LSB Industries : Presentation (LXU Q1'26 Earnings Presentation FINAL)

Published: 2026-04-30 09:15:48 ET LXU

Published on 04/30/2026 at 09:15 am EDT

April 30, 2026

Significant year-over-year growth in net sales and adjusted EBITDA

Production performance improvement and disciplined commercial execution year enables us to fully capitalize on favorable market conditions

Focus on reliability, efficiency and output at our facilities, as well as product mix optimization

Adjusted EBITDA(1)

$ Millions

200

Short Tons - 000's

150

100

Downstream Sales Volumes

AN & Nitric Acid UAN

(1) Adjusted EBITDA is a non-GAAP financial measure. See the discussion and reconciliation in the appendix. 3

Demand for Ammonium Nitrate (AN) for explosives in mining is strong. Mining is undergoing a multi-decade structural expansion particularly in copper, gold, and other critical minerals.

AN demand for quarrying/aggregate production continues to grow, driven by public construction activity and private non-residential (data centers, semiconductor, etc.), which offsets weakness in residential construction.

US Chemical Market outlook is positive with advantaged feedstock cost position relative to international peers, trade measures including finalization of anti-dumping duties for Methylene diphenyl diisocyanate (MDI).

Projected Copper Supply-Demand Gap(1)

Millions of Metric Tonnes

2025 2030 2035 2040

Recycled (Secondary Supply)

Mined (Primary Supply)

Total Demand

$5,500

$5,000

$4,500

$4,000

$3,500

$3,000

$2,500

$2,000

$1,500

$1,000

Gold Prices ($/oz)(2)

Source: S&P Global

Source: Investing.com 4

Ammonia prices currently reflect reduced ammonia supply from the Middle East and Trinidad, higher costs of production in Europe and delays in new production capacity, which are constraining global supply availability.

UAN prices have recently improved, reflecting continued low levels of domestic inventory, constrained supply and a strengthening in Urea prices.

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.

$500

$450

$400

$350

$300

$250

$200

$150

UAN NOLA Prices(1) ($/short ton)

(1) Sources: Green Markets® A Bloomberg Company

$850

$750

$650

$550

$450

$350

$250

$150

Tampa Ammonia(1) ($/MT)

Q1'26

Q1'25

$169 M

$143 M

$52 M

$29 M

31%

20%

$0.27

$(0.02)

$ in millions except EPS

Net Sales Adjusted EBITDA1

Adjusted EBITDA Margin2

Diluted EPS

Significant YOY growth in net sales, adjusted EBITDA and EPS

Continued focus on upgrading product and optimized product mix

Improved production performance and disciplined commercial execution enhanced our ability to convert market conditions into enhanced profitability

Adjusted EBITDA is a non-GAAP financial measure. See the discussion and reconciliation in the appendix.

Adjusted EBITDA margin is a non-GAAP financial measure and is calculated as adjusted EBITDA divided by net sales. See the discussion and reconciliation in the appendix.

$ in millions

$70

$60

$29

$50

($12)

$2 $52

$40

$30

$29

$20

$10

2025 Q1 (1)

Adj. EBITDA

Selling Prices Sales Volume & Product Mix Variable Cost(2)

Other Costs(3)

2026 Q1(1) Adj. EBITDA

Adjusted EBITDA is a non-GAAP financial measure. See the discussion and reconciliation in the appendix.

Variable Cost includes realized natural gas cost, sulfur and other variable costs.

Other costs include plant fixed costs, SG&A, and other items. 7

Strong operating cash flow and free cash flow in the quarter

Net debt/TTM Adjusted EBITDA improves to 1.4X, driven by solid EBITDA growth

Capital allocation focused on the following

Internal growth initiatives

Safety and reliability investments

Strengthened balance sheet, positioning the company for organic and inorganic growth opportunities

$ in millions

03/31/26

03/31/25

$182 M

$164 M

$441 M

$486 M

1.4X

2.6X

Cash & ST Inv.

Total Debt Net Debt(1)/ TTM

Adj. EBITDA(2)

$52 M(3)

$7 M(4)

$15 M(3)

$14 M(4)

$37 M(3)

$(7) M(4)

$2 M(3)

$7 M(4)

$35 M(3)

$(14) M(4)

Operating Cash Flow

Sustaining CAPEX Free Cash Flow Investment CAPEX

Net Cash After All CAPEX

Net debt calculated as total long-term debt including current maturities minus cash and cash equivalents and short-term investments.

Adjusted EBITDA is a non-GAAP financial measure. See the discussion and reconciliation in the appendix.

For three months ended March 31, 2026.

For three months ended March 31, 2025. 8

El Dorado

305-380K MT/y NH3

400-500K MT/y CO2

Apr

May

Jun

Jul

Aug

Sep

Oct Nov

Dec

Jan

Feb

Mar

Expect Class VI Permit to Inject CO2

and Begin operations During Q4 '26 or 1Q '27

EBITDA and Adjusted EBITDA Reconciliation

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 (1)

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)

Turnaround costs

3,894

1,995

Growth Initiatives

Adjusted EBITDA (2)

$ 52,106

$ 29,083

EBITDA is defined as net income (loss) plus interest expense and interest income net, plus loss (or less gain) on extinguishment of debt, plus depreciation and amortization (DCA) (which includes DCA of property, plant and equipment and amortization of intangible and other assets), plus provision (or less benefit) for income taxes. 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. EBITDA has limitations and should not be considered in isolation or as a substitute for net income (loss), operating income (loss), 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 may not be comparable to a similarly titled measure of other companies. The above table provides a reconciliation of net income (loss) to EBITDA for the periods indicated. We have not provided a reconciliation between forecasted incremental EBITDA and net income (loss), the most directly comparable GAAP measure, because applicable information for future periods, on which this reconciliation would be based, is not available without unreasonable effort due to the unavailability of reliable estimates for selling prices and natural gas costs, among other items. These items may vary greatly between periods and could significantly impact future financial results.

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 are moving 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. As a result, we believe it is more meaningful for investors to exclude them from our calculation of adjusted EBITDA used to assess our performance. We believe that the inclusion of supplementary adjustments to EBITDA is appropriate to provide additional information to investors about certain items. The above table provides reconciliations of EBITDA excluding the impact of the supplementary adjustments.

TTM 3/31/26

3/31/2026

12/31/2025

9/30/2025

6/30/2025

Net income (loss)

$45.9

$19.7

$16.1

$7.1

$3.0

Plus:

Interest expense and interest income, net

23.8

5.6

5.9

6.0

6.3

Loss on extinguishment of debt

0.1

(0.0)

0.1

Depreciation and amortization

82.7

20.9

21.7

19.4

20.7

Provision (benefit) for income taxes

6.1

(2.1)

4.6

2.5

1.1

EBITDA(1)

158.6

44.1

48.3

35.1

31.1

Stock-based compensation

10.4

4.8

1.8

1.7

2.1

Restructuring Costs

1.1

Legal Fees & Settlements - Specific Matters

0.5

0.2

0.0

0.5

(0.2)

Loss (Gain) on disposal or write down of assets

5.6

(0.8)

3.4

0.4

2.5

Turnaround costs

8.1

3.9

0.4

1.1

2.6

Growth Initiatives

0.4

0.1

0.3

0.1

Adjusted EBITDA (2)

$184.6

$52.1

$54.1

$40.1

$38.3

Adjusted EBITDA Margin

29%

31%

33%

26%

25%

Net Sales

$641.3

$169.5

$165.0

$155.4

$151.3

TTM 3/31/2025

3/31/2025

12/31/2024

9/30/2024

6/30/2024

Net (loss) income

($26.5)

($1.6)

($9.1)

($25.4)

$9.6

Plus:

Interest expense and interest income, net

23.3

6.3

6.1

5.4

Gain on extinguishment of debt

(1.9)

Depreciation and amortization

77.5

20.2

21.9

16.7

18.8

(Benefit) provision for income taxes

(7.6)

(0.3)

(4.2)

(4.5)

1.3

EBITDA (1)

64.8

24.6

14.8

(7.8)

33.2

Stock-based compensation

6.9

1.7

1.6

1.5

2.1

Legal Fees & Settlements - Specific Matters

3.8

0.7

0.5

1.4

1.2

Loss on disposal or write down of assets

10.3

0.1

3.1

5.6

1.5

Turnaround costs

38.9

2.0

17.1

16.3

3.4

Growth Initiatives

1.3

0.1

0.4

0.5

Adjusted EBITDA (2)

$126.1

$29.1

$37.6

$17.5

$41.9

Adjusted EBITDA Margin

24%

20%

28%

16%

30%

Net Sales

$527.6

$143.4

$134.9

$109.2

$140.1

(1 ) See definition of EBITDA on previous page (2) See definition of adjusted EBITDA on previous page *Columns and rows may not foot due to rounding

Our Section 382 Stockholder Rights Plan as amended and restated (the "Rights Plan"), is intended to protect our substantial net operating losses ("NOLs"), carryforwards and other tax attributes.

We can generally use our NOLs and other tax attributes to reduce federal and state income tax that would be paid in the future.

Our ability to use our NOLs could be substantially limited if we experience an "ownership change," as defined under Section 382 of the Internal Revenue Code of 1986, as amended (the "Code"), and the Rights Plan has been designed to help prevent such an "ownership change."

The Rights Plan provides that if any person becomes the beneficial owner (as defined in the Code) of 4.9% or more of our common stock, stockholders other than the triggering stockholder will be entitled to acquire shares of common stock at a 50% discount or LSB may exchange each right held by such holders for one share of common stock.

Under the Rights Plan, any person who currently owns 4.9% or more of LSB's common stock may continue to own its shares of common stock but may not acquire any additional shares without triggering the Rights Plan.

Our Board of Directors has the discretion to exempt any person or group from the provisions of the Rights Plan.

The Rights Plan is in effect until August 22, 2026, unless terminated earlier in accordance with its terms.

Disclaimer

LSB Industries Inc. published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 13:14 UTC.