MOS · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

MOSAIC CO · 2026-11-04 · Importance 38 · Surprise 22

For the nine months ended September 30, 2026, Mosaic recorded an income tax benefit of $102.7 million and an effective tax rate of 14.9%, compared with tax expense of $384.8 million and a 26.1% effective rate in the prior-year period. For the three months ended September 30, 2026, the tax benefit was $37.9 million and the effective rate was 36.7%, versus tax expense of $175.5 million and a 29.3% rate in the third quarter of 2025.

Key facts

• The U.S. enacted the One Big Beautiful Bill Act on July 4, 2025; its provisions have multiple effective dates beginning in 2025 and 2026, and the Company reflects their impact as they become effective. source
• Mosaic's effective income tax rate was 36.7% in the third quarter of 2026 and 14.9% in the first nine months of 2026, compared with 29.3% and 26.1% in 2025. source
• For the three and nine months ended September 30, 2026, discrete tax items recorded in tax expense were expenses of approximately $10.7 million and $17.8 million, respectively. source
• The Company’s net discrete tax expense primarily reflected changes in valuation allowance, share-based excess costs and the true-up of estimates, partially offset by tax effects of notable items recorded as discrete. source
• The Company’s income tax rate is affected by earnings mix across jurisdictions, a depletion benefit, and certain entities being taxed in both their foreign jurisdiction and the U.S., including foreign tax credits. source
• The Company stated there was no material change to its effective tax rates from the enacted provisions of the One Big Beautiful Bill Act. source