LSB Industries Inc (LXU)

LSB Industries, Inc. Reports Operating Results for the 2026 First QuarterApril 29, 2026 4:10 PM
Business Wire
LSB Industries, Inc. (NYSE: LXU) (“LSB,” “we,” “us,” “our,” or the “Company”) today announced results for the first quarter ended March 31, 2026.


First Quarter 2026 Results and Recent Highlights



Net sales of $169.5 million compared to $143.4 million in the first quarter of 2025



Net income of $19.7 million compared to a net loss of $1.6 million in the first quarter of 2025



Diluted EPS of $0.27 compared to $(0.02) for the first quarter of 2025



Adjusted EBITDA(1) of $52.1 million compared to $29.1 million in the first quarter of 2025



Total cash, cash equivalents and short-term investments of approximately $181.7 million and total debt of $441.2 million as of March 31, 2026



“I am pleased with our first quarter results, as they are in-line with our overall expectations. Our results reflect the impact of the operational discipline we have been building and executing over the past several years. Our progress is increasingly evident over the past two quarters, driving improved operating and financial performance,” stated Mark Behrman, LSB Industries' Chairman & Chief Executive Officer. “The evolving geopolitical landscape, including the conflict in the Middle East and associated disruption of production facilities and important trade channels, is significantly impacting the global availability of nitrogen fertilizers. Importantly, our improved operating performance is enabling us to maximize fertilizer production and support US farmers with additional supply in this difficult time. We are encouraged by our continued execution across the business and believe it positions us to continue supporting our customers and deliver sustainable growth and long-term value creation.”



 (1)

Adjusted EBITDA and EBITDA are non-GAAP financial measures. Please see the discussion below under the heading “Non-GAAP Reconciliations” and the reconciliations at the end of this release for additional information concerning these and other non-GAAP financial measures







Market Outlook



Industrial business is strong with positive market conditions:


Supply of Ammonium Nitrate (AN) for explosives in mining and quarrying/aggregate production is constrained in North America due in part to producer outages. Demand for AN across all commodities remains strong, particularly with copper and gold miners maximizing production to take advantage of strong supply and demand fundamentals in their markets, leading to tight market conditions and higher AN selling prices.



Demand for nitric acid is robust domestically, where it is supported by tariffs and countervailing duties on imports of methylene diphenyl diisocyanate (MDI). The duties were finalized on April 8, 2026, for a period of five years.







Fertilizer markets are tight due to the conflicts in the Middle East and pricing remains strong:


Ammonia prices currently reflect:


Significantly reduced ammonia supplies due to ammonia vessels unable to transit through the Strait of Hormuz



Higher costs of production in Europe



Ongoing curtailment of ammonia production in Trinidad and new production outages in Australia



Increased import demand in India to offset reduced supply of LNG



Potential export controls in China



Gas supply disruptions in North Africa reducing ammonia production, and



Slow ramp up in new US production capacity, which is constraining global supply availability






Urea Ammonium Nitrate (UAN) prices recently improved, reflecting:


Increased demand ahead of the Spring fertilizer application season



Continued lower-than-expected working inventory through the supply chain



Like ammonia, significantly reduced urea supplies due to vessels unable to transit through the Strait of Hormuz leading to a strengthening in urea prices and higher UAN demand as customers switch from urea to UAN



Strong import demand for Urea in India and increased government subsidies to support purchases






Other notable developments include:


Increasing and frequent drone attacks on Russian nitrogen plants and ports



Russian export ban on AN for one month, with potential extension



Limited Urea exports from China as they appear to continue to prioritize domestic supply










Corn market dynamics support fertilizer demand:


Demand is keeping stocks-to-use near historical levels (ending projections for 2025/26 crop year in USDA’s April WASDE is 12.9% versus long-term average of ~13%)



USDA projecting 95+ million planted acres for corn for the 2026/27 crop season and we anticipate robust nitrogen demand through the full fertilizer application season






Low Carbon Ammonia Project Summary



El Dorado Carbon Capture and Sequestration (CCS) Project with Lapis Carbon Solutions




Expect to capture and sequester between 400,000 and 500,000 metric tons of CO2 per year, which would reduce our Scope 1 emissions by approximately 25%, yielding between 305,000 and 380,000 metric tons per year of low carbon ammonia



Completed stratigraphic well in June 2025 to provide data to support EPA in review of Class VI application



Lapis Carbon Solutions resubmitted the pre-construction Class VI permit application to the EPA in December 2025. Once the project receives EPA approval, we intend to use the completed stratigraphic well for CO2 injections



Expect to begin operations in Q4 ‘26/Q1 ‘27



First Quarter Results Overview




 






 






Three Months Ended March 31,






 








 






 






2026






 






 






2025






 






 






% Change






 








Product Sales






 






(In Thousands)






 






 






 






 








AN & Nitric Acid






 






$






75,347






 






 






$






57,618






 






 






 






31






%








Urea ammonium nitrate (UAN)






 






 






49,171






 






 






 






43,865






 






 






 






12






%








Ammonia






 






 






36,814






 






 






 






33,272






 






 






 






11






%








Other






 






 






8,155






 






 






 






8,677






 






 






 






(6






)%








Total net sales






 






$






169,487






 






 






$






143,432






 






 






 






 







Comparison of First Quarter of 2026 to 2025:



Higher selling prices combined with increased AN and Nitric Acid volumes resulted in higher net sales for the period compared to the previous year. Tight market conditions shifted some production toward AN, resulting in lower UAN sales volumes. In addition, ammonia sales were impacted slightly as we built inventory in preparation for the scheduled turnaround at our El Dorado facility in the second quarter.



The following tables provide key sales metrics for our products:




 






 






Three Months Ended March 31,






 








Key Product Volumes (short tons sold)






 






2026






 






 






2025






 






 






% Change






 








AN & Nitric Acid






 






 






177,862






 






 






 






150,531






 






 






 






18






%








Urea ammonium nitrate (UAN)






 






 






128,623






 






 






 






148,565






 






 






 






(13






)%








Ammonia






 






 






66,040






 






 






 






73,403






 






 






 






(10






)%








 






 






 






372,525






 






 






 






372,499






 






 






 






0






%









Average Selling Prices (price per short ton) (A)






 






 






 






 






 






 






 






 






 








AN & Nitric Acid






 






$






372






 






 






$






324






 






 






 






15






%








Urea ammonium nitrate (UAN)






 






$






344






 






 






$






253






 






 






 






36






%








Ammonia






 






$






530






 






 






$






432






 






 






 






23






%









(A) Average selling prices represent “net back” prices which are calculated as sales less freight expenses divided by product sales volume in tons. Please see the discussion below under the heading “Ammonia, AN, Nitric Acid, UAN Sales Price Reconciliation” and the reconciliations at the end of this release for additional information concerning this financial measure.









 






 






Three Months Ended March 31,






 








Average Benchmark Prices (price per ton)






 






2026






 






 






2025






 






 






% Change






 








Tampa Ammonia Benchmark






 






$






621






 






 






$






491






 






 






 






26






%








NOLA UAN






 






$






347






 






 






$






276






 






 






 






26






%









 






 






Three Months Ended March 31,






 








 






 






2026






 






 






2025






 






 






% Change






 








Input Costs






 






 






 






 






 






 






 






 






 








Average natural gas cost/MMBtu in cost of materials and other






 






$






5.26






 






 






$






3.78






 






 






 






39






%



















 


Conference Call


LSB’s management will host a conference call on Thursday, April 30, 2026 at 10:00 am ET / 9:00 am CT to discuss first quarter 2026 results and recent corporate developments. Participating in the call will be Chairman & Chief Executive Officer, Mark Behrman, Executive Vice President & Chief Financial Officer, Cheryl Maguire and Executive Vice President & Chief Commercial Officer, Damien Renwick. Interested parties may participate in the call by dialing (877) 407-6176 / (201) 689-8451. Please call in 10 minutes before the conference is scheduled to begin and ask for the LSB conference call.


A webcast of the call, along with a slide presentation that coincides with management’s prepared remarks, will be available in the Investors section of LSB’s website, at www.lsbindustries.com. The webcast can be found under Events & Presentations. If you are unable to listen to the live call, the conference call webcast will be archived on LSB’s website.


LSB Industries, Inc.


LSB Industries, Inc., headquartered in Oklahoma City, Oklahoma, is committed to playing a leadership role in the production of low and no carbon products that build, feed and power the world. The LSB team is dedicated to building a culture of excellence in customer experiences as we currently deliver essential products across the agricultural and industrial end markets and, in the future, the energy markets. The company manufactures ammonia and ammonia-related products at facilities in Cherokee, Alabama, El Dorado, Arkansas and Pryor, Oklahoma and operates a facility for a global chemical company in Baytown, Texas. Additional information about LSB can be found on our website at www.lsbindustries.com.


Forward-Looking Statements


Statements in this release that are not historical are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, include, but are not limited to, statements regarding: our business strategy; anticipated future operating results and operating expenses, cash flows, capital resources and liquidity; trends, opportunities and risks affecting our business, industry and financial results; our ability to successfully leverage our existing business platform and portfolio of assets to produce low carbon products; the impact of trade policy on our business; the availability of raw materials; production volumes at our production facilities; and the anticipated cost and timing of our capital projects, including turnarounds. Forward-looking statements can generally be identified by words or phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “will,” “may,” “plan,” “potential,” “should,” “would,” and similar words or phrases, as well as by discussions of strategy, plans or intentions. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or actual achievements to differ materially from the results, level of activity, performance or anticipated achievements expressed or implied by the forward-looking statements. Significant risks and uncertainties relate to, but are not limited to, business and market disruptions; market conditions and price volatility for our products and feedstocks; global and regional economic downturns that adversely affect the demand for our end-use products; disruptions in production at our manufacturing facilities; increased competitive pressures; our ability to fund the working capital and expansion of our businesses; recruiting and retaining skilled and qualified personnel; our ability to obtain necessary raw materials and purchased components; material increases in cost of raw materials; obtaining and maintaining necessary permits; and other financial, economic, competitive, environmental, political, legal and regulatory factors, including tariffs. These and other risk factors are discussed in the Company’s filings with the Securities and Exchange Commission, including but not limited to our most recent Annual Report on Form 10-K.


Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Unless otherwise required by applicable laws, we undertake no obligation to update or revise any forward-looking statements, whether because of new information or future developments.




LSB Industries, Inc.








Consolidated Statements of Operations








 






 






 






 








 






 






Three Months Ended March 31,






 








 






 






2026






 






 






2025






 








 






 






(In Thousands, Except Per Share Amounts)






 








Net sales






 






$






169,487






 






 






$






143,432






 








Cost of sales






 






 






133,693






 






 






 






129,048






 








Gross profit






 






 






35,794






 






 






 






14,384






 








 






 






 






 






 






 






 








Selling, general and administrative expense






 






 






13,825






 






 






 






10,153






 








Other income, net






 






 






(1,187






)






 






 






(237






)








Operating income






 






 






23,156






 






 






 






4,468






 








Interest expense, net






 






 






7,117






 






 






 






8,064






 








Non-operating other income, net






 






 






(1,516






)






 






 






(1,673






)








Income (loss) before income taxes






 






 






17,555






 






 






 






(1,923






)








Benefit for income taxes






 






 






(2,130






)






 






 






(283






)








Net income (loss)






 






$






19,685






 






 






$






(1,640






)








 






 






 






 






 






 






 








Net income (loss) per common share:






 






 






 






 






 






 








Basic:






 






 






 






 






 






 








Net income (loss)






 






$






0.27






 






 






$






(0.02






)








 






 






 






 






 






 






 








Diluted:






 






 






 






 






 






 








Net income (loss)






 






$






0.27






 






 






$






(0.02






)















 










 




LSB Industries, Inc.








Consolidated Balance Sheets








 






 






 






 






 






 






 








 






 






March 31, 2026






 






 






December 31, 2025






 








 






 






(In Thousands)






 








Assets






 






 






 






 






 






 








Current assets:






 






 






 






 






 






 








Cash and cash equivalents






 






$






20,641






 






 






$






19,511






 








Short-term investments






 






 






161,042






 






 






 






128,960






 








Accounts receivable






 






 






52,864






 






 






 






57,609






 








Allowance for doubtful accounts






 






 






(363






)






 






 






(401






)








Accounts receivable, net






 






 






52,501






 






 






 






57,208






 








Inventories:






 






 






 






 






 






 








Finished goods






 






 






20,906






 






 






 






16,705






 








Raw materials






 






 






2,334






 






 






 






1,605






 








Total inventories






 






 






23,240






 






 






 






18,310






 








Supplies, prepaid items and other:






 






 






 






 






 






 








Prepaid insurance






 






 






8,953






 






 






 






12,588






 








Precious metals






 






 






15,793






 






 






 






14,538






 








Supplies






 






 






34,080






 






 






 






33,399






 








Other






 






 






4,051






 






 






 






5,380






 








Total supplies, prepaid items and other






 






 






62,877






 






 






 






65,905






 








 






 






 






 






 






 






 








Current assets held for sale






 






 






1,000






 






 






 






3,400






 








Total current assets






 






 






321,301






 






 






 






293,294






 








 






 






 






 






 






 






 








Property, plant and equipment, net






 






 






825,572






 






 






 






833,525






 








 






 






 






 






 






 






 








Other assets:






 






 






 






 






 






 








Operating lease assets






 






 






43,416






 






 






 






45,571






 








Intangible and other assets, net






 






 






1,068






 






 






 






1,149






 








Total other assets






 






 






44,484






 






 






 






46,720






 








 






 






 






 






 






 






 








Total assets






 






$






1,191,357






 






 






$






1,173,539






 















 




LSB Industries, Inc.








Consolidated Balance Sheets (continued)








 






 






 






 






 






 






 








 






 






March 31, 2026






 






 






December 31, 2025






 








 






 






(In Thousands)






 








Liabilities and Stockholders' Equity






 






 






 






 






 






 








Current liabilities:






 






 






 






 






 






 








Accounts payable






 






$






62,465






 






 






$






64,514






 








Short-term financing






 






 






7,186






 






 






 






10,686






 








Accrued and other liabilities






 






 






34,143






 






 






 






29,551






 








Current portion of long-term debt






 






 






770






 






 






 






760






 








Total current liabilities






 






 






104,564






 






 






 






105,511






 








 






 






 






 






 






 






 








Long-term debt, net






 






 






440,433






 






 






 






440,295






 








 






 






 






 






 






 






 








Noncurrent operating lease liabilities






 






 






35,774






 






 






 






37,668






 








 






 






 






 






 






 






 








Other noncurrent accrued and other liabilities






 






 






535






 






 






 






535






 








 






 






 






 






 






 






 








Deferred income taxes






 






 






67,102






 






 






 






69,557






 








 






 






 






 






 






 






 








Stockholders' equity:






 






 






 






 






 






 








Common stock, $.10 par value per share; 150 million shares authorized,

91.2 million shares issued






 






 






9,117






 






 






 






9,117






 








Capital in excess of par value






 






 






507,655






 






 






 






506,821






 








Retained earnings






 






 






251,960






 






 






 






232,275






 








 






 






 






768,732






 






 






 






748,213






 








Less treasury stock, at cost:






 






 






 






 






 






 








Common stock, 19.3 million shares (19.5 million shares at December 31, 2025)






 






 






225,783






 






 






 






228,240






 








Total stockholders' equity






 






 






542,949






 






 






 






519,973






 








Total liabilities and stockholders’ equity






 






$






1,191,357






 






 






$






1,173,539






 







Non-GAAP Reconciliations


To supplement our financial information presented in accordance with generally accepted accounting principles in the United States (“GAAP”), we present certain non-GAAP financial measures in this press release and on the related teleconference call.


EBITDA and Adjusted EBITDA Reconciliation


Management uses EBITDA and adjusted EBITDA as supplemental measures to review and assess the performance of our core business operations and for planning purposes. EBITDA is defined as net income (loss) plus interest expense and interest income, net, less gain on extinguishment of debt, plus depreciation and amortization (D&A) (which includes D&A of property, plant and equipment and amortization of intangible and other assets), plus provision (benefit) for income taxes. Adjusted EBITDA is reported to show the impact of non-cash stock-based compensation, one time/non-cash or non-operating items-such as, one-time income or fees, loss (gain) on sale of a business and/or other property and equipment, certain fair market value (FMV) adjustments, and consulting costs associated with reliability and purchasing initiatives (Initiatives). We historically have performed turnaround activities on an annual basis; however, we have moved towards extending turnarounds to a two or three-year cycle. Rather than being capitalized and amortized over the period of benefit, our accounting policy is to recognize the costs as incurred. Given these turnarounds are essentially investments that provide benefits over multiple years, they are not reflective of our operating performance in a given year.


We believe that certain investors consider EBITDA a useful means of measuring our ability to meet our debt service obligations and evaluating our financial performance. In addition, we believe that certain investors consider adjusted EBITDA as more meaningful to further assess our performance. We believe that the inclusion of supplementary adjustments to EBITDA is appropriate to provide additional information to investors about certain items.


EBITDA and adjusted EBITDA have limitations and should not be considered in isolation or as a substitute for net income, operating income, cash flow from operations or other consolidated income or cash flow data prepared in accordance with GAAP. Because not all companies use identical calculations, this presentation of EBITDA and adjusted EBITDA may not be comparable to a similarly titled measure of other companies. The following table provides a reconciliation of net income (loss) to EBITDA and adjusted EBITDA for the periods indicated.




Non-GAAP Reconciliations (continued)








LSB Consolidated ($ In Thousands)






 






Three Months Ended

March 31,






 








 






 






2026






 






 






2025






 








Net income (loss)






 






$






19,685






 






 






$






(1,640






)








Plus:






 






 






 






 






 






 








Interest expense and interest income, net






 






 






5,585






 






 






 






6,332






 








Depreciation and amortization






 






 






20,919






 






 






 






20,151






 








Benefit for income taxes






 






 






(2,130






)






 






 






(283






)








EBITDA






 






 






44,059






 






 






$






24,560






 








 






 






 






 






 






 






 








Stock-based compensation






 






 






4,788






 






 






 






1,733






 








Legal Fees & Settlements - Specific Matters






 






 






154






 






 






 






671






 








(Gain) Loss on disposal or write down of assets






 






 






(789






)






 






 






71






 








Turnaround costs






 






 






3,894






 






 






 






1,995






 








Growth Initiatives






 






 






—






 






 






 






53






 








Adjusted EBITDA






 






$






52,106






 






 






$






29,083






 







Ammonia, AN, Nitric Acid, UAN Sales Price Reconciliation


The following table provides a reconciliation of total identified net sales as reported under GAAP in our consolidated financial statements reconciled to netback sales which is calculated as net sales less freight and other non-netback costs. We believe this provides a relevant industry comparison among our peer group.




 






 






Three Months Ended

March 31,






 








 






 






2026






 






 






2025






 








 






 






(In Thousands)






 








Ammonia, AN, Nitric Acid, UAN net sales






 






$






161,332






 






 






$






134,755






 








 






 






 






 






 






 






 








Less freight and other






 






 






15,939






 






 






 






16,780






 








 






 






 






 






 






 






 








Ammonia, AN, Nitric Acid, UAN netback sales






 






$






145,393






 






 






$






117,975






 







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260429450667/en/
Company Contact:

Cheryl Maguire, Executive Vice President & CFO

(405) 510-3524

Investors@lsbindustries.com


David Kimmel, Director of Communications

(405) 815-4645

dkimmel@lsbindustries.com


Original: LSB Industries, Inc. Reports Operating Results for the 2026 First Quarter