Company: CF
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001324404-25-000015
Chunk: 107

Company: CF Industries Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 107
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425 $45 11 %Cost of sales328 282 46 16 %Gross margin$142 $143 $(1)(1)%Gross margin percentage30.2 %33.6 %(3.4)%Sales volume by product tons (000s)1,875 1,611 264 16 %Sales volume by nutrient tons (000s)(1)593 509 84 17 %Average selling price per product ton$251 $264 $(13)(5)%Average selling price per nutrient ton(1)$793 $835 $(42)(5)%Gross margin per product ton$76 $89 $(13)(15)%Gross margin per nutrient ton(1)$239 $281 $(42)(15)%Depreciation and amortization$73 $69 $4 6 %Unrealized net mark-to-market loss (gain) on natural gas derivatives$1 $(10)$11 N/M

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N/M—Not Meaningful

(1)UAN represents between 28% and 32% of nitrogen content, depending on the concentration specified by the customer. 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 UAN segment increased $45 million, or 11%, to $470 million in the three months ended March 31, 2025 from $425 million in the three months ended March 31, 2024 due primarily to a 16% increase in sales volume, partially offset by a 5% decrease in average selling prices. Sales volume was higher due primarily to increased supply availability as a result of higher production in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Average selling prices decreased to $251 per ton in the three months ended March 31, 2025 compared to $264 per ton in the three months ended March 31, 2024 due primarily to shipments in the first quarter of 2025 fulfilling sales commitments made in the fourth quarter of 2024, which was a lower selling price environment. 

Cost of Sales.    Cost of sales in our UAN segment averaged $175 per ton in both the three months ended March 31, 2025 and 2024 due primarily to lower costs associated with