CF Industries expects approximately $1.3 billion of capital expenditures during 2026 as construction begins on its Blue Point One low-carbon ammonia project and the company studies another expansion capable of adding more than 400,000 tons of annual diesel exhaust fluid capacity.
The $1.3 billion CapEx plan includes approximately $550 million for CF Industries’ existing manufacturing network, about $600 million of total spending by the Blue Point One joint venture and approximately $150 million for wholly owned Blue Point common facilities.
Blue Point One is a joint venture between CF Industries, JERA and Mitsui. CF owns 40%, JERA owns 35% and Mitsui owns 25%, with the partners funding the venture according to their respective ownership stakes. CF expects approximately $950 million of 2026 capital expenditures when excluding the portion of Blue Point One spending funded by JERA and Mitsui.
The Blue Point One project at CF’s Blue Point Complex in Louisiana will include an autothermal reforming ammonia production facility and carbon dioxide dehydration and compression infrastructure designed to prepare captured CO2 for transportation and sequestration. CF will also construct scalable infrastructure for storage and vessel loading.
Louisiana and the U.S. Army Corps of Engineers issued permits required for civil construction activities in July, allowing permitted construction to begin in August.
CF Industries is simultaneously exploring another expansion at its Courtright Complex in Ontario. The company signed an agreement with thyssenkrupp Uhde for a front-end engineering and design study covering a new urea liquor upgrade plant. If the project receives a positive final investment decision, it could add more than 400,000 tons of annual diesel exhaust fluid capacity. A final investment decision is expected in 2027.
The investments are being supported by substantial cash generation. CF generated $1.82 billion of trailing 12-month free cash flow and $2.98 billion of net cash from operating activities. Q2 adjusted EBITDA increased to $1.19 billion from $761 million a year earlier, while net earnings increased to $727 million from $386 million.
CF also repurchased 2 million shares for $230 million during Q2. Since launching its current $2 billion authorization in October 2025, the company has repurchased approximately $523 million of stock, leaving about $1.48 billion available.
KEY QUOTES:
“We believe the Company is positioned extremely well in the near- and longer-term, with our premium-grade North American asset base, disciplined strategic growth opportunities, including Blue Point, and strong balance sheet.”
“As a result, we believe CF Industries will continue to generate substantial free cash flow, enabling us to build on our strong track record of investing in high-return initiatives and returning capital to shareholders through share repurchases and our increased quarterly dividend.”
Chris Bohn, President And Chief Executive Officer Of CF Industries Holdings
