Company: CF
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001324404-25-000024
Chunk: 140

Company: CF Industries Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 140
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 Hemisphere. 

Cost of Sales.    Cost of sales in our Granular Urea segment averaged $231 per ton in the six months ended June 30, 2025, a 12% increase from $206 per ton in the six months ended June 30, 2024. The increase was due primarily to higher realized natural gas costs, including the impact of realized derivatives.

Gross Margin.    Gross margin in our Granular Urea segment increased by $71 million, or 19%, to $452 million in the six months ended June 30, 2025 from $381 million in the six months ended June 30, 2024, and our gross margin percentage was 45.8% in the six months ended June 30, 2025 compared to 44.1% in the six months ended June 30, 2024. The increase in gross margin was due primarily to a 15% increase in average selling prices, which increased gross margin by $127 million, and a net decrease in manufacturing, maintenance and other costs, which increased gross margin by $4 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 $50 million, and a 1% decrease in sales volume, which decreased gross margin by $1 million. Gross margin also includes the impact of a $9 million unrealized net mark-to-market gain on natural gas derivatives in the six months ended June 30, 2024.

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Table of ContentsCF INDUSTRIES HOLDINGS, INC. 

UAN Segment

Our UAN segment produces urea ammonium nitrate solution (UAN). UAN, a liquid fertilizer product with a nitrogen content that typically ranges from 28% to 32%, is produced by combining urea and ammonium nitrate. UAN is produced at our Courtright, Donaldsonville, Port Neal, Verdigris, Woodward, and Yazoo City complexes.

The following table presents summary operating data for our UAN 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$610 $475 $135 28 %$1,080 $900 $180 20 %Cost of sales340 259