CF Industries doubles Q1 2026 profit as global nitrogen supply tightens due to Middle East conflict

CF Industries reported first-quarter 2026 net earnings of $615 million, nearly double the $312 million from a year earlier. Tight global nitrogen fertilizer supplies and geopolitical disruptions increased selling prices across its product portfolio.

The company posted adjusted EBITDA of $983 million for the quarter ended March 31, up from $644 million in the same period of 2025. Net sales rose to $1.99 billion from $1.66 billion a year earlier. Results included a $170 million gain from a litigation settlement.

Chief executive Chris Bohn stated that strong global nitrogen demand and limited supply supported market conditions entering 2026. He noted that the conflict involving Iran further disrupted fertilizer trade flows and exposed vulnerabilities in the global nitrogen supply chain.

CF Industries reported higher average selling prices across all major nitrogen products, including ammonia, granular urea, and UAN, due to tighter global supply. The company cited reduced exports from the Middle East, where shipping disruptions through the Strait of Hormuz limited ammonia and urea trade. Management estimated that 50% to 60% of ammonia and urea capacity in the Middle East was offline or curtailed in March.

The company also cited restricted LNG exports from the region, which aThe company also noted restricted LNG exports from the region, which affected fertilizer production in countries reliant on imported natural gas, such as India, Pakistan, and Bangladesh. Higher European natural gas prices further increased global nitrogen production costs.ns, representing 99% utilization of available capacity. However, the company maintained its forecast for full-year ammonia production at 9.5 million tons due to the ongoing outage at its Yazoo City, Mississippi, complex following a late-2025 incident. Production at the site is not expected to resume until late in the fourth quarter of 2026 at the earliest.

CF Industries continued to advance low-carbon ammonia and fertilizer projects during the quarter. Construction preparations are progressing for the Blue Point joint venture in Louisiana with Japan’s JERA and Mitsui, which aims to produce low-carbon ammonia with carbon capture and sequestration capabilities.

The company also announced a commercial agreement with PepsiCo to supply certified low-carbon UAN fertilizer for potatoes used in PepsiCo’s Frito-Lay supply chain in the U.S.

CF Industries ended the quarter with $2.04 billion in cash and cash equivalents and repurchased approximately 155,000 shares for $15 million. The board declared a quarterly dividend of $0.50 per share, payable on May 29.

Sources: CF Industries earnings release