Company: CF
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001324404-25-000015
Chunk: 22

Company: CF Industries Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 22
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 2024.

32

Table of ContentsCF INDUSTRIES HOLDINGS, INC. 

AN Segment

Our AN segment produces ammonium nitrate (AN). AN, which has a nitrogen content between 29% and 35%, is produced by combining anhydrous ammonia and nitric acid. AN is used as nitrogen fertilizer and is also used extensively by the commercial explosives industry as a component of explosives. AN is produced at our Yazoo City and Billingham complexes.

The following table presents summary operating data for our AN segment:

 Three Months Ended March 31, 202520242025 v. 2024 (dollars in millions, except per ton amounts)Net sales$101 $114 $(13)(11)%Cost of sales85 105 (20)(19)%Gross margin$16 $9 $7 78 %Gross margin percentage15.8 %7.9 %7.9 %Sales volume by product tons (000s)328 390 (62)(16)%Sales volume by nutrient tons (000s)(1)113 134 (21)(16)%Average selling price per product ton$308 $292 $16 5 %Average selling price per nutrient ton(1)$894 $851 $43 5 %Gross margin per product ton$49 $23 $26 113 %Gross margin per nutrient ton(1)$142 $67 $75 112 %Depreciation and amortization$8 $13 $(5)(38)%Unrealized net mark-to-market gain on natural gas derivatives$— $(1)$1 100 %

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(1)AN represents between 29% and 35% of nitrogen content. Nutrient tons represent the tons of nitrogen within the product tons.

First Quarter of 2025 Compared to First Quarter of 2024 

Net Sales.    Net sales in our AN segment decreased $13 million, or 11%, to $101 million in the three months ended March 31, 2025 from $114 million in the three months ended March 31, 2024 due to a 16% decrease in sales volume partially offset by a 5% increase in average selling prices. Sales volume was lower due primarily to lower supply availability as a result of lower production in the three months ended March 31, 2025 and lower beginning inventory entering 2025.