Mosaic, Ma'aden and Nutrien face sulphur squeeze

Mosaic swung to a second-quarter net loss of $273 million, on revenue of $2.8 billion, down 6% year on year. Adjusted EBITDA fell to $407 million, from $566 million. Results included $351 million of pre-tax notable items, including a $162 million loss on Mosaic’s equity stake in Ma’aden.

Phosphate net sales rose to $1.25 billion, from $1.17 billion, as the DAP realised price jumped 28% to $773 per tonne. But the segment swung to an operating loss of $104 million, and adjusted EBITDA halved to $128 million. Mosaic Fertilizantes in Brazil posted a $41 million operating loss on sales of $1.03 billion. Potash was the bright spot, with adjusted EBITDA flat at $278 million.

Mosaic settled its third-quarter sulphur contracts at $705 per long ton, still historically elevated, and cut 2026 capital expenditure guidance to $1.2 billion. “Mosaic is working through a difficult market by successfully managing what is under our control and positioning ourselves for an eventual recovery,” chief executive Bruce Bodine told analysts on the 5 August call. If sulphur availability normalised, he said, Mosaic could restore production “within weeks, rather than months”. The company also took a non-cash write-down on a battery cathode purified phosphoric acid project first flagged around 2023–2024, and confirmed it will not proceed.

Ma’aden delivered record second-quarter group revenue of SAR 10.9 billion ($2.9 billion), up 16% year on year, and EBITDA of $1 billion. Aluminium and gold carried the group. Phosphate segment revenue slipped 1% to SAR 5.1 billion ($1.37 billion). Aluminium jumped 49% to SAR 3.7 billion ($1.01 billion), and Gold and Growth Minerals rose 34% to SAR 1.9 billion ($523 million).

Phosphate EBITDA more than halved to $328 million, down 49%. DAP production was 28% lower at 1.23 million tonnes, and ammonia output dropped 64% to 0.27 million tonnes on feed shortages. The DAP realised price rose 28% to $863 per tonne. Ma’aden withdrew its 2026 ammonia production guidance, previously set at 3.0–3.2 million tonnes, and cut DAP guidance to 6.0–6.5 million tonnes, from the earlier 6.5–7.1 million tonnes range. “Despite challenges relating to sulphur supply and logistics in phosphate, the aluminium business delivered its best ever financial performance with a very strong performance from our gold business,” said chief executive Bob Wilt, adding that sulphur prices remained near 20-year highs.

Nutrien reported Q2 net earnings of $1.22 billion on sales of $10.81 billion, up 4% year on year. Group adjusted EBITDA edged down 2% to $2.43 billion, as record potash volumes and higher benchmarks were offset by lower fertilizer volumes elsewhere and rising sulphur costs.

The Saskatoon-based producer’s phosphate segment took the hardest hit. Phosphate net sales rose 18% to $468 million, but adjusted EBITDA collapsed 75% to $23 million, and the manufactured product gross margin turned negative at $31 per tonne, from a positive $68 per tonne in Q2 2025. Potash net sales rose 6% to $1.05 billion, and adjusted EBITDA rose 4% to $658 million on higher benchmarks and stronger execution. Nitrogen net sales slipped 3% to $1.15 billion, and adjusted EBITDA fell 5% to $635 million, though unit margins gained from lower natural gas costs of $2.10 per MMBtu, from $3.31. “Global phosphate market fundamentals continue to be affected by trade flow disruptions, constrained sulphur feedstock availability and elevated costs, which have placed unsustainable pressure on phosphate producer margins and have resulted in reduced global operating rates,” Nutrien said in its press release.