MOS · 10-Q · 2026Q2 · Full report
Operating Expense Trends
MOSAIC CO · 2026-08-05 · Importance 65 · Surprise 82 · From source text
Selling, general and administrative expense decreased 8% to $267.5 million for the six months ended June 30, 2026 and 21% to $131.6 million in the second quarter. The six-month decrease reflected approximately $6 million of Mosaic Fertilizantes bad-debt reserves in 2026 versus approximately $33 million in 2025. Other operating expense increased $218.1 million to $352.4 million for the six months, including a $69 million project write-off and $159 million of Araxá and Patrocínio-related charges. Net interest expense increased 26% to $118.1 million for the six months because of higher debt levels.
Key facts
- Other operating expenses for the six months ended June 30, 2026: $352.4 million, up from $134.3 million in the prior-year period; included charges totaling approximately $159 million in connection with Araxá divestiture and Patrocínio idling (approx. $72 million contract terminations, $56 million impairment of PPE, $21 million write-off of inventory and other costs, $10 million severance and other employee costs) and approx. $37 million of idle costs; partially offset by gain on sale of land of approx. $31 million. source
- Corporate, Eliminations and Other had an operating loss of $86 million for the three months ended June 30, 2026, compared to a loss of $51 million in the prior year. source
- Three months ended June 30, 2026 selling, general and administrative expenses: $131.6 million, a decrease of $35.6 million compared to $167.2 million in the prior year; prior year included approx. $33 million related to bad debt reserves in Mosaic Fertilizantes. source
- Selling, general and administrative expenses for the six months ended June 30, 2026: $267.5 million, a decrease of $22.3 million compared to $289.8 million in the prior year; current period includes approx. $6 million for bad debt reserves in Mosaic Fertilizantes versus approx. $33 million in prior year. source
- Recorded charges of approximately $69 million related to engineering and equipment costs associated with the decision not to proceed with a project during the three months ended June 30, 2026. source
- Canadian resource taxes incurred for the three months ended June 30, 2026: $70.4 million, compared to $61.7 million in the same period a year ago. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +1.3% | Three months ended June 30, 2026 selling, general and administrative expenses: $131.6 million, a decrease of $35.6 million compared to… |
| operating_income | negative | realized | -1.2% | Corporate, Eliminations and Other had an operating loss of $86 million for the three months ended June 30, 2026, compared to a loss of $51… |
| operating_income | positive | realized | +1.1% | Other operating expenses for the six months ended June 30, 2026: $352.4 million, up from $134.3 million in the prior-year period; included… |
| operating_income | positive | realized | +0.8% | Selling, general and administrative expenses for the six months ended June 30, 2026: $267.5 million, a decrease of $22.3 million compared… |