LSB Industries Restores Profit After Turnaround-Heavy Quarter

The Tip Desk · November 9, 2026 · 3 min read

Third-quarter net income was $16.3 million, or $0.22 a share, as ammonium nitrate and ammonia sales lifted results after a $6.2 million second-quarter loss.

LSB Industries, Inc. (LXU), the Oklahoma City nitrogen producer, returned to profit in the third quarter after a turnaround-heavy second quarter, with net income of $16.3 million, or $0.22 a share, compared with $7.1 million, or $0.10 a share, a year earlier.

Net sales were $158.6 million, up from $155.4 million in the third quarter of 2025. Adjusted EBITDA was $62.3 million versus $40.1 million a year earlier. Gross profit was $43.1 million and operating income was $26.8 million. Turnaround costs recognized in the quarter were $6.3 million, after $28.8 million of turnaround expenses in the second quarter, when the company posted a $6.2 million net loss.

The mix of products sold shifted toward industrial ammonium nitrate. AN and nitric acid sales were $80.9 million, up 41% from $57.5 million a year earlier, on 196,477 short tons sold versus 159,662 and a netback price of $365 a ton versus $307. The company said strong industrial demand led it to partially shift production from UAN to AN.

UAN sales fell 61% to $20.2 million, on 55,510 short tons versus 134,634 and a netback price of $316 a ton versus $333. Ammonia sales were $45.2 million, up 22% from $37.1 million, on 79,940 short tons versus 86,322 and a netback price of $528 a ton versus $400. Other product sales were $12.3 million versus $9.4 million. Total product volumes sold were 331,927 short tons, down 13% from 380,618. The company said ammonia and UAN volumes were also lower because of a planned turnaround at Pryor that began in the second quarter and finished early in the third.

Average natural gas cost per MMBtu in cost of materials and other was $2.93 versus $3.10 a year earlier. The Tampa ammonia benchmark was $622 a ton versus $491; the NOLA UAN benchmark was $330 a ton versus $336. Selling, general and administrative expense was $14.8 million versus $10.3 million.

Chairman and Chief Executive Officer Mark Behrman said each of the company’s three facilities set new monthly production records in the first nine months of 2026 and that LSB is on pace for record annual nitric acid and AN solution production this year. The company said it believes it is well positioned to continue progress toward consistently delivering higher earnings and cash flow, with customer demand remaining strong.

On the market outlook, LSB said AN demand remains strong, supported by mining-sector investment and capital spending tied to AI-related infrastructure, data centers, power generation and electrification, and that globally constrained urea supplies strengthened third-quarter pricing and supported higher UAN prices. Fall applications are expected to further support fourth-quarter demand, and the company said it anticipates robust nitrogen demand through the fall 2026 and spring 2027 fertilizer application seasons.

In May 2026 LSB agreed to assume full ownership of the El Dorado carbon capture and sequestration project from Lapis Carbon Solutions. Completion is conditioned on an EPA Class VI permit; the company said it expects to capture and sequester between 400,000 and 500,000 metric tons of CO2 per year and estimates the project could generate approximately $25 million to $30 million of annual earnings when fully operational, net of CCS operating costs, over the 12-year credit period, subject to continued qualification for the tax credits.

Total cash, cash equivalents and short-term investments were about $203.5 million and total debt was $442.2 million as of September 30, 2026.