CF Industries Q2 sales miss estimates as nitrogen volumes fall

CF Industries Holdings

05/08/2026 21:45

Overview
Hydrogen and nitrogen producer's Q2 revenue rose yr/yr but missed analyst expectations
Company repurchased 2.0 mln shares for $230 mln in Q2
Sales volumes fell 15% in Q2 due to lower UAN, AN, and ammonia sales

Outlook
CF Industries expects global nitrogen supply to remain constrained through end-2026 and into 2027
Company projects full-year 2026 gross ammonia production at about 9.5 mln tons
CF Industries forecasts 2026 capital expenditures at $1.3 bln, including joint venture spending

Result Drivers
HIGHER SELLING PRICES - Co said average selling prices rose across all segments due to tight global nitrogen supply-demand balance and supply disruptions related to the conflict with Iran
LOWER SALES VOLUMES - Co said Q2 sales volumes dropped 15% due to lower UAN, AN and ammonia sales, partly from lost product availability at Yazoo City Complex
YAZOO CITY OUTAGE - Co said lower sales volumes partly reflected lost product availability from the Yazoo City Complex outage

Company press release: ID:nBw3Z1QYra

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$2.22 bln
$2.44 bln (9 Analysts)
Q2 EPS
 
$4.73
 
Q2 Net Income
 
$869 mln
 
Q2 Adjusted EBITDA
 
$1.19 bln
 
Q2 Capex
 
$271 mln
 
Q2 EBITDA
 
$1.17 bln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 13 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the agricultural chemicals peer group is "buy."
Wall Street's median 12-month price target for CF Industries Holdings Inc is $123.00, about 4.1% above its August 4 closing price of $118.11
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
Aug 4 - Mosaic posts Q2 decline in revenue, swings to net loss on lower sales volumes
Aug 4 - Chemours Q2 sales flat as lower volumes weigh on results
Aug 5 - Proposed Hormuz deal would give Iran control of inbound traffic, sources say

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)