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

Published: 2026-04-29 16:11:05 ET LXU

Published on 04/29/2026 at 04:11 pm EDT

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

“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.”

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

Low Carbon Ammonia Project Summary

First Quarter Results Overview

Three Months Ended March 31,

2026

2025

% Change

Product Sales

(In Thousands)

AN & Nitric Acid

75,347

57,618

Urea ammonium nitrate (UAN)

49,171

43,865

Ammonia

36,814

33,272

Other

8,155

8,677

Total net sales

169,487

143,432

Comparison of First Quarter of 2026 to 2025:

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

Urea ammonium nitrate (UAN)

128,623

148,565

(13

Ammonia

66,040

73,403

(10

372,525

372,499

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

AN & Nitric Acid

372

324

Urea ammonium nitrate (UAN)

344

253

Ammonia

530

432

(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

NOLA UAN

347

276

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

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

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

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

)

Turnaround costs

3,894

1,995

Growth Initiatives

—

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

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