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Can CF Industries' Strong Cash Flow Drive More Growth and Returns?
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Key Takeaways
CF Industries generated $878 million in operating cash flow in the second quarter of 2026.
CF repurchased $245 million of shares and raised its quarterly dividend 20% to 60 cents.
Strong cash flow and a solid balance sheet support growth investments and shareholder returns.
CF Industries Holdings, Inc. (CF - Free Report) generated healthy cash flow in the second quarter, supported by strong operational performance, strategic execution and supportive nitrogen-industry fundamentals. Its net cash provided by operating activities totaled $878 million in the second quarter. Its cash and cash equivalents were roughly $2.5 billion at the end of the quarter.
Net cash from operating activities rose to $1.37 billion in the first half of 2026 from $1.15 billion a year earlier. The trailing 12-month free cash flow was $1.82 billion. Notably, CF generated net cash from operating activities of $2.75 billion and free cash flow of $1.79 billion in 2025, up roughly 21% and 24% year over year, respectively.
CF’s substantial cash flows and strong balance sheet enable it to finance its strategic growth investment, pay down debt and drive shareholder value. The company returned $1.7 billion to its shareholders in 2025. It repurchased 16.6 million shares for $1.34 billion during 2025.
The company repurchased 2.2 million shares for $245 million in the first half of 2026, including 2 million shares for $230 million in the second quarter. Since the current $2 billion program began in October 2025, the company has repurchased 5.6 million shares for about $523 million, leaving roughly $1.48 billion authorized through 2029 as of June 30, 2026. In July 2026, the board also raised the quarterly dividend by 20% to 60 cents per share, reinforcing management’s stated commitment to return capital while funding high-return investments.
The company is expected to continue generating significant free cash flow, leveraging its high-margin business, strategic execution and favorable global nitrogen industry dynamics. This would allow CF to invest in growth opportunities and enhance returns to its shareholders.
Among its peers, Nutrien Ltd. (NTR - Free Report) generated solid cash flows in the second quarter, thanks to higher fertilizer benchmark pricing. NTR’s cash provided by operating activities was $2.48 billion in the second quarter. Nutrien returned $848 million to its shareholders through dividends and share repurchases in the first half of 2026.
The Mosaic Company’s (MOS - Free Report) cash flow from operating activities totaled $167.4 million in the second quarter, down from $609.5 million a year ago. Mosaic’s free cash flow was negative $152.9 million in the quarter. MOS expects free cash flow to improve through the remainder of 2026, driven by lower capital expenditures and an expected release of working capital.
CF’s Price Performance, Valuation & Estimates
CF Industries has gained 29.1% in the past year compared with the Zacks Fertilizers industry’s decline of 48%.
Image Source: Zacks Investment Research
From a valuation standpoint, CF is currently trading at a forward 12-month earnings multiple of 10.24, a 26.5% discount relative to the industry average of 13.93X. It carries a Value Score of A.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for CF’s 2026 and 2027 earnings implies a year-over-year rise of 57.3% and a decline of 29.6%, respectively. The EPS estimates for 2026 and 2027 have been trending lower over the past 60 days.
Image Source: Zacks Investment Research
CF stock currently carries a Zacks Rank #4 (Sell).
View the Zacks #1 Rank List
Image: Bigstock
Can CF Industries' Strong Cash Flow Drive More Growth and Returns?
Key Takeaways
CF Industries Holdings, Inc. (CF - Free Report) generated healthy cash flow in the second quarter, supported by strong operational performance, strategic execution and supportive nitrogen-industry fundamentals. Its net cash provided by operating activities totaled $878 million in the second quarter. Its cash and cash equivalents were roughly $2.5 billion at the end of the quarter.
Net cash from operating activities rose to $1.37 billion in the first half of 2026 from $1.15 billion a year earlier. The trailing 12-month free cash flow was $1.82 billion. Notably, CF generated net cash from operating activities of $2.75 billion and free cash flow of $1.79 billion in 2025, up roughly 21% and 24% year over year, respectively.
CF’s substantial cash flows and strong balance sheet enable it to finance its strategic growth investment, pay down debt and drive shareholder value. The company returned $1.7 billion to its shareholders in 2025. It repurchased 16.6 million shares for $1.34 billion during 2025.
The company repurchased 2.2 million shares for $245 million in the first half of 2026, including 2 million shares for $230 million in the second quarter. Since the current $2 billion program began in October 2025, the company has repurchased 5.6 million shares for about $523 million, leaving roughly $1.48 billion authorized through 2029 as of June 30, 2026. In July 2026, the board also raised the quarterly dividend by 20% to 60 cents per share, reinforcing management’s stated commitment to return capital while funding high-return investments.
The company is expected to continue generating significant free cash flow, leveraging its high-margin business, strategic execution and favorable global nitrogen industry dynamics. This would allow CF to invest in growth opportunities and enhance returns to its shareholders.
Among its peers, Nutrien Ltd. (NTR - Free Report) generated solid cash flows in the second quarter, thanks to higher fertilizer benchmark pricing. NTR’s cash provided by operating activities was $2.48 billion in the second quarter. Nutrien returned $848 million to its shareholders through dividends and share repurchases in the first half of 2026.
The Mosaic Company’s (MOS - Free Report) cash flow from operating activities totaled $167.4 million in the second quarter, down from $609.5 million a year ago. Mosaic’s free cash flow was negative $152.9 million in the quarter. MOS expects free cash flow to improve through the remainder of 2026, driven by lower capital expenditures and an expected release of working capital.
CF’s Price Performance, Valuation & Estimates
CF Industries has gained 29.1% in the past year compared with the Zacks Fertilizers industry’s decline of 48%.
From a valuation standpoint, CF is currently trading at a forward 12-month earnings multiple of 10.24, a 26.5% discount relative to the industry average of 13.93X. It carries a Value Score of A.
The Zacks Consensus Estimate for CF’s 2026 and 2027 earnings implies a year-over-year rise of 57.3% and a decline of 29.6%, respectively. The EPS estimates for 2026 and 2027 have been trending lower over the past 60 days.
CF stock currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.