MOS · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

MOSAIC CO · 2026-08-05 · Importance 83 · Surprise 82 · No source text

Consolidated gross margin declined 55% to $450.3 million for the six months ended June 30, 2026, and the margin rate fell to 8% from 18%; second-quarter gross margin fell 59% to $214.7 million. Phosphate six-month gross margin fell from $270.3 million to a $1.1 million loss, primarily because approximately $540 million of higher sulfur, ammonia and blended-rock costs outweighed approximately $160 million of pricing and $60 million of volume benefits. Mosaic Fertilizantes six-month gross margin declined from $288.7 million to $40.8 million due to approximately $215 million of higher distribution product costs, $145 million of higher raw-material costs, $80 million of volume pressure, and $52 million of accelerated depreciation. Potash six-month gross margin increased $20.6 million to $398.6 million as approximately $100 million of pricing benefit exceeded $35 million of volume pressure, $20 million of higher fixed costs, and $28 million of higher Canadian taxes and royalties.

Key facts

• Gross margin for the six months ended June 30, 2026: $450.3 million, compared to $1,007.0 million in the prior-year period. source
• Gross margin for the three months ended June 30, 2026: $214.7 million, compared to $518.6 million in the prior-year period. source
• Phosphate gross margin decreased to a loss of $4.5 million for the three months ended June 30, 2026, from $103.0 million in the prior-year period, with higher raw material costs of approximately $290 million negatively impacting margin. source
• Phosphate segment six-month decrease in gross margin primarily attributable to approximately $540 million of unfavorable production cost impacts driven largely by higher sulfur, ammonia and blended rock input costs. source
• Phosphate segment six-month average consumed sulfur price for North America: $440 per long ton for six months ended June 30, 2026, compared to $184 per long ton in the same period a year ago. source
• Average consumed sulfur price for North America operations for the three months ended June 30, 2026: $522 per long ton, an increase of 150% from $209 in the prior-year period. source
• Average consumed price for ammonia for North America operations for the three months ended June 30, 2026: $621 per tonne, an increase of 40% from $445 in the prior-year period. source
• Phosphate segment six-month average consumed price for ammonia in North America: $624 per tonne for six months ended June 30, 2026, compared to $430 per tonne in the same period a year ago. source

Impact estimates