CF · 10-Q · 2026Q2 · Full report
Income Tax Rate Changes
CF Industries Holdings, Inc. · 2026-08-06 · Importance 36 · Surprise 14 · From source text
The six-month income tax provision increased $163 million to $392 million on pre-tax income of $1.94 billion, while the effective tax rate declined to 20.2% from 21.3%. The second-quarter tax provision increased to $224 million on $1.09 billion of pre-tax income, but the effective rate fell to 20.5% from 22.4%. The prior-year periods included $21 million of expense from increased unrecognized tax benefits related to tax audits, raising the 2025 effective rates by 2.0 percentage points for six months and 3.4 percentage points for the quarter. Excluding earnings attributable to noncontrolling interests, the six-month effective tax rate would have been 22.6% in 2026 versus 24.7% in 2025.
Key facts
- Income tax provision Jan–Jun 2026: $392 million on pre-tax income of $1.94 billion, effective tax rate 20.2% vs prior year $229 million on pre-tax income of $1.07 billion, effective rate 21.3%. source
- Income tax provision Q2 2026: $224 million on pre-tax income of $1.09 billion, effective tax rate 20.5% vs Q2 2025 provision $143 million on pre-tax income of $635 million, effective tax rate 22.4%. source
- Effective tax rate Q2 2026 would be 23.5% (3.0 percentage points higher) if based on pre-tax income exclusive of $142 million earnings attributable to noncontrolling interests. source
- Effective tax rate Jan–Jun 2026 would be 22.6% (2.4 percentage points higher) if based on pre-tax income exclusive of $203 million earnings attributable to noncontrolling interests. source
- Net cash provided by operating activities in the first six months of 2026 includes income tax deposits made to Canadian taxing authorities of approximately $194 million. source
- For tax years after 2011, certain Canadian subsidiaries were accepted for consideration under the bilateral settlement provisions and we made income tax deposits to Canadian taxing authorities of CAD $268 million (approximately $194 million) during the first half of 2026. source
- The income tax deposits of CAD $268 million were recorded as noncurrent income tax-related assets and will be applied against final assessments upon resolution by the competent authorities. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -7.3% | Income tax provision Jan–Jun 2026: $392 million on pre-tax income of $1.94 billion, effective tax rate 20.2% vs prior year $229 million on… |