The Mosaic Company

Farm cooperative CHS Inc. and fertilizer producer OCP North America have proposed a $450 million phosphate fertilizer plant in Waggaman, Louisiana, which would be the first new U.S. plant of its kind in over 40 years. The facility would produce more than 1 million tons of phosphate-based fertilizer annually, potentially reducing U.S. reliance on imported phosphate fertilizers by more than 48%. The project could introduce significant competition for Mosaic Co., the largest U.S. phosphate producer, and expand Morocco-based OCP Group's presence in the American market. Agriculture Secretary Brooke Rollins praised the proposal, and Deputy Agriculture Secretary Stephen Vaden said it would provide true competition for American farmers. The project comes amid federal scrutiny of consolidation in the fertilizer industry and ongoing geopolitical disruptions to global fertilizer trade.

Mosaic is curtailing phosphate production in the U.S. and Brazil due to sulfur shortages, with its Louisiana facility fully idled and some Florida plants operating at reduced rates. The company expects third-quarter phosphate volumes to decline to 1.1–1.4 million tons, while sulfur costs rise to approximately $700–$710 per ton. Despite lower sequential stripping margins and higher idle costs, DAP pricing of $820–$840 per ton should keep margins above historical averages. Mosaic is strengthening liquidity by cutting SG&A, reducing 2026 capital spending guidance to $1.2 billion, and targeting a $300–$500 million working-capital release, and it secured a $1 billion term loan to refinance commercial-paper maturities without drawing its $2.5 billion revolving credit facility.

Mosaic reported second-quarter revenue of $2.82 billion, a 6% year-over-year decline and a 7.3% miss versus the Zacks Consensus Estimate of $3.05 billion. Earnings per share came in at $0.13, down from $0.51 a year ago but 44.44% above the consensus estimate of $0.09. Key segment metrics showed Potash sales volumes of 2,019,000 tons, Phosphates sales volumes of 1,406,000 tons, and Mosaic Fertilizantes sales volumes of 1,520,000 tons, all below analyst projections. Net sales in Phosphates reached $1.25 billion, Mosaic Fertilizantes contributed $1.03 billion, and Potash generated $650 million, while Corporate and Other recorded a negative $106 million.

CF Industries Holdings is grappling with rising natural gas costs that threaten its margins despite healthy nitrogen fertilizer demand and higher prices. The company's average natural gas cost climbed to $3.31 per MMBtu in 2025 from $2.40 a year earlier, and further increased to $4.57 per MMBtu in the first quarter of 2026 from $3.68 in the prior-year period, driving up cost of sales. Peers Nutrien and Mosaic are also contending with elevated input costs, including sulfur and ammonia, which have compressed phosphate margins and are expected to exert additional pressure in the second quarter. CF Industries stock has risen 11.7% over the past year, outperforming the Zacks Fertilizers industry's 5.2% decline, and trades at a forward earnings multiple of 7.15, a 34.1% discount to the industry average. The Zacks Consensus Estimate projects an 83.1% year-over-year jump in 2026 earnings followed by a 34.9% decline in 2027, with estimates for both years trending higher over the past 60 days.