Mosaic (NYSE: MOS) shares surged 5.02% in Tuesday's trading session following the company's strong first-quarter earnings report and improved outlook for its potash business. The fertilizer producer's performance exceeded Wall Street expectations, driven by the strength of its South America operations and positive market forecasts.

Mosaic reported adjusted earnings of $0.49 per share for the quarter ended March 31, surpassing analysts' estimates of $0.45 per share. The company's adjusted EBITDA reached $544 million, significantly higher than the expected $506.6 million. Despite a slight decrease in revenue to $2.62 billion, down 2.2% year-over-year, Mosaic's South America fertilizer segment showed impressive growth, with adjusted core profit rising to $122 million from $83 million a year earlier.

In response to strong international demand and robust prices, Mosaic raised its 2025 potash production volume outlook. The company now forecasts potash production to range between 9 million and 9.4 million tonnes, up from the previous projection of 8.7 million to 9.1 million tonnes. This optimistic outlook, coupled with the expectation of continued strength in agriculture and fertilizer markets despite global trade uncertainties, has boosted investor confidence in Mosaic's growth prospects.