NYSE:UAN
CVR PARTNERS, LP
A premier North American manufacturer of high-purity UAN fertilizer delivering essential nitrogen solutions to support global agricultural productivity.
Key Metrics
Investment Thesis
Bull Case
Investors should consider UAN due to its critical role as an essential input for global food security, providing exposure to the long-term structural growth of agricultural productivity. The company's unique high-purity product offering and integrated asset base create a durable competitive moat that protects against lower-cost competition from international producers.
Bear Case
The stock faces headwinds from potential oversupply in the global nitrogen market which could suppress pricing power and compress margins further. High exposure to energy prices remains a persistent threat to earnings stability, and the recent revenue decline indicates a lack of immediate diversification beyond core UAN products.
About CVR PARTNERS, LP
CVR Partners LP (UAN) is a leading provider of high-purity urea ammonium nitrate (UAN) fertilizer solutions primarily serving the agricultural sector in North America. The company manufactures and distributes liquid nitrogen fertilizers through its extensive network of facilities, focusing on cost-effective crop nutrition strategies for corn, soybeans, and other row crops.
Analysis
Management Discussion
Despite a challenging multi-year revenue contraction from $835.6M in 2022 to $525.3M in 2024, the company demonstrated strong operational resilience by generating positive operating cash flow and recovering profitability in 2025 with net income of $98.7M. The reduction in revenue over the last three years reflects a difficult macroeconomic environment and lower application rates, yet the recent rebound in net income suggests improving cost discipline or margin expansion efforts are taking hold.
Industry Overview
The fertilizer industry is cyclical and heavily influenced by geopolitical events, weather patterns, and global food demand trends that dictate nitrogen availability and pricing. Companies in this sector must navigate strict environmental regulations while managing volatile energy costs to maintain profitability in a capital-intensive manufacturing environment.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $835.6M | $681.5M | $525.3M | $606.0M |
| Cost of Revenue | $483.2M | $449.0M | $406.5M | $442.7M |
| Gross Profit | $352.4M | $232.5M | $118.9M | $163.4M |
| Operating Expenses | $32.5M | $31.1M | $28.5M | $34.7M |
| Operating Income | $319.9M | $201.4M | $90.4M | $128.7M |
| G&A | $32.2M | $29.5M | $28.4M | $33.6M |
| Stock-Based Comp | $25.3M | $8.2M | $4.9M | $9.8M |
| D&A | $82.1M | $79.7M | $88.1M | $81.9M |
| Other OpEx | $263.0K | $1.5M | $100.0K | $1.1M |
| Non-Operating Income | $-33.0M | $-28.7M | $-29.4M | $-30.0M |
| Interest Income | — | — | $4.2M | $5.5M |
| Pre-Tax Income | $287.0M | $172.7M | $61.0M | $98.6M |
| Income Tax | $160.0K | $289.0K | $77.0K | $-23.0K |
| Continuing Ops | $286.8M | $172.4M | $60.9M | $98.7M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $286.8M | $172.4M | $60.9M | $98.7M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $286.8M | $172.4M | $60.9M | $98.7M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $265.7M | $165.9M | $233.5M | $213.9M |
| Cash & Equivalents | $86.3M | $45.3M | $90.9M | $69.2M |
| Accounts Receivable | $90.4M | $41.9M | $65.2M | $59.0M |
| Inventory | $77.5M | $69.2M | $75.6M | $82.7M |
| Prepaid Expenses | $11.4M | $9.5M | — | — |
| Other Current Assets | $0 | $0 | $1.9M | $3.0M |
| Long-Term Assets | $834.7M | $809.5M | $785.2M | $755.6M |
| PP&E (Net) | $811.0M | $761.0M | — | — |
| Goodwill | $0 | — | — | — |
| Other LT Assets | $23.7M | $48.4M | — | — |
| Total Assets | $1.10B | $975.3M | $1.02B | $969.5M |
| Current Liabilities | $126.1M | $75.5M | $111.3M | $96.8M |
| Accounts Payable | $45.5M | — | — | — |
| Current Leases | $2.9M | $3.2M | $4.0M | $4.3M |
| Deferred Revenue | $47.5M | $15.8M | $50.8M | $23.0M |
| Other Current Liab | $30.1M | $56.5M | $56.5M | $69.5M |
| Long-Term Debt | $546.8M | $547.3M | — | — |
| Total L&E | $1.10B | $975.3M | $1.02B | $969.5M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $286.8M | $172.4M | $60.9M | $98.7M |
| Non-Cash Adjustments | $4.4M | $163.2M | $34.9M | $89.0M |
| Working Capital Changes | $10.3M | $-92.1M | $54.8M | $-38.0M |
| Cash from Operations | $301.5M | $243.5M | $150.5M | $149.6M |
| Cash from Investing | $-44.6M | $-2.7M | $-31.9M | $-44.1M |
| Debt Issuances | $0 | $0 | — | — |
| Debt Repayments | $65.0M | $0 | $0 | — |
| Share Buybacks | $12.4M | $0 | $0 | — |
| Cash from Financing | $-283.0M | $-281.9M | $-73.1M | $-127.2M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-26.2M | $-41.1M | $45.6M | $-21.6M |
| Beginning Cash | $112.5M | $86.3M | $45.3M | $90.9M |
| Ending Cash | $86.3M | $45.3M | $90.9M | $69.2M |
Frequently Asked Questions
How does CVR PARTNERS, LP make money?
The company's revenue is driven by the sale of UAN 28-0-4 and UAN 30-0-6 fertilizers, with significant operations in production, transportation logistics, and distribution across major US farming regions. Key value streams include manufacturing high-purity liquid fertilizer blends at integrated plants and managing a robust supply chain network that delivers products directly to farmers and agricultural cooperatives.
What are the main risks for UAN?
The primary risk involves significant volatility in natural gas prices, which serves as the main feedstock cost for nitrogen production and directly impacts gross margins. Regulatory changes regarding water quality standards or environmental compliance costs could disrupt operations at existing facilities. Additionally, fluctuations in corn and soybean crop yields and commodity prices may dampen farmer demand for fertilizer applications.
What is UAN's competitive advantage?
CVR Partners leverages a proprietary, vertically integrated manufacturing process that produces ultra-high-purity UAN without the need for expensive filtration steps found by competitors. The company maintains a strategic asset position with multiple large-scale production facilities located near key agricultural markets, ensuring low logistics costs and rapid response to seasonal demand spikes.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.