Company: CF
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001324404-25-000024
Chunk: 34

Company: CF Industries Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 34
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 primarily to a 7% increase in average selling prices, which increased gross margin by $63 million, and a 12% increase in sales volume, which increased gross margin by $63 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 $59 million, and a net increase in manufacturing, maintenance and other costs, which decreased gross margin by $3 million. Gross margin also includes the impact of a $1 million unrealized net mark-to-market loss on natural gas derivatives in the six months ended June 30, 2025 compared to a $10 million gain in the six months ended June 30, 2024.

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 June 30,Six Months Ended June 30, 202520242025 v. 2024202520242025 v. 2024 (dollars in millions, except per ton amounts)Net sales$117 $98 $19 19 %$218 $212 $6 3 %Cost of sales92 75 17 23 %177 180 (3)(2)%Gross margin$25 $23 $2 9 %$41 $32 $9 28 %Gross margin percentage21.4 %23.5 %(2.1)%18.8 %15.1 %3.7 %Sales volume by product tons (000s)378 340 38 11 %706 730 (24)(3)%Sales volume by nutrient tons (000s)(1)130 116 14 12 %243 250 (7)(3)%Average selling price per product ton$310 $288 $22 8 %$309 $290 $19 7 %Average selling price per nutrient ton(1)$900 $845 $55 7 %$897 $848 $49