NYSE$CF

CF Industries Holdings Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

CF Industries faced a challenging quarter due to severe cold and unplanned maintenance, but operations were restored to normal utilization rates. The company remains confident in its ability to drive strong cash generation due to a favorable energy cost structure and progress on low-carbon clean energy initiatives. The company repurchased 4.3 million shares for $347 million during the quarter.

CF Industries Holdings, Inc. reported net earnings attributable to common stockholders of $194 million, or $1.03 per diluted share, EBITDA of $488 million, and adjusted EBITDA of $459 million for the first quarter of 2024. Production outages due to severe cold and maintenance resulted in approximately $75 million higher maintenance expenses compared to the first quarter of 2023. The company repurchased 4.3 million shares for $347 million during the first quarter of 2024.

  • First quarter net earnings of $194 million, or $1.03 per diluted share, EBITDA of $488 million, and adjusted EBITDA of $459 million.
  • Trailing twelve months net cash from operating activities of $2.26 billion and free cash flow of $1.38 billion.
  • Production outages in the first quarter 2024 due to severe cold and other maintenance events resulted in approximately $75 million higher maintenance expenses than the first quarter of 2023.
  • Executed a joint development agreement with JERA Co., Inc. to explore development of greenfield low-carbon ammonia production capacity in Louisiana.

Headline financials

Total Revenue

$1.47B

Previous: $2.01B-26.9%
EPS

$1.03

Previous: $2.85-63.9%
Capital Expenditures

-$98M

Previous: -$69M-42.0%
Free Cash Flow

$140M

Previous: $581M-75.9%
Net Income

$238M

Previous: $650M-63.4%
Operating Income

$303M

Previous: $826M-63.3%
Gross Profit

$409M

Previous: $863M-52.6%
Cash & Equivalents

$190M

Previous: $217M-12.4%
Total Assets

$13.9B

Previous: $13.4B+3.5%
Stock-Based Comp

$13M

Previous: $12M+8.3%

Revenue & EPS history

CF Industries · Revenue · Quarterly

$1.47B

Q1 2024-26.9%vs Q1 2023
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

Management expects global demand to remain resilient, supported by farmer economics and recovering industrial demand, while global nitrogen trade flows adjust for the additional nitrogen supply available for global trade. The Company forecasts that nitrogen channel inventories for all products will be below average following the spring application season.

Tailwinds

  • Management expects nitrogen demand for the first half of 2024 to be positive due to approximately 91 million acres of corn expected to be planted in the United States.
  • Good soil moisture throughout the U.S. Midwest supporting higher application rates.
  • Constructive farmer economics.
  • Urea consumption in Brazil in 2024 is forecast to increase 3% year-over-year to more than 8.0 million metric tons, supported by improved supply availability and lower global urea prices.
  • Demand for urea in India is expected to remain strong due to a recovery in rice production and improved weather conditions.

Headwinds

  • Early in the second quarter of 2024, the global nitrogen market moved to a long supply position due to lower-than-expected demand from India and Europe.
  • A purchasing pause in North America as unfavorable weather stalled spring field work.
  • Over 35% of ammonia and 25% of urea capacity were reported in shutdown/curtailment in Europe in March 2024.
  • Ammonia production in Trinidad in recent years has been approximately 1.0 million metric tons lower annually compared to the 2018-2020 average.
  • Exports of ammonia from Russia continue to remain lower compared to prior years due to geopolitical disruptions arising from Russia’s invasion of Ukraine and the resulting closure of the ammonia pipeline from Russia to the port of Odessa in Ukraine.

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 2024

Historical avgQ1 2024

+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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