LSB Industries, Inc. Reports Operating Results for the 2026 Second Quarter

About this update from Lsb Industries, Inc.

LSB Industries, Inc. (NYSE: LXU) (“LSB,” “we,” “us,” “our,” or the “Company”) today announced results for the second quarter ended June 30, 2026. Second Quarter 2026 Results and Recent Highlights Net sales of $168.1 million compared to $151.3 million in the second quarter of 2025 Net loss of $6.2 million, inclusive of approximately $28.8 million of turnaround expenses, compared to net income of $3.0 million in the second quarter of 2025, inclusive of approximately $2.6 million of turnaround expenses Diluted loss per share of $0.09 compared to diluted EPS of $0.04 for the second quarter of 2025 Adjusted EBITDA (1) of $53.1 million compared to $38.3 million in the second quarter of 2025 Total cash, cash equivalents and short-term investments of approximately $218.0 million and total debt of $441.3 million as of June 30, 2026 “Our second quarter results reflect solid execution through an important period of planned maintenance at two of our three production facilities,” stated Mark Behrman, LSB Industries' Chairman & Chief Executive Officer. “During the quarter we successfully completed an extensive and complex turnaround of our El Dorado ammonia plant on time, within budget and injury free. We also made the decision to pull forward scheduled turnaround work at our Pryor facility from the third quarter into the second quarter. While this planned activity impacted second quarter production and earnings, it was an important investment in our facilities and supports our broader reliability and operating performance objectives.” “We are already seeing the benefits of the work completed at El Dorado, including higher production rates, and expect improved performance at Pryor as that turnaround is completed in the third quarter. While nitrogen prices have moderated from first half highs, market conditions for both our industrial and fertilizer business remain constructive. Alongside our continued focus on reliability, efficiency and product mix optimization, we believe our improved operating platform positions us to generate stronger results in the second half of 2026, supported by higher expected production rates, continued reliability improvements and constructive market conditions.” (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: Demand for Ammonium Nitrate (AN) remains strong, supported by continued mining-sector investment across North America and globally, as well as broader capital spending tied to AI-related infrastructure, data centers, power generation and electrification. Favorable supply / demand fundamentals, further supported by producer outages, continue to underpin both spot and contract pricing, while new mining and aggregate projects are expected to support medium- to longer-term demand for explosives used in copper, iron ore, quarrying and infrastructure-related production The fertilizer markets remain constructive as conditions continue to evolve following the Strait of Hormuz disruption earlier this year: Ammonia prices remain elevated relative to historical averages although they have moderated from first-half highs as seasonal demand normalizes and supply conditions improve Urea Ammonium Nitrate (UAN) pricing remains favorable, even as prices normalize from elevated levels, with a constructive demand outlook expected to support increased demand in the second half of 2026 Other notable developments that could impact product pricing include: Continued attacks affecting Russian nitrogen plants, ports, and ships Ongoing risk related to instability in the Middle East, including the U.S. – Iran conflict Corn market dynamics support fertilizer demand: USDA projects 95+ million planted acres of corn for the 2026/27 marketing season with global ending stocks projected to be at the lowest levels in over a decade supporting improved corn prices. This will support strong fertilizer application rates 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 In May 2026, we reached an agreement to assume full ownership of the project to capture and sequester CO 2 at our El Dorado facility from Lapis Carbon Solutions. The project is expected to be completed and operational in the first quarter of 2027, subject to EPA approval of our Class VI permit, at which time CO 2 injections are expected to begin We expect to capture and sequester between 400,000 and 500,000 metric tons of CO 2 per year, which is expected to reduce our Scope 1 emissions by approximately 25%, and yield between 305,000 and 380,000 metric tons per year of low carbon ammonia The sequestered CO₂ generated from the facility's ammonia production is expected to qualify for the enhanced federal tax credit, currently $85 per metric ton of CO 2 , under Internal Revenue Code Section 45Q. Based on expected capture volumes, the Company estimates the project could generate approximately $25 million to $30 million of annual earnings when fully operational, net of CCS operating costs, over the 12-year credit period, subject to continued qualification Although the credits are expected to be recognized in earnings as they are earned, the timing of related cash inflows may vary depending on the tax credit monetization method selected. As a result, cash receipts may not coincide with earnings recognition A stratigraphic well was completed in June 2025 to provide data to support the EPA in review of our Class VI application and we intend to use the completed stratigraphic well for CO 2 injection once EPA approval is received Second Quarter Results Overview     Three Months Ended June 30,       2026     2025     % Change   Product Sales   (In Thousands)         AN & Nitric Acid   $ 69,539     $ 61,707       13 % Urea ammonium nitrate (UAN)     62,488       52,262       20 % Ammonia     25,511       26,830       (5 )% Other     10,554       10,497       1 % Total net sales   $ 168,092     $ 151,296         Comparison of Second 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 and UAN sales volumes were impacted as a result of significant planned turnaround activity at our El Dorado and Pryor facilities during the second quarter. The following tables provide key sales metrics for our products:     Three Months Ended June 30,   Key Product Volumes (short tons sold)   2026     2025     % Change   AN & Nitric Acid     179,339       161,509       11 % Urea ammonium nitrate (UAN)     130,818       151,807       (14 )% Ammonia     35,667       66,069       (46 )%       345,824       379,385       (9 )% Average Selling Prices (price per short ton) (A)                   AN & Nitric Acid   $ 333     $ 328       2 % Urea ammonium nitrate (UAN)   $ 433     $ 308       41 % Ammonia   $ 658     $ 369       78 %   (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 June 30,   Average Benchmark Prices (price per ton)   2026     2025     % Change   Tampa Ammonia Benchmark   $ 787     $ 416       89 % NOLA UAN   $ 494     $ 344       44 %     Three Months Ended June 30,       2026     2025     % Change   Input Costs                   Average natural gas cost/MMBtu in cost of materials and other   $ 2.96     $ 3.50       (15 )%   Conference Call LSB’s management will host a conference call on Thursday, July 30, 2026 at 10:00 am ET / 9:00 am CT to discuss second 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 timing for completion of the CCS project at our El Dorado facility, including receipt of Class VI permit approval by the EPA; the cost and expected benefits of the CCS project; 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 and Quarterly Reports on Form 10-Q. 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 June 30,     Six Months Ended June 30,       2026     2025     2026     2025       (In Thousands, Except Per Share Amounts)   Net sales   $ 168,092     $ 151,296     $ 337,579     $ 294,728   Cost of sales     156,631       128,123       290,324       257,171   Gross profit     11,461       23,173       47,255       37,557                             Selling, general and administrative expense     12,931       9,844       26,756       19,997   Other expense, net     1,272       2,836       85       2,599   Operating (loss) income     (2,742 )     10,493       20,414       14,961   Interest expense, net     7,070       7,886       14,187       15,950   Loss on extinguishment of debt     —       59       —       59   Non-operating other income, net     (1,706 )     (1,542 )     (3,222 )     (3,215 ) (Loss) income before income taxes     (8,106 )     4,090       9,449       2,167   (Benefit) provision for income taxes     (1,917 )     1,084       (4,047 )     801   Net (loss) income   $ (6,189 )   $ 3,006     $ 13,496     $ 1,366                             Net (loss) income per common share:                         Basic:                         Net (loss) income   $ (0.09 )   $ 0.04     $ 0.19     $ 0.02                             Diluted:                         Net (loss) income   $ (0.09 )   $ 0.04     $ 0.18     $ 0.02     LSB Industries, Inc. Consolidated Balance Sheets                   June 30, 2026     December 31, 2025       (In Thousands)   Assets             Current assets:             Cash and cash equivalents   $ 20,356     $ 19,511   Short-term investments     197,624       128,960   Accounts receivable     53,058       57,609   Allowance for doubtful accounts     (366 )     (401 ) Accounts receivable, net     52,692       57,208   Inventories:             Finished goods     13,819       16,705   Raw materials     2,032       1,605   Total inventories     15,851       18,310   Supplies, prepaid items and other:             Prepaid insurance     5,544       12,588   Precious metals     13,532       14,538   Supplies     33,241       33,399   Other     5,731       5,380   Total supplies, prepaid items and other     58,048       65,905                 Current assets held for sale     1,000       3,400   Total current assets     345,571       293,294                 Property, plant and equipment, net     833,243       833,525                 Other assets:             Operating lease assets     44,601       45,571   Intangible and other assets, net     1,185       1,149   Total other assets     45,786       46,720                 Total assets   $ 1,224,600     $ 1,173,539     LSB Industries, Inc. Consolidated Balance Sheets (continued)       June 30, 2026     December 31, 2025       (In Thousands)   Liabilities and Stockholders' Equity             Current liabilities:             Accounts payable   $ 102,591     $ 64,514   Short-term financing     3,624       10,686   Accrued and other liabilities     35,478       29,551   Current portion of long-term debt     774       760   Total current liabilities     142,467       105,511                 Long-term debt, net     440,575       440,295                 Noncurrent operating lease liabilities     36,497       37,668                 Other noncurrent accrued and other liabilities     535       535                 Deferred income taxes     65,309       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     508,493       506,821   Retained earnings     245,771       232,275         763,381       748,213   Less treasury stock, at cost:             Common stock, 19.2 million shares (19.5 million shares at December 31, 2025)     224,164       228,240   Total stockholders' equity     539,217       519,973   Total liabilities and stockholders’ equity   $ 1,224,600     $ 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, non-routine specific legal costs or settlements, 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 costs incurred on growth initiatives, and significant planned maintenance/turnaround costs. 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 June 30,     Six Months Ended June 30,       2026     2025     2026     2025   Net (loss) income   $ (6,189 )   $ 3,006     $ 13,496     $ 1,366   Plus:                         Interest expense and interest income, net     5,319       6,307       10,904       12,639   Loss on extinguishment of debt     —       59       —       59   Depreciation and amortization     21,946       20,682       42,865       40,833   (Benefit) provision for income taxes     (1,917 )     1,084       (4,047 )     801   EBITDA     19,159     $ 31,138       63,218     $ 55,698                             Stock-based compensation     2,879       2,088       7,667       3,821   Legal Fees & Settlements - Specific Matters     555       (207 )     709       464   Loss on disposal or write down of assets     1,718       2,528       929       2,599   Turnaround costs     28,801       2,639       32,695       4,634   Growth Initiatives     —       90       —       143   Adjusted EBITDA   $ 53,112     $ 38,276     $ 105,218     $ 67,359   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 June 30,       2026     2025       (In Thousands)   Ammonia, AN, Nitric Acid, UAN net sales   $ 157,537     $ 140,799                 Less freight and other     17,654       16,841                 Ammonia, AN, Nitric Acid, UAN netback sales   $ 139,883     $ 123,958     View source version on businesswire.com: https://www.businesswire.com/news/home/20260729197619/en/

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