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CF Industries Q3 sales rise 12%, beat estimates

By Reuters News


Overview

  • US nitrogen producer's Q3 sales rose, beating analyst expectations

  • Net earnings and adjusted EBITDA increased yr/yr on higher prices and sales volumes

  • Company repurchased 3.0 mln shares for $367 mln in Q3


Outlook

  • CF Industries expects global nitrogen supply-demand fundamentals to remain constructive into 2027

  • Company projects robust global nitrogen demand in the short- to medium-term

  • CF Industries forecasts full-year 2026 gross ammonia production of about 9.5 mln tons


Result Drivers

  • HIGHER SELLING PRICES - Co said Q3 average selling prices rose for ammonia, ammonium nitrate and other segments due to a tight global nitrogen supply-demand balance and supply disruptions

  • INCREASED SALES VOLUMES - Q3 sales volumes rose 7% yr/yr, led by higher UAN, urea and other product sales, partly offset by lower AN and ammonia sales

  • HIGHER COSTS - Cost of sales increased in Q3 due to higher purchased product, freight, distribution and maintenance costs, including the ongoing Yazoo City Complex outage


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

$1.86 bln

$1.79 bln (11 Analysts)

Q3 EPS

$2.87

Q3 Net Income

$436 mln

Q3 Adjusted EBITDA

$833 mln

Q3 Capex

$282 mln

Q3 EBITDA

$822 mln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 14 "hold" and 3 "sell" or "strong sell"

  • The average consensus recommendation for the agricultural chemicals peer group is "buy."

  • Wall Street's median 12-month price target for CF Industries Holdings Inc is $130.00, about 11.3% above its November 3 closing price of $116.81

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Nov 2 - Pinched ammonia supplies from Trinidad add to US farmer pain ahead of elections

  • Nov 3 - CVR Partners Q3 revenue falls on planned plant turnaround

  • Nov 4 - Ammonia maker AGF Nitrogen weighs shutdowns due to gas costs, demand slump, CEO says


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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