LSB Industries(LXU)

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LSB Industries(LXU) - 2025 Q2 - Quarterly Report
2025-07-30 20:16
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 incorporation or organization) 3503 NW 63 Street, Suite 500, Oklahoma City, Oklahoma 73116 (Address of principal executive offices) (Zip Code) rd (405) 235-4546 (Registrant's telephone number, includin ...
LSB Industries(LXU) - 2025 Q2 - Earnings Call Transcript
2025-07-30 15:00
LSB Industries (LXU) Q2 2025 Earnings Call July 30, 2025 10:00 AM ET Speaker0Greetings, and welcome to the LSB Industries Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kristy Carver, Senior Vice President and Treasurer.Thank you. You may begin.Speaker1Good morning, every ...
LSB Industries(LXU) - 2025 Q2 - Earnings Call Presentation
2025-07-30 14:00
Q2'25 Earnings Presentation July 30, 2025 Statements in this presentation that are not historical are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include, but are not limited to, statements regarding: our business strategy; anticipated future operating results and operating expenses, cash flows, capital resources and liqui ...
LSB Industries(LXU) - 2025 Q2 - Quarterly Results
2025-07-29 20:17
Exhibit 99.1 LSB INDUSTRIES, INC. REPORTS OPERATING RESULTS FOR THE 2025 SECOND QUARTER OKLAHOMA CITY, Oklahoma—July 29, 2025—LSB Industries, Inc. (NYSE: LXU) ("LSB," "we," "us," "our," or the "Company") today announced results for the second quarter ended June 30, 2025. Second Quarter 2025 Results and Recent Highlights "We generated a 6% year-over-year increase in sales volumes during the second quarter," stated Mark Behrman, LSB Industries' Chairman & Chief Executive Officer. "Our reliability and operatio ...
LSB Industries(LXU) - 2025 Q1 - Quarterly Report
2025-04-30 20:38
Financial Performance - Net sales for Q1 2025 were $143,432,000, an increase of 3.3% compared to $138,204,000 in Q1 2024[12]. - Gross profit decreased to $14,384,000 in Q1 2025, down 35.5% from $22,278,000 in Q1 2024[12]. - Operating income fell to $4,468,000 in Q1 2025, a decline of 60.3% from $11,260,000 in Q1 2024[12]. - The company reported a net loss of $1,640,000 in Q1 2025, compared to a net income of $5,623,000 in Q1 2024[12]. - Consolidated net sales for Q1 2025 were $143.4 million, a 1% increase from $138.2 million in Q1 2024, while operating income decreased to $4.5 million from $11.3 million[125]. - The net sales of AN & Nitric Acid increased to $57.6 million in Q1 2025 from $48.4 million in Q1 2024, representing a growth of 18.5%[84]. - Total tons sold increased by 4% to 372,499 in Q1 2025, with AN & Nitric Acid sales up 17% and UAN sales up 10%, while ammonia sales dropped by 23%[131]. - Adjusted gross profit for the first quarter of 2025 was $36.442 million, compared to $40.287 million in the first quarter of 2024[169]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $15,030,000 as of March 31, 2025, down from $20,230,000 at the end of 2024[10]. - Cash provided by operating activities was $6,836,000 in Q1 2025, a decrease of 71.6% from $24,107,000 in Q1 2024[17]. - Net cash flows from operating activities fell to $6.8 million in Q1 2025, a decrease of $17.3 million from $24.1 million in Q1 2024, primarily due to higher cost of sales[140]. - As of March 31, 2025, total cash, cash equivalents, and short-term investments amounted to $163.5 million, down from $184.2 million at the end of 2024[146]. - The company expects to fund its anticipated liquidity needs for the next twelve months through cash, short-term investments, and cash flow from operations[149]. - As of March 31, 2025, the company had approximately $40 million available under its undrawn Revolving Credit Facility[154]. Debt and Liabilities - Total liabilities decreased to $685,375,000 as of March 31, 2025, down from $688,253,000 at December 31, 2024[10]. - The company’s long-term debt increased slightly to $478,174,000 as of March 31, 2025, compared to $476,163,000 at December 31, 2024[10]. - The company has $478.4 million in Senior Secured Notes due 2028, with interest paid semiannually[151]. - The Senior Secured Notes due 2028 amount to $478.4 million, with an interest rate of 6.25%[4]. - The company incurred interest expense of $8,064,000 in Q1 2025, down from $9,729,000 in Q1 2024[12]. - The company is contingently liable for payments up to $10.3 million related to performance bonds as of March 31, 2025[160]. Environmental and Regulatory Compliance - The company incurred $0.9 million in expenses related to environmental regulatory compliance in the first quarter of 2025, with expected additional expenses ranging from $3.2 million to $3.4 million for the remainder of the year[158]. - The company is subject to various environmental laws and may incur significant compliance expenses and liabilities in the future[6]. - As of March 31, 2025, accrued liabilities for environmental matters totaled approximately $0.6 million[6]. Future Projects and Investments - The company plans to invest in low carbon ammonia production, with a project at the El Dorado Facility expected to be operational by the end of 2026[99]. - An agreement was announced to supply up to 150,000 short tons per year of low carbon ammonium nitrate solution to Freeport Minerals Corporation starting January 1, 2025[100]. - The company is pursuing a project to capture and sequester CO2 at the El Dorado Facility, expected to capture approximately 400,000 to 500,000 metric tons of CO2 per year once operational[102]. - The facility's ammonia production is expected to sequester approximately 400,000 to 500,000 metric tons of CO2 annually, reducing overall scope 1 GHG emissions by about 25%[104]. - The El Dorado Facility expansion projects are on hold for 2024, with plans to reevaluate in 2025 due to high costs and moderating selling prices[103]. Market Conditions and Risks - The company expects to face various risks including changes in commodity prices, interest rates, and competition in the market[171][180]. - The company is sensitive to adverse economic cycles, which could materially affect its business, financial condition, and cash flow[185]. - A prolonged deterioration of global market conditions may lead to increased bad debts and affect working capital due to customers' inability to fulfill purchase obligations[186]. - The international market for nitrogen fertilizer significantly influences the company's operating results, affected by U.S. currency value and foreign agricultural policies[187]. - Recent U.S. tariffs on agricultural products could impact selling prices and increase input costs for customers, potentially disrupting supply chains[188]. - The ultimate impact of changing trade policies on the company will depend on the magnitude and duration of tariffs, which may not be fully mitigated[189]. Stock and Shareholder Actions - The company has authorized a $150 million stock repurchase program aimed at maximizing stockholder value[156]. - No shares of common stock were repurchased during the three months ended March 31, 2025[157]. - The company has adopted Rule 10b5-1 trading plans for its executives, allowing the sale of up to 35,000 shares by the CFO and 21,641 shares by the Senior VP[191][192].
LSB Industries(LXU) - 2025 Q1 - Earnings Call Transcript
2025-04-30 15:02
Financial Data and Key Metrics Changes - Overall sales volumes improved by 4% quarter over quarter, driven by solid improvement in sales volumes for ammonium nitrate and UAN [6][16] - Adjusted EBITDA for Q1 2025 was $29 million, down from $33 million in Q1 2024, primarily due to higher natural gas costs [16][18] - Cash balance remains strong, and leverage ratio is in line with target levels for a mid-cycle pricing environment [19] Business Line Data and Key Metrics Changes - Demand for industrial products remains robust, with strong pricing and demand for nitric acid and ammonium nitrate solutions [11][12] - UAN prices increased significantly, with current NOLA UAN price at $350 per ton, 73% higher than the low price of fall 2024 [13] - Urea prices strengthened considerably, now above $500 per ton, driven by seasonal demand and lack of imports [13] Market Data and Key Metrics Changes - The USDA reported a significant increase in planted corn acres, expected to reach 95.3 million acres in 2025 compared to 90.6 million in 2024, driving strong fertilizer demand [15] - US corn prices are solidly above $4 per bushel, supporting favorable farmer economics [16] - Domestic pricing for urea has seen a significant uplift due to tariffs and other factors, expected to persist through the current spring planting season [8][9] Company Strategy and Development Direction - The company is focusing on improving the reliability and efficiency of its facilities, with ongoing investments in plant reliability and logistics capabilities [19][25] - The El Dorado ammonia project achieved precertification status under the Fertilizer Institute's Verified Ammonia Carbon Intensity Program, which is expected to aid in securing sales agreements for low carbon ammonia [22][23] - The company has decided to pause the Houston Ship Channel project due to uncertainties in capital costs and demand for low carbon ammonia [24][26] Management's Comments on Operating Environment and Future Outlook - Management noted that US tariffs have created uncertainty for planned spending and potential capital projects, but do not anticipate a significant impact on business [5][8] - The company expects to capitalize on pricing strength for UAN and AN sales in the upcoming months, with meaningful increases in volumes compared to the prior year [20] - Management remains optimistic about the growth of the industrial business and the stability of earnings through cost-plus contracts [18][26] Other Important Information - The company plans to participate in upcoming industry conferences, including the UBS Energy Transition and Decarbonization Conference and the Deutsche Bank Industrials Materials and Building Products Conference [26] - The company is evaluating opportunities to increase production capacity in both nitric acid and ammonium nitrate [12] Q&A Session Summary Question: Thoughts on realized pricing setup for the second quarter - Management indicated good price increases for UAN products and is well positioned to take advantage of that [30] Question: Updated capital allocation priorities after pausing the Houston Ship Channel project - Management stated there are no new projects committed, focusing on improving existing facilities and considering stock buybacks and debt reduction [31][32] Question: Impact of deregulation on permitting - Management believes the impact will be minimal, with some positive developments in conversations with the EPA regarding low carbon ammonia projects [37][38] Question: Dynamics of pent-up demand for UAN - Management noted that higher corn acreage and insufficient imports are driving demand and impacting pricing [40] Question: Potential upgrade capacity projects - Management stated it is too early to discuss specific costs or margins related to potential expansion projects [44] Question: Disparity in ammonia pricing inland versus Tampa - Management indicated pricing is consistent with seasonal expectations and not significantly out of the ordinary [55] Question: Risks of delays in carbon projects at El Dorado - Management expressed confidence in meeting timelines for carbon projects, with equipment orders being placed soon [60][62]
LSB Industries(LXU) - 2025 Q1 - Earnings Call Transcript
2025-04-30 14:00
Financial Data and Key Metrics Changes - The company reported a 4% improvement in overall sales volumes quarter over quarter, driven by higher ammonia production and better performance from upgrading plants [5][6] - Adjusted EBITDA decreased from $33 million in Q1 2024 to $29 million in Q1 2025, attributed to improved sales volumes and higher pricing for ammonia and ammonium nitrate, offset by significantly higher natural gas costs [16][18] - The cash balance remains strong, and the leverage ratio is in line with target levels for a mid-cycle pricing environment [18] Business Line Data and Key Metrics Changes - Sales volumes for ammonium nitrate and UAN improved significantly, with UAN prices increasing to $350 per ton, a 73% rise from the low price of fall 2024 [13][15] - The company continues to ramp up ammonium nitrate solution volumes, driven by strong demand in the copper mining sector [10][12] - The industrial contracts have grown from less than 20% in 2021 to approximately 30% by the end of Q1 2025, with expectations to reach 35% by year-end [17] Market Data and Key Metrics Changes - Domestic pricing for urea has seen a significant uplift due to U.S. tariffs, with expectations for this trend to persist through the spring planting season [7][8] - The USDA reported an increase in corn planting intentions to 95.3 million acres, up from 90.6 million acres last year, driving strong fertilizer demand [15][16] - Urea prices have strengthened considerably, now above $500 per ton, influenced by seasonal demand and a lack of imports [13] Company Strategy and Development Direction - The company is focusing on improving the reliability and efficiency of its facilities, with ongoing investments in plant reliability and logistics capabilities [18][24] - The El Dorado ammonia project achieved precertification status under the Fertilizer Institute's Verified Ammonia Carbon Intensity Program, which is expected to aid in securing sales agreements for low carbon ammonia [21][22] - The Houston Ship Channel project has been paused due to uncertainties in capital costs and demand for low carbon ammonia, but the company remains open to revisiting it in the future [23][45] Management's Comments on Operating Environment and Future Outlook - Management noted that U.S. tariffs have created uncertainty for planned spending and potential capital projects, but they do not anticipate a significant impact on business [4][6] - The company expects to benefit from lower natural gas costs moving into May, which will positively impact margins [19] - Management expressed confidence in achieving production and sales volume improvements while optimizing the industrial business for stability and predictability in earnings [24] Other Important Information - The company plans to participate in upcoming industry conferences, including the UBS Energy Transition and Decarbonization Conference and the Deutsche Bank Industrials Materials and Building Products Conference [25] - The turnaround for the El Dorado site has been pushed to the first half of 2026, increasing ammonia production outlook for 2025 by approximately 30,000 tons [20] Q&A Session Summary Question: Insights on UAN pricing and ammonia trends - Management indicated strong price increases for UAN products and is positioned to capitalize on this, while ammonia prices are expected to decline [28][29] Question: Capital allocation priorities post-Houston Ship Channel project pause - Management stated there are no new projects committed currently, focusing on improving existing facilities and considering stock buybacks and debt reduction [30][31] Question: Impact of deregulation on permitting - Management believes the impact will be minimal, with some positive developments in conversations with the EPA regarding low carbon ammonia projects [34][36] Question: Dynamics of pent-up demand for UAN - The increase in corn acreage and insufficient imports are driving demand and impacting pricing [38][39] Question: Potential upgrade capacity projects - Management is exploring expansion capabilities but has not committed to any projects yet, emphasizing the need for finalized engineering studies [42][43] Question: Risks associated with carbon projects at El Dorado - Management expressed confidence in meeting timelines for carbon projects, with no expected delays [56][57] Question: Disparity in ammonia pricing inland versus Tampa - Pricing remains consistent with seasonal expectations, with no significant disparities noted [53]
LSB Industries(LXU) - 2025 Q1 - Earnings Call Presentation
2025-04-30 01:30
Financial Performance - Q4'24 net sales increased to $135 million from $133 million in Q4'23[19] - Adjusted EBITDA for Q4'24 was $38 million, a year-over-year improvement from $25 million in Q4'23[19, 6] - Adjusted EBITDA margin increased to 28% in Q4'24 from 19% in Q4'23[19] - The company repurchased approximately $222 million in principal amount of Senior Secured Notes and 4.6 million shares of common stock over the 24-months ended 12/31/24[28] Market and Pricing Trends - Tampa Ammonia price was $460 per metric ton as of February 26, 2025, compared to $445 per metric ton on February 26, 2024[14] - UAN (NOLA) price was $290 per short ton as of February 26, 2025, compared to $245 per short ton on February 26, 2024[14] - Natural gas price (NYMEX Spot Price) was $3.86 per MMBtu as of February 26, 2025, compared to $1.66 per MMBtu on February 26, 2024[14] 2025 Outlook - Ammonia production is projected to be between 790,000 and 820,000 tons in 2025, compared to 757,000 tons in 2024[29] - AN and Nitric Acid sales volume is expected to be between 590,000 and 620,000 short tons in 2025, compared to 554,000 short tons in 2024[29] - UAN sales volume is projected to be between 620,000 and 650,000 short tons in 2025, compared to 483,000 short tons in 2024[29] - Ammonia sales volume is expected to be between 250,000 and 280,000 short tons in 2025, compared to 321,000 short tons in 2024[29]
LSB (LXU) Reports Q1 Loss, Tops Revenue Estimates
ZACKS· 2025-04-29 23:05
Company Performance - LSB reported a quarterly loss of $0.02 per share, matching the Zacks Consensus Estimate, compared to earnings of $0.12 per share a year ago, representing an earnings surprise of -200% [1] - The company posted revenues of $143.43 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.04%, and an increase from year-ago revenues of $138.2 million [2] - Over the last four quarters, LSB has surpassed consensus EPS estimates just once, but has topped consensus revenue estimates three times [2] Stock Performance - LSB shares have declined approximately 22.4% since the beginning of the year, while the S&P 500 has decreased by 6% [3] - The current consensus EPS estimate for the upcoming quarter is $0.23 on $154 million in revenues, and $0.27 on $551.05 million in revenues for the current fiscal year [7] Industry Outlook - The Zacks Industry Rank for Chemical - Diversified is currently in the bottom 15% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact LSB's stock performance [5]
LSB Industries(LXU) - 2025 Q1 - Quarterly Results
2025-04-29 20:15
Exhibit 99.1 LSB INDUSTRIES, INC. REPORTS OPERATING RESULTS FOR THE 2025 FIRST QUARTER OKLAHOMA CITY, Oklahoma—April 29, 2025—LSB Industries, Inc. (NYSE: LXU) ("LSB," "we," "us," "our," or the "Company") today announced results for the first quarter ended March 31, 2025. First Quarter 2025 Results and Recent Highlights "We are pleased with our safety performance and the 4% year-over-year improvement in overall sales volumes during the first quarter," stated Mark Behrman, LSB Industries' Chairman & Chief Exe ...