Company: CF
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001324404-25-000006
Chunk: 120

Company: CF Industries Holdings, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 120
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41)%Cost of sales340 359 597 (19)(5)%(238)(40)%Gross margin$79 $138 $248 $(59)(43)%$(110)(44)%Gross margin percentage18.9 %27.8 %29.3 %(8.9)%(1.5)%Sales volume by product tons (000s)1,464 1,571 1,594 (107)(7)%(23)(1)%Sales volume by nutrient tons (000s)(1)501 538 545 (37)(7)%(7)(1)%Average selling price per product ton$286 $316 $530 $(30)(9)%$(214)(40)%Average selling price per nutrient ton(1)$836 $924 $1,550 $(88)(10)%$(626)(40)%Gross margin per product ton$54 $88 $156 $(34)(39)%$(68)(44)%Gross margin per nutrient ton(1)$158 $257 $455 $(99)(39)%$(198)(44)%Depreciation and amortization$39 $48 $61 $(9)(19)%$(13)(21)%Unrealized net mark-to-market gain on natural gas derivatives$(1)$(2)$(2)$1 50 %$— — %

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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.

Year Ended December 31, 2024 Compared to Year Ended December 31, 2023  

Net Sales.  Net sales in our AN segment decreased $78 million, or 16%, to $419 million in 2024 from $497 million in 2023 due primarily to a 9% decrease in average selling prices and a 7% decrease in sales volume. Average selling prices decreased to $286 per ton in 2024 compared to $316 per ton in 2023 as lower global energy costs reduced the global market clearing price required to meet global demand. Sales volume declined due primarily to lower supply availability resulting from lower production in 2024.

Cost of Sales.  Cost of sales in our AN segment averaged $232 per ton in 2024, a 2% increase from $228 per ton in 2023. The increase was due primarily to higher costs for maintenance activity in