CF Industries Holdings, Inc. Reports First Nine Months 2024 Net Earnings of $890 Million, Adjusted EBITDA of $1.72 Billion
Operational Performance, Favorable Global Nitrogen Cost Structure Drive Strong Cash Generation
Returned $1.4 Billion to Shareholders Through Share Repurchases and Dividends in First Nine Months of 2024
NORTHBROOK, Ill.–(BUSINESS WIRE)–CF Industries Holdings, Inc. (NYSE: CF), a leading global manufacturer of hydrogen and nitrogen products, today announced results for the first nine months and third quarter ended September 30, 2024.
Highlights
- First nine months 2024 net earnings(1)(2) of $890 million, or $4.86 per diluted share, EBITDA(3) of $1.75 billion, and adjusted EBITDA(3) of $1.72 billion
- Third quarter 2024 net earnings of $276 million, or $1.55 per diluted share, EBITDA of $509 million, and adjusted EBITDA of $511 million
- Trailing twelve months net cash from operating activities of $2.33 billion and free cash flow(4) of $1.51 billion
- Repurchased 6.1 million shares for $476 million during the third quarter of 2024
“The CF Industries team operated well across all aspects of our business in the third quarter against the backdrop of favorable global nitrogen industry conditions, supporting strong cash generation and enabling the Company to continue to create significant value for long-term shareholders,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc.
Operations Overview
As of September 30, 2024, the Company’s 12-month rolling average recordable incident rate was 0.17 incidents per 200,000 work hours.
Gross ammonia production for the first nine months and third quarter of 2024 was approximately 7.2 million and 2.4 million tons, respectively, compared to 7.0 million and 2.2 million tons in the first nine months and third quarter of 2023, respectively. The Company expects gross ammonia production for the full year 2024 to be approximately 9.8 million tons.
Financial Results Overview
First Nine Months 2024 Financial Results
For the first nine months of 2024, net earnings attributable to common stockholders were $890 million, or $4.86 per diluted share, EBITDA was $1.75 billion, and adjusted EBITDA was $1.72 billion. These results compare to first nine months of 2023 net earnings attributable to common stockholders of $1.25 billion, or $6.42 per diluted share, EBITDA of $2.15 billion, and adjusted EBITDA of $2.17 billion.
Net sales in the first nine months of 2024 were $4.41 billion compared to $5.06 billion in the first nine months of 2023. Average selling prices for the first nine months of 2024 were lower than in the first nine months of 2023 as lower global energy costs reduced the global market clearing price required to meet global demand. Sales volumes in the first nine months of 2024 were similar to the first nine months 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 urea ammonium nitrate solution (UAN) sales volumes.
Cost of sales for the first nine months of 2024 was lower compared to the first nine months of 2023 due to lower realized natural gas costs partially offset by higher maintenance costs incurred in the first quarter of 2024 related to plant outages.
The average cost of natural gas reflected in the Company’s cost of sales was $2.38 per MMBtu in the first nine months of 2024 compared to the average cost of natural gas in cost of sales of $3.90 per MMBtu in the first nine months of 2023.
Third Quarter 2024 Financial Results
For the third quarter of 2024, net earnings attributable to common stockholders were $276 million, or $1.55 per diluted share, EBITDA was $509 million, and adjusted EBITDA was $511 million. These results compare to third quarter of 2023 net earnings attributable to common stockholders of $164 million, or $0.85 per diluted share, EBITDA of $372 million, and adjusted EBITDA of $445 million.
Net sales in the third quarter of 2024 were $1.37 billion compared to $1.27 billion in the third quarter of 2023. Average selling prices for the third quarter of 2024 were higher than in the third quarter of 2023 primarily due to higher average selling prices for ammonia from lower global supply availability due in part to lower natural gas availability in Trinidad and Egypt. Sales volumes in the third quarter of 2024 were similar to the third 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 sales volumes.
Cost of sales for the third quarter of 2024 was similar to the third 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 $2.10 per MMBtu in the third quarter of 2024 compared to the average cost of natural gas in cost of sales of $2.54 per MMBtu in the third quarter of 2023.
Capital Management
Capital Expenditures
Capital expenditures in the third quarter and first nine months of 2024 were $139 million and $321 million, respectively. Management projects capital expenditures for full year 2024 will be approximately $525 million.
Share Repurchase Program
The Company repurchased 14.4 million shares for $1.13 billion during the first nine months of 2024, which includes the repurchase of 6.1 million shares for $476 million during the third quarter of 2024. Since CF Industries commenced its current $3 billion share repurchase program in the second quarter of 2023, the Company has repurchased 20.0 million shares for approximately $1.55 billion. As of September 30, 2024, approximately $1.45 billion remains under the program, which expires in December 2025.
CHS Inc. Distribution
CHS Inc. (CHS) is entitled to semi-annual distributions resulting from its minority equity investment in CF Industries Nitrogen, LLC (CFN). The estimate of the partnership distribution earned by CHS, but not yet declared, for the third quarter of 2024 is approximately $65 million.
Nitrogen Market Outlook
Global nitrogen pricing was supported in the third quarter of 2024 by strong global nitrogen demand and lower supply availability due to natural gas shortages in Trinidad and Egypt, China’s absence from the urea export market, and planned maintenance activities in the Middle East. In the near-term, management expects the global supply-demand balance to remain constructive, as inventories globally are believed to be below average and energy spreads continue to be significant between North America and high-cost production in Europe.
- North America: While grains prices in North America are under pressure from expected high crop production in 2024, management believes that the fall ammonia application season in the United States and Canada will be positive, if weather is favorable, given the relative affordability of nitrogen inputs. U.S. crop returns for 2025 are forecast at similar levels to 2024, which is expected to support stable planted corn acres year-over-year.
- Brazil: Through September 2024, urea imports to Brazil were 5.4 million metric tons, 13% higher than through the same period in 2023. Brazil is expected to import 2.0-2.5 million metric tons of urea in the fourth quarter of 2024 due to forecast higher planted corn acres and nominal domestic production.
- India: Management believes significant urea import requirements remain for India through March 2025 due to favorable weather for rice, wheat and other crop production as well as lower-than-targeted urea production in India driving greater import need.
- Europe: Approximately 20% of ammonia and urea capacity were reported in shutdown/curtailment in Europe as of September 2024. 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 continues to limit urea export availability from the country. Through September 2024, China has exported 254,000 metric tons of urea, 91 percent lower than the same period in 2023.
- Russia: Urea exports from Russia have increased by 5% in 2024 due to the start-up of new urea granulation capacity and the willingness of certain countries to purchase Russian fertilizer, including Brazil and the United States. Exports of ammonia from Russia are expected to rise with the completion of the country’s Taman port ammonia terminal though annual ammonia export volumes are projected to remain below pre-war levels.
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
Evaluation of low-carbon ammonia technologies
CF Industries, along with its partners, continue to advance front-end engineering and design (FEED) studies evaluating autothermal reforming (ATR) ammonia production technology and assessing the cost and viability of adding flue gas carbon dioxide capture to a steam methane reforming (SMR) ammonia facility. Both FEED studies are expected to be completed in the fourth quarter of 2024.
Donaldsonville Complex green ammonia project
Commissioning of the 20-megawatt alkaline water electrolysis plant at CF Industries’ Donaldsonville, Louisiana, manufacturing complex continues.
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, fabrication of the carbon dioxide compressors is proceeding, installation of piping and process equipment is in progress, one of the two compressors has been delivered to site, and construction of the cooling tower required for the unit has been completed. Once in service, the dehydration and compression unit will enable up to 2 million metric tons 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 first nine months of 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 first nine months of 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—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 September 30, |
|
Nine months ended September 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(dollars in millions, except per share and per MMBtu amounts) |
||||||||||||||
|
Net sales |
$ |
1,370 |
|
|
$ |
1,273 |
|
|
$ |
4,412 |
|
|
$ |
5,060 |
|
|
Cost of sales |
|
926 |
|
|
|
896 |
|
|
|
2,880 |
|
|
|
3,016 |
|
|
Gross margin |
$ |
444 |
|
|
$ |
377 |
|
|
$ |
1,532 |
|
|
$ |
2,044 |
|
|
Gross margin percentage |
|
32.4 |
% |
|
|
29.6 |
% |
|
|
34.7 |
% |
|
|
40.4 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Net earnings attributable to common stockholders |
$ |
276 |
|
|
$ |
164 |
|
|
$ |
890 |
|
|
$ |
1,251 |
|
|
Net earnings per diluted share |
$ |
1.55 |
|
|
$ |
0.85 |
|
|
$ |
4.86 |
|
|
$ |
6.42 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
EBITDA(1) |
$ |
509 |
|
|
$ |
372 |
|
|
$ |
1,749 |
|
|
$ |
2,151 |
|
|
Adjusted EBITDA(1) |
$ |
511 |
|
|
$ |
445 |
|
|
$ |
1,722 |
|
|
$ |
2,168 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Sales volume by product tons (000s) |
|
4,797 |
|
|
|
4,745 |
|
|
|
14,196 |
|
|
|
14,218 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Natural gas supplemental data (per MMBtu): |
|
|
|
|
|
|
|
||||||||
|
Natural gas costs in cost of sales(2) |
$ |
2.09 |
|
|
$ |
2.53 |
|
|
$ |
2.23 |
|
|
$ |
3.43 |
|
|
Realized derivatives loss in cost of sales(3) |
|
0.01 |
|
|
|
0.01 |
|
|
|
0.15 |
|
|
|
0.47 |
|
|
Cost of natural gas used for production in cost of sales |
$ |
2.10 |
|
|
$ |
2.54 |
|
|
$ |
2.38 |
|
|
$ |
3.90 |
|
|
Average daily market price of natural gas Henry Hub (Louisiana) |
$ |
2.08 |
|
|
$ |
2.58 |
|
|
$ |
2.19 |
|
|
$ |
2.46 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Unrealized net mark-to-market loss (gain) on natural gas derivatives |
$ |
1 |
|
|
$ |
7 |
|
|
$ |
(33 |
) |
|
$ |
(65 |
) |
|
Depreciation and amortization |
$ |
229 |
|
|
$ |
213 |
|
|
$ |
704 |
|
|
$ |
640 |
|
|
Capital expenditures |
$ |
139 |
|
|
$ |
147 |
|
|
$ |
321 |
|
|
$ |
311 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Production volume by product tons (000s): |
|
|
|
|
|
|
|
||||||||
|
Ammonia(4) |
|
2,433 |
|
|
|
2,238 |
|
|
|
7,183 |
|
|
|
6,971 |
|
|
Granular urea |
|
1,167 |
|
|
|
1,081 |
|
|
|
3,381 |
|
|
|
3,414 |
|
|
UAN (32%)(5) |
|
1,521 |
|
|
|
1,749 |
|
|
|
4,985 |
|
|
|
5,012 |
|
|
Ammonium nitrate (AN) |
|
364 |
|
|
|
416 |
|
|
|
1,038 |
|
|
|
1,104 |
|
|
_______________________________________________________________________________ |
|
|
(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 September 30, |
|
Nine months ended September 30, |
||||||||||||
|
|
|
2024(1) |
|
|
2023 |
|
|
|
2024(1) |
|
|
2023 |
|
||
|
|
(dollars in millions, except per ton amounts) |
||||||||||||||
|
Net sales |
$ |
353 |
|
|
$ |
235 |
|
|
$ |
1,164 |
|
|
$ |
1,184 |
|
|
Cost of sales |
|
270 |
|
|
|
214 |
|
|
|
869 |
|
|
|
797 |
|
|
Gross margin |
$ |
83 |
|
|
$ |
21 |
|
|
$ |
295 |
|
|
$ |
387 |
|
|
Gross margin percentage |
|
23.5 |
% |
|
|
8.9 |
% |
|
|
25.3 |
% |
|
|
32.7 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Sales volume by product tons (000s) |
|
948 |
|
|
|
764 |
|
|
|
2,845 |
|
|
|
2,469 |
|
|
Sales volume by nutrient tons (000s)(2) |
|
778 |
|
|
|
627 |
|
|
|
2,333 |
|
|
|
2,025 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average selling price per product ton |
$ |
372 |
|
|
$ |
308 |
|
|
$ |
409 |
|
|
$ |
480 |
|
|
Average selling price per nutrient ton(2) |
|
454 |
|
|
|
375 |
|
|
|
499 |
|
|
|
585 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted gross margin(3): |
|
|
|
|
|
|
|
||||||||
|
Gross margin |
$ |
83 |
|
|
$ |
21 |
|
|
$ |
295 |
|
|
$ |
387 |
|
|
Depreciation and amortization |
|
55 |
|
|
|
39 |
|
|
|
176 |
|
|
|
117 |
|
|
Unrealized net mark-to-market loss (gain) on natural gas derivatives |
|
— |
|
|
|
2 |
|
|
|
(12 |
) |
|
|
(19 |
) |
|
Adjusted gross margin |
$ |
138 |
|
|
$ |
62 |
|
|
$ |
459 |
|
|
$ |
485 |
|
|
Adjusted gross margin as a percent of net sales |
|
39.1 |
% |
|
|
26.4 |
% |
|
|
39.4 |
% |
|
|
41.0 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Gross margin per product ton |
$ |
88 |
|
|
$ |
27 |
|
|
$ |
104 |
|
|
$ |
157 |
|
|
Gross margin per nutrient ton(2) |
|
107 |
|
|
|
33 |
|
|
|
126 |
|
|
|
191 |
|
|
Adjusted gross margin per product ton |
|
146 |
|
|
|
81 |
|
|
|
161 |
|
|
|
196 |
|
|
Adjusted gross margin per nutrient ton(2) |
|
177 |
|
|
|
99 |
|
|
|
197 |
|
|
|
240 |
|
|
_______________________________________________________________________________ |
|
|
(1) |
Financial results for the third quarter and first nine months of 2024 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 first nine months of 2024 to first nine months of 2023:
- Ammonia sales volume for 2024 increased compared to 2023 due to the addition of contractual commitments served from the recently acquired Waggaman ammonia production facility, partially offset by lower spring ammonia agricultural applications in North America compared to the prior year.
- 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 and the Company had a higher proportion of non-agricultural ammonia sales.
- 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 September 30, |
|
Nine months ended September 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(dollars in millions, except per ton amounts) |
||||||||||||||
|
Net sales |
$ |
388 |
|
|
$ |
360 |
|
|
$ |
1,252 |
|
|
$ |
1,431 |
|
|
Cost of sales |
|
228 |
|
|
|
226 |
|
|
|
711 |
|
|
|
775 |
|
|
Gross margin |
$ |
160 |
|
|
$ |
134 |
|
|
$ |
541 |
|
|
$ |
656 |
|
|
Gross margin percentage |
|
41.2 |
% |
|
|
37.2 |
% |
|
|
43.2 |
% |
|
|
45.8 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Sales volume by product tons (000s) |
|
1,177 |
|
|
|
1,062 |
|
|
|
3,520 |
|
|
|
3,532 |
|
|
Sales volume by nutrient tons (000s)(1) |
|
541 |
|
|
|
488 |
|
|
|
1,619 |
|
|
|
1,625 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average selling price per product ton |
$ |
330 |
|
|
$ |
339 |
|
|
$ |
356 |
|
|
$ |
405 |
|
|
Average selling price per nutrient ton(1) |
|
717 |
|
|
|
738 |
|
|
|
773 |
|
|
|
881 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted gross margin(2): |
|
|
|
|
|
|
|
||||||||
|
Gross margin |
$ |
160 |
|
|
$ |
134 |
|
|
$ |
541 |
|
|
$ |
656 |
|
|
Depreciation and amortization |
|
73 |
|
|
|
66 |
|
|
|
218 |
|
|
|
216 |
|
|
Unrealized net mark-to-market loss (gain) on natural gas derivatives |
|
— |
|
|
|
2 |
|
|
|
(9 |
) |
|
|
(18 |
) |
|
Adjusted gross margin |
$ |
233 |
|
|
$ |
202 |
|
|
$ |
750 |
|
|
$ |
854 |
|
|
Adjusted gross margin as a percent of net sales |
|
60.1 |
% |
|
|
56.1 |
% |
|
|
59.9 |
% |
|
|
59.7 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Gross margin per product ton |
$ |
136 |
|
|
$ |
126 |
|
|
$ |
154 |
|
|
$ |
186 |
|
|
Gross margin per nutrient ton(1) |
|
296 |
|
|
|
275 |
|
|
|
334 |
|
|
|
404 |
|
|
Adjusted gross margin per product ton |
|
198 |
|
|
|
190 |
|
|
|
213 |
|
|
|
242 |
|
|
Adjusted gross margin per nutrient ton(1) |
|
431 |
|
|
|
414 |
|
|
|
463 |
|
|
|
526 |
|
|
_______________________________________________________________________________ |
|
|
(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 first nine months of 2024 to first nine months of 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 and the impact of purchased volumes of granular urea to meet customer commitments 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 September 30, |
|
Nine months ended September 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
(dollars in millions, except per ton amounts) |
||||||||||||||
|
Net sales |
$ |
406 |
|
|
$ |
435 |
|
|
$ |
1,306 |
|
|
$ |
1,650 |
|
|
Cost of sales |
|
272 |
|
|
|
302 |
|
|
|
813 |
|
|
|
937 |
|
|
Gross margin |
$ |
134 |
|
|
$ |
133 |
|
|
$ |
493 |
|
|
$ |
713 |
|
|
Gross margin percentage |
|
33.0 |
% |
|
|
30.6 |
% |
|
|
37.7 |
% |
|
|
43.2 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Sales volume by product tons (000s) |
|
1,799 |
|
|
|
1,954 |
|
|
|
5,158 |
|
|
|
5,425 |
|
|
Sales volume by nutrient tons (000s)(1) |
|
570 |
|
|
|
616 |
|
|
|
1,632 |
|
|
|
1,710 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Average selling price per product ton |
$ |
226 |
|
|
$ |
223 |
|
|
$ |
253 |
|
|
$ |
304 |
|
|
Average selling price per nutrient ton(1) |
|
712 |
|
|
|
706 |
|
|
|
800 |
|
|
|
965 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Adjusted gross margin(2): |
|
|
|
|
|
|
|
||||||||
|
Gross margin |
$ |
134 |
|
|
$ |
133 |
|
|
$ |
493 |
|
|
$ |
713 |
|
|
Depreciation and amortization |
|
69 |
|
|
|
78 |
|
|
|
206 |
|
|
|
214 |
|
|
Unrealized net mark-to-market loss (gain) on natural gas derivatives |
|
1 |
|
|
|
3 |
|
|
|
(9 |
) |
|
|
(18 |
) |
|
Adjusted gross margin |
$ |
204 |
|
|
$ |
214 |
|
|
$ |
690 |
|
|
$ |
909 |
|
|
Adjusted gross margin as a percent of net sales |
|
50.2 |
% |
|
|
49.2 |
% |
|
|
52.8 |
% |
|
|
55.1 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Gross margin per product ton |
$ |
74 |
|
|
$ |
68 |
|
|
$ |
96 |
|
|
$ |
131 |
|
|
Gross margin per nutrient ton(1) |
|
235 |
|
|
|
216 |
|
|
|
302 |
|
|
|
417 |
|
|
Adjusted gross margin per product ton |
|
113 |
|
|
|
110 |
|
|
|
134 |
|
|
|
168 |
|
|
Adjusted gross margin per nutrient ton(1) |
|
358 |
|
|
|
347 |
|
|
|
423 |
|
|
|
532 |
|
|
_______________________________________________________________________________ |
|
|
(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. |
Contacts
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
