Segment Disclosures (Tables)

12 Months Ended

Dec. 31, 2025

Summary of segment data for sales, cost of sales and gross margin

Segment data for gross margin, including sales and cost of sales, which also includes significant expenses, for the years ended December 31, 2025, 2024 and 2023 are presented in the tables below.


	Year ended December 31,
	2025		2024		2023
	(in millions)
Ammonia
Net sales	$	2,176	$	1,736	$	1,679
Cost of sales:
Natural gas, including the impact of realized derivatives(1)	431		283		407
Unrealized net mark-to-market loss (gain) on natural gas derivatives	2		(13)		(11)
Depreciation and amortization(2)	280		269		174
Distribution and storage(3)	221		187		192
Freight(4)	52		50		42
Other segment items(5)	508		467		334
Total cost of sales	1,494		1,243		1,138
Gross margin	$	682	$	493	$	541


	Year ended December 31,
	2025		2024		2023
	(in millions)
Granular Urea
Net sales	$	1,781	$	1,600	$	1,823
Cost of sales:
Natural gas, including the impact of realized derivatives(1)	301		241		363
Unrealized net mark-to-market loss (gain) on natural gas derivatives	1		(9)		(11)
Depreciation and amortization(2)	253		284		285
Distribution and storage(3)	10		9		10
Freight(4)	33		32		43
Other segment items(5)	346		369		320
Total cost of sales	944		926		1,010
Gross margin	$	837	$	674	$	813





UAN
Net sales	$	2,161	$	1,678	$	2,068
Cost of sales:
Natural gas, including the impact of realized derivatives(1)	339		234		367
Unrealized net mark-to-market loss (gain) on natural gas derivatives	2		(10)		(11)
Depreciation and amortization(2)	265		268		288
Distribution and storage(3)	61		60		67
Freight(4)	148		142		156
Other segment items(5)	425		375		384
Total cost of sales	1,240		1,069		1,251
Gross margin	$	921	$	609	$	817





AN
Net sales	$	421	$	419	$	497
Cost of sales:
Natural gas, including the impact of realized derivatives(1)	39		34		51
Unrealized net mark-to-market gain on natural gas derivatives	—		(1)		(2)
Depreciation and amortization(2)	33		39		48
Distribution and storage(3)	—		1		2
Freight(4)	30		29		24
Other segment items(5)	240		238		236
Total cost of sales	342		340		359
Gross margin	$	79	$	79	$	138


	Year ended December 31,
	2025		2024		2023
	(in millions)
Other(6)
Net sales	$	545	$	503	$	564
Cost of sales:
Natural gas, including the impact of realized derivatives(1)	53		37		63
Unrealized net mark-to-market gain on natural gas derivatives	—		(2)		(4)
Depreciation and amortization(2)	65		61		64
Distribution and storage(3)	3		1		3
Freight(4)	64		59		65
Other segment items(5)	155		146		137
Total cost of sales	340		302		328
Gross margin	$	205	$	201	$	236





Consolidated
Net sales	$	7,084	$	5,936	$	6,631
Cost of sales:
Natural gas, including the impact of realized derivatives(1)	1,163		829		1,251
Unrealized net mark-to-market loss (gain) on natural gas derivatives	5		(35)		(39)
Depreciation and amortization(2)	896		921		859
Distribution and storage(3)	295		258		274
Freight(4)	327		312		330
Other segment items(5)	1,674		1,595		1,411
Total cost of sales	4,360		3,880		4,086
Gross margin	$	2,724	$	2,056	$	2,545
Total other operating costs and expenses(7)	438		314		307
Equity in earnings (loss) of operating affiliate(8)	14		4		(8)
Operating earnings	$	2,300	$	1,746	$	2,230

_______________________________________________________________________________

(1)Natural gas costs include the impact of realized gains and losses on natural gas derivatives settled during the period.

(2)For the years ended December 31, 2025, 2024 and 2023, depreciation and amortization does not include $32 million, $34 million and $13 million, respectively, of depreciation and amortization allocated to Corporate, which includes amortization of definite-lived intangible assets. For the years ended December 31, 2025, 2024 and 2023, depreciation and amortization does not include $30 million, $30 million and $3 million, respectively, related to amortization of the supply contract liability, which is recognized in net sales. See Note 4—Revenue Recognition for additional information.

(3)Distribution and storage costs consist of the cost of freight required to transport finished products from our manufacturing facilities to our distribution facilities and the costs to operate our network of distribution facilities in North America.

(4)Freight costs consist of the costs incurred by us to deliver products from one of our plants or distribution facilities to the customer. Freight costs are generally charged to the customer and included in net sales. In situations when control of the product transfers upon loading and the customer requests that we arrange delivery of the product, the amount of freight included in net sales is considered freight revenue. See Note 4—Revenue Recognition for additional information.

(5)Other segment items is primarily comprised of payroll, services, materials and supplies, and utilities at our manufacturing facilities.

(6)Other consists of all other products not included in our Ammonia, Granular Urea, UAN, or AN segments. All other products primarily include DEF, urea liquor, nitric acid and aqua ammonia.

(7)Total other operating costs and expenses for the year ended December 31, 2025 includes $76 million of asset impairment related to property, plant and equipment at our Donaldsonville and Yazoo City facilities. See Note 6—Property, Plant and Equipment—Net for additional information.

(8)Equity in loss of operating affiliate for the year ended December 31, 2023 includes an impairment of our equity method investment in PLNL of $43 million. See Note 8—Equity Method Investment for additional information.

Schedule of enterprise-wide data by geographic region

Enterprise-wide data by geographic region is as follows:


	Year ended December 31,
	2025		2024		2023
	(in millions)
Sales by geographic region (based on destination of shipments):
United States	$	5,338	$	4,419	$	4,856
Foreign:
Canada	598		534		607
North America, excluding U.S. and Canada	58		72		75
United Kingdom	378		327		346
Other foreign	712		584		747
Total foreign	1,746		1,517		1,775
Consolidated	$	7,084	$	5,936	$	6,631


	December 31,
	2025		2024		2023
	(in millions)
Property, plant and equipment—net by geographic region:
United States	$	6,196	$	6,172	$	6,538
Foreign:
Canada	403		426		466
United Kingdom	116		137		137
Total foreign	519		563		603
Consolidated	$	6,715	$	6,735	$	7,141

CF Industries Holdings, Inc. 10-K