LSB Industries, Inc. Reports Operating Results for the 2025 Fourth Quarter and Full Year and Provides Product Sales Volume Outlook for 2026
OKLAHOMA CITY--( BUSINESS WIRE)-- LSB Industries, Inc. (NYSE: LXU) (“LSB,” “we,” “us,” “our,” or the “Company”) today announced results for the fourth quarter and full year ended December 31, 2025.
Fourth Quarter 2025 Results and Recent Highlights
Full Year 2025 Results and Highlights
“I am proud of the progress that the team made across our business in 2025. We continued to improve our overall safety performance by achieving a 12-month rolling total reportable incident rate (TRIR) of 0.40 incidents per 200,000 work hours as of December 31, 2025, a record low. We also saw three of our four sites operate injury free for the full year. We delivered significant year-over-year growth in net sales, adjusted EBITDA and EPS in both the fourth quarter and full-year 2025,” stated Mark Behrman, LSB Industries' Chairman & Chief Executive Officer. “Our focused efforts to improve our production performance, combined with disciplined commercial execution, supported our strong financial results and reinforced our ability to convert market conditions into enhanced profitability. The operational progress we achieved during the year enabled us to fully capitalize on favorable pricing momentum across our key products.”
“As we look at the year ahead, we expect to build on the strong operational execution that delivered record nitric acid and ammonium nitrate solution production in 2025. These records reflect the progress we’ve made in plant reliability, throughput, and operational efficiency, which are being driven by operational discipline, process enhancements, and consistent execution, as well as the investment of capital. We are excited about the year ahead and our expectations for generating increased value for shareholders. I am confident in our team’s ability to deliver on our goals for the year.”
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.
Combined TRIR includes both employees and contractors.
Market Outlook
Low Carbon Ammonia Projects Summary
Fourth Quarter Results Overview
For the Three Months Ended December 31,
2025
2024
% Change
Product Sales ($ in Thousands)
(In Thousands)
AN & Nitric Acid
$
64,683
$
57,620
12
%
Urea ammonium nitrate (UAN)
43,505
30,132
44
%
Ammonia
49,447
40,194
23
%
Other
7,414
6,960
7
%
Total net sales
$
165,049
$
134,906
Comparison of Fourth Quarter of 2025 to 2024:
The following tables provide key sales metrics for our products:
For the Three Months Ended December 31,
Key Product Volumes (short tons sold)
2025
2024
% Change
AN & Nitric Acid
169,702
150,054
13
%
Urea ammonium nitrate (UAN)
114,949
114,875
0
%
Ammonia
89,771
85,678
5
%
374,422
350,607
7
%
Average Selling Prices (price per short ton) (A)
AN & Nitric Acid
$
334
$
308
8
%
Urea ammonium nitrate (UAN)
$
336
$
221
52
%
Ammonia
$
522
$
449
16
%
(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.
For the Three Months Ended December 31,
Average Benchmark Prices (price per ton)
2025
2024
% Change
Tampa Ammonia Benchmark
$
627
$
564
11
%
NOLA UAN
$
320
$
230
39
%
Three Months Ended December 31,
2025
2024
% Change
Input Costs
Average natural gas cost/MMBtu in cost of materials and other
$
3.35
$
2.45
37
%
Average natural gas cost/MMBtu used in production
$
3.57
$
2.79
28
%
Volume Outlook (1)
Estimated ammonia production and product sales volumes for the full year 2026 are as follows:
Products
2026E
2025A
Ammonia Production (tons):
780,000 - 810,000
826,000
Ammonia Turnaround Impact (2)
~60,000
Sales Volume (tons):
AN & Nitric Acid
630,000 - 660,000
641,000
Urea Ammonium Nitrate (UAN)
530,000 - 560,000
550,000
UAN Turnaround Impact (2)
~50,000
Ammonia
260,000 - 290,000
316,000
(1) 2026 ammonia production and product sales volumes forecast reflects turnaround activity at El Dorado, Pryor and Cherokee facilities, versus no planned turnarounds in 2025.
(2) 2026 reflects planned turnaround activity that will lower ammonia and UAN production by ~60k tons and ~50k tons, respectively.
Conference Call
LSB’s management will host a conference call on Thursday, February 26, 2026 at 10:00 am ET / 9:00 am CT to discuss fourth quarter and full year 2025 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
Twelve Months Ended
December 31,
December 31,
2025
2024
2025
2024
(In Thousands, Except Per Share Amounts)
Net sales
$
165,049
$
134,906
$
615,208
$
522,400
Cost of sales
123,847
128,857
510,906
474,603
Gross profit
41,202
6,049
104,302
47,797
Selling, general and administrative expense
11,177
9,884
41,507
41,767
Other expense (income), net
3,341
2,910
5,521
11,535
Operating income (loss)
26,684
(6,745
)
57,274
(5,505
)
Interest expense, net
7,344
8,223
30,657
34,452
(Gain) loss on extinguishments of debt
(7
)
—
52
(3,013
)
Non-operating income, net
(1,384
)
(1,764
)
(5,984
)
(10,907
)
Income (loss) before provision (benefit) for income taxes
20,731
(13,204
)
32,549
(26,037
)
Provision (benefit) for income taxes
4,599
(4,055
)
7,936
(6,684
)
Net income (loss)
$
16,132
$
(9,149
)
$
24,613
$
(19,353
)
Income (loss) per common share
Basic:
Net income (loss)
$
0.22
$
(0.13
)
$
0.34
$
(0.27
)
Diluted:
Net income (loss)
$
0.22
$
(0.13
)
$
0.34
$
(0.27
)
LSB Industries, Inc.
Consolidated Balance Sheets
December 31,
2025
2024
(In Thousands)
Assets
Current assets:
Cash and cash equivalents
$
19,511
$
20,230
Short-term investments
128,960
163,971
Accounts receivable
57,609
39,083
Allowance for doubtful accounts
(401
)
(323
)
Accounts receivable, net
57,208
38,760
Inventories:
Finished goods
16,705
22,382
Raw materials
1,605
2,519
Total inventories
18,310
24,901
Supplies, prepaid items and other:
Prepaid insurance
12,588
14,345
Precious metals
14,538
11,596
Supplies
33,399
31,995
Other
5,380
3,916
Total supplies, prepaid items and other
65,905
61,852
Assets held for sale
3,400
—
Total current assets
293,294
309,714
Property, plant and equipment, net
833,525
847,570
Other assets:
Operating lease assets
45,571
28,727
Intangible and other assets, net
1,149
1,177
Total other assets
46,720
29,904
Total assets
$
1,173,539
$
1,187,188
LSB Industries, Inc.
Consolidated Balance Sheets (continued)
December 31,
2025
2024
(In Thousands)
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
64,514
$
82,180
Short-term financing
10,686
12,146
Accrued and other liabilities
29,551
32,192
Current portion of long-term debt
760
9,116
Total current liabilities
105,511
135,634
Long-term debt, net
440,295
476,163
Noncurrent operating lease liabilities
37,668
21,387
Other noncurrent accrued liabilities
535
456
Deferred income taxes
69,557
61,908
Commitments and contingencies
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
506,821
504,578
Retained earnings
232,275
207,662
Total stockholders’ equity
748,213
721,357
Less treasury stock, at cost:
Common stock, 19.5 million shares (19.5 million shares at December 31, 2024)
228,240
229,717
Total stockholders' equity
519,973
491,640
Total liabilities and stockholders’ equity
$
1,173,539
$
1,187,188
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
December 31,
Year Ended
December 31,
2025
2024
2025
2024
Net income (loss)
$
16,132
$
(9,149
)
$
24,613
$
(19,353
)
Plus:
Interest expense and interest income, net
5,924
6,106
24,539
23,087
Gain on extinguishment of debt
(7
)
—
52
(3,013
)
Depreciation and amortization
21,672
21,853
81,930
74,478
Provision (benefit) for income taxes
4,599
(4,055
)
7,936
(6,684
)
EBITDA
$
48,320
$
14,755
$
139,070
$
68,515
Stock-based compensation
1,831
1,565
7,371
6,607
Restructuring costs
—
—
1,063
—
Legal Fees & Settlements - Specific Matters
32
545
981
3,536
Loss on write down of assets
3,401
3,122
6,433
11,703
Turnaround costs
436
17,143
6,158
37,781
Growth Initiatives
64
436
470
1,378
Adjusted EBITDA
$
54,084
$
37,566
$
161,546
$
129,520
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
December 31,
Twelve Months Ended
December 31,
2025
2024
2025
2024
(In Thousands)
(In Thousands)
Ammonia, AN, Nitric Acid, UAN net sales
$
157,635
$
127,946
$
579,206
$
488,575
Less freight and other
15,458
17,839
66,768
63,047
Ammonia, AN, Nitric Acid, UAN netback sales
$
142,177
$
110,107
$
512,438
$
425,528