Core Insights - CF Industries Holdings, Inc. reported fourth-quarter 2025 earnings of $2.59 per share, an increase from $1.89 in the same quarter last year, with adjusted earnings at $2.99 per share, surpassing the Zacks Consensus Estimate of $2.50 [1][8] - Net sales rose approximately 22.8% year over year to $1,872 million, exceeding the Zacks Consensus Estimate of $1,788.1 million [1][8] Sales Performance - Average selling prices increased due to strong global nitrogen demand and supply disruptions from geopolitical issues, although sales volumes were lower year over year due to decreased granular urea and ammonium nitrate sales [2] - Net sales in the Ammonia segment increased 23.8% to $708 million, surpassing the estimate of $524.2 million, with adjusted gross margin per ton rising due to higher average selling prices and reduced maintenance costs [3] - Sales in the Granular Urea segment rose 6.9% year over year to $372 million, missing the estimate of $402.8 million, with adjusted gross margin per ton increasing due to higher average selling prices [4] - Sales in the UAN segment increased around 51.6% year over year to $564 million, beating the estimate of $531.7 million, with adjusted gross margin per ton rising due to higher average selling prices [5] - Sales in the AN segment declined around 19.8% year over year to $81 million, missing the estimate of $100.9 million, although adjusted gross margin per ton increased due to higher average selling prices [6] Financial Overview - As of December 31, 2025, cash and cash equivalents were $1.98 billion, up 22.8% year over year, while long-term debt increased to $3,215 million, up 8.2% year over year [7] - Net cash provided by operating activities was $539 million in the reported quarter, up nearly 28.3% year over year [7] - The company repurchased 4.1 million shares for $340 million in the fourth quarter and 16.6 million shares for $1.34 billion during 2025 [7] Market Outlook - The global nitrogen outlook remains positive in the near term, supported by strong demand and tight supply, with India and Brazil being the largest importers of urea [8] - Supply constraints from disrupted Russian exports and gas shortages in Trinidad and Iran are affecting production, while North American ammonia supply is expected to be healthy [9] Stock Performance - Shares of CF Industries have gained 19.4% in the past year, compared to the 16.7% growth of the industry [10]
CF's Q4 Earnings and Sales Beat Estimates on Higher Prices