CVR Partners (NYSE:UAN – Get Free Report) announced its earnings results on Tuesday. The basic materials company reported ($1.02) earnings per share for the quarter, missing analysts’ consensus estimates of $1.62 by ($2.64), Zacks reports. The company had revenue of $146.15 million during the quarter, compared to analyst estimates of $165.40 million. CVR Partners had a return on equity of 34.53% and a net margin of 16.14%.
Here are the key takeaways from CVR Partners’ conference call:
- Third-quarter results weakened year over year, with an $11 million net loss and $20 million of EBITDA, as the East Dubuque turnaround, lower UAN prices, and slightly reduced sales volumes offset higher ammonia pricing.
- Fertilizer markets improved after the summer reset, with ammonia and UAN prices rising, tight local supply, and a solid order book extending through the fourth quarter and into early 2027.
- East Dubuque’s turnaround was completed in October, and fourth-quarter ammonia utilization is expected to increase to 88%–93%; management is targeting utilization above 95% of nameplate capacity outside of turnarounds.
- The company completed East Dubuque capacity and water-quality projects and is evaluating a Coffeyville feedstock-flexibility project that could allow the facility to optimize between natural gas and third-party pet coke.
- The board declared a $1.79-per-unit distribution, but CVR Partners expects to retain higher cash balances for capital projects and may continue reserving capital, underscoring that future distributions will remain variable.
CVR Partners Stock Performance
Shares of UAN opened at $112.48 on Thursday. CVR Partners has a 12 month low of $93.43 and a 12 month high of $139.50. The firm has a fifty day simple moving average of $127.53 and a 200 day simple moving average of $121.58. The stock has a market capitalization of $1.19 billion, a price-to-earnings ratio of 11.18 and a beta of 0.21. The company has a current ratio of 3.01, a quick ratio of 2.11 and a debt-to-equity ratio of 1.64.
CVR Partners Cuts Dividend
The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 23rd. Stockholders of record on Monday, November 16th will be given a $1.79 dividend. This is a drop from CVR Partners’s previous quarterly dividend of $6.08. This represents a $7.16 dividend on an annualized basis and a dividend yield of 6.4%. The ex-dividend date of this dividend is Monday, November 16th. CVR Partners’s payout ratio is presently 160.42%.
Analyst Ratings Changes
Several research firms have issued reports on UAN. Weiss Ratings reissued a “buy (b)” rating on shares of CVR Partners in a research note on Tuesday, August 11th. Freedom Broker assumed coverage on CVR Partners in a research report on Tuesday, October 27th. They set a “hold” rating and a $124.00 price objective for the company. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $124.00.
Read Our Latest Research Report on UAN
CVR Partners Company Profile
CVR Partners, LP (NYSE: UAN) is a nitrogen fertilizer producer organized as a master limited partnership and managed by CVR GP, LLC. The company manufactures and sells nitrogen-based fertilizers used primarily in agricultural applications.
Its principal products are ammonia and urea ammonium nitrate (UAN) solution. Ammonia is sold directly to agricultural customers and other users, while UAN is a liquid fertilizer commonly applied to crops. CVR Partners markets its products to distributors, retailers, and agricultural customers.
CVR Partners operates production facilities in Coffeyville, Kansas, and East Dubuque, Illinois.
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