Company: CF
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001324404-25-000024
Chunk: 36

Company: CF Industries Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 36
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 increased gross margin by $5 million. These factors that increased gross margin were partially offset by an increase in realized natural gas costs, including the impact of realized derivatives, which reduced gross margin by $7 million, and a net increase in manufacturing, maintenance and other costs, which decreased gross margin by $7 million.

Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024

Net Sales.    Net sales in our AN segment increased $6 million, or 3%, to $218 million in the six months ended June 30, 2025 from $212 million in the six months ended June 30, 2024 due to a 7% increase in average selling prices, partially offset by a 3% decrease in sales volume. Average selling prices increased to $309 per ton in the six months ended June 30, 2025 compared to $290 per ton in the six months ended June 30, 2024 as higher global energy costs raised the global market clearing price required to meet global demand. Sales volume was lower due primarily to lower supply availability due to lower beginning inventory entering 2025 and lower production in the six months ended June 30, 2025.

Cost of Sales.    Cost of sales in our AN segment averaged $251 per ton in the six months ended June 30, 2025, a 2% increase from $246 per ton in the six months ended June 30, 2024. The increase was due primarily to higher realized natural gas costs, including the impact of realized derivatives, partially offset by lower costs for maintenance activity in North America.

Gross Margin.    Gross margin in our AN segment increased $9 million, or 28%, to $41 million in the six months ended June 30, 2025 from $32 million in the six months ended June 30, 2024, and our gross margin percentage was 18.8% in the six months ended June 30, 2025 compared to 15.1% in the six months ended June 30, 2024. The increase in gross margin was due primarily to a 7% increase in average selling prices, which increased gross margin by $14 million, a net decrease in manufacturing, maintenance and other costs, which increased gross margin by $3 million, and favorable product mix, which increased gross margin by $2 million. These factors that increased gross margin were partially offset by