LSB Industries Reports Q4 and Full-Year 2025 Results and Provides 2026 Outlook
LSB Industries, Inc. (NYSE: LXU) (“LSB” or the “Company”) today announced its financial and operational results for the fourth quarter and full year ended December 31, 2025, highlighting strong performance improvements and continued operational progress across its business.
Fourth Quarter 2025 Results
In the fourth quarter of 2025, LSB Industries achieved net sales of $165.0 million, up from $134.9 million in the same period in 2024. The Company reported net income of $16.1 million, a significant improvement compared to a net loss of $9.1 million in the fourth quarter of 2024. Diluted earnings per share (EPS) were $0.22 versus a loss per share of $0.13 in the prior-year period. Adjusted EBITDA increased to $54.1 million from $37.6 million in the fourth quarter of 2024.
During the quarter, LSB repurchased $7.5 million in principal amount of Senior Secured Notes for approximately $7.4 million and repurchased roughly 0.3 million shares of common stock for $2.8 million, demonstrating continued capital discipline and shareholder value initiatives.
Full-Year 2025 Results
For the full year, LSB reported net sales of $615.2 million, an increase from $522.4 million in 2024. The Company returned to profitability with net income of $24.6 million, compared to a net loss of $19.4 million in 2024. Diluted EPS rose to $0.34 from a loss of $0.27 the previous year. Adjusted EBITDA reached $161.5 million, up from $129.5 million in 2024.
At year-end, total cash, cash equivalents, and short-term investments were approximately $148.5 million, while total debt stood at $441.0 million. LSB repurchased $39.9 million in principal of Senior Secured Notes for $39.5 million and repurchased 0.3 million shares of common stock for $2.8 million during 2025.
Safety performance continued to improve with a Total Recordable Injury Rate (TRIR) of 0.40 for the year, marking a record low. Three of LSB’s four sites operated injury-free for the full year.
Mark Behrman, Chairman and CEO of LSB Industries, stated, “I am proud of the progress that the team made across our business in 2025. We continued to improve overall safety performance, achieving a TRIR of 0.40 incidents per 200,000 work hours, and three of our four sites operated injury-free. We delivered substantial year-over-year growth in net sales, adjusted EBITDA, and EPS. Our focus on production performance and disciplined commercial execution supported strong financial results and reinforced our ability to turn market conditions into enhanced profitability.”
Behrman continued, “Looking forward, we aim to build on the strong operational execution that enabled record nitric acid and ammonium nitrate solution production in 2025. This progress reflects improvements in plant reliability, throughput, and operational efficiency, driven by operational discipline, process enhancements, and consistent execution, alongside targeted capital investments. We are optimistic about the year ahead and our ability to generate increased value for shareholders.”
Market Outlook
The industrial segment is expected to remain consistent, supported by strong demand for ammonium nitrate (AN) for explosives in mining, particularly in copper and gold operations. Quarrying and aggregate production for infrastructure projects continue to drive steady demand for AN. Slightly increased coal production in the U.S. has also supported AN demand.
Domestic nitric acid demand remains robust due to tariffs and preliminary anti-dumping duties on methylene diphenyl diisocyanate (MDI) imports. Agricultural markets show strength, with favorable pricing for ammonia driven by reduced supply from the Middle East and Trinidad, higher European production costs, and delays in new global capacity. Urea Ammonium Nitrate (UAN) prices have improved due to low domestic inventories, constrained supply, and stronger Urea prices.
Corn market dynamics further support fertilizer demand. Despite a record crop in 2025 surpassing the 2023 level, stocks-to-use remain modestly above historical levels. The USDA projects 94 million planted acres for corn in 2027, and nitrogen demand is expected to align with recent years.
Low Carbon Ammonia Projects
LSB continues its focus on low carbon ammonia production through the El Dorado Carbon Capture and Sequestration (CCS) Project with Lapis Carbon Solutions. The project is expected to capture and sequester between 400,000 and 500,000 metric tons of CO2 annually, reducing Scope 1 emissions by approximately 25% and producing between 305,000 and 380,000 metric tons per year of low carbon ammonia.
In June 2025, a stratigraphic well was completed to provide data supporting the EPA’s Class VI permit application. Lapis Carbon Solutions resubmitted the pre-construction permit application in December 2025. Upon EPA approval, anticipated in Q4 2026, the well will be used for CO2 injection, and operations are expected to begin by the end of 2026.
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