Company: CF
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001324404-25-000024
Chunk: 32

Company: CF Industries Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 32
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 margin per product ton$142 $124 $18 15 %$109 $107 $2 2 %Gross margin per nutrient ton(1)$449 $391 $58 15 %$345 $338 $7 2 %Depreciation and amortization$72 $68 $4 6 %$145 $137 $8 6 %Unrealized net mark-to-market loss (gain) on natural gas derivatives$— $— $— — %$1 $(10)$11 N/M

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N/M—Not Meaningful

(1)UAN represents between 28% and 32% of nitrogen content, depending on the concentration specified by the customer. Nutrient tons represent the tons of nitrogen within the product tons.

Second Quarter of 2025 Compared to Second Quarter of 2024 

Net Sales.    Net sales in our UAN segment increased $135 million, or 28%, to $610 million in the second quarter of 2025 from $475 million in the second quarter of 2024 due primarily to an 18% increase in average selling prices and a 9% increase in sales volume. Average selling prices increased to $321 per ton in the second quarter of 2025 compared to $272 per ton in the second quarter of 2024 due primarily to higher global energy costs, which raised the global market clearing price required to meet global demand. Sales volume was higher due primarily to inventory drawdown to meet strong domestic and international demand. 

Cost of Sales.    Cost of sales in our UAN segment averaged $179 per ton in the second quarter of 2025, a 21% increase from $148 per ton in second quarter of 2024, 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 UAN segment increased by $54 million, or 25%, to $270 million in the second quarter of 2025 from $216 million in the second quarter of 2024, and our gross margin percentage was 44.3% in the second quarter of 2025 compared to 45.5% in the second quarter of 2024. The increase in gross margin was due primarily to