Key Highlights:

  • Net Sales came in at USD 168.1 million, representing a 11.1% increase compared to USD 151.3 million.
  • Net Loss totaled USD 6.2 million, reflecting USD 28.8 million in turnaround expenses compared to a net income of USD.
  • Adjusted EBITDA stood at USD 53.1 million, an increase of 38.8% compared to USD 38.3 million.
  • Turnaround Financial Impact was reported at USD 35 million to USD 40 million, resulting from planned maintenance at the El.

LSB Industries, Inc. (NYSE:LXU) is scheduled to report third quarter results on Wednesday, Oct. 28, after the market close. Consensus estimates call for adjusted earnings per share of USD 0.16 on revenue of USD 165.37 million, against a market capitalization of USD 730.77 million.

In the most recently reported quarter, Net Sales came in at USD 168.1 million, representing a 11.1% increase compared to USD 151.3 million, driven by higher selling prices and increased ammonium nitrate volumes.

El Dorado Production Rate and Other Business Trends

El Dorado Production Rate came in at 1,380 tons per day, representing a significant increase over the nameplate capacity of 1,150 tons per day following the completion of the turnaround. Ammonium Nitrate and Nitric Acid Sales totaled 179,339 short tons, an 11% increase due to tight market conditions and the optimization of the product mix. Urea Ammonium Nitrate (UAN) Sales stood at 130,818 short tons, a 14% decrease as the company shifted production focus toward ammonium nitrate. Ammonia Sales Volume was reported at 35,667 short tons, a 46% decline resulting from the extensive turnaround activity at El Dorado and Pryor.

UAN Average Selling Price and Capital Position

UAN Average Selling Price came in at USD 433 per short ton, representing a 41% increase compared to USD 308 per short ton. Ammonia Average Selling Price totaled USD 658 per short ton, representing a 78% increase from USD 369 per short ton. Natural Gas Input Cost stood at USD 2.96 per MMBtu, a 15.4% decrease compared to USD 3.50 per MMBtu. Carbon Capture and Sequestration (CCS) Earnings Potential was reported at USD 25 million to USD 30 million in annual EBITDA, expected once the El Dorado project becomes fully operational in the first quarter of 2027. CCS Operational Metrics came in at 400,000 to 500,000 metric tons of CO2 to be captured annually, which management expects will reduce Scope 1 emissions by 25%.

Ammonia Capacity Expansion and Additional Detail

Ammonia Capacity Expansion came in at 100,000 tons of additional annual production, targeted for the El Dorado facility with a final investment decision expected in the second quarter of 2027. Expansion Project Economics totaled USD 105 million to USD 120 million in net capital costs, accounting for a USDA grant that will fund approximately 20% of the total USD 135 million to USD 150 million investment. Cash and Short-Term Investments stood at USD 218 million at the end of the second quarter, supporting the company's liquidity position. Total Debt was reported at USD 441.3 million, with the company maintaining a net leverage ratio of 1.1x. Free Cash Flow came in at USD 32 million, calculated as USD 59 million in operating cash flow minus USD 27 million in sustaining capital expenditures.

Figures to Follow in the Release

Investors can watch third quarter results against the figures management has already put on record, including the following: Net Sales came in at USD 168.1 million, representing a 11.1% increase compared to USD 151.3 million, driven by higher selling prices and increased ammonium nitrate volumes.