Company: CF
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001324404-25-000024
Chunk: 142

Company: CF Industries Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 142
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 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 an 18% increase in average selling prices, which increased gross margin by $86 million, and a 9% increase in sales volume, which increased gross margin by $32 million. These factors that increased gross margin were partially offset by an increase in realized natural gas costs, including the impact of realized derivatives, which reduced gross margin by $43 million, and a net increase in manufacturing, maintenance and other costs, which decreased gross margin by $21 million.

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

Net Sales.    Net sales in our UAN segment increased $180 million, or 20%, to $1.08 billion in the six months ended June 30, 2025 from $900 million in the six months ended June 30, 2024 due primarily to a 12% increase in sales volume and a 7% increase in average selling prices. The increase in sales volume was due primarily to inventory drawdown to meet strong domestic and international demand and higher supply availability as a result of higher production in the six months ended June 30, 2025 compared to the six months ended June 30, 2024 and higher beginning inventory entering 2025. Average selling prices 

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Table of ContentsCF INDUSTRIES HOLDINGS, INC. 

increased to $286 per ton in the six months ended June 30, 2025 compared to $268 per ton in the six