Key Takeaways:
- Net sales up 42% year over year to $155.4 million
- Net income of $7.1 million, reversing a $25.4 million loss in Q3 2024
- Adjusted EBITDA more than doubled to $40.1 million
- Fertilizer and industrial demand remain strong across end markets
- Low-carbon ammonia project on track to begin operations by end of 2026
Financial Highlights
LSB Industries, Inc. (NYSE: LXU) reported third-quarter 2025 net sales of $155.4 million, a 42% increase from $109.2 million a year earlier. The growth reflected higher selling prices and stronger volumes across all product categories.
The company achieved net income of $7.1 million, or $0.10 per diluted share, compared with a net loss of $25.4 million in Q3 2024. Adjusted EBITDA surged 129% to $40.1 million, driven by higher production rates, strong pricing, and the absence of planned turnarounds that affected the prior-year period.
Total cash, cash equivalents, and short-term investments stood at $152 million as of September 30, 2025, against total debt of $448.4 million, reflecting a solid liquidity position.
Product and Market Performance
Product Segment Breakdown
- Ammonium Nitrate (AN) & Nitric Acid: $57.5M (+20%)
- Urea Ammonium Nitrate (UAN): $51.4M (+103%)
- Ammonia: $37.1M (+30%)
- Other products: $9.4M (+26%)
Sales volumes rose 31% year over year to 380,618 short tons, with UAN volumes up 41% and ammonia volumes up 26%. Average selling prices for UAN climbed 50%, reflecting tighter global supply and strong domestic demand.
CEO Commentary
“The third quarter presented a strong market backdrop, and we delivered solid results with clear momentum,” said Mark Behrman, LSB Industries Chairman and CEO. “We’ve generated solid free cash flow, are strengthening our balance sheet, and remain confident in our ability to drive long-term shareholder value.”
Behrman highlighted robust conditions in mining, construction, and fertilizer markets, as well as continued demand for nitric acid and ammonium nitrate used in mining and infrastructure.
Market Outlook
- Industrial: Domestic demand for nitric acid is supported by tariffs and potential anti-dumping duties on imported MDI.
- Mining: Global demand for ammonium nitrate in commercial explosives remains strong due to high gold and copper prices.
- Fertilizers: Tight global supply, high European production costs, and Middle East disruptions continue to support ammonia and UAN pricing.
- Agriculture: USDA estimates 98 million planted acres of corn in 2025 (+9% YoY), maintaining fertilizer demand. Acreage normalization expected in 2026 (91–93 million acres).
Low-Carbon Ammonia Initiative
LSB’s El Dorado Carbon Capture and Sequestration (CCS) Project, in partnership with Lapis Carbon Solutions, aims to capture and store 400,000–500,000 metric tons of CO₂ annually, reducing Scope 1 emissions by 25% and yielding low-carbon ammonia production.
- EPA Class VI permit under review
- Construction expected post-approval
- Operations projected to begin by end of 2026
Read the full financial report here.
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