CVR Energy, Inc. (CVI) Income Statement

The 55.5% growth in 2026Q2 appears to be a sharp recovery from a low base, as revenue in 2025Q2 was only $1.8B. However, this growth is not consistent; the prior four quarters showed negative growth rates, indicating that the company is still struggling to establish a stable upward trajectory. The volatility suggests that revenue is highly sensitive to external factors such as crack spreads and demand, rather than reflecting durable organic growth.

The gross margin data reveals a highly cyclical business with no stable pricing power. The 28.7% gross margin in 2025Q3 was an outlier, likely driven by favorable crack spreads, but the subsequent quarters show negative margins, indicating that the company cannot sustain profitability when refining margins compress. This volatility is typical of independent refiners, but CVI's margins appear more erratic than peers like Delek Logistics (20.9%) or Par Pacific (18.1%), suggesting higher exposure to spot market fluctuations.

SG&A expenses have remained in a narrow band of $28M to $42M over the ten quarters, while gross profit has ranged from -$287M to $558M. This suggests that operating leverage works both ways: when margins are strong, operating income scales up dramatically, but when margins turn negative, the fixed SG&A burden exacerbates losses. The 2026Q1 operating loss of -$326M on negative gross profit of -$287M shows that SG&A added to the loss, highlighting the lack of cost flexibility.

The cost structure is heavily weighted towards COGS, which is typical for refiners, but the volatility in COGS relative to revenue is extreme. For example, in 2026Q1, COGS was $2.3B on revenue of $2.0B, resulting in a negative gross margin. This suggests that the company has limited ability to control input costs, which are driven by crude oil prices and crack spreads. SG&A, on the other hand, is relatively stable, indicating disciplined overhead management, but it is too small to offset the COGS swings.

The 2025Q3 results were exceptional, with gross margin of 28.7% and net income of $374M, representing the highest profitability in the ten-quarter period. However, this was followed by a sharp decline in 2025Q4 and 2026Q1, indicating that the inflection was not sustained. The data suggests that the company's earnings are highly dependent on external factors such as refining margins, which can spike and then revert. This volatility makes it difficult to predict future performance and suggests that the 2025Q3 results should not be extrapolated.