Company: CF
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001324404-25-000015
Chunk: 110

Company: CF Industries Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 110
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 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 $10 million, and a 5% increase in average selling prices, which increased gross margin by $3 million. These factors that increased gross margin were partially offset by a 16% decrease in sales volume, which decreased gross margin by $3 million, and an increase in realized natural gas costs, including the impact of realized derivatives, which reduced gross margin by $2 million. Gross margin also includes the impact of a $1 million unrealized net mark-to-market gain on natural gas derivatives in the three months ended March 31, 2024.

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Table of ContentsCF INDUSTRIES HOLDINGS, INC. 

Other Segment

Our Other segment primarily includes the following products:

•diesel exhaust fluid (DEF), an aqueous urea solution typically made with 32.5% or 50% high-purity urea and the remainder deionized water;

•urea liquor, a liquid product that we sell in concentrations of 40%, 50% and 70% high-purity urea as a chemical intermediate; and 

•nitric acid, a nitrogen-based mineral acid that is used in the production of nitrate-based fertilizers, nylon precursors and other specialty chemicals. 

The following table presents summary operating data for our Other segment:

 Three Months Ended March 31, 202520242025 v. 2024 (dollars in millions, except per ton amounts)Net sales$133 $122 $11 9 %Cost of sales78 84 (6)(7)%Gross margin$55 $38 $17 45 %Gross margin percentage41.4 %31.1 %10.3 %Sales volume by product tons (000s)530 513 17 3 %Sales volume by nutrient tons (000s)(1)106 99 7 7 %Average selling price per product ton$251 $238 $13 5 %Average selling price per nutrient ton(1)$1,255 $1,232 $23 2 %Gross margin per product ton$104 $74 $30 41 %Gross margin per nutrient ton(1)$519 $384 $135 35 %Depreciation and amortization