CF Industries shares tumble on Q2 earnings miss

Published 06/08/2025, 23:12
CF Industries shares tumble on Q2 earnings miss

Investing.com -- CF Industries Holdings Inc (NYSE:CF) shares fell 3.8% after the global manufacturer of hydrogen and nitrogen products reported second-quarter earnings that missed analyst expectations, despite revenue exceeding forecasts.

The company posted earnings per share of $2.37 for the second quarter, falling short of the $2.40 analyst consensus. Revenue came in at $1.89 billion, surpassing the consensus estimate of $1.78 billion and marking a 20% increase from $1.57 billion in the same quarter last year.

"The CF Industries team worked safely and delivered outstanding operational performance against the backdrop of constructive global nitrogen industry dynamics, helping drive strong financial results in the first half of 2025," said Tony Will, president and chief executive officer.

The company’s gross ammonia production for the second quarter was 2.6 million tons, unchanged from the same period in 2024. However, sales volumes increased to 5.02 million tons from 4.88 million tons a year earlier, driven primarily by higher UAN and ammonia sales.

CF Industries faced significantly higher natural gas costs during the quarter, with the average cost reflected in its cost of sales rising to $3.36 per MMBtu compared to $1.90 per MMBtu in the second quarter of 2024.

The company continued its share repurchase program, buying back 2.8 million shares for $202 million during the quarter. Since beginning its current $3 billion program in the second quarter of 2023, CF Industries has repurchased 32.6 million shares for approximately $2.6 billion.

In July 2025, the company announced the start-up of its carbon capture and sequestration project at the Donaldsonville Complex in Louisiana, which enables the transportation and permanent geological sequestration of up to 2 million metric tons of CO2 annually.

Looking ahead, management expects the global nitrogen supply-demand balance to remain constructive, supported by strong global demand, low global nitrogen inventories, and continued supply constraints in key production regions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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