Mosaic Stock Slides After Cutting Phosphate Output Forecast
Operational challenges at key U.S. facilities force the fertilizer giant to lower its Q3 production targets, rattling investor confidence.
Shares of The Mosaic Company (NYSE: MOS) fell sharply after the fertilizer producer announced it was cutting its third-quarter phosphate production forecast due to a series of operational setbacks. The company now expects to produce approximately 1.7 million tonnes, a figure that fell below management's prior expectations and signals ongoing struggles at its U.S. facilities.
The reduction in output was triggered by unexpected mechanical issues at its Riverview sulfuric acid plant and utility interruptions at its Bartow, Florida facility. These disruptions have created a significant headwind for the $10.6 billion company, leading to a slide in its stock price as investors reacted to the news.
This marks the latest in a series of production challenges for Mosaic this year. In June, the company was forced to lower its full-year 2025 phosphate production guidance, citing unplanned downtime and delays in commissioning new systems at its New Wales facility. , the company's stock experienced a similar decline.
The latest announcement confirmed that , with sales volumes of 1.6 million tonnes also lagging slightly due to shipping delays. While the company stated that the recent mechanical and utility issues have since been addressed, the repeated setbacks have raised concerns about the reliability of its asset base.
Despite the production struggles, some Wall Street analysts believe the company may be undervalued. The challenges on the production side have been partially offset by a robust pricing environment for diammonium phosphate (DAP). Prior to the latest cut, analysts noted that global phosphate prices remain the largest catalyst for the stock and that Mosaic's in other areas, such as its potash division.
Investors are now closely watching whether the company's investments in asset health can lead to sustainable improvements and prevent future disruptions. The key challenge for Mosaic will be to stabilize its operations to fully capitalize on the strong market demand for its products, as the and weigh on its performance.