CF(US:CF)2025-11-06 19:12Financial Performance - Net sales for Q3 2025 reached $1,659 million, a 21.1% increase from $1,370 million in Q3 2024[10] - Gross margin improved to $632 million in Q3 2025, up 42.5% from $444 million in Q3 2024[10] - Net earnings attributable to common stockholders increased to $353 million in Q3 2025, compared to $276 million in Q3 2024, representing a 27.9% growth[10] - Basic earnings per share rose to $2.19 in Q3 2025, up from $1.55 in Q3 2024, reflecting a 41.3% increase[10] - Net earnings for the nine months ended September 30, 2025, were $1,303 million, compared to $1,085 million for the same period in 2024, representing a 20% increase[20] - Total revenue for the three months ended September 30, 2025, was $1,659 million, a 21.1% increase from $1,370 million in the same period of 2024[29] - For the nine months ended September 30, 2025, total revenue reached $5,212 million, up 18.1% from $4,412 million in the prior year[29] - Diluted net earnings per share attributable to common stockholders increased by $0.64 per share, or 41%, to $2.19 per share in the third quarter of 2025 compared to $1.55 per share in the third quarter of 2024[130] - The company reported net earnings attributable to common stockholders of $1.05 billion for the nine months ended September 30, 2025, compared to $890 million for the same period in 2024[131] Assets and Equity - Total assets as of September 30, 2025, were $14,203 million, an increase from $13,466 million at the end of 2024[14] - Cash and cash equivalents increased to $1,838 million as of September 30, 2025, compared to $1,614 million at the end of 2024[14] - Total stockholders' equity decreased slightly to $4,849 million as of September 30, 2025, from $4,985 million at the end of 2024[14] Cash Flow and Dividends - Net cash provided by operating activities for the nine months ended September 30, 2025, was $2,213 million, up from $1,851 million in 2024, indicating a 20% growth[20] - The company paid dividends of $248 million on common stock during the nine months ended September 30, 2025, compared to $278 million in 2024, a decrease of about 11%[20] - Dividends declared per common share remained stable at $0.50 for both Q3 2025 and Q3 2024[10] Costs and Expenses - The company reported a depreciation and amortization expense of $670 million for the nine months ended September 30, 2025, compared to $704 million in 2024, reflecting a decrease of approximately 5%[20] - Selling, general and administrative expenses rose by $10 million to $88 million in Q3 2025, attributed to higher incentive compensation[148] - Total other operating costs and expenses for the three months ended September 30, 2025, were $58 million, down from $82 million in 2024, a decrease of 29.3%[91] Segment Performance - The ammonia segment reported net sales of $457 million for the three months ended September 30, 2025, a 29.5% increase from $353 million in 2024[87] - Net sales in the Granular Urea segment increased by $35 million, or 9%, to $423 million in Q3 2025 from $388 million in Q3 2024, driven by a 36% increase in average selling prices[194] - Net sales in the UAN segment increased by $111 million, or 27%, to $517 million in Q3 2025 from $406 million in Q3 2024, primarily due to a 46% increase in average selling prices[202] Natural Gas Costs - The cost of natural gas used for production increased by 41% to $2.96 per MMBtu in the third quarter of 2025 from $2.10 per MMBtu in the third quarter of 2024, resulting in a decrease in gross margin of $73 million[126] - The average daily market price of natural gas at Henry Hub was $3.03 per MMBtu in the third quarter of 2025, a 46% increase from $2.08 per MMBtu in the same quarter of 2024[126] Carbon Capture and Sustainability Initiatives - The company is focused on decarbonizing its ammonia production network to enable low-carbon hydrogen and nitrogen products, supporting its mission for sustainable energy[22] - The Donaldsonville complex's carbon capture and sequestration (CCS) project is expected to produce up to approximately 1.9 million tons of low-carbon ammonia annually, with a total project cost of approximately $200 million[98] - The Yazoo City CCS project is expected to commence in 2028, with an estimated cost of approximately $100 million, enabling the sequestration of up to 500,000 metric tons of CO2 annually[103] Debt and Financing - The company has a Revolving Credit Agreement with commitments of up to $750 million, maturing on September 4, 2030, with no outstanding borrowings as of September 30, 2025[59] - As of September 30, 2025, the company had unused borrowing capacity of $750 million under the Revolving Credit Agreement[61] - The fair value of long-term debt as of September 30, 2025, was $2.923 billion, slightly lower than the carrying amount of $2.974 billion[50] Share Repurchase Program - The company repurchased approximately 12.5 million shares for $1 billion in the nine months ended September 30, 2025[82] - The 2022 Share Repurchase Program authorized up to $3 billion, completed in October 2025, with a new program of $2 billion commencing thereafter[80]