Mosaic Company (The)

Good morning, and welcome to the MOSAIC Company's third quarter 2025 earnings conference call. At this time, all participants have been placed in a listen-only mode. After the company completes their prepared remarks, the lines will be open to take their questions. And now I'll turn the call over to Jason Tremblay. Please go ahead.

Thank you, and welcome to our third quarter 2025 earnings call. Opening comments will be provided by Bruce Bodine, President and Chief Executive Officer. Jenny Wong, Executive Vice President, Commercial, will then cover the market update. Luciano Ciani-Perez, Executive Vice President and Chief Financial Officer, will review financial results and capital allocation progress. We will then open the forum for questions. We will be making forward-looking statements during this conference call. The statements include but are not limited to statements about future financial and operating results. They are based on management's beliefs and expectations as of today's date and are subject to significant risks and uncertainties. Actual results may differ materially from projected results. Factors that could cause actual results to differ materially from those in the forward-looking statements are included in our press release published yesterday in our reports filed with the Securities and Exchange Commission. We will also be presenting certain non-GAAP financial measures. Our press release and performance data also contain important information on these non-GAAP measures. Now I'd like to turn the call over to Bruce.

Good morning. Thank you for joining our call. Mosaic's third quarter results reflect the resilience and strength of our global business, as well as the extraordinary work our teams are delivering to help us operate effectively in a highly dynamic market and geopolitical environment. We've demonstrated the ability to shift tons to regions with the strongest demand and capture value across agricultural and industrial markets. and we're navigating near-term fertilizer affordability issues while looking ahead to positive structural market trends. We remain focused on achieving reliable and consistent production from our assets, leveraging our market access advantage, and executing our capital reallocation strategy, all in the service of creating shareholder value. Let me begin with our key messages for the quarter. First, We've made major investments in acid health, and we are seeing improving reliability. U.S. phosphate production has improved sequentially throughout the year, and we remain focused on driving consistent performance across our phosphate assets. Second, our business in Brazil continues to deliver excellent performance. Adjusted EBITDA increased year over year, and we are managing well despite a challenging credit environment. Third, global potash demand remains very strong, especially in the eastern hemisphere, and we are running near record operating rates to meet that demand and capture value. Fourth, cost discipline remains a priority. We've achieved $150 million in initial cost savings and are on track to achieve our revised $250 million cost savings target by the end of 2026, driven by automation, supply chain optimization, and improve fixed cost absorption as production increases. And finally, we remain committed to disciplined capital allocation. Recent investments, including the Takori Potash mine and the Patos de Minas asset, reflect our commitment to streamlining the portfolio and redeploying capital toward higher return opportunities. To cover our third quarter results, Net income for the third quarter increased to $411 million versus $122 million in the prior year, while adjusted EBITDA in the third quarter rose to $806 million from $448 million a year ago, driven by higher prices across all segments and very strong performance in Mosaic for LaZanches. Let's look briefly at market dynamics. I'll leave the details to Jenny. Phosphate markets remain tight as global supply constraints persist. Key long-term drivers remain intact, including continued growth in LFP battery demand, rising domestic fertilizer demand in China, which is likely to further erode exports, and limited new capacity additions over the next few years. Despite coming off recent highs, phosphate prices remain elevated, and affordability pressure remains a concern. We've seen growers in the U.S. and Brazil cautiously approach seasonal buying, which has moderated prices and impacted the timing of sales volumes. The challenging farm credit situation in Brazil continues to exacerbate this trend. In India, strong shipments in 2025 have largely recovered back closer to historical norms, but we still see a need for substantial replenishment after multiple years of tight supply and under-application. Potash markets are balanced, as good affordability drives demand around the world, particularly in China and Southeast Asia. Potash and phosphate demand should benefit from the strong yields U.S. and Brazilian farmers have generated this year. We expect big crops in North America and Brazil to remove an additional 1.5 million tons of potash and similar amount of phosphate from the soil compared to last year, Growers will need to replenish these nutrients to avoid lower yields next year. For Mosaic, the focus on U.S. phosphate asset health is allowing us to run more reliably and at increased rates. We have experienced three consecutive quarters of production volumes improvement, and volumes for the trailing three-month period ending October have reached approximately 1.8 million tons, which is further improved from the third quarter. we remain committed to return to previously achieved normalized production rates. Our focus now is on consistent and sustainable performance. In Potash, we completed the SREV turnaround in the second quarter, and the new hydroflow system is delivering incremental tons. The resilience of our Brazil business demonstrates our effective commercial strategy and disciplined risk management, including a focus on sales to customers with strong credit profiles. Our team's deep local expertise and long-standing presence in Brazil have been instrumental in navigating market complexities and maintaining profitable growth. While we expect the usual seasonally slower fourth quarter, we expect earnings in this year's fourth quarter to be higher than a year ago. Cost initiatives are progressing across the company. Mosaic for Los Anches continues to generate cost reductions and selling general and administrative expenses declined year over year in the third quarter without the impact of the bad debt expense. We continue to leverage our market access, which is a key strategic advantage for Mosaic, to accelerate growth in Mosaic Biosciences. Revenues for the first nine months more than doubled year over year. We anticipate Mosaic Biosciences will contribute positively to consolidated adjusted EBITDA beginning in the fourth quarter. In addition to strong growth in the Americas, the market for biologicals is growing quickly in China, and we expect India to follow. All in all, we are well positioned for a strong finish to 2025 and a promising 2026 and beyond. Now, I'll turn the call over to Jenny for more detail on agriculture and fertilizer markets.