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November 12, 2025 • 3 min read
As a leading global producer of concentrated phosphate and potash crop nutrients, The Mosaic Company (NYSE: MOS) operates at the heart of the world's food supply chain. The company recently released its financial results for the third quarter of 2025, and a dive into the numbers reveals a story of impressive growth, though with varying performance across its key business lines. For those looking to see the full details, the complete 10-Q filing is available on the SEC's website.
Mosaic reported a strong quarter, with net sales climbing 23% to $3.5 billion compared to $2.8 billion in the same period last year. This top-line growth translated into an even more dramatic increase in profitability. Net earnings attributable to Mosaic surged to $411 million, or $1.29 per diluted share, a substantial jump from the $122 million, or $0.38 per share, reported in the third quarter of 2024.
The following flow diagram provides a visual breakdown of Mosaic's quarterly revenues and costs, illustrating how the company generated its profit.
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In the diagram, the "Unallocated" streams largely represent the elimination of intersegment transactions. For instance, when Mosaic's Phosphate segment sells products to its Mosaic Fertilizantes segment for distribution, that revenue and cost are removed from the consolidated results to avoid double-counting.
While the overall results were strong, the performance across Mosaic's business segments tells a more nuanced story.
Potash: This segment was the standout performer. Net sales increased by 32% to $695 million, but the real story is in its profitability. Gross margin nearly doubled, jumping 94% to $236 million. This impressive result was fueled by both a 14% increase in sales volume and a 19% rise in the average realized selling price.
Phosphate: The Phosphate segment saw its net sales rise by a healthy 28% to $1.3 billion. However, its gross margin remained essentially flat at around $143 million. The reason for this margin squeeze becomes clear when looking at raw material costs. While the average selling price for finished products rose 23%, the cost of sulfur—a key input—skyrocketed by 116% compared to the prior year. This sharp increase in costs consumed nearly all the benefit of higher product prices.
Mosaic Fertilizantes: The Brazil-based distribution and production segment also had a solid quarter, with net sales up 14% to $1.6 billion and gross margin growing 43% to $182 million, driven primarily by higher selling prices.
It's important to note that a significant portion of the quarter's pre-tax earnings came from outside core operations. The company recorded $306 million in "Other income," a stark contrast to a small expense in the same quarter last year. According to the filing, this income is primarily driven by unrealized gains on the company's equity securities. While this gain boosted the bottom line, the company's operating earnings—which reflect the performance of its core business—were $340 million, still a very strong 194% increase over the prior year.
In conclusion, Mosaic's third-quarter results paint a picture of a company successfully navigating a dynamic market. The Potash segment demonstrated exceptional strength, capitalizing on favorable pricing and demand. However, the challenges in the Phosphate segment, where soaring input costs are pressuring margins, highlight the inherent volatility of the commodity business. While a large non-operating gain amplified the final profit figure, the underlying operational performance remains robust, underscoring the company's key position in the essential agricultural market.
Last updated: November 12, 2025