Cvr Partners (UAN 1.65%), 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.
| Metric | Q2 2025 | Q2 2024 | Y/Y Change |
|---|---|---|---|
| EPS (GAAP) | $3.67 | $2.48 | 48.0% |
| Revenue (GAAP) | $168.6 million | $132.9 million | 26.8% |
| EBITDA | $67.2 million | N/A | N/A |
| Available Cash for Distribution | $41.1 million | $20.1 million | 104.5% |
| Ammonia Utilization Rate | 91.0% | 102.0% | (-11.0 pp) |
Business Overview and Key Success Factors
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.
Quarter Highlights: Growth, Costs, and Operations
The company saw significant financial growth during Q2 2025, driven by higher market prices for its core products. Ammonia, the base material for many fertilizers, saw a gate price increase of 14% from last year, while UAN, a liquid fertilizer product, rose 18%. Tight supply-demand balances in U.S. agriculture helped support these price gains, especially coming out of the key planting season. Despite lower production volumes, total sales volumes for ammonia jumped 32.6% compared to the second quarter of 2024 as inventory management and market demand came together. UAN sales volumes increased 18.3% compared to the first quarter of 2024.
Gross production numbers told a different story, with ammonia output falling 10.9% compared to Q2 2024 and UAN production down 4.8%, a decline largely attributed to scheduled downtime and reliability upgrades at the East Dubuque plant. Ammonia utilization rate dropped to 91%. Even as plant performance, measured by consolidated ammonia utilization, dipped from a record high of 101% in Q1 2025 to a guided range of 93%–97%, management stressed that the downtime was intentional and aimed at supporting longer-term efficiency gains.
Direct operating expenses rose 29% to $60.5 million compared to Q2 2024. Natural gas, an essential raw material for fertilizer production, saw its average cost per million British thermal units (MMBtu) increase 70.5% compared to Q2 2024. Petroleum coke prices declined 10% compared to Q2 2024. The company emphasized its continued efforts to invest in flexible feedstock capabilities and long-term cost management, including new capital projects to enable use of both natural gas and pet coke at Coffeyville.
Cash flow was another highlight, with available cash for distribution (non-GAAP) rising 104% compared to Q2 2024 to $41.1 million. Management declared a $3.89 cash distribution per common unit, well above the previous quarter’s $2.26 and last year’s $1.92 per common unit. This payout reflects higher realized product prices and robust end-market demand during the period. The company noted that its $114.4 million in cash and $171.9 million in working capital as of June 30, 2025, put it in a strong position to fund ongoing capital projects, which include both routine maintenance and plant upgrades aimed at reliability and emissions compliance.
Looking Ahead: Guidance and Investor Watch Points
Management issued guidance for ammonia plant utilization rates between 93% and 98% for Q3 2025, direct operating expenses of $60–65 million, and capital expenditures of $20–25 million. There is no full-year financial guidance, but management commented that “market conditions favorable,” and expects nitrogen pricing and demand to stay solid heading into the summer fill season for agriculture.
The company is also committing higher levels of capital spending, with full-year 2025 capital expenditures expected between $50–60 million, up from the prior year. Environmental compliance and competitive pricing are persistent risks. The company’s healthy cash balances and rising distributions reflect strong recent results, but ongoing plant upgrades and regulatory requirements could influence future cash flows and profitability.
The quarterly distribution was raised 102.6% to $3.89 per common unit compared to Q2 2024.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
