First half 2026 and second quarter 2026
Filed Aug 5, 2026CF Industries Holdings, Inc. Reports First Half 2026 Net Earnings of $1.34 Billion, Adjusted EBITDA of $2.18 Billion
First-half and second-quarter net sales, net earnings, EBITDA and adjusted EBITDA were higher than the comparable 2025 periods, supported by higher selling prices amid constrained global nitrogen supply. Results included a gain of approximately $170 million from a litigation settlement, while lower volumes, the Yazoo City outage, higher maintenance costs and higher first-half natural gas costs remain important offsets.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| First half 2026 net salesGAAP | $4.21 billion | – | – |
| First half 2026 net earnings attributable to common stockholdersGAAP | $1.34 billion | – | – |
| First half 2026 diluted earnings per shareGAAP | $8.71 per diluted share | – | – |
| First half 2026 EBITDAnon-GAAP | $2.17 billion | – | – |
| First half 2026 adjusted EBITDAnon-GAAP | $2.18 billion | – | – |
| First half 2026 litigation settlement gainother | approximately $170 million | – | – |
| First half 2026 sales volumesother | 11% lower | – | 11% lower than in the first half of 2025 |
| First half 2026 sales volumes excluding lost product availability from Yazoo City Complexother | approximately 5% lower | – | approximately 5% lower than the first half of 2025 |
| First half 2026 average cost of natural gas in cost of sales, including realized derivativesother | $4.01 per MMBtu | – | – |
| Second quarter 2026 net salesGAAP | $2.22 billion | – | – |
| Second quarter 2026 net earnings attributable to common stockholdersGAAP | $727 million | – | – |
| Second quarter 2026 diluted earnings per shareGAAP | $4.73 per diluted share | – | – |
| Second quarter 2026 EBITDAnon-GAAP | $1.17 billion | – | – |
| Second quarter 2026 adjusted EBITDAnon-GAAP | $1.19 billion | – | – |
| Second quarter 2026 sales volumesother | 15% lower | – | 15% lower in the second quarter of 2026 compared to the second quarter of 2025 |
| Second quarter 2026 sales volumes excluding lost product availability from Yazoo City Complexother | approximately 9% lower | – | approximately 9% lower than the second quarter of 2025 |
| Second quarter 2026 average cost of natural gas in cost of sales, including realized derivativesother | $3.37 per MMBtu | – | – |
| Gross ammonia production, first half 2026other | approximately 4.9 million tons | – | – |
| Gross ammonia production, second quarter 2026other | 2.4 million tons | – | – |
| Available ammonia capacity utilization, year-to-dateother | 98% | – | – |
| Trailing twelve-month recordable incident rate as of June 30, 2026other | 0.16 incidents per 200,000 work hours | – | – |
Full year 2026 outlook
- NoteGross ammonia production: approximately 9.5 million tons
- NoteCapital expenditures: approximately $1.3 billion
- NoteCapital expenditures related to activities within the Company’s existing network: approximately $550 million
- NoteTotal estimated capital expenditures of the Blue Point One joint venture: approximately $600 million
- NoteCapital expenditures related to wholly owned Blue Point common facilities: approximately $150 million
- NoteCapital expenditures for CF Industries, excluding the portion of capital expenditures funded by JERA and Mitsui: approximately $950 million
- NoteCapitalized interest as capital expenditures: approximately $40 million
Capital returns
- Repurchased 2.2 million shares for $245 million during the first half of 2026.
- Repurchased 2.0 million shares for $230 million during the second quarter of 2026.
- Since CF Industries commenced its current $2 billion share repurchase program in October 2025, the Company has repurchased 5.6 million shares for approximately $523 million.
- As of June 30, 2026, approximately $1.48 billion remains under the program, which expires in December 2029.
- Declared quarterly dividend of $0.60 per share of common stock in July 2026, a 20% increase over prior quarterly dividend.
- A semi-annual distribution payment to CHS Inc. of $246 million for the distribution period ended June 30, 2026 was paid on July 31, 2026.
What drove it
- Average selling prices were higher than the comparable 2025 periods due to a tight global nitrogen supply-demand balance, further tightened by supply disruptions related to the conflict with Iran.
- First-half volume declines in UAN, ammonium nitrate, and ammonia were partially offset by higher granular urea and other sales.
- Second-quarter volume declines in UAN, AN and ammonia were partially offset by higher granular urea and other sales.
- Global nitrogen prices increased from mid-February 2026 into the second quarter of 2026 as the conflict with Iran tightened supply-demand conditions during the peak Northern Hemisphere application season.
- Management expects nitrogen supply to remain constrained and demand to remain constructive through the end of 2026 and into 2027.
Concerns
- Sales volumes were lower in both the first half and second quarter of 2026, including lost product availability from the Yazoo City Complex.
- The Yazoo City, Mississippi, Complex remained subject to an ongoing outage following an incident in November 2025.
- First-half cost of sales was higher due primarily to higher maintenance costs, including the extended Yazoo City outage, and higher realized natural gas costs.
- Management expects Middle East nitrogen supply to remain below pre-conflict levels due to continued hostilities, uncertainty around transit through the Strait of Hormuz, and the time required to restore production facilities.
- The Company expects higher shipping costs from the Middle East region to persist over the longer term.
What to watch
- Management expects the Yazoo City Complex to resume ammonia, ammonium nitrate solution, nitric acid, urea ammonium nitrate solution and urea liquor production during the first half of 2027.
- The Company is finalizing restoration cost estimates for the Yazoo City Complex and expects a substantial portion of the cost will be covered by insurance.
- The Yazoo City Complex carbon capture and sequestration project is expected to start up in 2028.
- Blue Point One received permits necessary to commence construction at the Blue Point Complex in August.
- The effect of Middle East supply disruptions and returning supply on global nitrogen prices and the supply-demand balance.
Balance sheet and cash flow
- Trailing twelve months net cash from operating activities of $2.98 billion.
- Free cash flow of $1.82 billion for the same period, which includes cash inflows and outflows associated with the Blue Point One joint venture.
- Cash and cash equivalents as of June 30, 2026 were $2.48 billion, of which $341 million was held by the Blue Point One joint venture.
- Capital expenditures in the second quarter and first half of 2026 were $271 million and $494 million, respectively.
- Second-quarter and first-half capital expenditures attributable to the Blue Point One joint venture were $78 million and $143 million, respectively.
- CF Industries Existing Operations capital expenditures were $146 million for the three months ended June 30, 2026 and $278 million for the six months ended June 30, 2026.
- Blue Point Common Facilities capital expenditures were $39 million for the three months ended June 30, 2026 and $59 million for the six months ended June 30, 2026.
- Capitalized interest was $8 million for the three months ended June 30, 2026 and $14 million for the six months ended June 30, 2026.
Analysis
CF Industries reported materially higher first-half and second-quarter financial results versus the comparable 2025 periods. First-half net sales were $4.21 billion, net earnings attributable to common stockholders were $1.34 billion, and adjusted EBITDA was $2.18 billion. Second-quarter net sales were $2.22 billion, net earnings attributable to common stockholders were $727 million, and adjusted EBITDA was $1.19 billion. First-half results included a gain of approximately $170 million from a litigation settlement.
Pricing was the principal reported demand and earnings driver. The company said average selling prices increased across all segments in the second quarter and were higher in the first half because a tight global nitrogen supply-demand balance was further constrained by disruptions related to the conflict with Iran. Volumes moved in the opposite direction, declining 11% in the first half and 15% in the second quarter, led by lower UAN, AN and ammonia sales. Excluding lost availability from Yazoo City, volume declines were approximately 5% for the first half and approximately 9% for the quarter.
Operations remained strong outside the production impact from Yazoo City. The company produced approximately 4.9 million tons of gross ammonia during the first half and 2.4 million tons in the second quarter, while operating at a 98% utilization rate of available ammonia capacity year-to-date. The extended Yazoo City outage increased maintenance costs and constrained product availability. Management expects the complex to resume listed product production during the first half of 2027 and is finalizing restoration cost estimates, with a substantial portion expected to be covered by insurance.
Cash generation and shareholder distributions were substantial, with trailing-twelve-month net cash from operating activities of $2.98 billion and free cash flow of $1.82 billion. The company repurchased 2.2 million shares for $245 million in the first half, raised the quarterly dividend to $0.60 per share in July 2026, and had approximately $1.48 billion remaining under its repurchase authorization as of June 30, 2026. Capital spending is increasing with Blue Point One, as management projects approximately $1.3 billion of full-year 2026 capital expenditures, including approximately $600 million of total estimated spending by the joint venture.
The market outlook remains constructive in management’s view, although nitrogen prices had fallen back to pre-conflict levels by the end of the second quarter as seasonal Northern Hemisphere demand declined and expectations increased for returning Middle East supply. Management expects supply to remain constrained and demand constructive through the end of 2026 and into 2027. Key variables are restoration of Middle East production and shipping routes, the duration of the Yazoo City outage, production progress at Blue Point, and whether higher pricing continues to offset lower sales volumes and cost pressures.
Management, verbatim
The CF Industries team operated safely and delivered excellent operational results despite rapidly changing customer dynamics. We believe the Company is positioned extremely well in the near- and longer-term, with our premium-grade North American asset base, disciplined strategic growth opportunities, including Blue Point, and strong balance sheet. As a result, we believe CF Industries will continue to generate substantial free cash flow, enabling us to build on our strong track record of investing in high-return initiatives and returning capital to shareholders through share repurchases and our increased quarterly dividend.
Chris Bohn, president and chief executive officer, CF Industries Holdings, Inc.
Not in the filing
stated, not guessed- Segment revenue and segment-level financial results were not included in the provided filing text.
- Gross profit, gross margin, operating income, operating margin, income tax expense and effective tax rate were not included in the provided filing text.
- Debt and total liquidity were not included in the provided filing text.
- Revenue, gross margin, operating expenses and tax-rate guidance were not provided.
- Prior-quarter comparisons for reported first-half and second-quarter financial metrics were not provided.
- A previous outlook section was not provided, so comparison with prior guidance is unavailable.
- The filing text is truncated and does not include the remainder of the nitrogen market outlook, financial statements, or non-GAAP reconciliations.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.