Mosaic withdraws 2026 phosphate output forecast, curtails production amid higher costs

The Mosaic Company's potash solution mine near Belle Plaine, Sask. (Gareth Dillistone/CTV News)

Mosaic withdrew its forecast for annual phosphate production on Monday and said it would curtail output at some facilities due to higher costs amid volatile raw material markets.

Shares of the fertilizer maker are down 5.1 per cent in premarket trading.

The U.S.-Israel war with Iran has disrupted global supply chains, sending prices of key fertilizer raw materials such as sulfur and ammonia higher, adding pressure on margins of companies such as Mosaic.

“Prices for finished phosphate fertilizers have also risen, mitigating some of the impact of raw materials,” the company said, adding that profit margins remain under pressure, leading to global production curtailments and export bans.

The company had previously projected 2026 phosphate production volumes to be above 7 million tonnes.

Mosaic has also taken steps to partially curtail production at its Louisiana and Bartow facilities in the U.S. and scale back additional production in Brazil.

The move follows its last month’s announcement to idle its Araxa and Patrocinio phosphate facilities in Brazil and cut jobs, which led to US$442 million in first-quarter charges.

The company said it was closely monitoring raw material markets, particularly sulfur, which hit record prices due to limited availability, and would review its operating plan for the remainder of the year.

For the current quarter, Mosaic expects phosphate sales volumes of 1.4 million to 1.7 million tonnes reflecting partial curtailments at Louisiana and Bartow.

The company expects 2026 capital expenditure to be $1.25 billion, from an earlier forecast of $1.5 billion.

In its phosphates segment, the company saw a $280 million increase in raw materials costs in the first quarter, while the cost of production per tonne in its potash segment rose to $84 from $78 a year earlier.

The Tampa, Florida-based company reported adjusted earnings of 5 cents per share for the quarter, below analysts’ estimate of 24 cents, according to LSEG data.

(Reporting by Sumit Saha in Bengaluru; Editing by Vijay Kishore)