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
“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.”
1.
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
Third Quarter Results Overview
Three Months Ended September 30,
2026
2025
% Change
Product Sales
(In Thousands)
AN & Nitric Acid
$
80,946
$
57,522
41
%
Urea ammonium nitrate (UAN)
20,206
51,423
(61
)%
Ammonia
45,179
37,072
22
%
Other
12,271
9,414
30
%
Total net sales
$
158,602
$
155,431
Comparison of Third Quarter of 2026 to 2025:
The following tables provide key sales metrics for our products:
Three Months Ended September 30,
Key Product Volumes (short tons sold)
2026
2025
% Change
AN & Nitric Acid
196,477
159,662
23
%
Urea ammonium nitrate (UAN)
55,510
134,634
(59
)%
Ammonia
79,940
86,322
(7
)%
331,927
380,618
(13
)%
Average Selling Prices (price per short ton) (A)
AN & Nitric Acid
$
365
$
307
19
%
Urea ammonium nitrate (UAN)
$
316
$
333
(5
)%
Ammonia
$
528
$
400
32
%
(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 September 30,
Average Benchmark Prices (price per ton)
2026
2025
% Change
Tampa Ammonia Benchmark
$
622
$
491
27
%
NOLA UAN
$
330
$
336
(2
)%
Three Months Ended September 30,
2026
2025
% Change
Input Costs
Average natural gas cost/MMBtu in cost of materials and other
$
2.93
$
3.10
(5
)%
Low Carbon Ammonia Project Summary
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.
LSB Industries, Inc.
Consolidated Statements of Operations
Three Months Ended September 30,
Nine Months Ended September 30,
2026
2025
2026
2025
(In Thousands, Except Per Share Amounts)
Net sales
$
158,602
$
155,431
$
496,181
$
450,159
Cost of sales
115,500
129,888
405,824
387,059
Gross profit
43,102
25,543
90,357
63,100
Selling, general and administrative expense
14,764
10,333
41,520
30,330
Other expense (income), net
1,531
(419
)
1,616
2,180
Operating income
26,807
15,629
47,221
30,590
Interest expense, net
6,755
7,363
20,942
23,313
Loss on extinguishment of debt
—
—
—
59
Non-operating other income, net
(1,838
)
(1,385
)
(5,060
)
(4,600
)
Income before income taxes
21,890
9,651
31,339
11,818
Provision for income taxes
5,543
2,536
1,496
3,337
Net income
$
16,347
$
7,115
$
29,843
$
8,481
Net income per common share:
Basic:
Net income
$
0.23
$
0.10
$
0.41
$
0.12
Diluted:
Net income
$
0.22
$
0.10
$
0.41
$
0.12
LSB Industries, Inc.
Consolidated Balance Sheets
September 30, 2026
December 31, 2025
(In Thousands)
Assets
Current assets:
Cash and cash equivalents
$
37,696
$
19,511
Short-term investments
165,775
128,960
Accounts receivable
57,847
57,609
Allowance for doubtful accounts
(391
)
(401
)
Accounts receivable, net
57,456
57,208
Inventories:
Finished goods
18,898
16,705
Raw materials
1,981
1,605
Total inventories
20,879
18,310
Supplies, prepaid items and other:
Prepaid insurance
1,481
12,588
Precious metals
21,457
14,538
Supplies
33,860
33,399
Other
3,366
5,380
Total supplies, prepaid items and other
60,164
65,905
Current assets held for sale
1,000
3,400
Total current assets
342,970
293,294
Property, plant and equipment, net
831,071
833,525
Other assets:
Operating lease assets
49,111
45,571
Intangible and other assets, net
1,368
1,149
Total other assets
50,479
46,720
Total assets
$
1,224,520
$
1,173,539
LSB Industries, Inc.
Consolidated Balance Sheets (continued)
September 30, 2026
December 31, 2025
(In Thousands)
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$
68,933
$
64,514
Short-term financing
—
10,686
Accrued and other liabilities
44,087
29,551
Current portion of long-term debt
888
760
Total current liabilities
113,908
105,511
Long-term debt, net
441,272
440,295
Noncurrent operating lease liabilities
40,175
37,668
Other noncurrent accrued and other liabilities
535
535
Deferred income taxes
70,524
69,557
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
511,035
506,821
Retained earnings
262,118
232,275
782,270
748,213
Less treasury stock, at cost:
Common stock, 19.2 million shares (19.5 million shares at December 31, 2025)
224,164
228,240
Total stockholders' equity
558,106
519,973
Total liabilities and stockholders’ equity
$
1,224,520
$
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, 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.
Non-GAAP Reconciliations (continued)
LSB Consolidated ($ In Thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026
2025
2026
2025
Net income
$
16,347
$
7,115
$
29,843
$
8,481
Plus:
Interest expense and interest income, net
4,925
5,977
15,829
18,616
Loss on extinguishment of debt
—
—
—
59
Depreciation and amortization
22,330
19,423
65,195
60,257
Provision for income taxes
5,543
2,536
1,496
3,337
EBITDA
49,145
$
35,051
112,363
$
90,750
Stock-based compensation
2,543
1,719
10,210
5,539
Restructuring costs
—
1,063
—
1,063
Legal Fees & Settlements - Specific Matters
1,449
485
2,158
949
Loss on disposal or write down of assets
2,896
433
3,826
3,033
Turnaround costs
6,269
1,087
38,964
5,722
Growth Initiatives
—
263
—
406
Adjusted EBITDA
$
62,302
$
40,101
$
167,521
$
107,462
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
September 30,
2026
2025
(In Thousands)
Ammonia, AN, Nitric Acid, UAN net sales
$
146,332
$
146,017
Less freight and other
14,984
17,690
Ammonia, AN, Nitric Acid, UAN netback sales
$
131,348
$
128,327