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
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
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
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
CF•
