CVR Partners Reports 27% Revenue Growth in Q2 2025, Driven by Higher UAN and Ammonia Sales

CVR Partners, LP reported significant financial growth in its latest quarterly results, with net sales reaching $168.6 million for the three months ended June 30, 2025, compared to $132.9 million for the same period in 2024, marking a 27% increase. For the first half of 2025, net sales totaled $311.4 million, up from $260.6 million in the prior year. The partnership's operating income also saw a substantial rise, reaching $46.3 million for the second quarter and $80.9 million for the first half, compared to $33.6 million and $53.6 million, respectively, in 2024. Net income for the second quarter was $38.8 million, up from $26.2 million a year earlier, while the first half net income increased to $65.9 million from $38.8 million.

The financial performance was bolstered by higher sales volumes and prices for urea ammonium nitrate (UAN) and ammonia, which contributed significantly to revenue growth. UAN sales increased by $21 million due to favorable pricing and demand, while ammonia sales added $11.7 million. The partnership also benefited from lower pet coke feedstock costs, although this was partially offset by increased natural gas prices and higher operating expenses. The total cost of materials and other rose to $32.5 million for the second quarter, up from $26.1 million in 2024, driven by increased sales volumes and higher utility costs.

Operationally, CVR Partners maintained a stable employee headcount of 10,570 common units outstanding, consistent with the previous year. The partnership's ammonia production utilization rate decreased to 91% in the second quarter of 2025 from 102% in the same quarter of 2024, primarily due to planned downtime for control system upgrades at the East Dubuque Facility. Despite this, the overall utilization for the first half of 2025 remained steady at 96%, similar to the previous year. The partnership continues to focus on enhancing operational reliability and efficiency, with ongoing projects aimed at improving production capabilities.

Looking ahead, CVR Partners remains cautiously optimistic about its future performance, citing ongoing volatility in the nitrogen fertilizer market due to geopolitical tensions and fluctuating commodity prices. The partnership is currently assessing the impact of the recently enacted One Big Beautiful Bill Act, which includes significant amendments to federal tax law. The partnership anticipates that it will benefit from the permanent extension of certain provisions of the 2017 Tax Cuts and Jobs Act. Additionally, the company plans to continue its capital expenditure initiatives, with estimated spending for 2025 projected between $55 million and $65 million, focusing on maintenance and growth projects to enhance production capacity and operational reliability.

In summary, CVR Partners, LP has demonstrated strong financial performance in the first half of 2025, driven by increased sales and operational efficiencies, while navigating a complex market environment. The partnership's strategic initiatives and focus on reliability position it well for future growth, despite the challenges posed by market volatility and regulatory changes.