This year, the agriculture industry has been shaped by fertilizer market volatility due to the Iran war. Amid the ongoing conflict, The Mosaic Company is struggling to produce enough crucial crop nutrients due to supply constraints of sulfur, requiring the company to idle production facilities, the ag supplier shared in its second quarter (Q2) 2026 results, ending June 30.
On August 4 after the closing bell, Mosaic released its Q2 2026 results, reporting $2.8 billion in net sales, compared to $3 billion in Q1 2026 and Q2 2025 each.
Additionally, the company registered a $273 million net loss in the quarter, including $104 million from its phosphate segment and $41 million from its Brazilian business, Mosaic Fertilizantes. For comparison, Mosaic generated $411 million in net income in Q2 2025.
The company’s topline numbers were dragged down by continued fertilizer production constraints, including tight supplies of sulfur, a key precursor in the production of phosphate fertilizer. Mosaic’s MicroEssentials fertilizer blends also contain sulfur to boost the products’ effectiveness.
For the quarter, Mosaic generated $1.246 billion in phosphate net sales, compared to $1.426 billion in the previous quarter and $1.173 billion in the same quarter last year. Phosphate sales volumes dropped from 1.9 million tonnes in Q1 2026 to 1.4 million tonnes in Q2 2026.
For its Brazil business, Mosaic Fertilizantes reported $1.034 billion in net sales in Q2 2026, a slight uptick from $937 million in the previous quarter, driven by higher prices to offset high sulfur costs and lower sales volumes. Mosaic Fertilizantes sales volumes declined to 1.5 million tonnes, compared with 1.6 million tonnes in Q1 2026 and 2.2 million tonnes in Q2 2025, respectively.
Additionally, Mosaic’s potash net sales and volumes declined both on a quarter-on-quarter and a year-over-year basis. Mosaic generated $650 million in potash sales in Q2 2026, compared to $667 million in Q1 2026 and $711 million in Q2 2025. Additionally, sales volumes declined from 2.3 million tonnes in Q2 2025 to 2 million in Q2 2026.
In response to these headwinds, Mosaic idled some of its production, including its Faustina ammonia plant in Louisiana, and is running its Bartow facility in Florida at 40% capacity. Additionally, Mosaic announced in April that it was going to idle its Araxá and Patrocínio facilities in Brazil and pursue the sale of the former.
Mosaic is expecting potash and phosphate sales volumes to total 9.0 million tonnes for the full year and 1.1-1.4 million tonnes in the third quarter, respectively.
Despite these challenges, Mosaic is “protecting asset health” when making capital prioritization decisions, allowing the company to ramp up production in weeks — not months — when sulfur supplies improve, Bruce Bodine, president and CEO, explained during an earnings call.
Additionally, “Mosaic remains in an advantageous position with access to U.S. sulfur and open shipping channels in the Americas,” Bodine noted.
“For everyone in the phosphate industry, we know that the crisis will come to an end. We’re taking all the necessary actions to weather the storm, cutting capital and other costs, idling facilities where necessary, redeploying capital in pursuit of higher returns, and further strengthening our balance sheet. All while preserving our ability to thrive when conditions improve,” Bodine elaborated.
Mosaic Biosciences to double net sales in 2026
While smaller in comparison to its fertilizer businesses, Mosaic Biosciences was a bright spot in the company’s Q2 earnings. The biosciences division reported $25 million in net sales and is projected to double its 2025 revenues of $68 million in 2026.
Mosaic Biosciences launched five bio-based products in the first half of 2026 with three-five more to come later this year. Additionally, the company announced a partnership with French start-up Elicit Plant to develop a biological for canola that conserves water usage, as AgNavigator reported.
“Our Mosaic Biosciences business is on track to double its revenues once again this year. I want to note that Biosciences growth is strong despite current farm economics, a clear indicator that growers are finding real value in our proven products,” Bodine elaborated.
