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

OKLAHOMA CITY--(BUSINESS WIRE)--LSB Industries, Inc. (NYSE: LXU) (“LSB,” “we,” “us,” “our,” or the “Company”) today announced results for the third quarter ended September 30, 2026.

Third Quarter 2026 Results and Recent Highlights

• Net sales of $158.6 million compared to $155.4 million in the third quarter of 2025
• Net income of $16.3 million compared to net income of $7.1 million in the third quarter of 2025
• Diluted EPS of $0.22 compared to diluted EPS of $0.10 for the third quarter of 2025
• Adjusted EBITDA⁽¹⁾ of $62.3 million compared to $40.1 million in the third quarter of 2025
• Total cash, cash equivalents and short-term investments of approximately $203.5 million and total debt of $442.2 million as of September 30, 2026

“We delivered another good quarter as we continue to advance the capability and reliability of our production facilities,” stated Mark Behrman, LSB Industries’ Chairman and Chief Executive Officer. “During the first nine months of 2026, each of our three facilities set new monthly production records, and we are on pace for record annual nitric acid and AN solution production this year. I’m proud of our employees for their focus and commitment to safe, reliable operations.

“The initiatives we have been executing over the last three years are paying off as production levels following two major turnarounds completed this year have positioned LSB to meet growing customer needs in a dynamic global environment. With customer demand remaining strong, combined with the internal initiatives we are executing on, we believe we are well positioned to continue our progress towards consistently delivering higher earnings and cash flow.”

Market Outlook

• Industrial business is strong with positive market conditions:
  • Ammonium Nitrate (AN) demand 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. Supply and demand fundamentals for AN remain favorable reflecting strong demand and disrupted industry supply. Over the medium-to-long term new mining and aggregate projects are expected to support demand for explosives used in copper and iron ore mining, quarrying and infrastructure
• Global nitrogen supply remains disrupted:
  • Globally, ammonia prices remain above historical averages, but have moderated from first-half highs due in part to reduced demand from phosphate producers affected by constrained sulfur supply. High natural gas costs continue to challenge European production economics
  • Globally constrained urea supplies strengthened third-quarter pricing and supported higher UAN prices. Fall applications are expected to further support fourth-quarter demand
  • Other notable developments include:
    • Continued Ukrainian attacks on Russian nitrogen plants, ports, and ships
    • Escalation of conflicts in the Middle East, including between Saudi Arabia and the Houthis
• Corn market dynamics support fertilizer demand:
  • USDA projects approximately 96.8 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. We believe this improved pricing will support strong fertilizer application rates and we anticipate robust nitrogen demand through the fall 2026 and spring 2027 fertilizer application seasons

Third Quarter Results Overview

Comparison of Third Quarter of 2026 to 2025:

• Net sales for the third quarter increased compared to the third quarter of 2025, driven by higher selling prices and higher AN and nitric acid sales volumes. Strong industrial demand led us to partially shift production from UAN to AN, which reduced UAN sales volumes compared to the prior period. Ammonia and UAN sales volumes were also lower as a result of the planned turnaround at our Pryor facility, which commenced in the second quarter and was completed early in the third quarter.

The following tables provide key sales metrics for our products:

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 CO₂ at our El Dorado facility from Lapis Carbon Solutions. Completion of the project and commencement of CO₂ injections are conditioned on the U.S. Environmental Protection Agency’s (“EPA”) issuance of our Class VI permit. The EPA’s technical review of our resubmitted application is ongoing. Although the EPA’s published Class VI Permit Tracker currently reflects a potential operational date in the second half of 2027, based on our continued engagement with the EPA’s Region 6 office, we believe an earlier operational date is possible, depending on the timing of the EPA’s completion of its review
  • We expect to capture and sequester between 400,000 and 500,000 metric tons of CO₂ 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 CO₂, 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 its review of our Class VI application and we intend to use the completed stratigraphic well for CO₂ injection once EPA approval is received

Conference Call

LSB’s management will host a conference call on Thursday, October 29, 2026 at 10:00 am ET / 9:00 am CT to discuss third 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 and any acceleration thereof; 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.

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.

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.

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