MOS · 10-Q · 2026Q2 · Full report

Brazil Customer Credit Constraints

MOSAIC CO · 2026-08-05 · Importance 64 · Surprise 56 · In source text

Mosaic Fertilizantes sales volumes were reduced by limited customer credit availability in Brazil in addition to constrained raw-material availability. Second-quarter total segment tonnes declined 32% to 1.5 million tonnes, with purchased nutrients for distribution down 27% and Brazil-produced fertilizer sold through distribution down 41%. The company temporarily curtailed production at certain Brazilian facilities, resulting in higher idle and unabsorbed fixed costs. Higher average selling prices, which rose to $585 per tonne from $474, only partially offset the volume and production constraints.

Key facts

• Mosaic Fertilizantes six-month decrease in net sales primarily due to lower finished goods sales volumes which reduced net sales by approximately $435 million, partially offset by higher average selling prices which increased net sales by approximately $285 million. source
• Mosaic Fertilizantes finished product sales volumes decreased 32% for the three months ended June 30, 2026, compared to the same period a year ago. source
• The possibility of defaults by our customers on trade credit that we extend to them or on indebtedness that they incur to purchase our products and that we guarantee is identified as a risk. source
• Any significant reduction in customers’ liquidity or access to credit that they need to purchase our products is identified as a factor that could cause reported results to differ materially. source

Impact estimates