CVR Energy Narrows Q2 Loss to Near Breakeven as Iran War Fuels Refining Margin Surge
CVI sits 81% above its 52-week low of $19.62.
Summary
CVR Energy reported a near-breakeven Q2 2026, a sharp turnaround from last year's loss, fueled by war-driven refining margin spikes and strong fertilizer pricing. The RFS liability surged to $408 million, and the company declared a $0.10 dividend.
Key Events · Earnings and Guidance · CVI
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Q2 Net Loss Narrows to $3M
Net loss attributable to CVR Energy stockholders was $3 million, or $0.03 per share, compared to a $114 million loss in Q2 2025. Revenue more than doubled to $2.7 billion.
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Refining Margins Surge on Iran War
Petroleum Segment operating income was $5 million versus a $133 million loss last year. Group 3 2-1-1 crack spreads averaged $44.91/bbl, up from $24.02/bbl, driven by diesel and gasoline price spikes following the Iran War.
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Fertilizer Profits Jump on Higher Prices
Nitrogen Fertilizer Segment operating income rose to $85 million from $46 million. Ammonia and UAN prices increased 33% and 24%, respectively, due to tight global supply.
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RFS Liability Balloons to $408M
The accrued RFS obligation increased from $72 million at year-end to $408 million, reflecting higher RIN prices and the EPA's 2026/2027 renewable volume requirements.
Analysis · CVI · Energy & Transportation
A dramatic improvement in refining margins, driven by the Iran War, helped CVR Energy nearly break even in Q2 2026, a sharp contrast to the $114 million loss a year ago. The Petroleum Segment swung to a small operating profit, while the Nitrogen Fertilizer Segment posted strong gains on higher ammonia and UAN prices. Offsetting these positives, the company's RFS compliance liability ballooned to $408 million, and derivative losses weighed on results. The board declared a $0.10 per share dividend, signaling confidence in the improved cash flow outlook.
At the time of this filing, CVI was trading at $35.50 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $3.5B. The 52-week trading range was $19.62 to $41.67. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.