Key Highlights

  • A loss of USD 1.02 per unit missed the consensus estimate of Earnings of USD 1.62, down from USD 4.08.
  • Net sales of USD 146.2 million fell 10.6% and came in below the consensus estimate of USD 165.40 million.
  • Turnaround expense of USD 26.8 million lifted direct operating costs and cut ammonia utilization to 80% from 95%.
  • A distribution of USD 1.79 per common unit was declared for the third quarter, payable November 23.

CVR Partners, LP (NYSE:UAN) reported a third quarter 2026 net loss of USD 10.7 million, or USD 1.02 per common unit, against Net Income of USD 43.1 million, or USD 4.08 per unit, a year earlier. The result compared with a consensus estimate of earnings of USD 1.62 per unit. Net sales were USD 146.2 million versus USD 163.5 million, a 10.6% decline that also fell below the consensus estimate of USD 165.40 million.

The Partnership posted an operating loss of USD 3.6 million against Operating Income of USD 50.6 million, a swing of USD 54.3 million. EBITDA was USD 19.7 million against USD 70.6 million. The company tied the swing to higher direct operating expenses from the East Dubuque turnaround and lower revenue.

Pricing Split and Turnaround Costs Drive the Swing

Ammonia pricing at the gate rose to USD 637 per ton from USD 531 on strong fall Demand and limited domestic inland supply, while UAN pricing fell to USD 309 per ton from USD 348 after the July summer Fill program reset prices. Ammonia sales volumes dropped to 36 thousand tons from 48 thousand tons because of lower production during the turnaround, and UAN volumes were 327 thousand tons against 328 thousand tons. Price effects reduced UAN Revenue by USD 12.7 million and added USD 3.9 million to ammonia revenue.

Turnaround expense reached USD 26.8 million against USD 1.2 million, and the full turnaround, completed in mid-October, cost about USD 37 million. Selling, general and administrative expenses rose USD 2.4 million to USD 11.6 million on legal costs. The turnaround included completion of the brownfield ammonia expansion project, which the company projects would lift East Dubuque capacity by about 5%, with sustained operation at the higher rate to be tested in the fourth quarter.

Strategic Options, Capital Plans and Market Backdrop

Icahn Enterprises and CVR Energy are considering potential strategic transactions, which may include Options involving the partnership, and the company said there is no assurance any would materialize. CVR Energy held about 37% of the common units at September 30. The company also said it is finalizing engineering and cost estimates for Natural Gas as an additional feedstock at the Coffeyville Facility, with construction targeted for 2028 if the board approves.

Management cited Middle East hostilities, shipping limits through the Strait of Hormuz and U.S. tariffs as factors that have lifted fertilizer prices, and said the duration of these disruptions remains highly uncertain.

Distribution, Liquidity and Nine Month Figures Against Prior Periods

Available cash for distribution was USD 18.9 million against USD 42.4 million, and the board declared USD 1.79 per common unit, about USD 18.9 million in total, for holders of record on November 16. Cash stood at USD 158.2 million against USD 69.2 million at year end 2025, with total liquidity of USD 203.4 million against USD 117.1 million, and USD 550 million of 6.125% senior secured notes due June 2028 remain outstanding. Capital spending through nine months was USD 65.9 million against the full year range of USD 95 million to USD 104 million. Nine month net sales rose to USD 528.4 million from USD 475.0 million, and net income to USD 116.7 million from USD 108.9 million, or USD 11.04 per unit from USD 10.31.