LSB Industries Reports Strong Third Quarter 2025 Results
LSB Industries, Inc. (NYSE: LXU) (“LSB,” “we,” “us,” “our,” or the “Company”) today announced financial results for the third quarter ended September 30, 2025. The Company delivered a solid quarter marked by strong market demand across key end markets, improved profitability, and continued progress on its strategic growth initiatives.
Third Quarter 2025 Highlights
- Net sales: $155.4 million, up from $109.2 million in the third quarter of 2024
- Net income: $7.1 million, compared to a net loss of $25.4 million in the prior-year period
- Diluted earnings per share (EPS): $0.10, versus a loss of $(0.35) per share in Q3 2024
- Adjusted EBITDA(1): $40.1 million, more than double last year’s $17.5 million
- Cash position: Total cash, cash equivalents, and short-term investments of approximately $152.0 million
- Total debt: $448.4 million as of September 30, 2025
Mark Behrman, LSB Industries’ Chairman and Chief Executive Officer, commented:
The third quarter presented a strong market backdrop, and we delivered solid results with clear momentum in several key areas. We’re encouraged by our progress and remain confident in our ability to build on this foundation while addressing opportunities for continued improvement.
Behrman added that the Company generated strong free cash flow through the first nine months of 2025 and remains well-positioned to invest in its operations, strengthen its balance sheet, and create long-term value for shareholders.
Business Performance Overview
LSB’s strong quarterly results reflect favorable market conditions across its industrial, mining, and agricultural segments. Demand for nitric acid, ammonium nitrate, and ammonia remained robust, supported by global commodity strength and ongoing supply constraints.
Industrial Market Strength
The Company continues to benefit from steady industrial demand, particularly for nitric acid. Increased methylene diphenyl diisocyanate (MDI) production in the United States—driven by tariffs and proposed anti-dumping duties on imported MDI—has expanded nitric acid consumption. This dynamic supports a healthy pricing environment and continued order growth from industrial customers.
Mining and Explosives Demand
Mining activity worldwide has remained strong, supported by elevated gold and copper prices. The uptick in mining activity has translated directly into higher demand for ammonium nitrate (AN) used in commercial mining explosives. LSB is well positioned to serve this demand, supplying key customers across North America and other global markets. Additionally, quarrying and aggregate production tied to infrastructure investment are further supporting explosives demand.
Agricultural Market Conditions
Fertilizer markets remained resilient during the quarter. Ammonia, UAN, and other ammonia-derivative products continued to benefit from tight global supplies and lower-than-normal distribution channel inventories. Pricing for ammonia remains attractive, supported by disruptions in global supply from the Middle East, high production costs in Europe, and delays in new U.S. capacity startups.
UAN pricing strengthened due to steady export levels, reduced imports, and firm domestic demand, resulting in tight supply fundamentals expected to persist into 2026. Meanwhile, the global urea market remains robust, contributing to favorable nitrogen fertilizer pricing across the board.
Agricultural Outlook
U.S. corn market fundamentals remain supportive of strong fertilizer demand. The U.S. Department of Agriculture (USDA) recently revised its 2025 spring planting forecast to approximately 98 million acres of corn, a 9% increase from 2024. While this may lead to a modest rise in corn inventories, fall fertilizer demand is expected to remain solid, contingent on normal seasonal weather conditions.
Looking ahead to 2026, LSB anticipates a moderate decline in planted corn acres—likely returning to the 91–93 million acre range, consistent with recent historical averages. This normalization is expected to sustain nitrogen fertilizer demand levels in line with recent years.
Market Outlook
LSB’s management expects favorable market trends to continue into the fourth quarter of 2025 and beyond. The Company’s diversified portfolio across industrial, mining, and agricultural markets provides a strong foundation for ongoing performance.
Industrial Segment Outlook:
- Continued robust domestic demand for nitric acid supported by MDI-related tariffs and duties
- Stable industrial customer demand with limited import pressure
Mining Segment Outlook:
- Sustained demand for AN used in explosives driven by global mining activity, particularly in copper and gold
- Additional support from infrastructure-related quarrying and aggregate production
Agricultural Segment Outlook:
- Tight global ammonia supply expected to persist due to ongoing geopolitical disruptions and delayed project startups
- Strong UAN pricing environment supported by low inventories and healthy export demand
- Continued resilience in global nitrogen fertilizer pricing, aided by strong urea market conditions
Low-Carbon Ammonia Project Update
LSB continues to advance its El Dorado Carbon Capture and Sequestration (CCS) Project in partnership with Lapis Carbon Solutions. This initiative underscores the Company’s commitment to reducing its carbon footprint and supporting the global transition to low-carbon industrial processes.
- Emission Reduction: The project is expected to capture and sequester between 400,000 and 500,000 metric tons of CO₂ annually, reducing LSB’s Scope 1 emissions by approximately 25%.
- Low-Carbon Ammonia Output: Once operational, the facility will produce between 305,000 and 380,000 metric tons per year of low-carbon ammonia.
- Regulatory Progress: The Company is awaiting EPA approval of its Class VI permit application, which is required to begin construction.
- Development Milestones: LSB successfully completed a stratigraphic test well in June 2025 to provide geologic data in support of the EPA’s review process.
- Expected Timeline: Construction is expected to commence following permit approval, with operations targeted to begin by the end of 2026.
Behrman noted,
Our El Dorado CCS project represents an important step toward decarbonizing our production footprint while enhancing long-term competitiveness. We believe low-carbon ammonia will play a vital role in future agricultural and industrial markets.
Summary and Outlook
LSB Industries entered the fourth quarter of 2025 with strong momentum. Supported by healthy market dynamics, disciplined operational execution, and a solid balance sheet, the Company remains focused on driving profitable growth and shareholder value creation.
As we head into 2026, we believe our diversified end-market exposure, strong financial position, and advancing sustainability initiatives will continue to differentiate LSB Industries,” Behrman concluded.
