1) Strategy & Leadership
- Mosaic is navigating a challenging market by managing controllable factors and positioning for recovery.
- The company is curtailing phosphate production and minimizing high-cost raw material purchases.
- They have secured a significant portion of third-quarter sulfur supply at prices below current spot market levels.
- Focus on reallocating capital from non-core assets to support future growth, including investments in Mosaic Biosciences.

2) Financial & Segment Results
- In Q2 2026, Mosaic reported $60 million of EBITDA, highlighting the resilience of its Fertilizantes franchise despite market challenges.
- Phosphate production and sales reached 1.4 million tonnes, with expectations for Q3 sales between 1.1 million to 1.4 million tonnes.
- Potash remains a steady contributor to earnings, with lower unit costs expected from the HydroFloat project at Esterhazy.
- SG&A costs decreased by 20% YoY, with further reductions anticipated in the second half of the year.

3) Problems / Headwinds
- Ongoing sulfur availability and affordability issues are significantly impacting production economics, with global phosphate production expected to fall by up to 30 million tonnes.
- The closure of the Strait of Hormuz and Kazakhstan blockade are affecting sulfur supply chains, leading to high spot prices.
- The U.S. countervailing duties on phosphate imports from Morocco are expected to remain in place, limiting U.S. fertilizer availability.

4) Operational or Product Plans
- Mosaic is focusing on optimizing production and managing costs while preparing to ramp up operations when market conditions improve.
- The company is maintaining asset health and managing fixed costs during curtailments, with expectations for improved cash flow in Q3 as working capital is released.
- The Biosciences business is on track to double revenues this year, indicating strong demand despite current market conditions.

5) Guidance & Outlook / Investor Angle
- Guidance for Q3 indicates potential lower phosphate earnings due to ongoing curtailments and elevated costs, with stripping margins expected to be down but still above historical averages.
- The company anticipates a release of working capital in Q3, contributing to improved cash flow, with a total expected release of $300 million to $500 million for the year.
- Investors should note that while current conditions are challenging, Mosaic's strong balance sheet and strategic positioning provide a foundation for recovery and future growth.

Bottom line: Mosaic is effectively managing through a tough market with strategic cost controls and capital reallocations, positioning itself for recovery as sulfur supply issues resolve. The company's strong balance sheet and growth in Biosciences present a favorable outlook for shareholders despite current headwinds.