Company: CF
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001324404-25-000024
Chunk: 26

Company: CF Industries Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 26
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 increased to $452 per ton in the second quarter of 2025 compared to $418 per ton in the second quarter of 2024. The increase in our average selling price was due primarily to higher global energy costs that raised the global market clearing price required to meet global demand. 

Ammonia sales volume in the second quarter of 2025 was 1.1 million tons, an increase of 11% compared to 1.0 million tons in the second quarter of 2024. The increase in sales volume was due primarily to favorable weather in the second quarter of 2025, which resulted in higher spring ammonia applications, supported by higher supply availability driven by higher beginning inventory entering the second quarter of 2025.

Cost of Sales.    Cost of sales in our Ammonia segment averaged $327 per ton in the second quarter of 2025, a 22% increase from $268 per ton in the second quarter of 2024. The increase was due primarily to higher realized natural gas costs, including the impact of realized derivatives, and higher costs associated with maintenance activity in the second quarter of 2025 compared to the second quarter of 2024.  

Gross Margin.    Gross margin in our Ammonia segment decreased by $11 million, or 7%, to $136 million in the second quarter of 2025 from $147 million in the second quarter of 2024, and our gross margin percentage was 27.7% in the second quarter of 2025 compared to 35.9% in the second quarter of 2024. The decrease in gross margin was due primarily to an increase in realized natural gas costs, including the impact of realized derivatives, which reduced gross margin by $47 million and a net increase in manufacturing, maintenance and other costs, which decreased gross margin by $40 million. These factors that decreased gross margin were partially offset by an 8% increase in average selling prices, which increased gross margin by $52 million and an 11% increase in sales volume, which increased gross margin by $24 million.

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Table of ContentsCF INDUSTRIES HOLDINGS, INC. 

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

Net Sales.    Net sales in our Ammonia segment increased by $200 million, or 25%, to $1.01 billion in the six months ended June 30, 2025 from $811