Mosaic cites tariffs as phosphate shipments to U.S. fall resulting in $8 million loss within business segment

The Mosaic Company (NYSE: MOS) reported that U.S. tariffs have significantly reduced phosphate fertilizer shipments to the domestic market, with deliveries “tracking well below last year,” according to its second-quarter earnings statement. The company said the tariffs apply to most phosphate sources, restricting volumes and contributing to a quarterly segment loss.

According to Bloomberg, The Tampa-based fertilizer producer posted an $8 million loss in its phosphate operations during the second quarter. Weakening demand in the U.S. — tied to falling corn and soybean prices and global trade uncertainty — has pressured domestic sales. However, Mosaic noted that some of the displaced volumes have been redirected to international markets.

Despite the challenges in phosphate, the company said rising prices for both phosphate and potash supported overall revenue. Potash net sales were higher year-on-year and helped offset volume shortfalls, leaving total sales roughly flat for the quarter. Potash, largely sourced from Canada, remains exempt from U.S. tariffs under the North American trade agreement.

Still, second-quarter sales volumes for both fertilizers fell short of analysts’ expectations, and earnings per share missed even the lowest estimates compiled by Bloomberg. Mosaic attributed the weak earnings performance in part to extensive maintenance activities.

Looking ahead, the company expressed optimism for a recovery. “Any demand deferral or reduction exiting 2025 sets the stage for strong demand in 2026, as nutrients removed from this year’s crops need to be replenished,” it said.

Source: Bloomberg