Latest news with #CFIndustries
Forbes
21-05-2025
- Business
- Forbes
This Snubbed Fertilizer Giant Gave Investors $2 Billion
Tractor cultivating field at spring,aerial view We need to talk about one dividend grower that's set to win big from this sudden breakout of tariff peace. It's an all-American stock that's 'dirt' cheap now. I'm talking about CF Industries (CF), a holding of my Hidden Yields service. CF makes fertilizers and is the world's largest maker of ammonia, a key ingredient of fertilizer. How do we know CF is primed to win as China and Uncle Sam take a breather? We're quite literally following the money here: CF's management team is piling in with huge stock buybacks—to the tune of 20% of the company's 'float' over the last three years. And its board just upped the ante with another $2 billion of repurchases. That's because management sees exactly what we see here. Let's dive into three gusting tailwinds for this 'back-to-the-land' play, starting (where else?) with tariffs. China is one of the biggest buyers of US crops, importing tens of billions of dollars' worth every year. Higher US-China tariffs hurt farmers' profits and slowed business at farm suppliers like CF and equipment maker Deere & Co. (DE). So it follows that the drop in tariffs between the two nations is bullish for farm profits—and fertilizer firms like CF. Tariffs have fallen from a stratospheric 125% to 10% on exports to China and from 145% to 30% on exports from China. As we discussed last week, this sets up a 'Goldilocks' tariff zone that'll protect US suppliers but doesn't restrict trade altogether. That, in turn, will help profits at American farms and at CF, thanks to the company's big US footprint. CF makes ammonia and ammonia-derived products, like granular urea fertilizer, at six plants in America, one in Canada and one in the UK. That American base isn't only a benefit in terms of tariffs—it also lets CF tap cheaper North American natural gas—a big edge, since gas is 70% of the cost of ammonia production. Moreover, CF says it can boost output in the US if needed. In fact, as we'll see below, it's already taking that step—in a smart, low-risk way. The second? Treasury Secretary Scott Bessent, who, as we've discussed recently, plans to tackle inflation with a three-step strategy: You can bet, too, that Trump and Bessent want lower corn and soybean prices, as cheap grocery costs are another administration priority (and are key to slaying inflation). That puts fertilizer makers—especially domestic fertilizer makers like CF—in a great spot, as their products boost crop yields. That, of course, is key to keeping a lid on food prices. Which brings us to our third (and most underrated) tailwind. Few investors realize this, but ammonia is in short supply and, according to CF, about seven more factories are needed to address the shortfall. CF is stepping into the breach with a new $4-billion plant, called the Blue Point Complex, in Louisiana. This facility also includes state-of-the-art carbon capture tech—a smart move to 'future-proof' it. To cut risk and cost, CF is building the plant through a joint venture with Japanese firms Mitsui & Co. and JERA Co. Inc. That leaves CF to foot about $2.2 billion of the overall construction bill. Meantime, CF is already enjoying a rebound in demand for its nitrogen fertilizers and is spending its profits wisely—by buying back its cheap shares, as we touched on earlier. When I say 'cheap,' I'm not kidding. You'd expect a firm with this kind of upside to at least trade for more than the S&P 500. But that's far from the case here. As I write this, CF trades for around 11.4 times trailing earnings, well below the S&P 500 average of around 23. CF has returned $5 billion to shareholders in dividends and buybacks since 2022. Add the fresh $2-billion authorization the board recently approved through 2029, and we're set to see that share count keep dropping. Buybacks like these also drive bigger dividend hikes, because they leave fewer shares on which the company has to pay out. CF's dividend, which yields 2.3%, hasn't been hiked since early 2024—though it did see a healthy 25% boost back then. I expect payout growth to resume soon, thanks to the lower share count and the huge amount of room management already has for increases: In the last 12 months, dividends accounted for just 19% of free cash flow. Finally, CF's balance sheet supports its buybacks and potential dividend hikes, with just $1.6 billion of long-term debt (net of cash), a fraction of its $13.3 billion of assets. Brett Owens is Chief Investment Strategist for Contrarian Outlook. For more great income ideas, get your free copy his latest special report: How to Live off Huge Monthly Dividends (up to 8.7%) — Practically Forever. Disclosure: none
Business Wire
09-05-2025
- Business
- Business Wire
CF Industries Holdings, Inc. to Participate in Upcoming Investor Conferences
NORTHBROOK, Ill.--(BUSINESS WIRE)--CF Industries Holdings, Inc. (NYSE: CF) today announced that the Company will present at the BMO Global Farm to Market Conference at 8:45 am ET on Thursday, May 15, 2025. Investors who wish to access the live conference webcast should visit the Investor Relations section of the company's website at A replay of the webcast will be available on the CF Industries Holdings, Inc. website for 180 days following the event. Additionally, CF Industries will participate in investor meetings at the UBS Energy Transition and Decarbonization Conference on Wednesday, May 14, 2025. 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 and encourages those interested in the Company to check there frequently.
Washington Post
07-05-2025
- Business
- Washington Post
CF: Q1 Earnings Snapshot
NORTHBROOK, Ill. — NORTHBROOK, Ill. — CF Industries Holdings Inc. (CF) on Wednesday reported first-quarter net income of $312 million. On a per-share basis, the Northbrook, Illinois-based company said it had profit of $1.85.
Business Wire
29-04-2025
- Business
- Business Wire
CF Industries Holdings, Inc. Declares Quarterly Dividend and Confirms Dates for First Quarter 2025 Results and Conference Call
NORTHBROOK, Ill.--(BUSINESS WIRE)--CF Industries Holdings, Inc. (NYSE: CF) today reported that its board of directors has declared a $0.50 per share dividend on its common stock. The dividend will be payable on May 30, 2025, to stockholders of record as of May 15, 2025. Additionally, the Company confirmed that it will report its first quarter 2025 results after the market close on Wednesday, May 7, 2025. The company plans to host a conference call to discuss these results at 11:00 a.m. ET on Thursday, May 8, 2025. Investors can access the call by dialing 833-634-5017 (toll-free) or 412-902-4213 (international) and ask to be joined into the CF Industries call. The conference call also will be available live on the Company's website at Participants also may pre-register for the webcast on the Company's website. Please log-in or dial-in at least 10 minutes prior to the start time to ensure a connection. A replay of the webcast will be available through the company's website at 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 and encourages those interested in the Company to check there frequently.
Yahoo
14-04-2025
- Business
- Yahoo
This Week in Louisiana Politics: Ammonia plant, insurance reform, FEMA cuts program
BATON ROUGE, La. (Louisiana First) — On This Week in Louisiana Politics, Gov. Jeff Landry announces a $4 billion ammonia plant in Ascension Parish, his insurance reform plan and cuts to a FEMA disaster mitigation program. Here's a recap of the latest in Louisiana political news. Landry and CF Industries announced that the 'Blue Point Complex,' a cutting-edge plant focused on producing low-carbon blue ammonia, is expected to become the largest facility of its kind in the world. Construction is expected to begin in 2026, with production starting in 2029. The project is expected to create more than 100 permanent jobs. The governor criticized insurance companies and trial lawyers, who he said helped raise auto and homeowners insurance rates as insurers make record profits. He suggests a 'balanced approach' to reform to hold both lawyers and insurers accountable. 'Too much of this advertising is having a cultural effect on our society, and it's not healthy, however, to balance this, insurance companies should not be allowed to pass their advertising cost into the bills of Louisiana families, if the insurance companies want to hire overpaid celebrities to appear in commercials and have a Gecko sipping on coffee riding motorcycles, then our citizens should not pay for that in their premium increases,' Landry said. The day after Landry announced his plans for insurance reform, Insurance Commissioner Tim Temple presented his plan to reduce rates and address the crisis. Louisiana OMV sees improvement after system fix, Gov. Landry says Louisiana joined the national lawsuit against the U.S. Nuclear Regulatory Commission (NRC), accusing them of overstepping their authority over nuclear reactors. 'Louisiana's energy future demands innovation, not unnecessary red tape,' Landry said. 'Joining this lawsuit is about defending our ability to pursue advanced energy solutions like SMRs — solutions that are reliable, clean, and essential for economic development in the State. This is part of our broader strategy to make Louisiana an energy leader in the 21st century.' Louisiana was approved as an NRC Agreement State in 1967, giving the state the authority to regulate source, byproduct and nuclear materials. The Federal Emergency Management Agency (FEMA) announced it will end the Building Resilient Infrastructure and Communities (BRIC) program—a major funding source for natural disaster mitigation projects across the state. According to FEMA data, nearly 150 Louisiana applications for BRIC funds, totaling more than $720 million, have now been canceled or placed on hold. In a statement, a FEMA spokesperson called the BRIC program 'wasteful and ineffective,' claiming it was 'more concerned with political agendas than helping Americans affected by natural disasters.' Close Thanks for signing up! Watch for us in your inbox. Subscribe Now A celestial 'smiley face' will be visible to stargazers later this month: What to know Louisiana regular legislative session starts Monday Trump has vowed to bring down housing costs. What is his administration doing? Target car seat trade-in returns soon: What to know Why is Easter hardly on the same Sunday? Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
