Mosaic Company (MOS)

The Mosaic Co. (MOS) shares have seen a significant increase of 39.2% over the past six months, outperforming its industry and the S&P 500. This rally has been driven by higher demand and cost cuts, with Mosaic reporting adjusted earnings of $0.49 per share for the first quarter of 2025, exceeding estimates. The company is actively implementing a cost-cutting strategy with an annual savings target of $150 million by the end of 2025, which is expected to improve profitability. Strong global phosphate demand drove higher prices through the second quarter of 2024, and the long-term outlook for phosphate remains positive due to increasing demand for food, fiber, fuel, and industrial uses. Potash contract settlements in China and India have also established a price floor, bringing buyers back to the market. The company is making progress in normalizing phosphate production and operating costs, aiming for stronger results in 2025 and beyond. Mosaic has been engaging in share repurchases, buying back 5.2 million shares in the first six months of 2024 at an average price of $30.64 per share, signaling confidence in the company. In November 2024, Mosaic missed third-quarter profit and revenue estimates, with volumes falling across its potash, phosphate, and Mosaic Fertilizantes segments, primarily due to the impact of recent hurricanes and other operational interruptions. In May 2025, Mosaic reported a net income of $238 million and an adjusted EBITDA of $544 million for Q1 2025, exceeding EPS expectations.

Demand for The Mosaic Co.'s products, primarily fertilizers, is seasonal, particularly in North America. The agricultural industry's demand for fertilizers is influenced by planting seasons and crop cycles. Global demand for grains and oilseeds remains strong, which supports steady fertilizer use. The market for crop nutrients is influenced by the balance between supply and demand. Free cash flow generation can be constrained by typical working capital seasonality in the first quarter, but is expected to improve in the remainder of the year due to seasonally stronger demand and inventory drawdown.

The Mosaic Company is a leading global producer and marketer of concentrated phosphate and potash crop nutrients, essential for plant nutrition and global agriculture. The company operates within the Basic Materials sector, specifically in the Agricultural Inputs or Agricultural Chemicals industry. Mosaic's major products include phosphates, potash, specialty products, and nitrogen-based crop nutrients.

The Mosaic Company has a diverse global geographic footprint, serving customers in approximately 40 countries. Its operations span across North America, including phosphate rock mines and processing facilities in Florida and Louisiana (U.S.), and potash mines in Saskatchewan (Canada) and New Mexico (U.S.). Mosaic has significant operations in South America, including five phosphate rock mines, four phosphate chemical plants, and a potash mine, as well as crop nutrient blending and bagging facilities, port terminals, and warehouses in Brazil and Paraguay. The company has distribution operations in Asia, specifically in China and India. Mosaic also has interests in a phosphate rock mine in Bayovar, Peru, and a joint venture to develop a phosphate rock mine and chemical complexes in Saudi Arabia.

The Mosaic Company's brand reputation is generally tied to its operational performance, financial results, and its commitment to sustainable practices in the agricultural industry. Mosaic emphasizes its role in helping to feed the world by providing essential crop nutrients and its commitment to responsible and sustainable practices. In late 2024, Mosaic's third-quarter profit and revenue were negatively impacted by recent hurricanes and other operational interruptions, which led to decreased volumes across its segments. Geopolitical issues have led to fertilizer delivery delays to Brazilian farmers and raised concerns over U.S. sanctions on Russian imports, which could affect supply and potentially impact the company's reputation for reliable delivery. Mosaic's operations are subject to stringent environmental regulations, and it experiences indirect costs from carbon taxes in Canada, which are monitored for their impact on the company. Sustainalytics assesses Mosaic's highest controversy level as "Moderate" as of July 2025, related to "Incidents: Operations" and "E&S Impact of Products & Services."

The ownership structure of The Mosaic Co. (MOS) stock is primarily dominated by institutional investors, holding approximately 89% to 98.87% of the company's shares. The general public, mostly individual investors, holds about 10% of the ownership. Insiders own under 1% of The Mosaic Company in their own names, with Cargill Inc. being a significant insider shareholder.