Highlights

  • CF Industries shows 76.58% basic EPS growth, a P/E of 8.98 and PEG of -1.17.
  • Second quarter net earnings attributable to common stockholders were $727 million, against $386 million.
  • Average selling price was $523 per ton against $376; sales volume was 4.3 million tons.
  • CF repurchased 2.0 million shares for $230 million in the second quarter.

CF Industries (NYSE:CF) reported second quarter 2026 net earnings attributable to common stockholders of $727 million, and the undervalued growth stock figures read 76.58% one-year growth in basic earnings per share, a trailing twelve-month P/E of 8.98 and an expected-basis PEG of -1.17, with shares trading at USD 119.55 on October 28, 2026, down 0.82%. On the company's side, the Northbrook-based nitrogen producer approved a plan to rebuild its Yazoo City plant in the second quarter, declared a quarterly dividend of $0.60 per share on July 8, and received permits for its Blue Point complex in July.

CF Industries Holdings, Inc. is based in Northbrook, Illinois, and is incorporated in Delaware. It states a mission of providing clean energy to feed and fuel the world sustainably and describes its ammonia production network as the world's largest. Its manufacturing complexes are in the United States, Canada and the United Kingdom. The company reports five segments: Ammonia, Granular Urea, UAN, AN and Other.

Growth: Second Quarter Earnings, Selling Prices and Volumes

Net earnings attributable to common stockholders were $727 million in the second quarter against $386 million, an increase of 88% as stated by the company, and $1,342 million for the first six months against $698 million. Basic earnings per share were $4.74 against $2.37, and diluted earnings per share were $4.73 against $2.37.

The company said the quarterly increase was due primarily to a $390 million increase in gross margin and $50 million of business interruption insurance recoveries related to the November 2025 Yazoo City incident, partially offset by a higher income tax provision and a $23 million asset impairment charge.

Net sales were $2,222 million, up 18%, and gross margin was $1,145 million, up 52%, with a gross margin percentage of 51.5% against 39.9%. The average selling price was $523 per ton, 39% higher than $376 a year earlier, while sales volume was 4.3 million tons against 5.0 million.

Valuation: P/E of 8.98, PEG of -1.17 and Management Commentary

The P/E ratio of 8.98 is measured on trailing twelve-month earnings, and the PEG ratio of -1.17 on an expected basis. Net cash provided by operating activities was $1,374 million for the first six months against $1,149 million, and total stockholders' equity was $5,748 million at June 30, 2026 against $4,838 million at December 31, 2025.

On the August 12 call, Chief Executive Officer Christopher Bohn said he believes the company's shares remain undervalued and that the company will keep repurchasing shares while they are. Chief Financial Officer Andrew Scribner said the company now sees a baseline mid-cycle EBITDA of approximately $2.9 billion and free cash flow of $1.7 billion.

Capital Returns, Debt and Liquidity

CF repurchased 2.0 million shares for $230 million in the second quarter and 2.2 million shares for $245 million in the six months under its $2 billion program, authorized May 6, 2025 and effective through December 31, 2029. Cash paid for repurchases was $253 million against $660 million, and common dividends paid were $155 million against $167 million.

The company declared $0.50 per share in the second quarter and, on July 8, a quarterly dividend of $0.60 per share payable August 31, 2026. Cash and cash equivalents were $2.48 billion against $1.98 billion at December 31, 2025. Long-term debt was $3,216 million, and the $750 million revolving credit facility, maturing September 4, 2030, was unused and in covenant compliance.

Capital expenditures were $494 million for six months against $377 million. CF holds 40% of the Blue Point One joint venture, which is building a low-carbon ammonia facility.

Disclosed Risks and Outlook

The Yazoo City plant has been idle since the November 2025 incident; management approved a rebuild plan, with production expected to resume in the first half of 2027, and the company received initial insurance proceeds of $75 million. For six months, the cost of natural gas used for production was $4.01 per MMBtu against $3.52, which reduced gross margin by $73 million.

The company said global nitrogen prices declined near the end of the second quarter and expects the conflict with Iran and tariff developments to keep prices and demand volatile. A July 21, 2026 lawsuit seeks to suspend the Blue Point permits, with a preliminary injunction hearing scheduled for August; the company cannot predict the outcome.

The company anticipates 2026 consolidated capital expenditures of approximately $1.3 billion. On the second quarter call, management said it expects the global nitrogen market to remain tight into 2027 and by 2030 expects initiatives in flight to raise mid-cycle EBITDA to approximately $3.3 billion. Low-carbon ammonia production at Blue Point is expected to begin in 2029.