LSB Industries, Inc. reported its first-quarter 2025 financial results, with net sales reaching $143.432 million, an increase from $138.204 million in Q1 2024. The company recorded a net loss of $(1.640) million, compared to a net income of $5.623 million in the prior-year quarter, resulting in a basic and diluted loss per share of $(0.02). This was primarily due to materially higher natural gas prices, with the average cost per MMBtu used in production rising to $3.77 from $2.33 in Q1 2024.
The company achieved a 4% year-over-year improvement in overall sales volumes, driven by higher UAN and AN volumes resulting from reliability and operational improvements. LSB also produced more ammonia and continued to upgrade it into higher-margin products, benefiting from stronger ammonia selling prices. Despite these operational gains, the significant increase in natural gas costs offset the positive impacts.
In a notable strategic development, LSB announced a pause on its Houston Ship Channel project, citing uncertainty in capital costs due to U.S. tariff-related price increases and other global economic uncertainties, coupled with a slower-than-anticipated ramp-up of low-carbon ammonia demand. Concurrently, the El Dorado facility received pre-certification status for its low-carbon ammonia through The Fertilizer Institute’s Verified Ammonia Carbon Intensity program, positioning it as one of only four North American plants with this status, which is crucial for securing future sales agreements.
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