Mosaic Announces Phosphate Production Curtailments in Brazil

Rhea-AI Summary

The Mosaic Company (NYSE:MOS) announced on December 16, 2025 that it has started idling single super phosphate (SSP) production at its Fospar and Araxá facilities in Brazil after a sharp rise in sulfur prices. The company also suspended future sulfur purchases and said it may review these decisions after 30 days. Mosaic stated the actions are intended to help maintain competitiveness while supporting reliable fertilizer availability and global food security.

Positive

• Actions aim to preserve competitiveness amid higher sulfur prices
• Company will review curtailment decisions after 30 days

Negative

• Idled SSP production at Fospar and Araxá facilities in Brazil
• Suspension of future sulfur purchases could constrain near-term inputs

Key Figures

Decision review period 30 days Period after which Mosaic may review Brazil SSP curtailment and sulfur purchase suspension

Q3 2025 net sales $3,452.1 million Three months ended September 30, 2025 per 10-Q

Q3 2025 diluted EPS $1.29 Three months ended September 30, 2025, up from $0.38 a year ago

YTD 2025 net sales $9,078.7 million Year-to-date period ended September 30, 2025

Market Reality Check

$23.46 Last Close

Volume Volume 12,961,322 is 1.68x the 20-day average of 7,717,461, indicating elevated trading interest ahead of and around this curtailment news. high

Technical Shares at $24.86 are trading below the 200-day MA of $30.99 and sit 34.97% under the 52-week high of $38.23, though still above the 52-week low of $22.36.

Peers on Argus

While MOS fell 5.15%, key agricultural input peers like CF (-0.44%), NTR (-0.56%), ICL (-0.40%), CTVA (-0.62%), and FMC (-6.49%) also traded lower. The broader group showed weakness, but MOS’s decline was larger than most peers, pointing to a company-specific impact from the Brazil phosphate curtailments.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 17	Dividend declaration	Positive	+0.7%	Announced quarterly dividend of $0.22 per share with December 18 payment date.
Nov 13	Debt offering	Neutral	+2.0%	Completed $900 million senior notes offering for general corporate purposes.
Nov 10	Policy recognition	Positive	+1.2%	U.S. added phosphate and potash to Critical Minerals List, supporting sector importance.
Nov 04	Earnings release	Neutral	-2.6%	Announced availability of Q3 2025 financial results and investor conference call.
Nov 04	Asset sale	Neutral	-2.6%	Completed $27 million sale of Brazilian potash mine operator to VL Mineração.

Pattern Detected

Recent news (dividend, debt offering, strategic and policy updates) has typically seen modest positive to mixed price reactions, with no consistent pattern of sharp selloffs on announcements.

Recent Company History

Over the last few months, Mosaic has balanced capital returns, financing, and portfolio reshaping. A $0.22 quarterly dividend declaration on Nov 17 and a $900 million senior notes offering on Nov 13 both saw modest gains. Policy support emerged with phosphate and potash added to the U.S. Critical Minerals List on Nov 6. Earlier in November, Mosaic reported third‑quarter 2025 results and completed the sale of Brazilian potash operations for $27 million, aligning with its strategy to focus on core businesses. Today’s Brazil phosphate curtailments intersect with this ongoing portfolio and capital structure repositioning.

Regulatory & Risk Context

Active S-3 Shelf Registration 2025-11-07

Mosaic has an effective automatic shelf registration on Form S-3ASR dated Nov 7, 2025, allowing primary offerings of common stock, preferred stock, debt securities and warrants, as well as sales by selling stockholders. The shelf has been used recently via two 424B5 debt prospectus supplements, indicating active use for capital structure management.

Market Pulse Summary

This announcement highlighted Mosaic’s decision to idle single super phosphate production at Brazilian facilities and suspend new sulfur purchases in response to sharply higher sulfur prices, subject to review after 30 days. Context includes recently stronger quarterly financials, fresh debt raised under an effective S‑3ASR shelf, and a strategic exit from a Brazilian potash mine. Investors may focus on how these curtailments affect capacity utilization, input cost exposure, and Mosaic’s broader Brazilian portfolio strategy.

Jargon Translator

asset retirement obligations

Asset retirement obligations are a company’s recorded promise to pay for dismantling, cleaning up, or restoring property when a long-lived asset is retired — for example decommissioning a plant or removing equipment. Companies estimate the future cleanup cost today and book it as a liability (and add the cost to the asset), so it affects the balance sheet, reported profits over time, and future cash needs; investors watch it like a planned bill that can reduce cash available for returns.

automatic shelf registration statement

An automatic shelf registration statement is a pre-approved filing that companies submit to securities regulators, allowing them to sell new shares or bonds quickly and efficiently when needed. It acts like a standing permit, enabling the company to raise money without going through a lengthy approval process each time, which can be helpful for responding promptly to market opportunities or needs. For investors, it provides transparency about the company's ability to raise funds and signals planning flexibility.

commercial paper

Short-term IOUs issued by companies to raise cash quickly, sold to investors for a fixed, brief period (usually up to a few months) and repaid with interest at maturity. Think of it as a business borrowing from the public without putting up collateral, like a friend asking to borrow money for a few weeks with a promise to pay back a bit more. Investors watch commercial paper to gauge a company’s short-term funding health and credit risk; difficulty issuing it or rising yields can signal liquidity stress or higher perceived risk.

restricted stock units

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

senior notes

Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.

AI-generated analysis. Not financial advice.

TAMPA, FL / ACCESS Newswire / December 16, 2025 / Due to the recent sharp increase in sulfur prices, The Mosaic Company (NYSE:MOS) has started activities to idle single super phosphate (SSP) production at its Fospar and Araxá facilities in Brazil.

Mosaic has also suspended future purchases of sulfur. Mosaic may review these decisions after 30 days.

Mosaic is committed to its mission of helping the world grow the food it needs while maintaining competitiveness in global markets. Mosaic's operations in Brazil play a critical role in supporting reliable fertilizer availability and global food security.

About The Mosaic Company
The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Through its Mosaic Biosciences platform, the company is also advancing the next generation biological solutions to help farmers improve nutrient use efficiency and crop performance sustainably. Mosaic provides a single-source supply of phosphate, potash, and biological products for the global agriculture industry. More information on the company is available at www.mosaicco.com.

Contacts:

Investors: Jason Tremblay, 813-775-4282 jason.tremblay@mosaicco.com Joan Tong, CFA, 863-640-0826 joan.tong@mosaicco.com

Media: Ben Pratt, 813-775-4206 benjamin.pratt@mosaicco.com

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Mosaic's plans to idle SSP production at Fospar and Araxá suspend sulfur purchases, and review production plans based on market conditions. Forward-looking statements are based on current expectations and assumptions that involve risks and uncertainties, which could cause actual performance to differ materially from those expressed or implied. These risks include, but are not limited to, changes in raw material prices, global supply and demand dynamics, operational challenges, and other risks described in Mosaic's filings with the Securities and Exchange Commission. Mosaic undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of this release, except as required by law.

SOURCE: The Mosaic Company

View the original press release on ACCESS Newswire

FAQ

Why did Mosaic (NYSE:MOS) idle SSP production in Brazil on December 16, 2025?

Mosaic said a sharp increase in sulfur prices prompted idling of SSP production at Fospar and Araxá.

Which Mosaic Brazil facilities had SSP production idled on December 16, 2025?

Mosaic idled SSP production at the Fospar and Araxá facilities.

How long will Mosaic (MOS) review its Brazil curtailment decisions?

Mosaic stated it may review the decisions after 30 days.

Did Mosaic (MOS) change its sulfur procurement after December 16, 2025?

Yes. Mosaic suspended future purchases of sulfur as part of the response to higher prices.

What is Mosaic’s stated rationale for the Brazil production curtailments?

Mosaic said the moves respond to sulfur price pressures and help maintain competitiveness in global markets while supporting fertilizer availability.