CF · 8-K · 20260805PR091275
Gross Margin Drivers
CF Industries Holdings, Inc. · 2026-08-05 · Importance 62 · Surprise 46 · Contradicted
Second-quarter 2026 gross margin increased to 51.5% of net sales from 39.9% in the second quarter of 2025. Gross margin dollars rose to $1.145 billion from $755 million, an increase of $390 million. First-half 2026 gross margin reached $1.891 billion, up from $1.327 billion, while the gross margin rate increased to 44.9% from 37.3%. Pricing contributed $588 million to second-quarter adjusted EBITDA and $989 million to first-half adjusted EBITDA, while lower volumes reduced adjusted EBITDA by $158 million and $197 million, respectively.
Key facts
- Gross margin 1H 2026: 44.9% and Q2 2026: 51.5% source
- Gross margin dollars 1H 2026: $1,891 million and Q2 2026: $1,145 million source
- Cost of natural gas used for production in cost of sales per MMBtu Q2 2026: $3.37 and 1H 2026: $4.01 source
- Average daily market price of natural gas at the Henry Hub 1H 2026: $3.71/MMBtu and Q2 2026: $3.16/MMBtu source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | positive | realized | +85.1% | Gross margin dollars 1H 2026: $1,891 million and Q2 2026: $1,145 million |
| margin | positive | realized | +51.5% | Gross margin dollars 1H 2026: $1,891 million and Q2 2026: $1,145 million |
| margin | unclear | realized | — | Gross margin 1H 2026: 44.9% and Q2 2026: 51.5% |