On February 27, 2025, The Mosaic Co (MOS, Financial) released its 8-K filing detailing its financial performance for the fourth quarter and full year 2024. Formed in 2004, Mosaic is a leading global producer of phosphate and potash, with significant operations in Florida, Brazil, Peru, Saskatchewan, New Mexico, and Brazil. The company also operates a large fertilizer distribution network in Brazil through its Mosaic Fertilizantes business.
The Mosaic Co reported a net income of $169 million for Q4 2024 and $175 million for the full year, with diluted EPS of $0.53 for the quarter and $0.55 for the year. These figures fell short of analyst estimates, which projected a quarterly EPS of $0.46. The company's full-year revenue was $11.1 billion, a 19% decline from 2023, primarily due to lower selling prices in the Potash and Mosaic Fertilizantes segments. The gross margin rate decreased to 14% from 16% in the previous year.
Operational challenges, including weather-related disruptions, significantly impacted production, reducing phosphate output by over 700,000 tonnes and potash by about 250,000 tonnes. Despite these setbacks, Mosaic anticipates a recovery in production volumes in 2025.
Mosaic achieved an adjusted EBITDA of $594 million in Q4 2024 and $2.2 billion for the full year. The company realized approximately half of its $150 million cost savings target, with significant progress in the Mosaic Fertilizantes segment. Additionally, Mosaic closed the Ma'aden transaction, recording a $522 million pre-tax gain, and signed an agreement to sell the Patos de Minas mine in Brazil.
Net sales for Q4 2024 were $2.8 billion, down from $3.2 billion in Q4 2023. Operating earnings for the quarter were $100 million, a decrease from $279 million in the same period last year. The company's adjusted EBITDA for the full year declined by 20% from 2023. Cash flows from operating activities totaled $1.3 billion in 2024.
The effective tax rate for 2024 was 59.2%, with an adjusted effective tax rate of 33.2% excluding notable items. Mosaic returned $506 million to shareholders through share repurchases and dividends in 2024.
| Segment | Net Sales (2024) | Operating Earnings (2024) | Adjusted EBITDA (2024) |
|---|---|---|---|
| Potash | $2.4 billion | $605 million | $944 million |
| Phosphates | $4.5 billion | $225 million | $1.19 billion |
| Mosaic Fertilizantes | $4.4 billion | $238 million | $344 million |
Mosaic's performance in 2024 was challenged by lower selling prices and production disruptions. However, the company is optimistic about 2025, with expectations of improved production volumes and market conditions. The strategic divestment of non-core assets and focus on high-return projects position Mosaic to capitalize on favorable market dynamics in the coming year.
As Mosaic continues to navigate market challenges, its focus on cost savings and strategic asset management will be crucial in driving future growth and profitability. The company's ability to adapt to changing market conditions and optimize its operations will be key to its success in 2025 and beyond.
Explore the complete 8-K earnings release (here) from The Mosaic Co for further details.
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