Cvr Partners (UAN) Q2 Profit Jumps 48%
Cvr Partners (NYSE:UAN), a U.S.-based nitrogen fertilizer producer, reported sharply higher profitability and revenue for Q2 2025, released on July 30, 2025. The quarter covered the three months ending June 30, 2025. Net sales (GAAP) reached $168.6 million, climbing 26.9% compared to the second quarter of 2024, while earnings per common unit (GAAP) rose to $3.67. These results do not have analyst estimates for comparison, but both revenue and earnings (GAAP) improved significantly from last year’s quarter, with revenue rising to $169 million and net income to $39 million, compared to $133 million and $26 million, respectively, for Q2 2024. The company also declared a distribution of $3.89 per unit, more than doubling last year’s payout. Despite these gains, ammonia utilization rates fell to 91% from 102% in Q2 2024, and production volumes declined, while input costs, especially natural gas, moved higher. Overall, the company delivered a strong operational and financial quarter.
The company operates two major production facilities: one in Coffeyville, Kansas and another in East Dubuque, Illinois. It produces and markets nitrogen fertilizer products such as ammonia and urea ammonium nitrate (UAN), which are essential inputs for U.S. agriculture. The Coffeyville plant uses petroleum coke, a refinery byproduct, as its feedstock to generate hydrogen for fertilizer production, while the East Dubuque facility relies on natural gas. This blend provides the company with feedstock flexibility and can help in cost management.
Its success hinges on a few crucial factors: maintaining cost-effective access to raw materials, capitalizing on strong seasonal and year-round demand for nitrogen fertilizers, and meeting strict environmental regulations. The timing of the U.S. planting season heavily influences sales volumes, as nitrogen is a critical but quickly depleted soil nutrient. The company must also navigate a highly competitive fertilizer market and manage fluctuations in feedstock costs, particularly for pet coke and natural gas.
Source Fool.com
