CF Industries Reports Q1 2025 Results & Advances Low-Carbon Ammonia Strategy

Key Takeaways

• CF Industries reported Q1 2025 net earnings of $312 million and adjusted EBITDA of $644 million.
• Sales increased to $1.66 billion, driven by higher selling prices and production volumes.
• The company authorized a new $2 billion share repurchase program, effective through 2029.
• A joint venture with JERA and Mitsui was formed to develop a $4 billion low-carbon ammonia facility at the Blue Point Complex.
• Dividend of $0.50 per share declared, payable on May 30, 2025.

CF Industries delivers strong first quarter driven by higher volumes and prices

CF Industries Holdings, Inc. (NYSE: CF) announced financial results for the first quarter of 2025, posting net earnings of $312 million, or $1.85 per diluted share, up from $194 million in Q1 2024. Adjusted EBITDA reached $644 million, also higher year-over-year.

Net sales rose to $1.66 billion, supported by increased global fertilizer demand, tight market supply conditions, and higher average selling prices across most product categories. Gross ammonia production totaled approximately 2.6 million tons for the quarter, an increase from 2.1 million tons in the same period last year.

Tony Will, President and CEO, stated, “CF Industries delivered strong results while advancing our clean energy growth initiatives, including the Blue Point joint venture. Our cost-advantaged network positions us to continue creating long-term value for shareholders.”

Joint venture accelerates low-carbon ammonia investment

In April 2025, CF Industries formed a joint venture with JERA Co., Inc. and Mitsui & Co., Ltd. to construct a low-carbon ammonia plant at its Blue Point Complex in Louisiana.

The $4 billion autothermal reforming (ATR) facility will have a nameplate capacity of 1.4 million metric tons annually and integrate carbon capture and sequestration (CCS) technology. CF Industries will operate the plant and invest $550 million in supporting infrastructure.

Production is scheduled to begin in 2029, with each partner independently handling product offtake. The plant is expected to qualify for Section 45Q tax credits for CO2 sequestration.

Capital management highlights strong cash flow

In the first quarter of 2025, CF Industries repurchased 5.4 million shares for $434 million as part of its existing $3 billion buyback program. The Board also approved a new $2 billion share repurchase authorization through 2029.

The company generated $2.41 billion in trailing twelve-month net cash from operations and $1.57 billion in free cash flow. Capital expenditures totaled $132 million during the quarter and are projected at $800–$900 million for the year, reflecting investment in Blue Point and other projects.

A dividend of $0.50 per share was declared and will be paid on May 30, 2025.

Market outlook remains favorable for nitrogen products

CF Industries anticipates continued strength in global nitrogen markets due to tight supply and stable demand:

• North American spring planting is expected to drive strong nitrogen consumption.
• Brazil’s urea imports are forecast to exceed 8 million metric tons in 2025.
• India may increase imports due to lower domestic production and higher sales.
• China’s ongoing export controls are limiting global urea availability.
• In Europe, production rates are expected to remain below historical averages.

The company believes its North American cost advantage will support strong margin opportunities, while long-term demand growth from both traditional and clean energy markets will tighten global supply-demand balances.

Decarbonization projects advance at key facilities for CF Industries

CF Industries continues to progress on carbon reduction initiatives:

• Donaldsonville Complex CO2 capture project is in advanced commissioning and will capture up to 2 million metric tons annually.
• Yazoo City Complex project, expected to start in 2028, will capture up to 500,000 metric tons annually.
• Verdigris Complex N2O abatement project is expected to reduce CO2-equivalent emissions by 600,000 metric tons per year beginning in 2025.

These projects align with the company’s broader strategy to lower its carbon footprint and meet growing demand for low-carbon fertilizers.

Read the complete financial results here.