NYSE$CF

CF Industries Holdings Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

CF Industries' financial performance was solid, driven by strong product prices, partially offset by natural gas hedge loss. The company repurchased shares, progressed clean energy initiatives, and signed agreements for long-term clean ammonia offtake.

CF Industries reported strong first-quarter results, driven by solid product prices. The company continues to advance its clean energy initiatives and return capital to shareholders.

  • Solid results were driven by strong product prices in the quarter, partially offset by realized natural gas hedge loss.
  • The company repurchased more than 1 million shares for $75 million.
  • An agreement was signed to purchase the Waggaman, Louisiana, Ammonia Production Complex.
  • The company advanced its clean energy initiatives, including signing MOUs for long-term clean ammonia offtake agreements with JERA Co., Inc. and LOTTE CHEMICAL Corporation.

Headline financials

Total Revenue

$2.01B

Previous: $2.87B-29.8%
EPS (adj)

$2.85

Previous: $4.21-32.3%
Capital Expenditures

-$69M

Previous: -$63M-9.5%
Free Cash Flow

$581M

Previous: $988M-41.2%
Net Income

$650M

Previous: $1.05B-38.2%
Operating Income

$826M

Previous: $1.66B-50.2%
Gross Profit

$863M

Previous: $1.7B-49.2%
Cash & Equivalents

$217M

Previous: $207M+4.8%
Total Assets

$13.4B

Previous: $13.8B-2.8%
Stock-Based Comp

$12M

Previous: $10M+20.0%

Revenue & EPS history

CF Industries · Revenue · Quarterly

$2.01B

Q1 2023-29.8%vs Q1 2022
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

CF Industries · $3.39B total across 5 segments · Q2 2022

  • Ammonia Segment
    $1.12B+67.7%
  • UAN Segment
    $976M+46.5%
  • Granular Urea Segment
    $833M+0.1%
  • AN Segment
    $253M+5.0%
  • Other Segment
    $212M-8.6%

Forward guidance

The nitrogen market outlook for 2023 is influenced by supply and demand dynamics, energy differentials, and pricing trends. Farmer profitability in North America remains strong, supporting planted acreage and fertilizer applications.

Tailwinds

  • Demand driven by the need to replenish global grain stocks supporting high prices for corn, wheat, and canola
  • North America – Farmer profitability continues to be strong. USDA projects 92 million acres of corn and ~50 million acres of wheat to be planted in U.S.
  • Brazil expected to have strong urea consumption and imports to continue to grow inline with increased crop planting
  • Energy differentials between North America and marginal producers in Europe and Asia remain well above historical levels
  • Longer-term, management expects the global nitrogen supply - demand balance to remain positive

Headwinds

  • Weakened in 1Q 2023 as higher global operating rates increased supply availability and low global demand from delayed purchasing in agriculture sector, high inventory levels in Europe and lower industrial activity
  • Chinese urea exports are expected to remain lower
  • Europe unfavorable producer economics continue to favor nitrogen imports
  • Russian exports of other nitrogen products are at pre - war levels, with product forced to countries that have not applied sanctions on Russian fertilizer, including Brazil and the U.S.
  • Estimated 20 - 30% of European ammonia capacity remains shut down or curtailed as production costs driven by energy costs remain higher than global ammonia spot prices

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+0.7%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+2.4%

Avg return

30 days after

57%

41 / 72 earnings

Positive

+11.4%

Q2 2018

Best reaction

-12.5%

Q2 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.0%+8.6%-5.0%
Q4 2025+4.8%+0.3%+30.3%
Q3 2025-4.3%-1.6%-8.4%
Q1 2025+0.8%+8.7%+14.2%
Q4 2024-4.2%-6.4%-8.4%
Q3 2024+1.1%+6.2%+10.2%
Q2 2024+8.4%+10.1%+7.0%
Q1 2024-6.5%-5.6%+1.0%
Q4 2023-0.3%+0.9%+8.3%
Q3 2023+0.7%-0.7%-4.3%
Q2 2023-0.1%-1.0%-2.5%
Q1 2023+3.5%-2.7%-14.1%
Q4 2022-0.3%-3.7%-17.1%
Q3 2022-2.4%-3.2%-3.2%
Q2 2022+2.8%+4.8%+8.3%
Q1 2022-0.4%-9.7%-4.8%
Q4 2021+4.1%+2.5%+29.0%
Q3 2021+3.7%+10.9%+5.0%
Q2 2021+3.5%+4.7%-3.5%
Q1 2021+5.1%+10.1%+11.6%
Q4 2020-3.0%+3.6%+6.5%
Q3 2020+1.2%+7.2%+46.4%
Q2 2020+3.1%+7.7%+2.5%
Q1 2020+0.8%+0.5%+19.8%
Q4 2019-6.7%-9.2%-34.4%
Q3 2019-3.2%+1.6%-1.4%
Q2 2019+5.2%+2.0%-3.1%
Q1 2019-2.9%-2.2%-10.1%
Q4 2018-0.9%-2.7%+0.3%
Q3 2018+10.4%+7.0%-8.8%
Q2 2018+11.4%+10.5%+17.0%
Q1 2018-1.0%-2.4%+4.7%
Q4 2017+4.8%+3.5%-1.7%
Q3 2017+1.5%+3.2%-1.0%
Q2 2017+5.1%+9.3%+2.6%
Q1 2017+2.7%+5.3%+0.1%
Q4 2016-7.7%-6.1%-19.4%
Q3 2016-9.2%-6.4%+14.0%
Q2 2016-12.5%-5.3%+5.9%
Q1 2016-2.8%
Q4 2015+10.4%
Q3 2015-9.9%
Q2 2015+4.1%
Q1 2015+3.4%
Q4 2014-1.7%
Q3 2014-0.4%
Q2 2014-2.3%
Q1 2014-0.9%
Q4 2013+2.6%
Q3 2013-2.5%
Q2 2013-1.7%
Q1 2013+4.2%
Q4 2012-4.4%
Q3 2012+3.7%
Q2 2012+2.0%
Q1 2012-8.1%
Q4 2011+4.2%
Q3 2011+2.7%
Q2 2011-2.4%
Q1 2011+5.1%
Q4 2010+5.4%
Q3 2010+2.9%
Q2 2010-2.6%
Q1 2009+2.6%
Q1 2010+0.0%
Q4 2007+5.4%
Q4 2009+5.4%
Q3 2008+2.6%
Q3 2009+2.6%
Q2 2009+1.3%
Q4 2008+1.3%
Q2 2008+1.3%

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