Freedom Broker Downgrades The Mosaic Company as Sulfur Costs Pressure Profits

Freedom Broker downgraded The Mosaic Company as sulfur costs pressured the fertilizer producer’s profits, putting its phosphate losses and fourth-quarter input costs in focus for investors.

The company’s adjusted third-quarter earnings amounted to a loss of 19 cents per share. Its phosphate business posted a $194 million operating loss as higher sulfur and ammonia costs and lower sales volumes offset stronger selling prices; Mosaic’s quarterly results detail the period’s performance.

Mosaic secured sulfur at a lower price for the fourth quarter, but earlier purchases at higher prices are expected to weigh on earnings during the period. The lower-cost sulfur is expected to have its biggest effect in early 2027.