CVR Energy 2025 Q1 Earnings Misses Targets as Net Income Declines 216.7%

CVR Energy (CVI) reported its fiscal 2025 Q1 earnings on Apr 29th, 2025. CVR Energy's results fell short of expectations, with a notable swing to a loss in earnings per share (EPS). The company did not provide specific quantitative guidance figures but indicated an optimistic outlook for the upcoming quarters, expecting operational stability and recovery. Despite the challenging quarter, CVR Energy anticipates improved performance due to the completion of refinery turnarounds and no further planned maintenance until 2027.

Revenue

CVR Energy's total revenue dropped by 11.6% to $1.65 billion in Q1 2025, compared to $1.86 billion in Q1 2024. The Petroleum segment generated $1.48 billion, while the Renewables segment contributed $66 million. The Nitrogen Fertilizer segment reported $143 million in revenue. The "Other / Eliminations" category accounted for a negative impact of $40 million, aligning total net sales at $1.65 billion.

Earnings/Net Income

CVR Energy experienced a significant downturn, reporting a net loss of $1.22 per share in Q1 2025, compared to a profit of $0.81 per share in Q1 2024, marking a 250.6% negative change. The net loss for the quarter was $-105 million, a deterioration of 216.7% from the $90 million net income in the previous year. The EPS performance this quarter was poor, reflecting substantial losses.

Price Action

The stock price of CVR Energy increased by 4.84% during the latest trading day and 5.47% during the most recent full trading week. However, it has decreased by 3.28% month-to-date.

Post-Earnings Price Action Review

Following CVR Energy's Q1 2025 earnings report, the stock exhibited a mixed response. In the three days after the release, it recorded a negative return of -1.74% with a 38.1% win rate. The performance showed slight improvement over a 10-day period, with a marginal return of -0.07% and a win rate of 28.57%. Over 30 days, the stock saw a further decline of -0.31%, but the highest return was 8.62% on the 74th day post-earnings release. This pattern indicates potential gains, although they are not consistently realized in the short term following earnings announcements.

CEO Commentary

CVR Energy's CEO, Dave Lamp, highlighted that the company's Q1 2025 earnings were negatively impacted by planned and unplanned downtime at the Coffeyville refinery. He expressed optimism about future performance, citing the completion of the turnaround and positioning for the driving season. Lamp indicated no further planned turnarounds at either refinery until 2027 and noted CVR Partners' robust performance, with a 101% ammonia production rate and a $2.26 per common unit cash distribution for the first quarter.

Guidance

CVR Energy anticipates improved performance, with no further planned refinery turnarounds until 2027. The company focuses on maximizing throughput and refining margins, suggesting confidence in recovery and operational stability in upcoming quarters.

Additional News

In recent developments, major shareholder Carl C. Icahn made a significant purchase of 206,571 shares of CVR Energy on March 3rd, 2025, at an average price of $17.79 per share. This acquisition increases his direct ownership to 67,780,774 shares, highlighting his continued confidence in the company. Additionally, CVR Energy announced that it would not distribute a cash dividend for Q1 2025, choosing instead to focus on maintaining liquidity amidst challenging times. However, CVR Partners declared a cash distribution of $2.26 per common unit for the same period, demonstrating strong performance in its nitrogen fertilizer segment.