Company: CF
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001324404-25-000015
Chunk: 105

Company: CF Industries Holdings, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 105
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 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 %Gross margin per nutrient ton(1)$335 $307 $28 9 %Depreciation and amortization$71 $69 $2 3 %Unrealized net mark-to-market gain on natural gas derivatives$— $(9)$9 100 %

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(1)Granular urea represents 46% nitrogen content. Nutrient tons represent the tons of nitrogen within the product tons.

First Quarter of 2025 Compared to First Quarter of 2024 

Net Sales.    Net sales in our Granular Urea segment increased $32 million, or 8%, to $439 million in the three months ended March 31, 2025 from $407 million in the three months ended March 31, 2024 due primarily to a 5% increase in average selling prices and a 3% increase in sales volume. Average selling prices increased to $390 per ton in the three months ended March 31, 2025 compared to $373 per ton in the three months ended March 31, 2024 as higher global energy costs, due in part to gas shortages in Iran