CF(US:CF)2025-11-05 22:14Financial Performance - CF Industries reported net earnings of $1.05 billion for the first nine months of 2025, or $6.39 per diluted share, compared to $890 million, or $4.86 per diluted share in the same period of 2024[6]. - Adjusted EBITDA for the first nine months of 2025 was $2.07 billion, up from $1.72 billion in the first nine months of 2024[6]. - Net sales for the first nine months of 2025 were $5.21 billion, an increase from $4.41 billion in the same period of 2024, driven by higher average selling prices and increased sales volumes[7]. - Net sales for the three months ended September 30, 2025, increased to $1,659 million, up 21.1% from $1,370 million in 2024[30]. - Net earnings attributable to common stockholders for the three months ended September 30, 2025, rose to $353 million, a 27.8% increase compared to $276 million in 2024[30]. - Operating earnings for the nine months ended September 30, 2025, were $1,683 million, a 29% increase from $1,305 million in the same period of 2024[54]. - For the twelve months ended September 30, 2025, net cash provided by operating activities was $2,633 million, an increase from $2,331 million in 2024, resulting in a free cash flow of $1,699 million compared to $1,514 million in the previous year[62]. Production and Sales Volumes - Gross ammonia production for the first nine months of 2025 was approximately 7.6 million tons, compared to 7.2 million tons in the same period of 2024[4]. - Sales volume of ammonia for the nine months ended September 30, 2025, increased to 3,325,000 tons, up from 2,845,000 tons in 2024[33]. - Sales volume by product tons for the three months ended September 30, 2025, was 4,504,000 tons, a decrease from 4,797,000 tons in 2024, while for the nine months, it increased to 14,529,000 tons from 14,196,000 tons[67]. Pricing and Margins - Average selling price per product ton for granular urea increased to $450 in Q3 2025, up 36.4% from $330 in Q3 2024[35]. - Adjusted gross margin for granular urea segment was $271 million for the three months ended September 30, 2025, compared to $233 million in 2024, reflecting a 16.3% increase[35]. - Gross margin for the nine months ended September 30, 2025, was $1,959 million, representing a 28.0% increase from $1,532 million in 2024[30]. - Gross margin for the three months ended September 30, 2025, was $230 million, representing a gross margin percentage of 44.5%, compared to 33.0% in 2024[38]. - Adjusted gross margin for the three months ended September 30, 2025, was $289 million, or 55.9% of net sales, compared to 50.2% in 2024[38]. Costs and Expenses - The average cost of natural gas in the first nine months of 2025 was $3.34 per MMBtu, up from $2.38 per MMBtu in the first nine months of 2024[8]. - Average daily market price of natural gas at the Henry Hub for the nine months ended September 30, 2025, was $3.48 per MMBtu, compared to $2.19 per MMBtu in 2024[30]. - Capital expenditures for the nine months ended September 30, 2025, totaled $724 million, significantly higher than $321 million in 2024[30]. - The company incurred capital expenditures of $347 million in Q3 2025, compared to $139 million in Q3 2024[59]. Shareholder Returns and Dividends - CF Industries completed a $3 billion share repurchase program and initiated a new $2 billion program in October 2025[1]. - CF Industries declared a quarterly dividend of $0.50 per common share, payable on November 28, 2025[44]. Future Outlook and Projects - The company expects full-year 2025 gross ammonia production to be approximately 10 million tons[4]. - CF Industries anticipates continued strong global nitrogen demand through 2025 and into 2026, particularly from India and Brazil[27]. - The Blue Point joint venture is set to construct a low-carbon ammonia production facility, with civil construction expected to start in 2026[24]. - The company is focused on completing projects at its Blue Point Complex, including a low-carbon ammonia production facility, which may exceed current capital expenditure estimates[49]. - CF Industries is focused on decarbonizing its ammonia production network to support the transition to clean energy[46]. Conference and Communication - The company plans to hold a conference call on November 6, 2025, to discuss its third quarter and nine-month results[45].