Company: CF
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001324404-25-000024
Chunk: 35

Company: CF Industries Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 35
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6 %Gross margin per product ton$66 $68 $(2)(3)%$58 $44 $14 32 %Gross margin per nutrient ton(1)$192 $198 $(6)(3)%$169 $128 $41 32 %Depreciation and amortization$10 $7 $3 43 %$18 $20 $(2)(10)%Unrealized net mark-to-market gain on natural gas derivatives$— $— $— — %$— $(1)$1 100 %

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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.

Second Quarter of 2025 Compared to Second Quarter of 2024 

Net Sales.    Net sales in our AN segment increased $19 million, or 19%, to $117 million in the second quarter of 2025 from $98 million in the second quarter of 2024 due to an 8% increase in average selling prices and an 11% increase in sales volume. Average selling prices increased to $310 per ton in the second quarter of 2025 compared to $288 per ton in the second quarter of 2024 as higher global energy costs raised the global market clearing price required to meet global demand. Sales volume was higher due primarily to higher beginning inventory entering the second quarter of 2025. 

Cost of Sales.    Cost of sales in our AN segment averaged $244 per ton in the second quarter of 2025, an 11% increase from $220 per ton in the second quarter of 2024. The increase was due primarily to higher realized natural gas costs, including the impact of realized derivatives.

Gross Margin.    Gross margin in our AN segment increased $2 million, or 9%, to $25 million in the second quarter of 2025 from $23 million in the second quarter of 2024, and our gross margin percentage was 21.4% in the second quarter of 2025 

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Table of ContentsCF INDUSTRIES HOLDINGS, INC. 

compared to 23.5% in the second quarter of 2024. The increase in gross margin was due primarily to an 8% increase in average selling prices, which increased gross margin by $11 million, and an 11% increase in sales volume, which