CF · 10-Q · 2026Q2 · Full report

Operating Expense Trends

CF Industries Holdings, Inc. · 2026-08-06 · Importance 25 · Surprise 22 · Matches filing data

Second-quarter selling, general and administrative expense decreased $12 million to $89 million, primarily because of lower costs for certain corporate initiatives. Six-month SG&A increased $7 million to $192 million, primarily because of higher costs for corporate initiatives, including clean energy initiatives. Other operating income increased to $50 million for the six months from $22 million of expense, including approximately $43 million of 45Q tax credits for sequestered carbon dioxide. Equity in earnings of the operating affiliate increased to $13 million for the six months from $6 million, primarily because higher ammonia prices improved PLNL results.

Key facts

• Selling, general and administrative expenses Jan–Jun 2026: $192 million, increased $7 million from $185 million in prior year, due primarily to higher costs related to certain corporate initiatives including clean energy initiatives. source
• In the fourth quarter of 2025 we entered into buy-in annuity contracts for our Canadian and U.K. pension plans and a buy-out annuity contract for one Canadian plan transferring the majority of that plan’s projected benefit obligation to the insurance company. source
• We expected to contribute approximately $9 million to our U.S. pension plan in 2026 due to its planned windup with an effective termination date of December 31, 2025. source
• Selling, general and administrative expenses Q2 2026: $89 million, decreased $12 million from $101 million in Q2 2025. source
• U.K. Ince facility sold in Q1 2025 and resulted in a loss recognized of $23 million for six months ended June 30, 2025. source
• As a result of the buy-in contracts, we do not expect to have significant required contributions for our Canadian or U.K. pension plans. source
• In July 2026, we settled substantially all obligations under the U.S. pension plan through lump sum payments and purchase of a buy-out annuity contract funded with plan assets and made a cash contribution of $6 million to satisfy remaining plan liabilities. source

Impact estimates