG&A) expenses increased to $167 million in the second quarter, compared to $128 million in the same period last year. The increase was primarily driven by $33 million in bad debt provisions, including $30 million attributed to a single customer, and $7 million in non-cash amortization expense related to Mosaic’s global digital acceleration project. The company also recorded $15 million in insurance recovery related to a bad debt provision booked in the prior year; this amount was reported outside SG&A under other operating income. Mosaic expects to recover a significant portion of the current quarter’s bad debt through insurance claims in future periods.
The effective tax rate for the quarter was 25.9 percent, while the adjusted effective tax rate was 24.9 percent, excluding favorable impacts from certain notable tax items. Mosaic paid $75 million in cash taxes during the quarter.
Cash Flow and Capital Spending
Cash flow from operations was $610 million in Q2 2025, compared to $847 million in the same quarter of 2024. This decline was mainly due to lower customer prepayments and higher working capital requirements. Free cash flow for the quarter stood at $305 million, down from $513 million in the previous year’s quarter. The decline was largely attributed to the same factors affecting operating cash flow, though partially offset by lower capital expenditures, which declined to $305 million from $334 million in Q2 2024. Mosaic anticipates stronger cash flow from operations in the second half of 2025, supported by favorable pricing and normal working capital seasonality. The company reaffirmed its full-year capital expenditure outlook of $1.2 to $1.3 billion.
Strategic Updates
Mosaic continues to engage with interested parties regarding strategic alternatives for its Carlsbad and Taquari operations. The Patos de Minas transaction advanced further in meeting conditions precedent and remains on track for completion by the end of 2025. For the Araxá and Patrocínio operations, feasibility work on the potential Niobium project is ongoing, with sale or partnership discussions expected to resume in the first half of 2026.
During the second quarter, Mosaic paid a dividend of $0.22 per share, returning $70 million to shareholders.
Potash Segment Performance
The Potash segment delivered net sales of $711 million in Q2 2025, compared to $663 million in the same quarter of the previous year. Operating earnings rose to $194 million from $174 million, while adjusted EBITDA was $278 million, up from $271 million in Q2 2024. This growth was driven by higher potash prices, partially offset by a $20 million increase in idle and turnaround expenses due to timing differences in Esterhazy maintenance activity and the impact of larger-than-usual provisions.
Sales volumes in the segment reached 2.3 million tonnes in the quarter, an improvement from 2.1 million tonnes in Q1, which had been constrained by weather-related logistics issues. With rising prices and sustained demand, Mosaic now expects full-year potash production to be in the range of 9.3 to 9.5 million tonnes.
In July, Mosaic successfully commissioned the Hydrofloat project at Esterhazy and began producing initial volumes. Once fully ramped, the project will add 400,000 tonnes of annual capacity. This expansion is expected to lower per-tonne production costs at the low-cost Esterhazy facility, assuming foreign exchange rates remain stable.
MOP cash cost of production per tonne in Q2 was $75, down from $78 in the first quarter. The reduction was primarily due to higher production volumes and better fixed cost absorption, despite a turnaround at Esterhazy during the quarter. To meet stronger market demand, Mosaic now plans to continue operating Colonsay through year-end. This is expected to increase MOP production cost by $3 per tonne for the year, given Colonsay’s higher cost structure. Additionally, the strengthening Canadian dollar is projected to raise costs by another $2 per tonne. As a result, Mosaic has revised its 2025 cash cost of production per tonne target to a range of $70 to $75, up from the prior estimate of $64 to $69.
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