CF Industries Q2 Earnings Call Highlights

CF Industries NYSE: CF reported first-half 2026 adjusted EBITDA of $2.2 billion and second-quarter adjusted EBITDA of $1.2 billion, as tight global nitrogen supply-demand conditions and strong operating performance supported results. Net earnings attributable to common stockholders totaled $1.3 billion, or $8.71 per diluted share, for the first half, including $727 million, or $4.73 per diluted share, in the second quarter, Chief Financial Officer Andrew Scribner said during the company’s earnings call.

President and CEO Chris Bohn said the company operated its available ammonia capacity at nearly 98% during the first half. He also highlighted a trailing 12-month incident rate of 0.16 incidents per 200,000 hours worked, which he said was below industry averages.

Chief Commercial Officer Bert Frost said global nitrogen prices rose during the first half as an already-tight market was further constrained by supply disruptions associated with the conflict with Iran. While some customers in regions with later application seasons deferred purchases amid higher prices, North American agricultural demand remained strong through most of the period, particularly for ammonia and urea. CF Industries shifted production toward urea from UAN during the first half, Frost said, while also delivering its second-highest first-half diesel exhaust fluid, or DEF, volumes. DEF was the company’s highest-margin product during the period. Purchasing slowed in North America during June as the nitrogen distribution channel reduced inventories to low levels. However, Frost said those inventory positions supported strong participation in the company’s UAN and ammonia fill programs in July. CF Industries built a UAN order book extending into November and expects a strong fall ammonia season, he said.

The company expects the global nitrogen market to remain tight into 2027. Frost cited higher capital costs, permanent capacity closures, limited new capacity additions, geopolitical uncertainty, elevated logistics and insurance costs, and high liquefied natural gas prices affecting marginal producers. China is expected to export urea volumes similar to last year, according to Frost. While those exports are needed to meet global demand, he said they are not expected to materially loosen market conditions. CF Industries also expects purchasing activity to recover in deferred markets, including Brazil and India, while North American demand remains firm through upcoming application seasons.

Management raised its baseline mid-cycle outlook, projecting approximately $2.9 billion in EBITDA and $1.7 billion in free cash flow. Scribner said the revised outlook reflects higher construction costs...