Mosaic Sees Brighter Agriculture Markets Ahead as Q4 Results Exceed Expectations
Mosaic, a leading producer of crop nutrients and animal feed ingredients, has reported strong results for its fourth quarter 2024 earnings, with net income coming in at $169 million and adjusted EBITDA at $594 million.
The company's President and Chief Executive Officer, Bruce Bodine, said that agriculture markets have improved, and Mosaic expects constructive ag and fertilizer fundamentals in 2025. He noted that the business is positioned well to benefit from good markets this year, with operational and strategic progress being made across various segments.
One of the key highlights from the quarter was the performance of Mosaic's Potash segment. The company's Esterhazy complex, the world's largest potash mine, continued to generate strong cash flow across the commodity cycle. Mosaic also reported record production at its Belle Plaine potash mine, which has been operating at full milling and hoisting capacity since resolving electrical issues experienced in the third quarter.
In an effort to further increase efficiency and drive costs down, Mosaic is investing in various projects to enhance compaction capacity and milling output. The company expects to complete a 400,000-tonne per year Hydrofloat project this year, which will provide additional capacity at Esterhazy. Given affordability trends and supply reductions caused by recent news coming out of Laos, China, Belarus, and Russia, Mosaic believes that potash demand will remain strong.
Despite some uncertainty around Canadian tariffs, the company expects no major demand destruction in the potash market. The potential resolution of the war in Ukraine and Belarus sanctions is also not expected to have a significant impact on global potash supply.
In another segment, Mosaic's Phosphate business saw supply remain tight and demand very strong, leading to prices and stripping margins staying significantly above historic levels for several years. The company has secured its long-term ammonia supply through contracts signed late last year, ensuring reliable supply at competitive rates.
Mosaic is prioritizing the restoration of U.S. phosphate production to historical levels, which was impacted by a challenging recovery from hurricanes Helene and Milton in the fourth quarter. While the pathway to higher levels may not be straight up, Mosaic remains committed to achieving its goals.
