LSB Industries reported third‑quarter 2025 results with net sales of $155.4 million, a 42% increase from $109.2 million in the same period a year earlier. Net income rose to $7.1 million, reversing a $25.4 million loss in Q3 2024, and diluted earnings per share reached $0.10 compared with a loss of $0.35 per share in the prior year.
Revenue growth was driven by a shift in the sales mix toward higher‑margin industrial products, particularly ammonium solution (ANS). Industrial sales grew 18% year‑over‑year, while agricultural sales increased 12%. The company’s focus on contractual industrial sales has improved earnings stability and allowed for the pass‑through of natural gas cost fluctuations.
Operational performance improved through reduced equipment downtime and higher plant utilization. Management cited disciplined cost‑control initiatives, including streamlined procurement and energy‑efficiency upgrades, which contributed to the turnaround in profitability. No major turnaround activities were undertaken in Q3 2025, unlike the previous year, supporting higher sales volumes.
Strategically, LSB is advancing its low‑carbon ammonia initiatives. The El Dorado carbon capture and storage (CCS) project is expected to generate significant EBITDA, with a permit review anticipated by Q1 2026. The company’s balance sheet has strengthened, with a decline in total debt and a manageable net debt to adjusted EBITDA ratio.
The company also addressed operational risks, noting a contractor fatality at the Pryor facility in early October 2025. Management emphasized the importance of safety and reiterated its commitment to maintaining rigorous safety standards. Supply‑chain constraints and macroeconomic pressures remain potential headwinds, but robust demand in both fertilizer and industrial sectors underpins the company’s positive outlook.
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