Group 1 - CVR Energy has faced a challenging year due to weak refining margins and high turnaround costs, leading to the elimination of its dividend [1] - Recently, there are signs of improvement in the refining environment, which may positively impact the company's performance [1] - The stock has been under pressure but could present a favorable risk/reward profile for contrarian investors [1]

Core Points - CVR Energy reported a net loss of $114 million for Q2 2025, a significant decline from a net income of $21 million in Q2 2024, resulting in a loss per diluted share of $1.14 compared to earnings of $0.21 per share in the previous year [1][8] - The company's adjusted loss for Q2 2025 was 23 cents per diluted share, contrasting with adjusted earnings of 9 cents per diluted share in Q2 2024 [1][8] - EBITDA loss for Q2 2025 was $24 million, down from an EBITDA of $103 million in Q2 2024, while adjusted EBITDA increased to $99 million from $87 million year-over-year [1][8] Financial Performance - The Petroleum Segment experienced a net loss of $137 million and an EBITDA loss of $84 million in Q2 2025, compared to a net income of $18 million and EBITDA of $56 million in Q2 2024 [6][8] - Total throughput for Q2 2025 was approximately 172,000 barrels per day, down from 186,000 barrels per day in Q2 2024, primarily due to processing intermediate inventories [7][8] - Refining margin for Q2 2025 was $35 million, or $2.21 per total throughput barrel, a sharp decline from $185 million, or $10.94 per barrel, in the same period of 2024 [9][50] Segment Performance - The Renewables Segment reported a net loss of $11 million and an EBITDA loss of $5 million for Q2 2025, consistent with the previous year's performance [11][13] - The Nitrogen Fertilizer Segment achieved net income of $39 million and EBITDA of $67 million on net sales of $169 million for Q2 2025, compared to net income of $26 million and EBITDA of $54 million on net sales of $133 million in Q2 2024 [14][15] Leadership Changes - Mark A. Pytosh is set to assume the role of President and CEO of CVR Energy on January 1, 2026, following Dave Lamp's retirement [3][5] - Brett Icahn was appointed as a director effective August 1, 2025, increasing the Board size to nine members [5][8] Cash and Debt Management - Consolidated cash and cash equivalents decreased to $596 million as of June 30, 2025, down from $987 million at the end of 2024 [18][43] - Total debt and finance lease obligations were reported at $1.9 billion as of June 30, 2025, including $570 million held by the Nitrogen Fertilizer Segment [18][43] - The company prepaid $70 million and $20 million in principal of the Term Loan in June and July 2025, respectively, recognizing a $1 million loss on extinguishment of debt [19][20]

Market Overview - The fertilizers market is experiencing a resurgence after being subdued for over two years, with the Fertilizers Price Index rising approximately 13% over the past year [1] - Despite the increase, the index remains significantly below its 2022 highs, indicating that a key inflection point has likely been passed [1] Analyst Background - The analysis is provided by a financial analyst with over a decade of experience in the fertilizers market, who has been writing on Seeking Alpha since 2018 [1] - The analyst has a professional background in private equity, real estate, and economic research, along with academic expertise in financial econometrics, economic forecasting, and global monetary economics [1]

Group 1: Company Overview - CVR Partners (NYSE: UAN) is a limited partnership involved in the supply chain of nitrogen fertilizer products, operating within the agricultural chemicals industry with key products like ammonium nitrate and general ammonia [1] Group 2: Investment Focus - The company is characterized as a growth entity, focusing on sectors that are often undervalued or disliked but possess strong fundamentals and good cash flows, particularly in agricultural chemicals [1] - There is a specific interest in sectors such as Oil & Gas and consumer goods, highlighting a strategy that seeks substantial returns from companies that are overlooked for unjustified reasons [1] Group 3: Investment Philosophy - The investment approach emphasizes long-term value investing while also exploring potential deal arbitrage opportunities, indicating a flexible strategy that adapts to market conditions [1] - The company tends to avoid investments in high-tech or certain consumer goods sectors, indicating a preference for more traditional and understandable business models [1]

Group 1 - CVR Energy's shares have underperformed over the past year due to a weaker refining environment and high turnaround costs, leading to the suspension of its dividend [1] - Recently, CVR Energy's shares have recovered nearly all of their losses [1] Group 2 - The article emphasizes the importance of macro views and stock-specific turnaround stories for achieving outsized returns with a favorable risk/reward profile [1]

Core Viewpoint - Chicago Rivet & Machine Company announced the appointment of James T. Tanner as the Senior Vice President on May 1, 2025 [1] Group 1 - The appointment of James T. Tanner is expected to bring leadership and strategic direction to the company [1]

PART I. FINANCIAL INFORMATION This section presents detailed financial statements, management's analysis, and disclosures on internal controls [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Q1 2025 financial statements reflect a net income turnaround, driven by improved margins and an asset sale, despite lower sales [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly increased to $24.1 million, driven by receivables and inventories, despite a cash decrease Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $766 | $1,923 | | Accounts receivable, net | $4,863 | $3,095 | | Inventories, net | $7,048 | $6,496 | | **Total current assets** | **$13,137** | **$12,591** | | Property, plant and equipment, net | $10,461 | $10,735 | | **Total assets** | **$24,071** | **$23,370** | | Total current liabilities | $2,406 | $2,220 | | **Total liabilities** | **$3,667** | **$3,338** | | **Total shareholders' equity** | **$20,404** | **$20,032** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2025 reported net income, reversing a prior-year loss, despite a 7.7% sales decrease Q1 2025 vs Q1 2024 Performance ($) | Metric | Q1 2025 ($) | Q1 2024 ($) | Change | | :--- | :--- | :--- | :--- | | Net sales | $7,245,635 | $7,853,181 | -7.7% | | Gross profit | $1,657,741 | $744,562 | +122.7% | | Operating income (loss) | $70,174 | ($903,303) | N/A | | Net income (loss) | $401,022 | ($698,004) | N/A | | Diluted EPS | $0.42 | ($0.72) | N/A | | Cash dividends declared per share | $0.03 | $0.10 | -70.0% | [Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) Shareholders' equity increased to $20.40 million, driven by net income, partially offset by dividends - Total shareholders' equity increased to **$20,404,490** as of March 31, 2025, driven by net income of **$401,022**, less dividends of **$28,984**[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 saw increased cash used in operations, leading to a $1.16 million overall cash decrease Cash Flow Summary (Three Months Ended March 31) ($) | Activity | 2025 ($) | 2024 ($) | | :--- | :--- | :--- | | Net cash used in operating activities | ($2,010,548) | ($398,759) | | Net cash provided by investing activities | $882,498 | $399,429 | | Net cash used in financing activities | ($28,984) | ($96,613) | | **Net decrease in cash** | **($1,157,034)** | **($95,943)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail a customer settlement, asset sale gain, new credit agreement, and going concern doubt - The company reached a settlement with a customer for **$1,100,000**, payable in installments over five years, to resolve a product conformity issue[32](index=32&type=chunk)[33](index=33&type=chunk) - On February 25, 2025, the company sold its Albia manufacturing facility's assets and real estate for net cash proceeds of approximately **$678,000**, recording a gain of **$339,520**[57](index=57&type=chunk) - The company entered into a new one-year, **$3 million** operating credit agreement in March 2025, with no borrowings outstanding as of March 31, 2025[58](index=58&type=chunk) - Due to recurring operating losses, negative cash flows, and reduced liquidity, management concluded there is substantial doubt about the Company's ability to continue as a going concern[60](index=60&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2025 net income to improved margins and asset sale, addressing going concern and mitigation - Sales decreased **7.7%** year-over-year, with the Fastener segment down **8.4%** and Assembly Equipment sales down **3.8%**[66](index=66&type=chunk) - Gross margins significantly improved in both the fastener segment (by **$612,530**) and the assembly equipment segment (by **$300,649**) due to revised pricing, cost reductions, and operational efficiencies[66](index=66&type=chunk)[67](index=67&type=chunk) - The company acknowledges substantial doubt about its ability to continue as a going concern due to recurring losses and declining liquidity, with mitigation plans including boosting sales and utilizing a new **$3 million** credit line[73](index=73&type=chunk)[63](index=63&type=chunk) - The 2025 outlook remains challenging, with the company focusing on efficiency improvements, price adjustments, and aggressive sales efforts to navigate market uncertainty[78](index=78&type=chunk) [Controls and Procedures](index=20&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls were ineffective due to a persistent material weakness in inventory valuation; remediation is ongoing - The CEO and CFO concluded that disclosure controls and procedures were not effective as of the end of the reporting period[80](index=80&type=chunk) - A material weakness in internal control over financial reporting related to inventory valuation persists, identified as of December 31, 2023 and 2024[82](index=82&type=chunk) - Remediation plans are underway, focusing on timely review of accounting standards for inventory valuation and subsequent review and reconciliation of variance accounts[83](index=83&type=chunk) PART II. OTHER INFORMATION This section lists 10-Q exhibits, including required certifications and XBRL data files [Exhibits](index=21&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the 10-Q report, including required certifications and XBRL data files - The report includes certifications from the CEO and CFO pursuant to Sarbanes-Oxley Act Sections 302 and 906[87](index=87&type=chunk) - Interactive Data Files (Inline XBRL) are included as exhibits[87](index=87&type=chunk)

Group 1 - Chicago Rivet & Machine Co. announced the appointment of James T. Tanner as Senior Vice President of Sales and Marketing, effective immediately [1] - Mr. Tanner has over 30 years of sales and leadership experience in the manufacturing industry, with a strong background in revenue generation and corporate branding [2] - CEO Gregory Rizzo expressed confidence in Mr. Tanner's ability to enhance sales efforts and develop new customer relationships [3] Group 2 - Mr. Tanner has held executive positions at notable companies such as Bosch and MacLean-Fogg, and has more than a decade of experience in the fastener industry [2] - There are no family relationships or related party transactions between Mr. Tanner and the Company that require disclosure [3]

Group 1 - The article emphasizes the importance of patience when investing in CVR Partners, L.P. (NYSE: UAN), a variable-distribution fertilizer MLP, suggesting that long-term holding is preferred unless compelling reasons to sell arise [1] - The author has a background in the energy industry and has managed a personal investment portfolio since 1998, aiming to match the S&P 500 returns with lower volatility and higher income [1] - The investment strategy focuses on identifying opportunities without regard to asset class, market cap, sector, or yield, with an emphasis on maximizing total return by purchasing when prices are low relative to intrinsic value [1]

Core Viewpoint - CVR Energy, Inc. is expected to report a loss of $0.89 per share on revenue of $1.31 billion for the first quarter, with the stock down approximately 43.78% over the past year, although it has shown resilience recently [1]. Group 1: Stock Performance - CVR Energy's stock has decreased by 43.78% over the past year but has only fallen 0.85% year-to-date and 6.05% in the past month, indicating some signs of resilience [1]. - The current trading price of CVI stock is $18.67 per share [6]. Group 2: Technical Analysis - The stock is above its eight-day and 20-day simple moving averages, indicating a short-term bullish signal, but is below its 50-day and significantly below its 200-day moving averages, suggesting long-term technical damage [3]. - The MACD indicator shows a negative 0.18, while the RSI is at 51.87, indicating positive momentum but cautioning that the stock may be approaching overbought territory if the rally continues [4]. Group 3: Investor Activity - Carl Icahn has significantly increased his stake in CVR Energy, purchasing over 1.5 million shares worth more than $27 million in April, bringing his total stake to 70.1 million shares [5]. - Icahn's aggressive buying is often a precursor to strategic changes or boardroom battles, suggesting that investors should pay attention to his actions as they may indicate larger shifts within the company [6].