Solid Operational and Financial Performance,
Consistent Strong Cash Generation
Constructive Global Nitrogen Industry Dynamics
in Near- and Long-Terms
Returned $1.9 Billion to Shareholders Through
Share Repurchases and Dividends in 2024
CF Industries Holdings, Inc. (NYSE: CF), a leading global
manufacturer of hydrogen and nitrogen products, today announced
results for the full year and fourth quarter ended December 31,
2024.
Highlights
- Full year 2024 net earnings(1)(2) of $1.22 billion, or $6.74
per diluted share, EBITDA(3) of $2.33 billion, and adjusted
EBITDA(3) of $2.28 billion
- Fourth quarter 2024 net earnings of $328 million, or $1.89 per
diluted share, EBITDA of $582 million, and adjusted EBITDA of $562
million
- Full year 2024 net cash from operating activities of $2.27
billion and free cash flow(4) of $1.45 billion
- Repurchased 18.8 million shares for $1.51 billion during
2024
“CF Industries’ 2024 results reflect strong execution by our
team against the backdrop of constructive global nitrogen industry
dynamics,” said Tony Will, president and chief executive officer,
CF Industries Holdings, Inc. “We believe our cost-advantaged North
American-based production network, operational capabilities and
disciplined strategic initiatives position CF Industries well to
continue to create substantial value for long-term
shareholders.”
Operations Overview
As of December 31, 2024, the Company’s 12-month rolling average
recordable incident rate was 0.31 incidents per 200,000 work
hours.
Gross ammonia production for the full year and fourth quarter of
2024 was approximately 9.8 million and 2.6 million tons,
respectively, compared to 9.5 million and 2.5 million tons for the
full year and fourth quarter of 2023, respectively. The Company
expects gross ammonia production in 2025 to be approximately 10
million tons.
Financial Results Overview
Full Year 2024 Financial Results
For the full year 2024, net earnings attributable to common
stockholders were $1.22 billion, or $6.74 per diluted share, EBITDA
was $2.33 billion, and adjusted EBITDA was $2.28 billion. These
results compare to full year 2023 net earnings attributable to
common stockholders of $1.53 billion, or $7.87 per diluted share,
EBITDA of $2.71 billion, and adjusted EBITDA of $2.76 billion.
Net sales for the full year 2024 were $5.94 billion compared to
$6.63 billion for 2023. Average selling prices for 2024 were lower
than 2023 as lower global energy costs reduced the global market
clearing price required to meet global demand. Sales volumes for
2024 were similar to 2023 as higher ammonia sales volumes due
primarily to the addition of contractual commitments served from
the recently acquired Waggaman ammonia production facility were
offset by lower urea ammonium nitrate solution (UAN), ammonium
nitrate (AN) and other sales volumes.
Cost of sales for the full year 2024 was lower compared to 2023
due to lower realized natural gas costs partially offset by higher
maintenance costs.
The average cost of natural gas reflected in the Company’s cost
of sales was $2.40 per MMBtu for the full year 2024 compared to the
average cost of natural gas in cost of sales of $3.67 per MMBtu for
2023.
Fourth Quarter 2024 Financial Results
For the fourth quarter of 2024, net earnings attributable to
common stockholders were $328 million, or $1.89 per diluted share,
EBITDA was $582 million, and adjusted EBITDA was $562 million.
These results compare to fourth quarter of 2023 net earnings
attributable to common stockholders of $274 million, or $1.44 per
diluted share, EBITDA of $556 million, and adjusted EBITDA of $592
million.
Net sales in the fourth quarter of 2024 were $1.52 billion
compared to $1.57 billion in the fourth quarter of 2023. Average
selling prices for the fourth quarter of 2024 were similar to the
fourth quarter of 2023. Sales volumes in the fourth quarter of 2024
were similar to the fourth quarter of 2023 as higher ammonia sales
volumes due primarily to the addition of contractual commitments
served from the recently acquired Waggaman ammonia production
facility were offset primarily by lower UAN, AN and other sales
volumes.
Cost of sales for the fourth quarter of 2024 was similar to the
fourth quarter of 2023 as higher maintenance costs were offset by
lower realized natural gas costs.
The average cost of natural gas reflected in the Company’s cost
of sales was $2.43 per MMBtu in the fourth quarter of 2024 compared
to the average cost of natural gas in cost of sales of $3.01 per
MMBtu in the fourth quarter of 2023.
Capital Management
Capital Expenditures
Capital expenditures in the fourth quarter and full year 2024
were $197 million and $518 million, respectively. Management
projects capital expenditures for full year 2025 will be
approximately $500-550 million.
Share Repurchase Program
The Company repurchased 18.8 million shares for $1.51 billion
during 2024, which includes the repurchase of 4.4 million shares
for $385 million during the fourth quarter of 2024. Since CF
Industries commenced its current $3 billion share repurchase
program in the second quarter of 2023, the Company has repurchased
24.4 million shares for approximately $1.94 billion. As of December
31, 2024, $1.06 billion remains under the program, which expires in
December 2025.
CHS Inc. Distribution
On January 31, 2025, the Board of Managers of CF Industries
Nitrogen, LLC (CFN) approved a semi-annual distribution payment to
CHS Inc. (CHS) of $129 million for the distribution period ended
December 31, 2024. The distribution was paid on January 31, 2025.
Distributions to CHS pertaining to 2024 distribution periods were
approximately $293 million.
Nitrogen Market Outlook
Global nitrogen pricing was supported in the fourth quarter of
2024 by positive global demand, constrained supply availability due
in part to natural gas shortages in Iran and Egypt, and China’s
continued restrictions on urea exports. In the near-term,
management expects the global supply-demand balance to remain
constructive, as inventories globally are believed to be below
average and production economics for the industry’s marginal
producers in Europe remain challenging.
- North America: The Company currently forecasts average
U.S. corn returns above soybeans, due in part to improving corn
prices from strong corn exports and lower 2024 yield estimates,
which is expected to be positive for corn plantings and nitrogen
demand in the region. Management expects corn plantings in the
United States in 2025 will be approximately 93 million acres.
- Brazil: Urea imports for 2024 were 8.3 million metric
tons, 14% higher than 2023. Nitrogen imports to Brazil are expected
to remain strong in 2025 on forecast high corn plantings and
continued nominal domestic nitrogen production.
- India: Urea inventory in India is believed to be low
following strong domestic demand for urea, lower-than-targeted
domestic urea production and lower urea import volumes in 2024
compared to 2023. Given the inability of import agencies to secure
targeted volumes in the country’s two most recent urea import
tenders, another urea import tender may be necessary in the first
quarter of 2025, which will compete for volumes with demand in the
Northern Hemisphere for spring applications. Additionally, India is
likely to tender earlier in its next fertilizer year than in recent
years given the lower urea stock position.
- Europe: Approximately 25% of ammonia capacity, excluding
two ammonia facilities that have recently announced shut-downs, and
20% of urea capacity were reported in shutdown/curtailment in
Europe as of January 2025. Management believes that ammonia
operating rates and overall domestic nitrogen product output in
Europe will remain below historical averages over the long-term
given the region’s status as the global marginal producer.
- China: Ongoing urea export controls by the Chinese
government continue to limit urea export availability from the
country. China exported less than 300,000 metric tons of urea in
2024, 94% lower than 2023. Urea exports may resume following
China’s domestic spring application season.
- Russia: Urea exports from Russia increased by 16%
through the end of the third quarter of 2024 compared to the same
period in 2023 due to the start-up of new urea granulation
capacity, producers favoring urea upgrades over UAN upgrades, and
the willingness of certain countries to purchase Russian
fertilizer, including the United States and Brazil.
Over the medium-term, significant energy cost differentials
between North American producers and high-cost producers in Europe
and Asia are expected to persist. As a result, the Company believes
the global nitrogen cost structure will remain supportive of strong
margin opportunities for low-cost North American producers.
Longer-term, management expects the global nitrogen
supply-demand balance to tighten as global nitrogen capacity growth
over the next four years is not projected to keep pace with
expected global nitrogen demand growth of approximately 1.5% per
year for traditional applications and new demand growth for clean
energy applications. Global production is expected to remain
constrained by continued challenges related to cost and
availability of natural gas.
Strategic Initiatives Update
ATR Ammonia Production Facility FEED Study Update
In the fourth quarter of 2024, CF Industries and its partners
completed a front-end engineering and design (FEED) study on
constructing a greenfield autothermal reforming (ATR) ammonia
production facility with carbon capture and sequestration (CCS)
technologies at CF Industries’ Blue Point Complex in Louisiana. The
FEED study estimates the cost of a project with these attributes to
be approximately $4.0 billion. Additionally, the Company estimates
approximately $500 million would be required for the scalable
common infrastructure for the site, such as ammonia storage and a
vessel loading dock.
The Company and its potential partners expect to make final
investment decisions on the proposed project in the first quarter
of 2025.
Donaldsonville Complex Electrolyzer Project
Commissioning of the 20-megawatt alkaline water electrolysis
plant at CF Industries’ Donaldsonville, Louisiana, manufacturing
complex was suspended due to an issue experienced in the fourth
quarter of 2024. The Company is working with the technology
provider, thyssenkrupp, and the provider’s subcontractor,
thyssenkrupp nucera, to determine the root cause of the issue. Upon
identification and remediation of the issue, management expects to
resume commissioning activities.
Donaldsonville Complex Carbon Capture and Sequestration
Project
Construction of a dehydration and compression unit at CF
Industries’ Donaldsonville Complex continues to advance: all major
equipment for the facility has been procured, installation of
piping and process equipment is in progress, the two compressors
have been delivered to the site, and commissioning activities have
begun. Once in service, the dehydration and compression unit will
enable up to 2 million metric tons annually of captured process
carbon dioxide to be transported and permanently stored by
ExxonMobil. CF Industries expects the project to qualify for tax
credits under Section 45Q of the Internal Revenue Code, which
provides a credit per metric ton of carbon dioxide sequestered.
Start-up of the project is expected in 2025.
Yazoo City Complex Carbon Capture and Sequestration Project
CF Industries signed a definitive commercial agreement in July
2024 with ExxonMobil for the transport and sequestration in
permanent geologic storage of up to 500,000 metric tons of carbon
dioxide annually from the Company’s Yazoo City, Mississippi,
Complex. CF Industries will invest approximately $100 million into
its Yazoo City Complex to build a carbon dioxide dehydration and
compression unit to enable up to 500,000 metric tons of carbon
dioxide captured from the ammonia production process per year to be
transported and stored. CF Industries expects the project to
qualify for tax credits under Section 45Q of the Internal Revenue
Code, which provides a credit per metric ton of carbon dioxide
sequestered. Start-up of the project is expected in 2028.
___________________________________________________
(1)
Certain items recognized during the full
year 2024 impacted the Company’s financial results and their
comparability to the prior year period. See the table accompanying
this release for a summary of these items.
(2)
Financial results for the full year 2024
include the impact of CF Industries’ acquisition of the Waggaman,
Louisiana, ammonia production facility on December 1, 2023.
(3)
EBITDA is defined as net earnings
attributable to common stockholders plus interest expense
(income)—net, income taxes and depreciation and amortization. See
reconciliations of EBITDA and adjusted EBITDA to the most directly
comparable GAAP measures in the tables accompanying this
release.
(4)
Free cash flow is defined as net cash from
operating activities less capital expenditures and distributions to
noncontrolling interest. See reconciliation of free cash flow to
the most directly comparable GAAP measure in the table accompanying
this release.
Consolidated Results
Three months ended
Year ended
December 31,
December 31,
2024
2023
2024
2023
(dollars in millions, except
per share and per MMBtu amounts)
Net sales
$
1,524
$
1,571
$
5,936
$
6,631
Cost of sales
1,000
1,070
3,880
4,086
Gross margin
$
524
$
501
$
2,056
$
2,545
Gross margin percentage
34.4
%
31.9
%
34.6
%
38.4
%
Net earnings attributable to common
stockholders
$
328
$
274
$
1,218
$
1,525
Net earnings per diluted share
$
1.89
$
1.44
$
6.74
$
7.87
EBITDA(1)
$
582
$
556
$
2,331
$
2,707
Adjusted EBITDA(1)
$
562
$
592
$
2,284
$
2,760
Sales volume by product tons (000s)
4,747
4,912
18,943
19,130
Natural gas supplemental data (per
MMBtu):
Natural gas costs in cost of sales(2)
$
2.41
$
2.79
$
2.28
$
3.26
Realized derivatives loss in cost of
sales(3)
0.02
0.22
0.12
0.41
Cost of natural gas used for production in
cost of sales
$
2.43
$
3.01
$
2.40
$
3.67
Average daily market price of natural gas
Henry Hub (Louisiana)
$
2.42
$
2.74
$
2.25
$
2.53
Unrealized net mark-to-market (gain) loss
on natural gas derivatives
$
(2
)
$
26
$
(35
)
$
(39
)
Depreciation and amortization
$
221
$
229
$
925
$
869
Capital expenditures
$
197
$
188
$
518
$
499
Production volume by product tons
(000s):
Ammonia(4)
2,617
2,525
9,800
9,496
Granular urea
1,023
1,130
4,404
4,544
UAN (32%)(5)
1,768
1,840
6,753
6,852
AN
354
416
1,392
1,520
_______________________________________________________________________________
(1)
See reconciliations of EBITDA and adjusted
EBITDA to the most directly comparable GAAP measures in the tables
accompanying this release.
(2)
Includes the cost of natural gas used for
production and related transportation that is included in cost of
sales during the period under the first-in, first-out inventory
cost method.
(3)
Includes realized gains and losses on
natural gas derivatives settled during the period. Excludes
unrealized mark-to-market gains and losses on natural gas
derivatives.
(4)
Gross ammonia production, including
amounts subsequently upgraded on-site into granular urea, UAN, or
AN.
(5)
UAN product tons assume a 32% nitrogen
content basis for production volume.
Ammonia Segment
CF Industries’ ammonia segment produces anhydrous ammonia
(ammonia), which is the base product that the Company manufactures,
containing 82 percent nitrogen and 18 percent hydrogen. The results
of the ammonia segment consist of sales of ammonia to external
customers for its nitrogen content as a fertilizer, in emissions
control and in other industrial applications. In addition, the
Company upgrades ammonia into other nitrogen products such as
granular urea, UAN and AN.
Three months ended
Year ended
December 31,
December 31,
2024(1)
2023(1)
2024(1)
2023(1)
(dollars in millions, except
per ton amounts)
Net sales
$
572
$
495
$
1,736
$
1,679
Cost of sales
374
341
1,243
1,138
Gross margin
$
198
$
154
$
493
$
541
Gross margin percentage
34.6
%
31.1
%
28.4
%
32.2
%
Sales volume by product tons (000s)
1,240
1,077
4,085
3,546
Sales volume by nutrient tons
(000s)(2)
1,016
883
3,349
2,908
Average selling price per product ton
$
461
$
460
$
425
$
473
Average selling price per nutrient
ton(2)
563
561
518
577
Adjusted gross margin(3):
Gross margin
$
198
$
154
$
493
$
541
Depreciation and amortization
63
54
239
171
Unrealized net mark-to-market (gain) loss
on natural gas derivatives
(1
)
8
(13
)
(11
)
Adjusted gross margin
$
260
$
216
$
719
$
701
Adjusted gross margin as a percent of net
sales
45.5
%
43.6
%
41.4
%
41.8
%
Gross margin per product ton
$
160
$
143
$
121
$
153
Gross margin per nutrient ton(2)
195
174
147
186
Adjusted gross margin per product ton
210
201
176
198
Adjusted gross margin per nutrient
ton(2)
256
245
215
241
_______________________________________________________________________________
(1)
Financial results include the impact of CF
Industries’ acquisition of the Waggaman, Louisiana, ammonia
production facility on December 1, 2023.
(2)
Nutrient tons represent the tons of
nitrogen within the product tons.
(3)
Adjusted gross margin, adjusted gross
margin as a percent of net sales and adjusted gross margin per
product ton and per nutrient ton are non-GAAP financial measures.
Adjusted gross margin is defined as gross margin excluding
depreciation and amortization and unrealized net mark-to-market
(gain) loss on natural gas derivatives. A reconciliation of
adjusted gross margin, adjusted gross margin as a percent of net
sales and adjusted gross margin per product ton and per nutrient
ton to gross margin, the most directly comparable GAAP measure, is
provided in the table above. See “Note Regarding Non-GAAP Financial
Measures” in this release.
Comparison of 2024 to 2023:
- Ammonia sales volume for 2024 increased compared to 2023 due to
the addition of contractual commitments served from the Waggaman
ammonia production facility that was acquired in December
2023.
- Ammonia average selling prices decreased for 2024 compared to
2023 as lower global energy costs reduced the global market
clearing price required to meet global demand.
- Ammonia adjusted gross margin per ton decreased for 2024
compared to 2023 due primarily to lower average selling prices and
higher maintenance costs partially offset by lower realized natural
gas costs.
Granular Urea Segment
CF Industries’ granular urea segment produces granular urea,
which contains 46 percent nitrogen. Produced from ammonia and
carbon dioxide, it has the highest nitrogen content of any of the
Company’s solid nitrogen products.
Three months ended
Year ended
December 31,
December 31,
2024
2023
2024
2023
(dollars in millions, except
per ton amounts)
Net sales
$
348
$
392
$
1,600
$
1,823
Cost of sales
215
235
926
1,010
Gross margin
$
133
$
157
$
674
$
813
Gross margin percentage
38.2
%
40.1
%
42.1
%
44.6
%
Sales volume by product tons (000s)
1,002
1,038
4,522
4,570
Sales volume by nutrient tons
(000s)(1)
461
477
2,080
2,102
Average selling price per product ton
$
347
$
378
$
354
$
399
Average selling price per nutrient
ton(1)
755
822
769
867
Adjusted gross margin(2):
Gross margin
$
133
$
157
$
674
$
813
Depreciation and amortization
66
69
284
285
Unrealized net mark-to-market loss (gain)
on natural gas derivatives
—
7
(9
)
(11
)
Adjusted gross margin
$
199
$
233
$
949
$
1,087
Adjusted gross margin as a percent of net
sales
57.2
%
59.4
%
59.3
%
59.6
%
Gross margin per product ton
$
133
$
151
$
149
$
178
Gross margin per nutrient ton(1)
289
329
324
387
Adjusted gross margin per product ton
199
224
210
238
Adjusted gross margin per nutrient
ton(1)
432
488
456
517
_______________________________________________________________________________
(1)
Nutrient tons represent the tons of
nitrogen within the product tons.
(2)
Adjusted gross margin, adjusted gross
margin as a percent of net sales and adjusted gross margin per
product ton and per nutrient ton are non-GAAP financial measures.
Adjusted gross margin is defined as gross margin excluding
depreciation and amortization and unrealized net mark-to-market
(gain) loss on natural gas derivatives. A reconciliation of
adjusted gross margin, adjusted gross margin as a percent of net
sales and adjusted gross margin per product ton and per nutrient
ton to gross margin, the most directly comparable GAAP measure, is
provided in the table above. See “Note Regarding Non-GAAP Financial
Measures” in this release.
Comparison of 2024 to 2023:
- Granular urea sales volumes for 2024 were similar to 2023.
- Granular urea average selling prices decreased for 2024
compared to 2023 as lower global energy costs reduced the global
market clearing price required to meet global demand.
- Granular urea adjusted gross margin per ton decreased for 2024
compared to 2023 due primarily to lower average selling prices
partially offset by lower realized natural gas costs.
UAN Segment
CF Industries’ UAN segment produces urea ammonium nitrate
solution (UAN). UAN is a liquid product with nitrogen content that
typically ranges from 28 percent to 32 percent and is produced by
combining urea and ammonium nitrate in solution.
Three months ended
Year ended
December 31,
December 31,
2024
2023
2024
2023
(dollars in millions, except
per ton amounts)
Net sales
$
372
$
418
$
1,678
$
2,068
Cost of sales
256
314
1,069
1,251
Gross margin
$
116
$
104
$
609
$
817
Gross margin percentage
31.2
%
24.9
%
36.3
%
39.5
%
Sales volume by product tons (000s)
1,613
1,812
6,771
7,237
Sales volume by nutrient tons
(000s)(1)
510
573
2,142
2,283
Average selling price per product ton
$
231
$
231
$
248
$
286
Average selling price per nutrient
ton(1)
729
729
783
906
Adjusted gross margin(2):
Gross margin
$
116
$
104
$
609
$
817
Depreciation and amortization
62
74
268
288
Unrealized net mark-to-market (gain) loss
on natural gas derivatives
(1
)
7
(10
)
(11
)
Adjusted gross margin
$
177
$
185
$
867
$
1,094
Adjusted gross margin as a percent of net
sales
47.6
%
44.3
%
51.7
%
52.9
%
Gross margin per product ton
$
72
$
57
$
90
$
113
Gross margin per nutrient ton(1)
227
182
284
358
Adjusted gross margin per product ton
110
102
128
151
Adjusted gross margin per nutrient
ton(1)
347
323
405
479
_______________________________________________________________________________
(1)
Nutrient tons represent the tons of
nitrogen within the product tons.
(2)
Adjusted gross margin, adjusted gross
margin as a percent of net sales and adjusted gross margin per
product ton and per nutrient ton are non-GAAP financial measures.
Adjusted gross margin is defined as gross margin excluding
depreciation and amortization and unrealized net mark-to-market
(gain) loss on natural gas derivatives. A reconciliation of
adjusted gross margin, adjusted gross margin as a percent of net
sales and adjusted gross margin per product ton and per nutrient
ton to gross margin, the most directly comparable GAAP measure, is
provided in the table above. See “Note Regarding Non-GAAP Financial
Measures” in this release.
Comparison of 2024 to 2023:
- UAN sales volumes for 2024 were lower than 2023 sales volumes
due to lower available supply from lower beginning inventory.
- UAN average selling prices decreased for 2024 compared to 2023
as lower global energy costs reduced the global market clearing
price required to meet global demand.
- UAN adjusted gross margin per ton decreased for 2024 compared
to 2023 due primarily to lower average selling prices partially
offset by lower realized natural gas costs.
AN Segment
CF Industries’ AN segment produces ammonium nitrate (AN). AN is
used as a nitrogen fertilizer with nitrogen content between 29
percent to 35 percent, and is also used extensively by the
commercial explosives industry as a component of explosives.
Three months ended
Year ended
December 31,
December 31,
2024
2023
2024
2023
(dollars in millions, except
per ton amounts)
Net sales
$
101
$
120
$
419
$
497
Cost of sales
78
95
340
359
Gross margin
$
23
$
25
$
79
$
138
Gross margin percentage
22.8
%
20.8
%
18.9
%
27.8
%
Sales volume by product tons (000s)
357
414
1,464
1,571
Sales volume by nutrient tons
(000s)(1)
122
142
501
538
Average selling price per product ton
$
283
$
290
$
286
$
316
Average selling price per nutrient
ton(1)
828
845
836
924
Adjusted gross margin(2):
Gross margin
$
23
$
25
$
79
$
138
Depreciation and amortization
9
12
39
48
Unrealized net mark-to-market loss (gain)
on natural gas derivatives
—
1
(1
)
(2
)
Adjusted gross margin
$
32
$
38
$
117
$
184
Adjusted gross margin as a percent of net
sales
31.7
%
31.7
%
27.9
%
37.0
%
Gross margin per product ton
$
64
$
60
$
54
$
88
Gross margin per nutrient ton(1)
189
176
158
257
Adjusted gross margin per product ton
90
92
80
117
Adjusted gross margin per nutrient
ton(1)
262
268
234
342
_______________________________________________________________________________
(1)
Nutrient tons represent the tons of
nitrogen within the product tons.
(2)
Adjusted gross margin, adjusted gross
margin as a percent of net sales and adjusted gross margin per
product ton and per nutrient ton are non-GAAP financial measures.
Adjusted gross margin is defined as gross margin excluding
depreciation and amortization and unrealized net mark-to-market
(gain) loss on natural gas derivatives. A reconciliation of
adjusted gross margin, adjusted gross margin as a percent of net
sales and adjusted gross margin per product ton and per nutrient
ton to gross margin, the most directly comparable GAAP measure, is
provided in the table above. See “Note Regarding Non-GAAP Financial
Measures” in this release.
Comparison of 2024 to 2023:
- AN sales volumes for 2024 were lower than 2023 sales volumes
primarily due to lower supply availability from lower production in
2024 compared to 2023.
- AN average selling prices decreased for 2024 compared to 2023
as lower global energy costs reduced the global market clearing
price required to meet global demand.
- AN adjusted gross margin per ton decreased for 2024 compared to
2023 due primarily to lower average selling prices partially offset
by lower maintenance costs and lower realized natural gas
costs.
Other Segment
CF Industries’ Other segment primarily includes diesel exhaust
fluid (DEF), urea liquor and nitric acid.
Three months ended
Year ended
December 31,
December 31,
2024
2023
2024
2023
(dollars in millions, except
per ton amounts)
Net sales
$
131
$
146
$
503
$
564
Cost of sales
77
85
302
328
Gross margin
$
54
$
61
$
201
$
236
Gross margin percentage
41.2
%
41.8
%
40.0
%
41.8
%
Sales volume by product tons (000s)
535
571
2,101
2,206
Sales volume by nutrient tons
(000s)(1)
106
113
411
434
Average selling price per product ton
$
245
$
256
$
239
$
256
Average selling price per nutrient
ton(1)
1,236
1,292
1,224
1,300
Adjusted gross margin(2):
Gross margin
$
54
$
61
$
201
$
236
Depreciation and amortization
13
16
61
64
Unrealized net mark-to-market loss (gain)
on natural gas derivatives
—
3
(2
)
(4
)
Adjusted gross margin
$
67
$
80
$
260
$
296
Adjusted gross margin as a percent of net
sales
51.1
%
54.8
%
51.7
%
52.5
%
Gross margin per product ton
$
101
$
107
$
96
$
107
Gross margin per nutrient ton(1)
509
540
489
544
Adjusted gross margin per product ton
125
140
124
134
Adjusted gross margin per nutrient
ton(1)
632
708
633
682
_______________________________________________________________________________
(1)
Nutrient tons represent the tons of
nitrogen within the product tons.
(2)
Adjusted gross margin, adjusted gross
margin as a percent of net sales and adjusted gross margin per
product ton and per nutrient ton are non-GAAP financial measures.
Adjusted gross margin is defined as gross margin excluding
depreciation and amortization and unrealized net mark-to-market
(gain) loss on natural gas derivatives. A reconciliation of
adjusted gross margin, adjusted gross margin as a percent of net
sales and adjusted gross margin per product ton and per nutrient
ton to gross margin, the most directly comparable GAAP measure, is
provided in the table above. See “Note Regarding Non-GAAP Financial
Measures” in this release.
Comparison of 2024 to 2023:
- Other sales volumes for 2024 were similar to 2023.
- Other average selling prices decreased for 2024 compared to
2023 as lower global energy costs reduced the global market
clearing price required to meet global demand.
- Other adjusted gross margin per ton decreased for 2024 compared
to 2023 due primarily to lower average selling prices partially
offset by lower realized natural gas costs.
Dividend Payment
On January 30, 2025, CF Industries’ Board of Directors declared
a quarterly dividend of $0.50 per common share. The dividend will
be paid on February 28, 2025 to stockholders of record as of
February 14, 2025.
Conference Call
CF Industries will hold a conference call to discuss its full
year and fourth quarter 2024 results at 11:00 a.m. ET on Thursday,
February 20, 2025. This conference call will include discussion of
CF Industries’ business environment and outlook. Investors can
access the call and find dial-in information on the Investor
Relations section of the Company’s website at www.cfindustries.com.
About CF Industries Holdings, Inc.
At CF Industries, our mission is to provide clean energy to feed
and fuel the world sustainably. With our employees focused on safe
and reliable operations, environmental stewardship, and disciplined
capital and corporate management, we are on a path to decarbonize
our ammonia production network – the world’s largest – to enable
low-carbon hydrogen and nitrogen products for energy, fertilizer,
emissions abatement and other industrial activities. Our
manufacturing complexes in the United States, Canada, and the
United Kingdom, an unparalleled storage, transportation and
distribution network in North America, and logistics capabilities
enabling a global reach underpin our strategy to leverage our
unique capabilities to accelerate the world’s transition to clean
energy. CF Industries routinely posts investor announcements and
additional information on the Company’s website at
www.cfindustries.com and encourages those interested in the Company
to check there frequently.
Note Regarding Non-GAAP Financial Measures
The Company reports its financial results in accordance with
U.S. generally accepted accounting principles (GAAP). Management
believes that EBITDA, EBITDA per ton, adjusted EBITDA, adjusted
EBITDA per ton, free cash flow, and, on a segment basis, adjusted
gross margin, adjusted gross margin as a percent of net sales and
adjusted gross margin per product ton and per nutrient ton, which
are non-GAAP financial measures, provide additional meaningful
information regarding the Company’s performance and financial
strength. Management uses these measures, and believes they are
useful to investors, as supplemental financial measures in the
comparison of year-over-year performance. Non-GAAP financial
measures should be viewed in addition to, and not as an alternative
for, the Company’s reported results prepared in accordance with
GAAP. In addition, because not all companies use identical
calculations, EBITDA, EBITDA per ton, adjusted EBITDA, adjusted
EBITDA per ton, free cash flow, adjusted gross margin, adjusted
gross margin as a percent of net sales and adjusted gross margin
per product ton and per nutrient ton, included in this release may
not be comparable to similarly titled measures of other companies.
Reconciliations of EBITDA, EBITDA per ton, adjusted EBITDA,
adjusted EBITDA per ton, and free cash flow to the most directly
comparable GAAP measures are provided in the tables accompanying
this release under “CF Industries Holdings, Inc.-Selected Financial
Information-Non-GAAP Disclosure Items.” Reconciliations of adjusted
gross margin, adjusted gross margin as a percent of net sales and
adjusted gross margin per product ton and per nutrient ton to the
most directly comparable GAAP measures are provided in the segment
tables included in this release.
Safe Harbor Statement
All statements in this communication by CF Industries Holdings,
Inc. (together with its subsidiaries, the “Company”), other than
those relating to historical facts, are forward-looking statements.
Forward-looking statements can generally be identified by their use
of terms such as “anticipate,” “believe,” “could,” “estimate,”
“expect,” “intend,” “may,” “plan,” “predict,” “project,” “will” or
“would” and similar terms and phrases, including references to
assumptions. Forward-looking statements are not guarantees of
future performance and are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the Company’s
control, which could cause actual results to differ materially from
such statements. These statements may include, but are not limited
to, statements about strategic plans and management’s expectations
with respect to the production of low-carbon ammonia, the
development of carbon capture and sequestration projects, the
transition to and growth of a hydrogen economy, greenhouse gas
reduction targets, projected capital expenditures, statements about
future financial and operating results, and other items described
in this communication.
Important factors that could cause actual results to differ
materially from those in the forward-looking statements include,
among others, the cyclical nature of the Company’s business and the
impact of global supply and demand on the Company’s selling prices;
the global commodity nature of the Company’s nitrogen products, the
conditions in the international market for nitrogen products, and
the intense global competition from other producers; conditions in
the United States, Europe and other agricultural areas, including
the influence of governmental policies and technological
developments on the demand for our fertilizer products; the
volatility of natural gas prices in North America and the United
Kingdom; weather conditions and the impact of adverse weather
events; the seasonality of the fertilizer business; the impact of
changing market conditions on the Company’s forward sales programs;
difficulties in securing the supply and delivery of raw materials
or utilities, increases in their costs or delays or interruptions
in their delivery; reliance on third party providers of
transportation services and equipment; the Company’s reliance on a
limited number of key facilities; risks associated with
cybersecurity; acts of terrorism and regulations to combat
terrorism; risks associated with international operations; the
significant risks and hazards involved in producing and handling
the Company’s products against which the Company may not be fully
insured; the Company’s ability to manage its indebtedness and any
additional indebtedness that may be incurred; the Company’s ability
to maintain compliance with covenants under its revolving credit
agreement and the agreements governing its indebtedness; downgrades
of the Company’s credit ratings; risks associated with changes in
tax laws and disagreements with taxing authorities; risks involving
derivatives and the effectiveness of the Company’s risk management
and hedging activities; potential liabilities and expenditures
related to environmental, health and safety laws and regulations
and permitting requirements; regulatory restrictions and
requirements related to greenhouse gas emissions; the development
and growth of the market for low-carbon ammonia and the risks and
uncertainties relating to the development and implementation of the
Company’s low-carbon ammonia projects; and risks associated with
expansions of the Company’s business, including unanticipated
adverse consequences and the significant resources that could be
required.
More detailed information about factors that may affect the
Company’s performance and could cause actual results to differ
materially from those in any forward-looking statements may be
found in CF Industries Holdings, Inc.’s filings with the Securities
and Exchange Commission, including CF Industries Holdings, Inc.’s
most recent annual and quarterly reports on Form 10-K and Form
10-Q, which are available in the Investor Relations section of the
Company’s web site. It is not possible to predict or identify all
risks and uncertainties that might affect the accuracy of our
forward-looking statements and, consequently, our descriptions of
such risks and uncertainties should not be considered exhaustive.
There is no guarantee that any of the events, plans or goals
anticipated by these forward-looking statements will occur, and if
any of the events do occur, there is no guarantee what effect they
will have on our business, results of operations, cash flows,
financial condition and future prospects. Forward-looking
statements are given only as of the date of this communication and
the Company disclaims any obligation to update or revise the
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
CF INDUSTRIES HOLDINGS,
INC.
SELECTED FINANCIAL
INFORMATION
CONSOLIDATED STATEMENTS OF
OPERATIONS
Three months ended
Year ended
December 31,
December 31,
2024
2023
2024
2023
(in millions, except per share
amounts)
Net sales
$
1,524
$
1,571
$
5,936
$
6,631
Cost of sales
1,000
1,070
3,880
4,086
Gross margin
524
501
2,056
2,545
Selling, general and administrative
expenses
78
76
320
289
U.K. operations restructuring
—
3
—
10
Acquisition and integration costs
—
12
4
39
Other operating—net
8
(12
)
(10
)
(31
)
Total other operating costs and
expenses
86
79
314
307
Equity in earnings (loss) of operating
affiliate
3
4
4
(8
)
Operating earnings
441
426
1,746
2,230
Interest expense
47
35
121
150
Interest income
(33
)
(43
)
(123
)
(158
)
Other non-operating—net
(6
)
(2
)
(14
)
(10
)
Earnings before income taxes
433
436
1,762
2,248
Income tax provision
41
84
285
410
Net earnings
392
352
1,477
1,838
Less: Net earnings attributable to
noncontrolling interest
64
78
259
313
Net earnings attributable to common
stockholders
$
328
$
274
$
1,218
$
1,525
Net earnings per share attributable to
common stockholders:
Basic
$
1.89
$
1.44
$
6.75
$
7.89
Diluted
$
1.89
$
1.44
$
6.74
$
7.87
Weighted-average common shares
outstanding:
Basic
173.2
190.1
180.4
193.3
Diluted
173.5
190.6
180.7
193.8
CF INDUSTRIES HOLDINGS,
INC.
SELECTED FINANCIAL
INFORMATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
December 31,
December 31,
2024
2023
(in millions)
Assets
Current assets:
Cash and cash equivalents
$
1,614
$
2,032
Accounts receivable—net
404
505
Inventories
314
299
Prepaid income taxes
145
167
Other current assets
43
47
Total current assets
2,520
3,050
Property, plant and equipment—net
6,735
7,141
Investment in affiliate
29
26
Goodwill
2,492
2,495
Intangible assets—net
507
538
Operating lease right-of-use assets
266
259
Other assets
917
867
Total assets
$
13,466
$
14,376
Liabilities and Equity
Current liabilities:
Accounts payable and accrued expenses
$
603
$
520
Income taxes payable
2
12
Customer advances
118
130
Current operating lease liabilities
86
96
Other current liabilities
9
42
Total current liabilities
818
800
Long-term debt
2,971
2,968
Deferred income taxes
871
999
Operating lease liabilities
189
168
Supply contract liability
724
754
Other liabilities
301
314
Equity:
Stockholders’ equity
4,985
5,717
Noncontrolling interest
2,607
2,656
Total equity
7,592
8,373
Total liabilities and equity
$
13,466
$
14,376
CF INDUSTRIES HOLDINGS,
INC.
SELECTED FINANCIAL
INFORMATION
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Three months ended
Year ended
December 31,
December 31,
2024
2023
2024
2023
(in millions)
Operating Activities:
Net earnings
$
392
$
352
$
1,477
$
1,838
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation and amortization
221
229
925
869
Deferred income taxes
(46
)
154
(115
)
81
Stock-based compensation expense
10
8
36
37
Unrealized net (gain) loss on natural gas
derivatives
(2
)
26
(35
)
(39
)
Impairment of equity method investment in
PLNL
—
—
—
43
Gain on sale of emission credits
—
—
(47
)
(39
)
Loss on disposal of property, plant and
equipment
5
—
12
4
Undistributed (earnings) losses of
affiliate—net of taxes
(1
)
5
(2
)
3
Changes in assets and liabilities, net of
acquisition:
Accounts receivable—net
75
(65
)
77
100
Inventories
(19
)
22
(28
)
152
Accrued and prepaid income taxes
(22
)
(101
)
1
(44
)
Accounts payable and accrued expenses
53
28
44
(88
)
Customer advances
(229
)
(153
)
(11
)
(100
)
Other—net
(17
)
(25
)
(63
)
(60
)
Net cash provided by operating
activities
420
480
2,271
2,757
Investing Activities:
Additions to property, plant and
equipment
(197
)
(188
)
(518
)
(499
)
Proceeds from sale of property, plant and
equipment
3
—
3
1
Purchase of Waggaman ammonia production
facility
—
(1,223
)
2
(1,223
)
Purchase of investments held in
nonqualified employee benefit trust
(2
)
(1
)
(2
)
(1
)
Proceeds from sale of investments held in
nonqualified employee benefit trust
1
1
2
1
Purchase of emission credits
(1
)
(2
)
(3
)
(2
)
Proceeds from sale of emission credits
—
—
47
39
Other—net
—
5
—
5
Net cash used in investing activities
(196
)
(1,408
)
(469
)
(1,679
)
Financing Activities:
Financing fees
—
(2
)
—
(2
)
Dividends paid on common stock
(86
)
(76
)
(364
)
(311
)
Distributions to noncontrolling
interest
—
—
(308
)
(459
)
Purchases of treasury stock
(375
)
(225
)
(1,509
)
(580
)
Proceeds from issuances of common stock
under employee stock plans
—
1
2
2
Cash paid for shares withheld for
taxes
(1
)
—
(26
)
(22
)
Net cash used in financing activities
(462
)
(302
)
(2,205
)
(1,372
)
Effect of exchange rate changes on cash
and cash equivalents
(25
)
8
(15
)
3
Decrease in cash and cash equivalents
(263
)
(1,222
)
(418
)
(291
)
Cash and cash equivalents at beginning of
period
1,877
3,254
2,032
2,323
Cash and cash equivalents at end of
period
$
1,614
$
2,032
$
1,614
$
2,032
CF INDUSTRIES HOLDINGS, INC. SELECTED
FINANCIAL INFORMATION NON-GAAP DISCLOSURE ITEMS
Reconciliation of net cash provided by operating activities
(GAAP measure) to free cash flow (non-GAAP measure):
Free cash flow is defined as net cash provided by operating
activities, as stated in the consolidated statements of cash flows,
reduced by capital expenditures and distributions to noncontrolling
interest. The Company has presented free cash flow because
management uses this measure and believes it is useful to
investors, as an indication of the strength of the Company and its
ability to generate cash and to evaluate the Company’s cash
generation ability relative to its industry competitors. It should
not be inferred that the entire free cash flow amount is available
for discretionary expenditures.
Year ended
December 31,
2024
2023
(in millions)
Net cash provided by operating
activities
$
2,271
$
2,757
Capital expenditures
(518
)
(499
)
Distributions to noncontrolling
interest
(308
)
(459
)
Free cash flow
$
1,445
$
1,799
CF INDUSTRIES HOLDINGS, INC. SELECTED
FINANCIAL INFORMATION NON-GAAP DISCLOSURE ITEMS
(CONTINUED)
Reconciliation of net earnings attributable to common
stockholders and net earnings attributable to common stockholders
per ton (GAAP measures) to EBITDA, EBITDA per ton, adjusted EBITDA
and adjusted EBITDA per ton (non-GAAP measures), as
applicable:
EBITDA is defined as net earnings attributable to common
stockholders plus interest expense (income)—net, income taxes and
depreciation and amortization. Other adjustments include the
elimination of loan fee amortization that is included in both
interest and amortization, and the portion of depreciation that is
included in noncontrolling interest.
The Company has presented EBITDA and EBITDA per ton because
management uses these measures to track performance and believes
that they are frequently used by securities analysts, investors and
other interested parties in the evaluation of companies in the
industry.
Adjusted EBITDA is defined as EBITDA adjusted with the selected
items as summarized in the table below. The Company has presented
adjusted EBITDA and adjusted EBITDA per ton because management uses
these measures, and believes they are useful to investors, as
supplemental financial measures in the comparison of year-over-year
performance.
Three months ended
Year ended
December 31,
December 31,
2024
2023
2024
2023
(in millions)
Net earnings
$
392
$
352
$
1,477
$
1,838
Less: Net earnings attributable to
noncontrolling interest
(64
)
(78
)
(259
)
(313
)
Net earnings attributable to common
stockholders
328
274
1,218
1,525
Interest expense (income)—net
14
(8
)
(2
)
(8
)
Income tax provision
41
84
285
410
Depreciation and amortization
221
229
925
869
Less other adjustments:
Depreciation and amortization in
noncontrolling interest
(21
)
(22
)
(91
)
(85
)
Loan fee amortization(1)
(1
)
(1
)
(4
)
(4
)
EBITDA
582
556
2,331
2,707
Unrealized net mark-to-market (gain) loss
on natural gas derivatives
(2
)
26
(35
)
(39
)
Gain on foreign currency transactions,
including intercompany loans
(2
)
(5
)
—
—
Impact of employee benefit plan policy
change
(16
)
—
(16
)
—
U.K. operations restructuring
—
3
—
10
Acquisition and integration costs
—
12
4
39
Impairment of equity method investment in
PLNL
—
—
—
43
Total adjustments
(20
)
36
(47
)
53
Adjusted EBITDA
$
562
$
592
$
2,284
$
2,760
Net sales
$
1,524
$
1,571
$
5,936
$
6,631
Sales volume by product tons (000s)
4,747
4,912
18,943
19,130
Net earnings attributable to common
stockholders per ton
$
69.10
$
55.78
$
64.30
$
79.72
EBITDA per ton
$
122.60
$
113.19
$
123.05
$
141.51
Adjusted EBITDA per ton
$
118.39
$
120.52
$
120.57
$
144.28
_______________________________________________________________________________
(1)
Loan fee amortization is included in both
interest expense (income)—net and depreciation and
amortization.
CF INDUSTRIES HOLDINGS, INC. SELECTED
FINANCIAL INFORMATION ITEMS AFFECTING COMPARABILITY OF
RESULTS
For the three months ended December 31, 2024 and 2023, we
reported net earnings attributable to common stockholders of $328
million and $274 million, respectively. For the year ended December
31, 2024 and 2023, we reported net earnings attributable to common
stockholders of $1.22 billion and $1.53 billion, respectively.
Certain items affected the comparability of our financial results
for the three months and year ended December 31, 2024 and 2023. The
following table outlines these items that affected the
comparability of our financial results for these periods.
Three months ended
Year ended
December 31,
December 31,
2024
2023
2024
2023
Pre-Tax
After-Tax
Pre-Tax
After-Tax
Pre-Tax
After-Tax
Pre-Tax
After-Tax
(in millions)
Unrealized net mark-to-market (gain) loss
on natural gas derivatives(1)
$
(2
)
$
(2
)
$
26
$
20
$
(35
)
$
(27
)
$
(39
)
$
(30
)
Gain on foreign currency transactions,
including intercompany loans(2)
(2
)
(2
)
(5
)
(4
)
—
—
—
—
Impact of employee benefit plan policy
change(3)
(16
)
(13
)
—
—
(16
)
(13
)
—
—
U.K. operations restructuring
—
—
3
2
—
—
10
8
Acquisition and integration costs
—
—
12
9
4
3
39
29
Impairment of equity method investment in
PLNL(4)
—
—
—
—
—
—
43
32
Canada Revenue Agency Competent Authority
Matter:
Interest expense (income)—net(5)
1
1
—
—
(39
)
(38
)
—
—
_______________________________________________________________________________
(1)
Included in cost of sales in our
consolidated statements of operations.
(2)
Included in other operating—net in our
consolidated statements of operations.
(3)
Included in cost of sales and selling,
general and administrative expenses in our consolidated statements
of operations.
(4)
Included in equity in earnings (loss) of
operating affiliate in our consolidated statements of
operations.
(5)
Included in interest expense and interest
income in our consolidated statements of operations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250219685092/en/
For additional information:
Media Chris Close Senior Director, Corporate
Communications 847-405-2542 - cclose@cfindustries.com
Investors Darla Rivera Director, Investor Relations
847-405-2045 - darla.rivera@cfindustries.com
CF Industries (NYSE:CF)
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부터 1월(1) 2025 으로 2월(2) 2025
CF Industries (NYSE:CF)
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