Mosaic (MOS) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Mon, May 11, 2026 astatine 11:54 AM CDT 42 min read

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DATE

Monday, May 11, 2026 astatine 11:00 a.m. ET

CALL PARTICIPANTS

• President & Chief Executive Officer — Bruce M. Bodine

• Senior Vice President & Chief Financial Officer — Luciano Siani Pires

• Senior Vice President, Global Strategic Marketing — Jenny Wang

• Operator

Full Conference Call Transcript

Bruce M. Bodine: Good morning, and convey you for joining our call. Our connection for contiguous is straightforward. The concern clime is challenging, but it is allowing The Mosaic Company to differentiate itself by benefiting from our important advantages and optimizing our capital. I volition interaction connected these topics to begin. First, the concern situation was and continues to beryllium precise dynamic. Geopolitical events are driving volatility passim the planetary phosphate proviso chain. Many producers are struggling to unafraid earthy materials, resulting successful an already choky marketplace becoming adjacent tighter. Global phosphate prices bespeak that shortage, and this has enactment further unit connected workplace economics. Second, the existent situation has allowed The Mosaic Company to differentiate itself.

The investments we person made successful our U.S. phosphate assets implicit the past 2 years are driving higher accumulation rates, with 3 of our 4 facilities operating astatine targeted rates astatine the extremity of the archetypal quarter. With a planned turnaround astatine our largest facility, New Wales, present down us, our accumulation capableness has improved significantly. The Mosaic Company maintains an advantaged geographic presumption arsenic good arsenic a greater diverseness of sources comparative to planetary peers erstwhile it comes to sulfur and ammonia supply. But we are not without risk. Raw worldly prices and availability, particularly for sulfur, are forcing america to revisit our accumulation plan. We volition sermon this successful much item shortly.

But our cardinal connection connected this taxable is that we are making pugnacious but liable decisions that support shareholder worth done the existent situation without sacrificing our quality to payment erstwhile conditions improve. This leads into my 3rd point, which is that The Mosaic Company remains focused connected a disciplined superior allocation and reallocation strategy. In summation to adjusting our operating plan, investing successful our phosphate assets and optimizing our beardown potash business, we are besides shifting superior distant from underperforming assets toward amended opportunities. Over the past fewer months, we sold 3 mines and idled accumulation astatine underperforming assets, and we are continuing to put successful caller opportunities.

This is each happening arsenic we negociate done the existent realities of our concern with agility. We person reduced this year's CapEx and are adapting our accumulation outlook to the existent marketplace environment, and moving inventory built astatine the extremity of past twelvemonth to amended our moving superior position. Before we dive deeper into our business, I would similar to walk immoderate clip connected the broader market. As each of you person seen, the struggle successful the Persian Gulf has exacerbated an already stretched planetary fertilizer market. Roughly 20% of planetary phosphate, a 3rd of urea, a 4th of ammonia, and fractional of seaborne sulfur volumes originate successful the Middle East.