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CF's Q1 Earnings and Sales Beat Estimates on Higher Prices
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Key Takeaways
CF posted Q1 adjusted EPS of $2.89, topping estimates on 19.4% higher sales.
CF saw higher nitrogen prices from strong demand and geopolitical supply disruptions.
CF expects a tight 2026 nitrogen market amid export cuts and natural gas constraints.
CF Industries Holdings, Inc. (CF - Free Report) reported first-quarter 2026 earnings of $3.98 per share, up from $1.85 in the year-ago quarter.
Barring one-time items, adjusted earnings came in at $2.89 per share. The figure surpassed the Zacks Consensus Estimate of $2.43.
Net sales rose around 19.4% year over year to $1,986 million in the quarter, beating the Zacks Consensus Estimate of $1,766.2 million.
In the first quarter, average selling prices increased from the same period in 2025, driven by strong global nitrogen demand and supply disruptions due to geopolitical issues. However, sales volumes were lower year over year, mainly due to lower urea ammonium nitrate and ammonium nitrate sales.
CF Industries Holdings, Inc. Price, Consensus and EPS Surprise
Net sales in the Ammonia segment increased 20.5% to $627 million in the reported quarter, beating our estimate of $505 million. The adjusted gross margin per ton for ammonia from the year-ago period, mainly due to higher average selling prices, was partially offset by higher maintenance costs and higher realized natural gas costs.
Sales in the Granular Urea segment rose 34.4% year over year to $590 million, surpassing our estimate of $436.2 million. The adjusted gross margin per ton for granular urea increased from the year-ago period, mainly driven by higher average selling prices, though partly offset by higher realized natural gas costs.
Sales in the UAN segment rose around 24.04% year over year to $583 million, beating our estimate of $471.2 million. The adjusted gross margin per ton for UAN increased from the previous year, mainly due to higher average selling prices, partially offset by higher realized natural gas costs.
Sales in the AN segment declined around 42.6% year over year to $58 million, missing our estimate of $100.2 million. The adjusted gross margin per ton for AN declined from the year-ago period, mainly due to costs related to the ongoing outage at the company’s Yazoo City, MS, complex, partially offset by higher average selling prices.
CF’s Financials
As of March 31, 2026, CF Industries’ cash and cash equivalents were $2.04 billion, up 3% year over year. Long-term debt was $3,216 million, flat year over year.
Net cash provided by operating activities was $496 million in the reported quarter, down nearly 15,.4% year over year.
The company repurchased 155,000 shares for $15 million in the first quarter of 2026.
CF’s Outlook
Per CF, the global nitrogen market remains tight in 2026 due to strong demand, geopolitical disruptions and constrained natural gas availability. The Middle East conflict has significantly reduced ammonia and urea exports, while LNG supply disruptions have curtailed nitrogen production in import-dependent regions such as India, Pakistan and Bangladesh.
Higher European gas prices and ongoing supply disruptions in Russia and China are further supporting elevated global nitrogen prices. In North America, nitrogen availability remains stable with average inventory levels and expected U.S. corn plantings of around 95 million acres. India is projected to significantly increase urea imports in 2026 due to low inventories, reduced domestic production and supply shortfalls, although higher prices may weaken demand in some other import regions.
CF’s Price Performance
CF shares have surged 48.5% in the past year compared with an 21.4% rise in the industry.
Image Source: Zacks Investment Research
CF’s Zacks Rank & Other Key Picks
CF currently carries a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks worth a look in the basic materials space are Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) , Idaho Strategic Resources, Inc. (IDR - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
Sociedad is slated to report first-quarter 2026 results on May 26. The Zacks Consensus Estimate for loss is pegged at $1.36 per share, indicating 183.3% year-over-year growth. SQM has a Zacks Rank #2 (Buy) at present.
Idaho is expected to report first-quarter 2026 results on May 14. The Zacks Consensus Estimate for earnings is pegged at 43 cents per share, indicating 258.3% year-over-year growth. IDR sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hawkins is scheduled to report fiscal fourth-quarter results on May 13. The Zacks Consensus Estimate for HWKN’s fourth-quarter earnings is pegged at 77 cents per share. HWKN currently has a Zacks Rank #2.
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CF's Q1 Earnings and Sales Beat Estimates on Higher Prices
Key Takeaways
CF Industries Holdings, Inc. (CF - Free Report) reported first-quarter 2026 earnings of $3.98 per share, up from $1.85 in the year-ago quarter.
Barring one-time items, adjusted earnings came in at $2.89 per share. The figure surpassed the Zacks Consensus Estimate of $2.43.
Net sales rose around 19.4% year over year to $1,986 million in the quarter, beating the Zacks Consensus Estimate of $1,766.2 million.
In the first quarter, average selling prices increased from the same period in 2025, driven by strong global nitrogen demand and supply disruptions due to geopolitical issues. However, sales volumes were lower year over year, mainly due to lower urea ammonium nitrate and ammonium nitrate sales.
CF Industries Holdings, Inc. Price, Consensus and EPS Surprise
CF Industries Holdings, Inc. price-consensus-eps-surprise-chart | CF Industries Holdings, Inc. Quote
CF’s Segment Review
Net sales in the Ammonia segment increased 20.5% to $627 million in the reported quarter, beating our estimate of $505 million. The adjusted gross margin per ton for ammonia from the year-ago period, mainly due to higher average selling prices, was partially offset by higher maintenance costs and higher realized natural gas costs.
Sales in the Granular Urea segment rose 34.4% year over year to $590 million, surpassing our estimate of $436.2 million. The adjusted gross margin per ton for granular urea increased from the year-ago period, mainly driven by higher average selling prices, though partly offset by higher realized natural gas costs.
Sales in the UAN segment rose around 24.04% year over year to $583 million, beating our estimate of $471.2 million. The adjusted gross margin per ton for UAN increased from the previous year, mainly due to higher average selling prices, partially offset by higher realized natural gas costs.
Sales in the AN segment declined around 42.6% year over year to $58 million, missing our estimate of $100.2 million. The adjusted gross margin per ton for AN declined from the year-ago period, mainly due to costs related to the ongoing outage at the company’s Yazoo City, MS, complex, partially offset by higher average selling prices.
CF’s Financials
As of March 31, 2026, CF Industries’ cash and cash equivalents were $2.04 billion, up 3% year over year. Long-term debt was $3,216 million, flat year over year.
Net cash provided by operating activities was $496 million in the reported quarter, down nearly 15,.4% year over year.
The company repurchased 155,000 shares for $15 million in the first quarter of 2026.
CF’s Outlook
Per CF, the global nitrogen market remains tight in 2026 due to strong demand, geopolitical disruptions and constrained natural gas availability. The Middle East conflict has significantly reduced ammonia and urea exports, while LNG supply disruptions have curtailed nitrogen production in import-dependent regions such as India, Pakistan and Bangladesh.
Higher European gas prices and ongoing supply disruptions in Russia and China are further supporting elevated global nitrogen prices. In North America, nitrogen availability remains stable with average inventory levels and expected U.S. corn plantings of around 95 million acres. India is projected to significantly increase urea imports in 2026 due to low inventories, reduced domestic production and supply shortfalls, although higher prices may weaken demand in some other import regions.
CF’s Price Performance
CF shares have surged 48.5% in the past year compared with an 21.4% rise in the industry.
CF’s Zacks Rank & Other Key Picks
CF currently carries a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks worth a look in the basic materials space are Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) , Idaho Strategic Resources, Inc. (IDR - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
Sociedad is slated to report first-quarter 2026 results on May 26. The Zacks Consensus Estimate for loss is pegged at $1.36 per share, indicating 183.3% year-over-year growth. SQM has a Zacks Rank #2 (Buy) at present.
Idaho is expected to report first-quarter 2026 results on May 14. The Zacks Consensus Estimate for earnings is pegged at 43 cents per share, indicating 258.3% year-over-year growth. IDR sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hawkins is scheduled to report fiscal fourth-quarter results on May 13. The Zacks Consensus Estimate for HWKN’s fourth-quarter earnings is pegged at 77 cents per share. HWKN currently has a Zacks Rank #2.