Mosaic's Q1 Earnings Beat, Revenues Fall Short of Estimates

Core Viewpoint - The Mosaic Company reported a significant increase in profit for Q1 2025, despite a slight decline in net sales, primarily due to lower selling prices in the Potash segment [1][2]. Financial Performance - The company reported a profit of $238.1 million or 75 cents per share, up from$ 45.2 million or 14 cents per share in the same quarter last year [1]. - Adjusted earnings per share were 49 cents, exceeding the Zacks Consensus Estimate of 39 cents [1]. - Net sales decreased approximately 2% year over year to $2,620.9 million, missing the Zacks Consensus Estimate of$ 2,665.9 million [1]. Segment Highlights - Potash Segment: - Net sales were $570 million, down around 11% year over year, but exceeded the estimate of$ 453.7 million [2]. - Sales volumes totaled 2.1 million tons, down from 2.2 million tons a year ago, missing the estimate of 2.2 million tons [2]. - Gross margin declined to $80 per ton from$ 98 per ton in the prior year [2]. - Phosphate Segment: - Net sales were $1,099 million, down around 6% from the prior year, but topped the estimate of$ 1,027.3 million [3]. - Sales volumes totaled 1.5 million tons, down from 1.6 million tons a year ago, lagging the estimate of 1.7 million tons [3]. - Gross margin increased to $111 per ton from$ 97 per ton in the prior year [3]. - Mosaic Fertilizantes Segment: - Net sales were approximately $934 million, up about 5% year over year, but missed the estimate of$ 1,091.9 million [4]. - Sales volume rose to 1.8 million tons from 1.7 million tons in the prior year [4]. - Gross margin increased to $69 per ton from$ 44 per ton in the prior year [4]. Financial Position - At the end of the quarter, the company had cash and cash equivalents of $259.2 million, down 5% from the prior quarter [5]. - Long-term debt remained flat at$ 3,329.9 million [5]. Outlook - The company expects Potash segment sales volumes to be between 2.3 million tons and 2.5 million tons in Q2 [6]. - For the Phosphate division, sales volumes are projected to be 1.7-1.9 million tons, indicating strong global demand [6]. - Sales volumes for the Mosaic Fertilizantes unit are expected to be around 30% higher than Q1 [6]. - Capital expenditures are anticipated to be in the range of $1.2-$ 1.3 billion for 2025 [7]. Price Performance - Shares of Mosaic have gained 3% over the past year, compared to a 7.4% rise in the Zacks Fertilizers industry [8].