MOS · 10-Q · 2026Q3 · Full report
Gross Margin Drivers
MOSAIC CO · 2026-11-04 · Importance 69 · Surprise 64 · In source text
Consolidated gross margin fell 66% to $534.4 million for the nine months ended September 30, 2026, as higher input costs and lower sales volumes outweighed higher selling prices. Phosphate recorded a nine-month gross loss of $148.9 million versus gross profit of $414.2 million; approximately $910 million of higher production costs, driven mainly by sulfur, ammonia and blended rock, were partly offset by higher prices and volumes. Potash gross margin declined 3% to $598.1 million, with lower volume, higher fixed costs and Canadian resource taxes offset mostly by approximately $100 million of price benefit. Mosaic Fertilizantes gross margin fell 86% to $67.5 million, reflecting approximately $350 million of higher distribution product costs, $220 million of higher production raw-material costs and $200 million from lower sales volumes.
Key facts
- Mosaic's consolidated gross margin for the three months ended September 30, 2026 was $84.1 million, down $468.2 million, or 85%, from 2025. source
- Mosaic's consolidated gross margin for the nine months ended September 30, 2026 was $534.4 million, down $1,024.9 million, or 66%, from 2025. source
- Mosaic's consolidated gross margin for the nine months ended September 30, 2026 decreased 66% from the same period in 2025, primarily due to higher input costs and lower sales volumes. source
- In the third quarter of 2026, Mosaic's North American consumed ammonia price rose 36% to $619 per tonne from $455, and consumed sulfur price rose 163% to $715 per long ton from $272. source
- Higher sulfur costs reduced Mosaic's third-quarter 2026 Phosphate gross margin by approximately $380 million; reduced volumes and increased idle/unabsorbed fixed costs reduced it by approximately $35 million and $50 million, respectively. source
- Mosaic's third-quarter 2026 Phosphate gross margin was a $147.8 million loss, compared with positive gross margin of $143.9 million in 2025. source
- Mosaic's Phosphate gross margin was a $148.9 million loss in the first nine months of 2026, compared with positive gross margin of $414.2 million in 2025. source
- Mosaic's Mosaic Fertilizantes third-quarter 2026 gross margin was $26.7 million, compared with $182.4 million in 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | negative | realized | — | Mosaic's consolidated gross margin for the three months ended September 30, 2026 was $84.1 million, down $468.2 million, or 85%, from 2025. |
| margin | negative | realized | — | Mosaic's consolidated gross margin for the nine months ended September 30, 2026 was $534.4 million, down $1,024.9 million, or 66%, from… |
| margin | negative | realized | — | In the third quarter of 2026, Mosaic's North American consumed ammonia price rose 36% to $619 per tonne from $455, and consumed sulfur… |
| margin | negative | realized | — | In the third quarter of 2026, Mosaic's North American consumed ammonia price rose 36% to $619 per tonne from $455, and consumed sulfur… |
| margin | negative | realized | — | Higher sulfur costs reduced Mosaic's third-quarter 2026 Phosphate gross margin by approximately $380 million; reduced volumes and… |
| margin | negative | realized | — | Higher sulfur costs reduced Mosaic's third-quarter 2026 Phosphate gross margin by approximately $380 million; reduced volumes and… |
| margin | negative | realized | — | Higher sulfur costs reduced Mosaic's third-quarter 2026 Phosphate gross margin by approximately $380 million; reduced volumes and… |