Company: CF
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001324404-25-000015
Chunk: 18

Company: CF Industries Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 18
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, 2025 from $65 million in the three months ended March 31, 2024, and our gross margin percentage was 35.8% in the three months ended March 31, 2025 compared to 16.2% in the three months ended March 31, 2024. The increase in gross margin was due primarily to a net decrease in manufacturing, maintenance and other costs, which increased gross margin by $66 million, a 25% increase in sales volume, which increased gross margin by $59 million, and a 4% increase in average selling prices, which increased gross margin by $12 million. These factors that increased gross margin were partially offset by the impact of an increase in realized natural gas costs, including the impact of realized derivatives, which reduced gross margin by $3 million. Gross margin also includes the impact of a $1 million unrealized net mark-to-market loss on natural 

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Table of ContentsCF INDUSTRIES HOLDINGS, INC. 

gas derivatives in the three months ended March 31, 2025 compared to a $12 million gain in the three months ended March 31, 2024.

Granular Urea Segment

Our Granular Urea segment produces granular urea, which contains 46% nitrogen. Produced from ammonia and carbon dioxide, it has the highest nitrogen content of any of our solid nitrogen fertilizers. Granular urea is produced at our Donaldsonville, Port Neal and Medicine Hat complexes.

The following table presents summary operating data for our Granular Urea segment:

 Three Months Ended March 31, 202520242025 v. 2024 (dollars in millions, except per ton amounts)Net sales$439 $407 $32 8 %Cost of sales266 253 13 5 %Gross margin$173 $154 $19 12 %Gross margin percentage39.4 %37.8 %1.6 %Sales volume by product tons (000s)1,125 1,092 33 3 %Sales volume by nutrient tons (000s)(1)517 502 15 3 %Average selling price per product ton$390 $373 $17 5 %Average selling price per nutrient ton(1)$849 $811 $38 5 %Gross margin per product ton$154 $141 $13 9 %