CVR Energy Shares Plunge Nearly 10% After Disappointing Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Disappointing Earnings Forecast: CVR Energy anticipates a net loss attributable to shareholders between $105 million and $125 million for Q4 2025, a stark decline from a net profit of $28 million in the same quarter of 2024, indicating a significant deterioration in profitability.
- Declining Refining Output: The reported refining throughput of 210,000 to 220,000 barrels per day is slightly lower than the 214,000 bpd in Q4 2024, reflecting ongoing production efficiency challenges that may impact future market competitiveness.
- Ammonia Utilization Rate Drop: The ammonia utilization rate for CVR Partners is expected to fall to 60% to 65%, down from 96% a year ago, which not only affects fertilizer production profitability but could also lead to a loss of market share.
- Ongoing Operational Challenges: Although issues at the Coffeyville plant have been resolved, the overall business remains under pressure, leading to diminished investor confidence and suggesting that stock investment should be avoided in the short term.
Analyst Views on CVI
Wall Street analysts forecast CVI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CVI is 28.50 USD with a low forecast of 25.00 USD and a high forecast of 35.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
0 Buy
1 Hold
3 Sell
Moderate Sell
Current: 22.070
Low
25.00
Averages
28.50
High
35.00
Current: 22.070
Low
25.00
Averages
28.50
High
35.00
About CVI
CVR Energy, Inc. is a diversified holding company primarily engaged in the renewable fuels and petroleum refining and marketing businesses, as well as in the nitrogen fertilizer manufacturing business through its interest in CVR Partners, LP. The Company's segments include Petroleum Segment, Renewables Segment and Nitrogen Fertilizer Segment. Petroleum Segment includes the refining and marketing of high value transportation fuels which consist of gasoline, diesel, jet fuel, and distillates. The Petroleum Segment also includes activities related to crude gathering and logistics that support the refinery operations. Renewables Segment includes the refining of renewable feedstocks, such as soybean oil, corn oil, and other renewable feedstocks, into renewable diesel and marketing of renewables products. Nitrogen Fertilizer Segment includes the production and distribution of nitrogen fertilizer products, primarily in the form of ammonia and urea ammonium nitrate, for the farming industry.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
