LSB Industries, Inc. (NYSE: LXU) (“LSB” or the “Company”) today reported its financial results for the second quarter ending June 30, 2024. Key highlights include:
- Net Sales: $140 million, down from $166 million in Q2 2023.
- Net Income: $10 million, compared to $25 million in Q2 2023.
- Diluted EPS: $0.13, down from $0.33 in Q2 2023.
- Adjusted EBITDA(1): $41 million, compared to $47 million in Q2 2023.
- Cash Flow from Operations: $41 million, with $15 million in capital expenditures.
- Share Repurchase: Approximately 0.8 million shares repurchased in Q2 2024, totaling 1.5 million shares year-to-date.
- Debt Repayment: $64 million in Senior Secured Notes repurchased in Q2 2024, totaling $97 million year-to-date, with total debt at approximately $486 million as of June 30, 2024.
- Cash Reserves: Approximately $216 million as of June 30, 2024.
- New Agreement: Signed a five-year deal to supply low-carbon ammonium nitrate solution (ANS) to Freeport Minerals Corporation.
Mark Behrman, LSB Industries’ President and CEO, remarked, “Our second quarter was marked by a significant agreement to supply Freeport Minerals with low-carbon ANS, validating our belief that industrial customers will prioritize low-carbon nitrogen products for their decarbonization efforts.”
He added, “Despite a decline in year-over-year selling prices, our Q2 profitability improved sequentially due to better pricing compared to the first quarter. This indicates market stabilization after the volatility of 2022. Our strong cash flow in Q2 enabled us to return value to shareholders through stock repurchases and reduce our debt by repurchasing bonds at a discount.”
Behrman continued, “We are investing in the reliability and safety of our facilities to boost production volumes. Ongoing Turnarounds at our Pryor and Cherokee facilities, along with other projects, are expected to enhance reliability and increase EBITDA and cash flow.”
Regarding clean ammonia projects, Behrman mentioned, “The EPA is expected to make a final decision next Spring on the Class VI permit for our El Dorado carbon capture and sequestration project, positioning us to produce low-carbon ammonia by early 2026. Our contract with Freeport underscores the demand for low-carbon ammonia. We are also progressing on our Houston Ship Channel project, with a Pre-FEED study nearing completion and potential off-take agreements in discussion. We remain committed to leading the global energy transition through low-carbon ammonia production.
