CVR Partners (UAN) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 reached $169 million, up 26.9% year-over-year, with net income of $39 million and EBITDA of $67 million, driven by higher UAN and ammonia sales volumes and prices amid favorable market conditions.

• Declared a Q2 2025 distribution of $3.89 per common unit, totaling $41.1 million, payable August 18 to holders of record as of August 11.

• Ammonia plant utilization was 91% due to planned and unplanned downtime; UAN and ammonia sales volumes increased year-over-year despite lower production.

• UAN and ammonia prices rose 18% and 14% year-over-year, supported by strong demand and tight inventories.

• Announced CEO transition: David L. Lamp to resign by year-end 2025; Mark A. Pytosh to become CEO in 2026.

Financial highlights

• Q2 2025 net sales: $168.6 million (Q2 2024: $132.9 million); net income: $39 million (Q2 2024: $26 million); EBITDA: $67.2 million (Q2 2024: $53.8 million).

• Operating income for Q2 2025 was $46 million; direct operating expenses were $60 million.

• Cash and cash equivalents at June 30, 2025: $114.4 million; total liquidity including credit facility: $161.7 million.

• Available cash for distribution was $41.1 million, compared to $20.1 million in Q2 2024.

• Basic and diluted EPS was $3.67, up from $2.48 year-over-year.

Outlook and guidance

• Q3 2025 ammonia utilization rate expected between 93% and 98%, with planned downtime at East Dubuque.

• Q3 direct operating expenses projected at $60–$65 million; capital spending at $20–$25 million.

• Total 2025 capital spending estimated at $55–$65 million, with $16.7 million spent in the first half.

• Fall ammonia pricing expected to be similar to spring, with smaller seasonal discounts due to tight supply.

• Management expects continued volatility in feedstock and product prices due to geopolitical and regulatory factors.