Company: CF
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001324404-25-000024
Chunk: 38

Company: CF Industries Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 38
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%Gross margin per nutrient ton(1)$479 $606 $(127)(21)%$500 $500 $— — %Depreciation and amortization$17 $13 $4 31 %$30 $33 $(3)(9)%Unrealized net mark-to-market gain on natural gas derivatives$— $(1)$1 100 %$— $(2)$2 100 %_______________________________________________________________________________

(1)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 Other segment decreased by $8 million, or 6%, to $125 million in the second quarter of 2025 from $133 million in the second quarter of 2024 due to a 16% decrease in sales volume, partially offset by a 12% increase in average selling prices. The decrease in sales volume primarily reflected lower DEF and nitric acid shipments. Average selling prices increased by 12% as higher global energy costs raised the global market clearing price required to meet global demand.

Cost of Sales.    Cost of sales in our Other segment averaged $171 per ton in the second quarter of 2025, a 41% increase from $121 per ton in the second quarter of 2024, due primarily to higher costs associated with maintenance activity, and higher realized natural gas costs, including the impact of realized derivatives, in the second quarter of 2025 compared to the second quarter of 2024.

Gross Margin.    Gross margin in our Other segment decreased by $21 million, or 32%, to $45 million in the second quarter of 2025 from $66 million in the second quarter of 2024, and our gross margin percentage was 36.0% in the second quarter of 2025 compared to 49.6% in the second quarter of 2024. The decrease in gross margin was due primarily to a net increase in manufacturing, maintenance and other costs, which decreased gross margin by $14 million, a 16% decrease in sales volume, which decreased gross margin by $14 million, and an increase in realized natural gas costs, including the impact of realized derivatives, which decreased gross margin by $5 million. These factors that decreased gross margin were partially offset by a 12% increase in average selling prices, which increased gross margin by $13 million