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1. Company Snapshot

1.a. Company Description

LSB Industries, Inc.engages in the manufacture, marketing, and sale of chemical products.The company provides nitrogen-based fertilizers, such as ammonia, fertilizer grade ammonium nitrate (HDAN), and urea ammonia nitrate for fertilizer and fertilizer blends for corn and other crops, and NPK fertilizer blends applications.


It also offers high purity and commercial grade ammonia, high purity ammonium nitrate, sulfuric acids, mixed nitrating acids, carbon dioxide, and diesel exhaust fluids, as well as concentrated, and blended and regular nitric acids for various applications, including semi-conductor and polyurethane intermediates; pulp and paper, alum, water treatment, metals, and vanadium processing; power plant emissions abatement, water treatment, refrigerants, and metals processing; exhaust stream additive, and horticulture/greenhouse applications; and refrigeration.In addition, the company provides industrial grade ammonium nitrate, ammonium nitrate, and HDAN solutions for ammonium nitrate fuel oil and specialty emulsions for mining, surface mining, quarries, and construction applications.It sells its products through distributors, as well as directly to end customers in the United States, Mexico, and Canada.


The company serves to the agricultural, industrial, and mining markets.LSB Industries, Inc.was founded in 1968 and is headquartered in Oklahoma City, Oklahoma.

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1.b. Last Insights on LXU

LSB Industries' recent performance was negatively impacted by a net loss of $9.1 million in the fourth quarter of 2024, compared to a net loss of $5.3 million in the same period of 2023. The company's net sales of $134.9 million in the fourth quarter of 2024 were slightly higher than the $132.6 million reported in the same period of 2023. However, the net loss was exacerbated by approximately $17.1 million of non-operating items.

1.c. Company Highlights

2. Strong Q4 Results Drive Full-Year Growth

The company reported significant year-over-year growth in net sales, adjusted EBITDA, and EPS in both the fourth quarter and the full year of 2025. The strong financial results were driven by strategies to improve operational performance and disciplined commercial execution. For the full year, adjusted EBITDA was $162 million, a 25% year-over-year increase, while Q4 adjusted EBITDA grew 42% year-over-year to $54 million. Earnings per share (EPS) for Q4 came in at $0.22, beating estimates of $0.18. Revenue growth is expected to be modest in 2026, with analysts estimating a 1.7% increase.

Publication Date: Mar -06

📋 Highlights
  • Financial Growth:: 2025 full-year adjusted EBITDA reached $162 million (+25% YoY), with Q4 at $54 million (+42% YoY).<br>
  • Ammonia Production:: Achieved 875,000–880,000 tons of gross ammonia production annually without turnarounds, targeting $50 million incremental EBITDA from improvements.<br>
  • 2026 CapEx Plan:: $75 million allocated, including $55 million for EH&S/reliability and $20 million for logistics/storage upgrades.<br>
  • AN Market Dynamics:: UAN averaged $320/ton in Q4 (+39% YoY), with strong demand for ammonium nitrate in mining and infrastructure.<br>
  • Low-Carbon Initiative:: El Dorado CO2 sequestration project on track for 2026 deployment, supporting long-term sustainability goals.<br>

Operational Efficiency Gains

The company achieved record nitric acid and ammonium nitrate solution production in 2025, reflecting progress in plant reliability, throughput, and operational efficiency. According to Mark Behrman, the company is confident in its ability to reach 875,000 to 880,000 tons of gross ammonia production without any turnaround, driven by production improvement initiatives.

Commercial Environment

The Industrial business remains well-positioned, with strong demand for ammonium nitrate for explosives in mining, particularly for copper and gold miners. Damien Renwick noted that the market is tight due to a significant production capacity outage, and the company is optimizing production to capitalize on this trend. Pricing for UAN averaged $320 per ton in Q4, up 39% over Q4 2024.

Valuation and Outlook

With a P/E Ratio of 41.06 and EV/EBITDA of 10.42, the stock appears to be priced for significant growth expectations. The company's guidance for 2026 suggests continued improvement in manufacturing and commercial operations, with a focus on achieving 95% capacity utilization. The expected effective tax rate for 2026 is approximately 25%, and the company does not expect to be a material cash taxpayer. CapEx for 2026 is estimated at $75 million, including investments in enhanced logistics and storage capabilities.

Low-Carbon Project Update

Mark Behrman provided an update on the low-carbon project at the El Dorado facility, noting that the company remains on track to begin sequestering CO2 by the end of this year or at the latest early next year. The commercial team continues to pursue low-carbon product supply opportunities, including potential exports and niche markets.

3. NewsRoom

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Lsb Industries (NYSE:LXU) Sees Unusually-High Trading Volume Following Analyst Upgrade

Mar -27

Source: defenseworld.net

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Lsb Industries (NYSE:LXU) Sees Unusually-High Trading Volume Following Analyst Upgrade

Mar -14

Source: defenseworld.net

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LSB Industries: Strong 2025 And Massive NOLs Lead To Poison Pill Defense

Feb -28

Source: seekingalpha.com

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LSB Industries, Inc. (LXU) Q4 2025 Earnings Call Transcript

Feb -26

Source: seekingalpha.com

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LSB Industries, Inc. Reports Operating Results for the 2025 Fourth Quarter and Full Year and Provides Product Sales Volume Outlook for 2026

Feb -25

Source: businesswire.com

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Lsb Industries (LXU) Projected to Post Earnings on Wednesday

Feb -23

Source: defenseworld.net

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LSB Industries, Inc. Schedules 2025 Fourth Quarter and Full Year Results Release for Wednesday, February 25th and Conference Call for Thursday, February 26th

Feb -11

Source: businesswire.com

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Insider Selling: Lsb Industries (NYSE:LXU) Director Sells $159,737.78 in Stock

Jan -26

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.77%)

6. Segments

Ammonium Nitrate and Nitric Acid

Expected Growth: 2.8%

LSB Industries, Inc.'s Ammonium Nitrate and Nitric Acid segment growth of 2.8% is driven by increasing demand from the agricultural sector, particularly in nitrogen-based fertilizers. Additionally, growth in the industrial sector, including mining and construction, contributes to the segment's expansion. Furthermore, LSB's strategic expansion into new markets and product offerings also supports the segment's growth.

Ammonia

Expected Growth: 2.5%

LSB Industries' ammonia segment growth is driven by increasing demand from the agricultural sector, particularly in nitrogen-based fertilizers. Additionally, the company's strategic expansion into the industrial and mining sectors, coupled with its cost-competitive production process, contributes to the 2.5% growth rate.

Urea Ammonium Nitrate

Expected Growth: 3.2%

LSB Industries' Urea Ammonium Nitrate growth of 3.2% is driven by increasing demand from the agricultural sector, particularly in emerging markets, and the company's strategic expansion into new regions. Additionally, LSB's focus on operational efficiency and cost reduction initiatives have contributed to the growth.

Other

Expected Growth: 2.2%

LSB Industries, Inc.'s 'Other' segment growth of 2.2% is driven by increasing demand for its climate control solutions, expansion of its chemical business, and strategic investments in research and development. Additionally, the company's focus on operational efficiency and cost savings initiatives have contributed to the segment's growth.

7. Detailed Products

Anhydrous Ammonia

Agricultural fertilizer used to provide nitrogen to crops

Urea Ammonium Nitrate (UAN) Solution

Liquid fertilizer used to provide nitrogen and other essential nutrients to crops

Sulfuric Acid

Industrial chemical used in various applications, including fertilizer production and wastewater treatment

Nitric Acid

Industrial chemical used in the production of fertilizers, explosives, and other products

Industrial and Specialty Chemicals

Various chemicals used in industrial applications, including mining, water treatment, and oil and gas production

8. LSB Industries, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for LSB Industries, Inc. is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for LSB Industries, Inc. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for LSB Industries, Inc. is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for LSB Industries, Inc. is high due to the low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry for LSB Industries, Inc. is high due to the presence of several competitors in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.81%
Debt Cost 8.05%
Equity Weight 46.19%
Equity Cost 9.49%
WACC 8.72%
Leverage 116.51%

11. Quality Control: LSB Industries, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
AdvanSix

A-Score: 4.3/10

Value: 7.4

Growth: 2.9

Quality: 3.5

Yield: 6.0

Momentum: 1.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Valhi

A-Score: 4.1/10

Value: 8.6

Growth: 3.0

Quality: 4.0

Yield: 5.0

Momentum: 0.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
LSB Industries

A-Score: 4.0/10

Value: 7.9

Growth: 2.8

Quality: 4.4

Yield: 0.0

Momentum: 5.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Rayonier Advanced Materials

A-Score: 3.6/10

Value: 8.7

Growth: 3.8

Quality: 2.8

Yield: 0.0

Momentum: 3.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
ASP Isotopes

A-Score: 3.3/10

Value: 6.2

Growth: 1.6

Quality: 2.9

Yield: 0.0

Momentum: 8.5

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Origin Materials

A-Score: 3.2/10

Value: 9.2

Growth: 5.4

Quality: 4.0

Yield: 0.0

Momentum: 0.0

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.76$

Current Price

14.76$

Potential

-0.00%

Expected Cash-Flows