Group 1 - LSB Industries, Inc. (LXU) shares increased by 22.3% to $9.10, following a significant trading volume, contrasting with a 15.4% decline over the past four weeks [1] - The rally is attributed to optimism regarding the company's diversified portfolio in industrial and agricultural products, potential increases in agricultural commodity prices, and a strong balance sheet, alongside falling interest rates boosting demand for its products [2] - The upcoming quarterly earnings are projected at $0.13 per share, reflecting a year-over-year increase of 533.3%, while revenues are expected to be $109.13 million, a decrease of 17.7% from the previous year [3] Group 2 - The consensus EPS estimate for LSB has been revised 49% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [4] - LSB Industries holds a Zacks Rank of 3 (Hold), while Icahn Enterprises (IEP), another company in the same diversified operations industry, closed at $9.13 with a 0.9% decline [4] - Icahn Enterprises has an unchanged consensus EPS estimate of $0.18, representing a year-over-year change of 154.6%, and currently holds a Zacks Rank of 4 (Sell) [5]

Safety and Environmental Initiatives - Total Recordable Injury Rate improved to 0.33 in 2023, with a focus on achieving zero injuries in 2024[40] - The company plans to invest additional capital in 2024 to enhance safety programs across all facilities[40] - Collaboration with Air Liquide and INPEX aims to capture at least 95% of CO2 emissions from hydrogen production, with 1.6 million metric tons of CO2 expected to be captured annually[42] - The El Dorado facility's CO2 capture project is projected to sequester approximately 400,000 to 500,000 metric tons of CO2 annually, reducing LSB's scope 1 GHG emissions by about 25%[43] - The company expects to capture and sequester CO2 at a rate qualifying for federal tax credits of $85 per metric ton under Internal Revenue Code Section 45Q[43] - The company incurred $4.0 million in expenses related to environmental regulatory compliance for the first nine months of 2024, with expected additional expenses ranging from $0.8 million to $1.1 million for the remainder of the year[92] Low-Carbon Projects - A low-carbon ammonia project at the El Dorado facility is in collaboration with Lapis Energy, targeting future demand increases for low-carbon ammonia[41] - An agreement to supply up to 150,000 short tons per year of low carbon ammonium nitrate solution to Freeport Minerals Corporation starting January 1, 2025[42] - A large-scale low-carbon ammonia production project on the Houston Ship Channel aims to produce over 1.1 million metric tons per year by early 2029[42] - INPEX and LSB plan to sell low-carbon ammonia and finalize off-take agreements, with INPEX expected to be the largest investor across the entire value chain[43] Production and Capacity Expansion - The company is evaluating organic capacity expansion opportunities, particularly at the El Dorado facility, but has put expansion projects on hold for 2024[41] - Recent projects include additional AN solution storage and new rail loading capabilities at El Dorado to increase sales volume[41] - Expansion of urea capacity at the Pryor facility is expected to add approximately 75,000 tons of UAN per year[41] - Total ammonia production is targeted at approximately 770,000 to 790,000 tons for 2024[54] Financial Performance - Consolidated net sales for Q3 2024 were $109.2 million, a decrease of 4% from $114.3 million in Q3 2023[56] - Consolidated operating loss for Q3 2024 was $24.4 million, compared to a loss of $9.5 million in Q3 2023, representing a 157% increase in losses[61] - Gross loss for Q3 2024 was $7.9 million, compared to a gross loss of $3.4 million in Q3 2023, with a gross loss percentage of (7.3)%[65] - Adjusted gross profit increased to 22.9% in Q3 2024 from 12.1% in Q3 2023, reflecting improved pricing for ammonia[65] - Total net sales decreased by 16% to $387.5 million for the first nine months of 2024 compared to $461.1 million in the same period of 2023[72] - Gross profit for the first nine months of 2024 was $41.7 million, down from $74.3 million in 2023, representing a reduction of $32.6 million[75] - Adjusted gross profit percentage increased to 29.7% in 2024 from 27.3% in 2023[75] Costs and Expenses - The average cost of natural gas per MMBtu decreased from $3.61 in Q3 2023 to $2.17 in Q3 2024, benefiting production costs[51] - Transportation costs for nitrogen-based products are rising, potentially impacting margins if costs cannot be passed to customers[52] - SG&A expenses rose to $10.0 million in Q3 2024, an increase of $1.5 million compared to Q3 2023[66] - Interest expense for Q3 2024 was $8.1 million, up from $7.2 million in Q3 2023, primarily due to litigation-related reversals[67] - Impairments on assets recorded in Q3 2024 amounted to $5.4 million, compared to $0.2 million in Q3 2023[58] - Selling, general and administrative expenses rose to $31.9 million, an increase of $4.1 million compared to the same period in 2023[76] - Interest expense decreased to $26.3 million in 2024 from $31.2 million in 2023, primarily due to the repurchase of Senior Secured Notes[77] Cash Flow and Debt Management - Net cash provided by operating activities was $82.6 million for the first nine months of 2024, down from $120.5 million in 2023, a decrease of $37.9 million[82] - Net cash used by investing activities was $18.4 million in 2024, compared to net cash provided of $21.5 million in 2023, a change of $39.9 million[83] - Net cash used by financing activities was $123.0 million in 2024, compared to $159.0 million in 2023, a change of $36.0 million[84] - The company recognized a gain on extinguishment of debt of approximately $3.0 million in 2024, compared to $8.6 million in 2023[78] - As of September 30, 2024, total cash, cash equivalents, and short-term investments amounted to $199.4 million, a decrease of 34.8% from $305.9 million on December 31, 2023[86] - Long-term debt totaled $487.0 million as of September 30, 2024, down from $581.7 million on December 31, 2023, representing a reduction of 16.2%[86] - The company expects capital expenditures for the full year of 2024 to be approximately $65 million to $85 million, primarily for reliability and maintenance projects[86] - During the nine months ended September 30, 2024, the company repurchased approximately 1.5 million shares of common stock at an average cost of $8.13 per share, totaling approximately $12.1 million[91] - The remaining repurchase authority under the stock repurchase program was approximately $109 million as of September 30, 2024[91] - As of September 30, 2024, the Revolving Credit Facility was undrawn with approximately $34 million of availability[89] - The company has $478.4 million in Senior Secured Notes due 2028, with a 6.25% interest rate, maturing on October 15, 2028[88] - No trigger events had occurred for the financial covenants associated with the Revolving Credit Facility as of September 30, 2024[87] Market Conditions - Ammonia prices have increased due to tight supply-demand dynamics and geopolitical concerns, with expectations for moderation in Q4 2024 and into 2025[43] - The demand for nitric acid remains steady, reflecting strong U.S. economic conditions and consumer spending[48] - U.S. farmers planted approximately 90.7 million acres of corn in 2024, a decrease of 4.1% from 2023, with ending stocks estimated at 50.8 million metric tons, a 13.6% increase from 2023[47] - Average selling prices for ammonia increased, while UAN prices decreased by 16% compared to Q3 2023[56] - Total tons sold decreased by 11% to 291,104 tons in Q3 2024 from 326,589 tons in Q3 2023[62] Taxation - The effective tax rate for Q3 2024 was 15.0%, down from 40.5% in Q3 2023, primarily due to changes in valuation allowance[70] - The effective tax rate for the first nine months of 2024 was 20.5%, compared to 9.8% for the same period in 2023[81]

Financial Performance and Key Metrics - The company reported an adjusted EBITDA of $17 million for Q3 2024, a significant improvement from $9 million in Q3 2023, despite a major turnaround maintenance this year [25][27] - GAAP loss per share for Q3 2024 was $0.35, which included approximately $16 million in turnaround expenses and $6 million in non-cash charges [26] - Cash remains healthy at approximately $200 million with net leverage at about 2.5 times [29] Business Line Performance - The turnaround at the Pryor facility included an expansion of the urea plant, expected to produce an additional 75,000 tons per year of UAN, representing a 20% annual increase [8][32] - Sales volumes of products decreased in Q3 2024 compared to Q3 2023 due to the turnaround, but increased ammonium nitrate (AN) volume from the El Dorado facility partially offset this decline [28] Market Dynamics - The North American industrial market remains stable, with consistent demand from industrial customers, while Asian and European markets show more uncertainty [12][13] - The Tampa ammonia benchmark price has increased for four consecutive months due to global supply constraints and disruptions [17] - UAN prices have firmed recently due to tightening market fundamentals and healthy demand from India [18] Company Strategy and Industry Competition - The company aims to grow its industrial sales portion to create a more stable earnings stream, focusing on contracted volumes to mitigate volatility [10][11] - The El Dorado CCS project is on track for low-carbon ammonia production by 2026, pending necessary permits [34] - The company is exploring long-term offtake agreements for low-carbon products, which are critical for project financing and risk management [62] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the stability of the U.S. economy and consumer spending, expecting favorable conditions to persist into 2025 [12] - The company anticipates a solid year-over-year increase in sales volumes of UAN and AN, despite planned maintenance activities [32] - Management highlighted the importance of securing long-term contracts to mitigate risks associated with commodity pricing [62] Other Important Information - The company has been actively buying back senior secured notes and shares, totaling approximately $97 million and 2.7 million shares, respectively [29] - The company is participating in several upcoming industry conferences to enhance visibility and investor relations [41] Q&A Session Summary Question: Industrial demand trends and contracting - Management noted that industrial demand is currently stable, with potential for improvement due to economic activity and infrastructure development [45] Question: Outlook for production volumes in 2025 - Management indicated that production is expected to improve year-over-year, despite two planned turnarounds [50] Question: Impact of nitrogen market transactions on valuation - Management discussed the significance of net operating losses (NOLs) and the importance of access to capital markets [51][52] Question: Resource allocation for Houston Ship Channel project - Management explained that they are utilizing both internal and contracted resources to manage multiple projects without compromising existing operations [56] Question: Current purchasing behavior in the nitrogen market - Management observed a cautious approach from buyers, with some starting to take longer positions due to recent price strengthening [66] Question: Capital expenditures and turnaround costs - Management confirmed that capital expenditures were elevated due to the major turnaround at Pryor, with expectations for similar costs next year [67][76] Question: Low-carbon ammonia market potential - Management expressed that the market for low-carbon ammonia in fertilizer applications is still developing, with potential for future growth depending on legislative support [95]

LSB Q3 Earnings Presentation October 30, 2024 1 Forward-Looking Statements 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 projections of our future financial performance including the effects of the COVID-19 pandemic and anticipated performance based on our g ...

Company Performance - LSB (LXU) reported a quarterly loss of $0.11 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.09, and compared to a loss of $0.07 per share a year ago, indicating an earnings surprise of -22.22% [1] - The company posted revenues of $109.22 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 25.27%, although this was a decrease from year-ago revenues of $114.29 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 Outlook - LSB shares have underperformed the market, losing about 5.7% since the beginning of the year, while the S&P 500 has gained 22.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.11 on revenues of $123.72 million, and $0.22 on revenues of $509.7 million for the current fiscal year [7] Industry Context - The Zacks Industry Rank indicates that the Diversified Operations industry is currently in the top 26% of over 250 Zacks industries, suggesting a favorable environment for stocks in this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Exhibit 99.1 LSB INDUSTRIES, INC. REPORTS OPERATING RESULTS FOR THE 2024 THIRD QUARTER OKLAHOMA CITY, Oklahoma…October 29, 2024…LSB Industries, Inc. (NYSE: LXU) ("LSB" or the "Company") today announced results for the third quarter ended September 30, 2024. Third Quarter 2024 Results and Recent Highlights • Net sales of $109.2 million compared to $114.3 million in the third quarter of 2023 • Net loss of $25.4 million compared to a net loss of $7.7 million in the third quarter of 2023; the third quarter 2024 ...

LSB Industries, Inc. (NYSE:LXU) Q2 2024 Earnings Conference Call August 1, 2024 10:00 AM ET Company Participants Fred Buonocore - Vice President of Investor Relations Mark Behrman - President and Chief Executive Officer Damien Renwick - Executive Vice President and Chief Commercial Officer Cheryl Maguire - Executive Vice President and Chief Financial Officer Conference Call Participants Lucas Beaumont - UBS Daniel Rizzo - Jefferies Andrew Wong - RBC Capital Markets Robert McGuire - Granite Research Charles ...

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, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-7677 LSB Industries, Inc. (Exact name of Registrant as specified in its charter) rd | --- | --- | --- | |------------------------------------- ...

LSB (LXU) came out with quarterly earnings of $0.13 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.25 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this chemical maker would post earnings of $0.06 per share when it actually produced earnings of $0.12, delivering a surprise of 100%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. LSB, which belongs to the Zacks Dive ...

For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to 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 Commission file number 1-7677 LSB Industries, Inc. (Exact name of Registrant as specified in its charter) | | Delaware | 73-1015226 | | --- | --- | --- | | | (State o ...