Thu, May 8, 6:06 PM (7 days ago)
**CF Industries Holdings, Inc. (CF)** reported a strong Q1 2025, with net earnings attributable to common stockholders increasing by 61% to $312 million, driven by a 40% increase in gross margin to $572 million. This growth was primarily due to an 11% increase in sales volume and a 2% increase in average selling prices, partially offset by higher natural gas costs. Diluted net earnings per share increased by 80% to $1.85, reflecting higher net earnings and a 10% decrease in diluted weighted-average common shares outstanding due to share repurchases. **Revenue and Profit Margins:** Net sales rose by 13% to $1.66 billion, with gross margin percentage improving to 34.4% from 27.8%. The increase in gross margin was driven by higher sales volume and average selling prices, offset by higher natural gas costs and maintenance activities. **Cash Flow:** Net cash provided by operating activities increased by 32% to $586 million, primarily due to higher net earnings and changes in net working capital. Capital expenditures totaled $132 million, with net cash used in investing activities at $126 million. Net cash used in financing activities increased to $671 million, mainly due to higher share repurchases. **Segment Performance:** All segments showed improved gross margins, with the Ammonia segment experiencing the most significant increase of 186% due to higher sales volume and lower manufacturing costs. The Granular Urea and UAN segments also saw notable improvements in gross margins. **Future Operations Impact:** CF Industries is focusing on decarbonizing its ammonia production network and investing in low-carbon ammonia projects, including the Blue Point joint venture. The company anticipates significant capital expenditures for these initiatives, which may impact future cash flows and financial performance. **Uncertainties:** The company faces uncertainties related to global supply and demand, natural gas price volatility, weather conditions, and regulatory changes. These factors could impact future financial performance and operational results.