13 Best Magnesium Stocks to Buy Right Now

3. The Mosaic Company (NYSE:MOS)

Number of Hedge Fund Holders: 41

The Mosaic Company (NYSE:MOS) is a dominant producer of concentrated phosphate and potash crop nutrients, catering to agricultural markets in North America and internationally. The company operates through three segments, including Mosaic Fertilizantes, Phosphates, Potash, manufacturing fertilizers, animal feed ingredients, and industrial-use potash products. Under the K-Mag brand, it also offers magnesium-based crop solutions.

The Mosaic Company (NYSE:MOS) recorded a net income of $169 million and adjusted EBITDA of $594 million, reflecting solid Q4 results, ending December 31, 2024. Potash maintained a steady cash flow despite lower prices, while the phosphate segments took advantage of strong pricing. Moreover, with underlying performance reaching $120 million after FX adjustments, Mosaic Fertilizantes reported an adjusted EBITDA of $82 million.

Furthermore, The Mosaic Company (NYSE:MOS) made progress in strategic initiatives to enhance its portfolio and expand production. The Ma’aden transaction achieved a $522 million gain and $1.5 billion in shares. The company is also working toward divesting its Patos de Minas site in Brazil and evaluating other options for its Carlsbad, New Mexico, potash mine. In contrast, in 2025, Mosaic targets 7.2-7.6 million tons of phosphate production while improving reliability in Florida and Louisiana. The Esterhazy expansion will contribute 900,000 tons of capacity. With a $200 million capex cut and $150 million in targeted savings, cost reduction remains a priority.

Additionally, market conditions remain favorable, driven by rising corn and soybean prices. Moreover, Chinese export restrictions have resulted in limited supply in Phosphate markets, whereas potash has taken advantage of constrained supply in Russia, China, and Belarus. Biosciences expansion progresses with twice the revenue and acreage in 2024, and further growth is anticipated in 2025.

However, The Mosaic Company (NYSE:MOS) is well-positioned for 2025, despite the weather-related disruptions and geopolitical risks. Mosaic is positioned for better performance in the coming quarters by ensuring operational reliability and favorable pricing trends.