Company: CF
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001324404-25-000015
Chunk: 108

Company: CF Industries Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 108
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 maintenance activity, partially offset by higher realized natural gas costs, including the impact of realized derivatives.

Gross Margin.    Gross margin in our UAN segment decreased by $1 million, or 1%, to $142 million in the three months ended March 31, 2025 from $143 million in the three months ended March 31, 2024, and our gross margin percentage was 30.2% in the three months ended March 31, 2025 compared to 33.6% in the three months ended March 31, 2024. The decrease in gross margin was due primarily to a 5% decrease in average selling prices, which decreased gross margin by $23 million, and an increase in realized natural gas costs, including the impact of realized derivatives, which reduced gross margin by $16 million. These factors that decreased gross margin were offset by a 16% increase in sales volume, which increased gross margin by $31 million, and a net decrease in manufacturing, maintenance and other costs, which increased gross margin by $18 million. Gross margin also includes the impact of a $1 million unrealized net mark-to-market loss on natural gas derivatives in the three months ended March 31, 2025 compared to a $10 million gain in the three months ended March 31, 2024.

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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)%