Company: CF
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001324404-25-000015
Chunk: 109

Company: CF Industries Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 109
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Average selling price per product ton$308 $292 $16 5 %Average selling price per nutrient ton(1)$894 $851 $43 5 %Gross margin per product ton$49 $23 $26 113 %Gross margin per nutrient ton(1)$142 $67 $75 112 %Depreciation and amortization$8 $13 $(5)(38)%Unrealized net mark-to-market gain on natural gas derivatives$— $(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.

First Quarter of 2025 Compared to First Quarter of 2024 

Net Sales.    Net sales in our AN segment decreased $13 million, or 11%, to $101 million in the three months ended March 31, 2025 from $114 million in the three months ended March 31, 2024 due to a 16% decrease in sales volume partially offset by a 5% increase in average selling prices. Sales volume was lower due primarily to lower supply availability as a result of lower production in the three months ended March 31, 2025 and lower beginning inventory entering 2025. Average selling prices increased to $308 per ton in the three months ended March 31, 2025 compared to $292 per ton in the three months ended March 31, 2024 as higher global energy costs raised the global market clearing price required to meet global demand.

Cost of Sales.    Cost of sales in our AN segment averaged $259 per ton in the three months ended March 31, 2025, a 4% decrease from $269 per ton in the three months ended March 31, 2024. The decrease was due primarily to lower costs for maintenance activity in North America, and, for our United Kingdom operations, a lower cost per ton for purchased ammonia used for upgrading into AN.

Gross Margin.    Gross margin in our AN segment increased $7 million, or 78%, to $16 million in the three months ended March 31, 2025 from $9 million in the three months ended March 31, 2024, and our gross margin percentage was 15.8% in the three months ended March 31, 2025 compared to 7.9% in the three months