01—Abstract
Summary
Summary of the 10-Q filed August 6, 2026. Cited figures are marked; the original filing is the authoritative source.
CF Industries Holdings, Inc. reported a substantially stronger second quarter of 2026, with net sales of $2.22 billiona, up 18% from $1.89 billion in the second quarter of 2025, and gross margin of $1.15 billion, up 52% from $755 million.
The increase was driven primarily by higher average selling prices, which rose 39% to $523b per ton, partially offset by a 15% decline in sales volume to 4.3 million tons. Net earnings attributable to common stockholders were $727 million, or $4.73 diluted earnings per share, compared to $386 million, or $2.37 per share, a year earlier. The filing attributes the pricing strength to a tight global nitrogen supply balance following the conflict with Iran, which constrained Middle East fertilizer exports, though the filing notes nitrogen prices declined near the end of the second quarter.
Second-quarter results also included $50 millionc of business interruption insurance recoveries and a $23 million asset impairment related to the idled Yazoo City complex, which is being rebuilt with production expected to resume in the first half of 2027. For the first six months, the company recognized a $170 million litigation settlement gain from an Orica settlement, and diluted EPS was $8.71. Cash and cash equivalents rose to $2.48 billion at June 30, 2026, and the company repurchased $245 million of stock in the first half.
The board declared a quarterly dividend increase to $0.60d per share from $0.50. The Blue Point low-carbon ammonia joint venture, in which CF holds a 40% interest and consolidates, is estimated to cost approximately $3.7 billion, with low-carbon ammonia production expected to begin in 2029. The filing also discloses a July 2026 lawsuit seeking a preliminary injunction against the permits for the Blue Point complex, and a putative antitrust class action filed in March 2026 related to nitrogen, phosphorus and potassium fertilizer.
02—Key points
Key Highlights
- Net sales of $2.22 billion in Q2 2026, up 18% year over year, driven by a 39% increase in average selling price to $523 per ton, partly offset by a 15% decline in sales volume to 4.3 million tons.
- Gross margin of $1.15 billion in Q2 2026, up $390 million or 52%, with gross margin percentage of 51.5% versus 39.9% a year earlier.
- Diluted EPS of $4.73 in Q2 2026 versus $2.37, with diluted weighted-average shares down 6% to 153.9 million due to repurchases.
- Q2 2026 included $50 million of business interruption insurance recoveries and a $23 million asset impairment tied to the idled Yazoo City complex; production there is expected to resume in the first half of 2027.
- Six-month results include a $170 million litigation settlement gain and $43 million of 45Q tax credits recorded in other operating income.
- Cash and cash equivalents of $2.48 billion at June 30, 2026, up from $1.98 billion at December 31, 2025, with $750 million of unused revolver capacity.
- Quarterly dividend increased to $0.60 per share from $0.50, payable August 31, 2026; the company also has $523 million repurchased under the 2025 program to date.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, CF Industries Holdings kept $0.33.
- Revenue$2.22B100.0%
- Cost of revenue−$1.08B48.5%
- Gross profit$1.15B51.5%
- Operating costs−$24.0M1.1%
- Operating income$1.12B50.5%
- Interest, other & tax−$394.0M17.7%
- Net income$727.0M32.7%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 6, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $2.22B$1.89B | +17.6% |
| Cost of Revenue | $1.08B$1.14B | −5.1% |
| Gross Profit | $1.15B$755.00M | +51.7% |
| SG&A Expenses | $89.00M$101.00M | −11.9% |
| Operating Income | $1.12B$648.00M | +73.0% |
| Interest Expense | $50.00M$36.00M | +38.9% |
| Net Income | $727.00M$386.00M | +88.3% |
| EPS (Basic) | $4.74$2.37 | +100.0% |
| EPS (Diluted) | $4.73$2.37 | +99.6% |
| Shares Outstanding (Basic) | 153.60M162.90M | −5.7% |
| Shares Outstanding (Diluted) | 153.90M163.10M | −5.6% |
05—Questions
Frequently Asked Questions
What drove the increase in CF Industries' second-quarter 2026 earnings?
Net earnings attributable to common stockholders rose to $727 million from $386 million, driven mainly by a $390 million increase in gross margin from higher average selling prices, plus $50 million of business interruption insurance recoveries. These were partly offset by a higher tax provision and a $23 million impairment at Yazoo City.
What is the status of the Yazoo City plant and its financial impact?
The Yazoo City complex has been idle since a November 2025 incident in the AN upgrade area. Management approved a rebuild plan in the second quarter of 2026 and expects production to resume in the first half of 2027. The company has received $75 million of initial insurance proceeds and expects further proceeds over the rebuilding period.
What are the main risks to the Blue Point low-carbon ammonia project?
The filing estimates the facility's cost at approximately $3.7 billion, with production expected in 2029. A lawsuit filed July 21, 2026 seeks a preliminary injunction to suspend the final permits and rescind a Corps of Engineers determination, and its outcome cannot currently be predicted. The filing also lists risks including schedule and budget overruns and funding of joint venture capital needs.
What legal exposure does the company disclose beyond Blue Point?
In March 2026, putative class actions were filed against CF Holdings and other fertilizer producers alleging conspiracy to restrain trade under the Sherman Act, consolidated in the District of Kansas. The company disputes the allegations and states it cannot estimate potential losses at this time.
How strong is the balance sheet and capital return position?
Total equity was $8.92 billion and long-term debt was $3.22 billion at June 30, 2026. The company repurchased $245 million of stock in the first half of 2026 and declared a dividend of $0.60 per share, and it was in compliance with all covenants under its revolving credit agreement and senior notes.
06—Continue