LSB Industries, Inc. announced its second-quarter 2025 operating results, reporting net sales of $151.296 million, a 6% increase from $140.073 million in Q2 2024. Despite the sales growth, net income decreased to $3.006 million from $9.555 million in the prior-year period, resulting in a basic and diluted EPS of $0.04. The decline in net income was primarily attributed to materially higher natural gas prices, with the average cost per MMBtu used in production rising to $3.37 from $1.92 in Q2 2024.
The company's operational improvement measures led to increased ammonia production and healthy year-over-year growth in production and sales volumes of higher-margin upgraded products, including UAN and AN/Nitric Acid. Demand dynamics across end markets were favorable, with robust pricing for UAN and strong demand for nitric acid and ammonium nitrate, particularly benefiting from increased U.S. copper mining activity.
LSB Industries further de-risked its balance sheet by repurchasing debt during the second quarter, which is expected to reduce future interest expense. Progress on the El Dorado low-carbon project continued, with Lapis Low Carbon Solutions completing the drilling of a stratigraphic injection well in June. This well will gather data to support the EPA's technical review of the Class VI permit application and will be used for CO2 injections once approval is received, keeping the project on track to be operational by the end of 2026.
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