Company: CF
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001324404-25-000024
Chunk: 139

Company: CF Industries Holdings, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 139
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 global demand, including continued strong demand in India and the Northern Hemisphere. The decrease in sales volume was due primarily to decreased supply availability as a result of lower production in the second quarter of 2025 compared to the second quarter of 2024.

Cost of Sales.    Cost of sales in our Granular Urea segment averaged $225 per ton in the second quarter of 2025, a 22% increase from $184 per ton in the second quarter of 2024. The increase was due primarily to higher realized natural gas costs, including the impact of realized derivatives, and higher costs associated with maintenance activity in the second quarter of 2025 compared to the second quarter of 2024.  

Gross Margin.    Gross margin in our Granular Urea segment increased by $52 million, or 23%, to $279 million in the second quarter of 2025 from $227 million in the second quarter of 2024, and our gross margin percentage was 51.0% in the second quarter of 2025 compared to 49.7% in the second quarter of 2024. The increase in gross margin was due primarily to a 26% increase in average selling prices, which increased gross margin by $108 million. This increase in gross margin was partially offset by an increase in realized natural gas costs, including the impact of realized derivatives, which reduced gross margin by $34 million, a net increase in manufacturing, maintenance and other costs, which decreased gross margin by $16 million, and a 5% decrease in sales volume, which decreased gross margin by $6 million.

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

Net Sales.    Net sales in our Granular Urea segment increased $122 million, or 14%, to $986 million in the six months ended June 30, 2025 from $864 million in the six months ended June 30, 2024 due primarily to a 15% increase in average selling prices, partially offset by a 1% decrease in sales volume. Average selling prices increased to $426 per ton in the six months ended June 30, 2025 compared to $369 per ton in the six months ended June 30, 2024 as higher global energy costs and natural gas availability-related supply disruptions in Egypt and Iran, which raised the global market clearing price required to meet global demand, including continued strong demand in India and the Northern