Mosaic Company (MOS)

The World's Fertilizer Giant Behind Every Field

The Mosaic Company (NYSE: MOS) is one of the world's largest fertilizer producers, built around two core crop nutrients: potash and phosphates. Combined with its Brazilian distribution arm (Mosaic Fertilizantes), the company supplies the basic inputs that let farms from Iowa to Mato Grosso keep producing food.

Why does this matter for Malaysian readers? Global fertilizer prices directly influence input costs for local palm oil and paddy farms. When potash or DAP (phosphate fertilizer) prices spike, it isn't just an American farmer's problem - it also squeezes margins for smallholder oil palm growers in Malaysia and Indonesia. MOS is one of the best thermometers for tracking global fertilizer price trends.

A Tale of Two Nutrients

2026 tells two very different stories inside one company:

• Potash - strong. The potash market is tight (global capacity utilization above 90%), and Mosaic's Saskatchewan mines (Esterhazy and Belle Plaine) are running at very low production cost.
• Phosphates - squeezed. The Gulf conflict (Strait of Hormuz) has spiked sulfur and ammonia prices - two key phosphate production inputs - crushing margins even as DAP prices themselves stay elevated.

Shariah Status

NON_COMPLIANT - MOS is classified as non-Shariah-compliant in the mahersaham database. With elevated net debt (~$5.5 billion) relative to its balance sheet and market size, the stock is likely to fail standard conventional-debt screening ratios. Shariah-conscious investors should avoid MOS or look for Shariah-compliant alternatives in the fertilizer/commodity space.

Q2 2026: large net loss, but adjusted earnings still modestly positive

Segment performance

• Phosphate: $1.4 billion revenue, $48 million operating loss, $115 million adjusted EBITDA - sales volume fell to 1.4 million tonnes (from 1.5 million) due to production curtailment from sulfur shortages/costs
• Potash: $667 million revenue, $177 million operating earnings, $275 million adjusted EBITDA - sales volume fell to 2.0 million tonnes (from 2.3 million) due to routine turnaround activity and the Carlsbad mine sale

Dividend held despite continued net losses

Mosaic maintained its quarterly dividend of $0.22 ($0.88 annualized), payable 24 September 2026 to holders of record on 10 September 2026. That means no dividend cut occurred despite two straight quarters of GAAP net losses. Current yield is roughly 3.8-4.1% at a share price around $22-24.