Company: CF
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001324404-25-000024
Chunk: 136

Company: CF Industries Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 136
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 in the second quarter of 2025 compared to 35.9% in the second quarter of 2024. The decrease in gross margin was due primarily to an increase in realized natural gas costs, including the impact of realized derivatives, which reduced gross margin by $47 million and a net increase in manufacturing, maintenance and other costs, which decreased gross margin by $40 million. These factors that decreased gross margin were partially offset by an 8% increase in average selling prices, which increased gross margin by $52 million and an 11% increase in sales volume, which increased gross margin by $24 million.

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Table of ContentsCF INDUSTRIES HOLDINGS, INC. 

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

Net Sales.    Net sales in our Ammonia segment increased by $200 million, or 25%, to $1.01 billion in the six months ended June 30, 2025 from $811 million in the six months ended June 30, 2024. The increase in our net sales reflects an 18% increase in sales volume and a 6% increase in average selling prices. Average selling prices increased to $453 per ton in the six months ended June 30, 2025 compared to $428 per ton in the six months ended June 30, 2024 as higher global energy costs, due in part to gas curtailments and higher gas costs in Europe, raised the global market clearing price required to meet global demand. 

Ammonia sales volume in the six months ended June 30, 2025 was 2.2 million tons, an increase of 18% compared to 1.9 million tons in the six months ended June 30, 2024. The increase in sales volume was due primarily to higher supply availability as a result of increased production in the first quarter of 2025 compared to the first quarter of 2024, which was adversely impacted by production outages from a winter storm. 

Cost of Sales.    Cost of sales in our Ammonia segment averaged $309 per ton in the six months ended June 30, 2025, a 2% decrease from $316 per ton in the six months ended June 30, 2024. The decrease was due primarily to lower costs for maintenance activity in the six months ended June 30, 2025 compared to the six months ended June