Breaking Down CVR Partners, LP (UAN) Financial Health: Key Insights for Investors

You're looking at CVR Partners, LP (UAN) and wondering if the phenomenal run-up is sustainable, especially with the fertilizer market's volatility. Honestly, the third quarter of 2025 results were defintely a statement, showing net sales of $164 million, which drove net income up to $43 million, or $4.08 per common unit, a massive jump from the prior year. That kind of performance is why they declared a hefty $4.02 per common unit cash distribution. But here's the quick math: those results were fueled by a 52 percent year-over-year increase in the average realized gate price for urea ammonium nitrate (UAN) to $348 per ton, plus a solid 95 percent combined ammonia production rate. Still, you need to be a realist; management's own guidance for the full-year 2025 capital expenditure (capex) is high at $58-65 million, and the Coffeyville turnaround means lower utilization in Q4, so the next quarter won't look like this one. The real opportunity lies in their expectation for tight nitrogen inventories into spring 2026, but geopolitical risks-like those involving Russia/Ukraine-remain the wild card that could swing prices either way.

Revenue Analysis

You need to know where CVR Partners, LP (UAN) is making its money, and the short answer is that 2025 has been a strong year for nitrogen fertilizer pricing. The company's Trailing Twelve Months (TTM) revenue, as of the end of Q3 2025, sits at approximately $614.53 million, reflecting a solid increase driven by favorable market conditions.

Honestly, understanding UAN's revenue is simple: it's a pure-play nitrogen fertilizer producer. Its entire revenue base is domestic, meaning it's 100% tied to the US agricultural market and its pricing power.

Breakdown of Primary Revenue Sources

CVR Partners, LP's revenue is overwhelmingly concentrated in two key products: Urea Ammonium Nitrate (UAN) solution and ammonia. For the third quarter of 2025, the company reported net sales of $164 million, and the breakdown shows a clear leader.

UAN is defintely the cash cow. Here's the quick math on Q3 2025 revenue contribution:

• UAN Solution: $113.96 million, or 69.68% of total net sales.
• Ammonia: $25.38 million, or 15.52% of total net sales.

The remaining revenue comes from a mix of other urea products and miscellaneous sales, but they are minor components compared to the core nitrogen solutions. This concentration means UAN's financial health is directly tied to global and domestic nitrogen fertilizer prices and agricultural demand.

Year-over-Year Revenue Growth and Drivers

The near-term trend is a clear upward swing, largely due to price increases. CVR Partners, LP's net sales for Q3 2025 were $164 million, which is a significant jump from the $125 million reported in Q3 2024. This translates to a strong year-over-year revenue growth rate of approximately 31.2% for the quarter. TTM revenue growth is also robust, up 16.52% over the prior year.

The growth isn't about selling a lot more product; it's about getting a much better price for what they sell. The company's production volumes were relatively flat or slightly lower, but the realized gate prices (the price per ton they actually got) soared. This is what you call pricing power.

What this estimate hides is the volatility. The jump in revenue is largely a function of tight global nitrogen fertilizer inventory levels and strong fall application demand, which pushed prices up dramatically. Any resolution of geopolitical risks or a sudden increase in global supply could reverse this trend quickly, so that 52% price jump for UAN is a near-term opportunity, but also a risk. For a deeper dive into the company's financial structure, check out Breaking Down CVR Partners, LP (UAN) Financial Health: Key Insights for Investors.

Next Step: Investment Team: Model a 12-month sensitivity analysis for UAN's revenue, stress-testing a 15% drop in average realized prices by the end of Q2 2026.

Profitability Metrics

You need a clear picture of CVR Partners, LP (UAN)'s ability to turn revenue into profit, especially given the volatility in the nitrogen fertilizer market. The short answer is that 2025 has been a story of strong margin recovery, driven by significantly higher realized selling prices for their product. The company's operational efficiency is defintely outperforming the industry average.

For the first nine months of 2025 (9M 2025), CVR Partners, LP has demonstrated a substantial increase in bottom-line performance. We calculate a Net Profit Margin (net income divided by net sales) of approximately 22.9% for this period. This is a sharp improvement from the full-year 2024 Net Profit Margin of just 11.6%, which was a significant contraction from the prior year.

Operational Efficiency and Margin Trends

The real insight comes from looking at the quarterly operational flow. In the third quarter of 2025 (Q3 2025), CVR Partners, LP reported Net Sales of $164 million, leading to an Operating Income of $51 million and a Net Income of $43 million. This translates to powerful margins:

• Net Profit Margin (Q3 2025): 26.2%
• Operating Profit Margin (Q3 2025): 31.1%

Here's the quick math: The Operating Profit Margin (Operating Income / Net Sales) of 31.1% shows that for every dollar of sales, CVR Partners, LP is keeping over 31 cents before accounting for interest and taxes. This is a marker of excellent cost management and pricing power. Even without a direct Gross Profit figure for Q3 2025, the 2024 Gross Margin was 22.6%, indicating that the overall profitability structure has improved dramatically in 2025, largely due to price increases.

Industry Comparison and Near-Term Risks

CVR Partners, LP's operational profitability is highly competitive. The average trailing twelve-month (TTM) Operating Margin for the top 22 fertilizer companies globally sits around 10.33%. CVR Partners, LP's Q3 2025 Operating Profit Margin of 31.1% is nearly triple the industry average, which is a testament to their operational leverage and the favorable pricing environment. Another competitor, SQM, reported a consolidated Gross Profit Margin of 27.8% for the first nine months of 2025, which further highlights CVR Partners, LP's strong position.

This outperformance is tied directly to operational efficiency, specifically a combined ammonia production rate of 95% in Q3 2025, and a significant rise in realized prices-ammonia prices were up 33% and urea ammonium nitrate (UAN) prices were up 52% year-over-year. What this estimate hides is the inherent cyclicality of the fertilizer market. The key risk is that the high profitability is heavily dependent on tight nitrogen inventories and elevated prices, which the company expects to persist into the first half of 2026. Still, a planned turnaround at the Coffeyville facility is expected to drop Q4 2025 ammonia utilization to 80%-85%, which will temporarily compress margins.

For a complete analysis of the company's financial standing, you should review our full post: Breaking Down CVR Partners, LP (UAN) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

You need to know how CVR Partners, LP (UAN) funds its operations, because a company's debt-to-equity mix tells you everything about its financial risk and growth strategy. The short answer is that CVR Partners, LP (UAN) leans heavily on debt financing, with a debt-to-equity ratio significantly higher than its industry peers.

As of the third quarter of 2025, CVR Partners, LP (UAN) reported total debt and finance lease obligations, including the current portion, of approximately $569.876 million. This is the capital that must be repaid, and it's a substantial figure relative to the unitholders' equity (Partners' Capital), which stood at roughly $318.498 million for the same period. Simply put, the company uses nearly two dollars of debt for every dollar of equity.

Here's the quick math on the leverage picture:

• Total Debt (Q3 2025): $569.876 million
• Total Partners' Capital (Q3 2025): $318.498 million
• Debt-to-Equity Ratio: 1.80

The company's Debt-to-Equity (D/E) ratio, which measures financial leverage by dividing total debt by total equity, sits at about 1.80. This is defintely a high number, but you have to compare it to the industry standard to truly understand the risk.

When you look at the broader Fertilizers & Agricultural Chemicals industry, the average D/E ratio is much lower, around 0.4612. A major competitor like CF Industries, for example, operates with a D/E ratio of only about 0.38. CVR Partners, LP (UAN)'s ratio is roughly four times the industry average, signaling a far more aggressive reliance on debt, which increases risk in a commodity-driven market.

What this estimate hides is the operational stability needed to service that debt. The good news is the company has been generating significant cash flow, reporting net income of $43 million and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $71 million for Q3 2025 alone. This strong cash generation is what allows them to manage the high debt load and still declare a substantial cash distribution of $4.02 per common unit for the quarter.

CVR Partners, LP (UAN) has not announced any major new debt issuances or credit rating changes in 2025. The company's strategy is to balance existing debt obligations with substantial cash distributions to unitholders, essentially managing its growth and returns through a highly leveraged structure. For a deeper dive into who is buying into this structure, you should check out Exploring CVR Partners, LP (UAN) Investor Profile: Who's Buying and Why?

The key takeaway is that CVR Partners, LP (UAN) is comfortable with high financial leverage, using debt to finance assets and amplify returns, but this also means the company is more sensitive to downturns in nitrogen fertilizer prices. Your action is to monitor their quarterly interest expense and cash from operations to ensure the debt service coverage remains robust.

Liquidity and Solvency

You need to know if CVR Partners, LP (UAN) can handle its short-term bills, especially with the capital-intensive nature of fertilizer production. The quick answer is yes, the partnership's liquidity position is defintely robust, driven by strong cash generation in a favorable pricing environment through the third quarter of 2025.

We assess liquidity using the current and quick ratios, which compare current assets (what the company can convert to cash within a year) against current liabilities (what it owes in that same period). For Q3 2025, CVR Partners, LP shows a strong buffer against short-term obligations:

• Current Ratio: The ratio sits at approximately 2.68. This means for every dollar of current liability, CVR Partners, LP holds $2.68 in current assets. A ratio above 2.0 is generally considered excellent, indicating ample resources to cover near-term debt.
• Quick Ratio (Acid-Test Ratio): This more conservative measure, which excludes inventory, is approximately 1.92. This is still well above the 1.0 benchmark, showing the company can cover its immediate obligations even if it can't quickly sell its product inventory.

Here's the quick math using the Q3 2025 financial data (in thousands of USD):

The working capital trend is also a clear positive. Working capital (inclusive of cash and cash equivalents) rose significantly to $180.825 million in Q3 2025, up from $122.192 million in the same quarter last year. This nearly 48% increase year-over-year reflects the strong pricing power CVR Partners, LP is experiencing in the nitrogen fertilizer market. It's a clear signal of improved operational efficiency translating into tangible financial strength.

Looking at the cash flow statements, the picture remains very healthy. For the third quarter of 2025, CVR Partners, LP generated $91.744 million in net cash from operating activities. This strong operating cash flow is the engine funding both capital projects and distributions. Net cash used in investing activities was only $10.729 million, which primarily covered capital expenditures. This means the company's cash generation far exceeds its operational and maintenance investment needs.

The net cash used in financing activities was $39.232 million, largely due to the substantial cash distribution of $4.02 per common unit declared for the quarter. This ability to fund significant distributions while maintaining a strong balance sheet is a key strength for a Master Limited Partnership (MLP). Total liquidity at the end of Q3 2025 stood at an impressive $206 million, comprised of $156 million in cash and $50 million available under its ABL facility.

What this estimate hides is the variable nature of fertilizer prices, which directly impact cash flow. Still, the current liquidity position is a significant strength, providing a cushion for planned maintenance turnarounds-like the one expected at the Coffeyville facility-and for strategic growth projects. For a deeper dive into the company's long-term strategy, you can review the Mission Statement, Vision, & Core Values of CVR Partners, LP (UAN).

Actionable Takeaway: The liquidity profile is excellent, so your focus should shift to the sustainability of the underlying commodity prices, as the current financial health is highly correlated to the elevated UAN and ammonia prices seen in 2025. Finance: Monitor the Q4 2025 cash flow statement closely for any unexpected spikes in operating expenses due to the planned turnaround at Coffeyville.

Valuation Analysis

You want to know if CVR Partners, LP (UAN) is a value play or a trap, and the quick answer is that traditional metrics suggest it is undervalued, but you must be clear on the risks inherent in its high-payout structure. The stock is trading near its 52-week high, but its key valuation multiples are surprisingly low compared to the broader market, which hints at a potential discount or, honestly, market skepticism about the sustainability of its recent earnings spike.

As of late November 2025, the CVR Partners, LP (UAN) stock price is around $97.44, reflecting a strong run-up of about 35.69% over the last 12 months. That performance is impressive, but it still puts the current price well below a key Discounted Cash Flow (DCF) model estimate of $170.17 per share, suggesting a significant potential upside if its strong free cash flow generation continues.

Here's the quick math on the key valuation ratios based on the most recent TTM (Trailing Twelve Months) and Q3 2025 data:

• Price-to-Earnings (P/E): At roughly 8.05x, the P/E ratio is strikingly low, especially compared to the US Chemicals industry average of over 24x. This signals that the market is paying only about eight dollars for every dollar of CVR Partners, LP's earnings.
• Price-to-Book (P/B): The P/B ratio stands at 3.31x, which is higher than some peers but reflects the company's strong Return on Equity (ROE) of 41.88%.
• Enterprise Value-to-EBITDA (EV/EBITDA): This multiple is a clean measure of operational value, and CVR Partners, LP's TTM EV/EBITDA is a solid 6.10x, indicating a reasonable valuation relative to its cash-flow generating power before debt and taxes.

What this estimate hides is the inherent volatility of the fertilizer market, but the current ratios defintely lean toward an 'undervalued' thesis.

Dividend and Payout Sustainability

The dividend story is where CVR Partners, LP gets complicated, but it's also the main draw for many investors. The partnership structure means high distributions are common. The current annualized dividend, based on the latest quarterly distribution of $4.02, is a massive $16.08 per unit. This translates to an eye-popping dividend yield of about 16.6% at the current price.

Still, you need to look at the payout ratio. The earnings payout ratio is high at 133.6%, meaning CVR Partners, LP is distributing more cash than it earned in the last twelve months. This is common for MLPs (Master Limited Partnerships) like CVR Partners, LP, which distribute based on distributable cash flow (DCF), not just net income. The high ratio suggests the dividend is not well-covered by net income, so any dip in commodity prices could force a distribution cut.

To be fair, the analyst community is generally optimistic, with a consensus rating of 'Buy' on the stock. They see the fundamental strength in the nitrogen fertilizer market and the company's efficient operations, which you can read more about in their Mission Statement, Vision, & Core Values of CVR Partners, LP (UAN).

Risk Factors

You're looking at CVR Partners, LP (UAN)'s strong Q3 2025 financials-Net Income hit $43 million on $164 million in Net Sales-and thinking the nitrogen fertilizer market is a clear win. To be fair, the price increases are huge, with UAN and ammonia up 52% and 33% year-over-year, but the underlying risks are real, and they demand a clear-eyed view.

The biggest near-term threats aren't just market-driven; they are operational and geopolitical. The company's risk profile, based on recent filings, breaks down with a heavy emphasis on Finance & Corporate (42% of total risks) and Production (20%), showing where the real pressure points are. You need to focus on these three core areas: external market shocks, operational reliability, and concentration risk.

• Geopolitical tensions are a wild card.

External & Geopolitical Shocks

The nitrogen fertilizer market is deeply exposed to global politics and commodity price volatility. The biggest external risk right now is the potential for new tariffs on Russian fertilizer imports, which could significantly impact U.S. market prices and supply dynamics. This is a massive variable that CVR Partners, LP (UAN) can't control, but it affects everything from your distribution expectations to their competitive position.

Also, while the company benefits from strong pricing, their direct operating expenses are rising. For Q3 2025, direct operating expenses were $58 million, a clear jump from the prior year, driven primarily by higher natural gas and electricity costs. The cost of their key feedstock, natural gas, is a constant headwind, and while they use a diverse feedstock approach (petroleum coke and natural gas), they still feel the pinch. This is a simple equation: higher input costs eat directly into that impressive EBITDA of $71 million.

Operational and Concentration Risks

Operational risks are the ones that can shut down cash flow overnight. CVR Partners, LP (UAN) has two facilities, and any unplanned downtime is costly. For instance, the ammonia release incident at the Coffeyville facility during the Q3 2025 planned turnaround highlights the constant operational hazard. This kind of event can delay completion, increase costs, and reduce the ammonia utilization rate, which was 95% in Q3 2025. That's a great number, but one incident can tank it.

Plus, the company has a concentration problem: they rely on a few significant customers for a large portion of revenue, which limits their bargaining power and exposes them to customer credit risk. You can't ignore the strategic risk from their controlling stockholder, Icahn Enterprises, L.P., which controls the general partner and holds a significant portion of the common units. This control impacts everything from business strategy to the payment of distributions. If you want a deeper dive on who's in the stock, check out Exploring CVR Partners, LP (UAN) Investor Profile: Who's Buying and Why?

Mitigation and Actionable Steps

The good news is CVR Partners, LP (UAN) is actively addressing these issues. They are using cash reserves to fund capital projects, with total 2025 capital spending estimated between $50 million and $65 million. These projects are focused on improving reliability and production capacity.

Specifically, they are working on debottlenecking projects and planning to use alternative feedstocks like natural gas and hydrogen at the Coffeyville facility. They are also installing a nitrous oxide abatement unit during the fall 2025 turnaround to reduce their carbon footprint, which is a smart move to mitigate future regulatory risk. The focus is on making the plants more resilient, which is the defintely right move when you are in a volatile commodity business.

Growth Opportunities

You're looking for a clear path forward on CVR Partners, LP (UAN), and the near-term picture is strong, driven by structural market tightness and their own capacity expansion. The key takeaway is that the nitrogen fertilizer market is setting up for sustained high margins, and CVR Partners is actively investing to capture that upside.

The company's operational strength is defintely a core driver. For the first nine months of 2025, net sales have shown a significant jump, with Q3 2025 alone hitting $163.55 million, a sharp rise from $125.20 million in Q3 2024. Here's the quick math: that efficiency translated to Q3 2025 EBITDA of $71 million, up substantially from the prior year. This is a business built to generate cash flow when prices cooperate.

Key Growth Drivers and Expansion

The primary growth driver isn't just price-it's a structural shortage in the nitrogen fertilizer market. Building new plants is uneconomic at current prices, which puts a high floor under the price of Urea Ammonium Nitrate (UAN) and ammonia. CVR Partners is positioned perfectly to benefit from this, plus they are executing on internal growth initiatives:

• Capacity Expansion: Plans are underway to expand ammonia capacity by up to 8%. This is a smart, targeted growth move.
• Feedstock Flexibility: A planned Coffeyville project will utilize both natural gas and refinery hydrogen, which should increase capacity by up to 8% and enhance cost control.
• Operational Excellence: The company achieved a consolidated ammonia utilization rate of approximately 95% in Q3 2025, demonstrating top-tier reliability.

The market expects this to translate directly into financial gains. One analyst projects CVR Partners will see a 34% profit growth in 2025, driven by higher prices and expanded production, which could boost sales by an additional 13.76%.

Competitive Edge and Strategic Focus

CVR Partners' competitive advantage lies in its low-cost production profile. Unlike many competitors who rely solely on natural gas, CVR Partners leverages a mix of natural gas and petroleum coke (petcoke) as a feedstock. This flexibility provides a crucial cost advantage, especially when natural gas prices spike, giving them a competitive edge over imported nitrogen fertilizers.

The management team is also focused on sustainability and efficiency, targeting opportunities to reduce their carbon footprint and exploring sustainable fertilizer options. They are also prudently managing capital, with full-year 2025 capital expenditure guidance set between $58 million and $65 million, with the majority-$39 million to $42 million-earmarked for maintenance capital to ensure long-term reliability.

The focus is on sustaining high utilization and maximizing free cash flow, which is why the partnership is positioned to deliver over $25 in distributions in the next 12 months. To understand the long-term vision behind these decisions, you should review the Mission Statement, Vision, & Core Values of CVR Partners, LP (UAN).