Key Takeaways
- CF Industries reported Q1 2026 net earnings of $615 million ($3.98 diluted EPS), EBITDA of $1.01 billion, and adjusted EBITDA of $983 million – nearly double Q1 2025 levels – with results boosted by an approximately $170 million litigation settlement gain.
- Net sales rose 19% to $1.99 billion, driven by higher average selling prices across all segments amid a tight global nitrogen supply-demand balance further strained by the conflict with Iran.
- Gross ammonia production reached approximately 2.5 million tons, representing 99% utilization of available capacity; full-year 2026 production is expected at approximately 9.5 million tons due to the ongoing Yazoo City Complex outage.
- The Blue Point low-carbon ammonia joint venture with JERA and Mitsui is progressing, with site infrastructure installation underway and civil construction expected to begin later in 2026.
- CF Industries launched its first commercial certified low-carbon UAN collaboration with PepsiCo, enabling a lower carbon footprint across Frito-Lay's U.S. potato supply chain.
CF Industries Posts Strong Q1 2026 Results Amid Global Nitrogen Supply Crunch
CF Industries Holdings, Inc. (NYSE: CF) reported Q1 2026 net earnings attributable to common stockholders of $615 million, or $3.98 per diluted share, with EBITDA of $1.01 billion and adjusted EBITDA of $983 million. Results include a gain of approximately $170 million from a litigation settlement. By comparison, Q1 2025 net earnings were $312 million ($1.85 diluted EPS), with adjusted EBITDA of $644 million. Net sales for the quarter were $1.99 billion, up 19% from $1.66 billion a year ago.
“The CF Industries team continued to deliver safely outstanding operational performance in the first quarter of 2026 against a backdrop of strong global nitrogen demand and tight global nitrogen supply as we entered the year. The conflict with Iran has further constrained global nitrogen supply and exposed the fragile nature of the global nitrogen supply chain. We remain focused on safe operations and high asset utilization across our low-cost North American-based manufacturing and distribution network, enabling CF Industries to continue to be a reliable supplier to customers and to create substantial value for long-term shareholders,” said Chris Bohn, President and CEO of CF Industries.
Segment Performance
The Ammonia segment posted net sales of $627 million on volumes of 1.1 million product tons. Average selling price rose to $568 per product ton from $454 in Q1 2025. Adjusted gross margin reached $287 million, or 45.8% of net sales, up from $235 million in the prior year period.
The Granular Urea segment reported net sales of $590 million, with volumes of 1.29 million product tons – higher than Q1 2025 due to greater supply availability and a product mix shift toward granular urea. Average selling price increased to $457 per ton from $390. Adjusted gross margin was $330 million, or 55.9% of net sales.
The UAN segment delivered net sales of $583 million despite lower volumes of 1.67 million product tons, as average selling price surged to $349 per ton from $251 in Q1 2025. Adjusted gross margin improved sharply to $313 million, or 53.7% of net sales, from $216 million a year ago.
The AN segment was the most affected by the Yazoo City outage, with sales volumes falling to 130,000 product tons from 328,000 in Q1 2025. Despite higher average selling prices, the segment posted an adjusted gross margin loss of $8 million due to ongoing outage-related costs.
Operations and Yazoo City Outage
Gross ammonia production for Q1 2026 was approximately 2.5 million tons, representing 99% utilization of available capacity. Full-year 2026 production is expected at approximately 9.5 million tons, reduced from prior levels due to the ongoing outage at the Yazoo City, Mississippi Complex following a late 2025 incident. Production is not expected to resume at Yazoo City until late Q4 2026 at the earliest, pending fabrication and delivery of required equipment.
Blue Point JV and Strategic Initiatives
The Blue Point low-carbon ammonia joint venture – in which CF Industries holds a 40% stake alongside JERA (35%) and Mitsui (25%) – is advancing at CF Industries' complex in Modeste, Louisiana. Site infrastructure installation has begun, with civil construction targeted to start later in 2026. Full-year capital expenditures are projected at approximately $1.3 billion in total, with approximately $950 million attributable to CF Industries excluding the portions funded by joint venture partners.
CF Industries also launched its first commercial certified low-carbon UAN collaboration with PepsiCo, making low-carbon UAN available to farmers supplying Frito-Lay's U.S. potato supply chain. The product has been certified by the Verified Ammonia Carbon Intensity Program.
Nitrogen Market Outlook For CF Industries
CF Industries said the global nitrogen supply-demand balance remains significantly tighter than at the start of the year. The conflict in the Middle East has curtailed an estimated 50-60% of ammonia and urea capacity in the region as of March. Combined with ongoing Russian supply disruptions, Chinese export restrictions, and reduced LNG availability affecting production in India, Pakistan, and Bangladesh, the company expects the nitrogen market to remain tighter than previously forecast in the near and medium term. Management expects India to import 10-12 million metric tons of urea in 2026, up from 2025 levels.
Read the company's financial results here.
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