UNITED STATES SECURITIES AND EXCHANGE COMMISSION For the transition period from __________ to __________ Commission File Number: 1-7677 WASHINGTON, D.C. 20549 LSB INDUSTRIES, INC. FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact Name of Registrant as Specified in its Charter) Delaware 73-1015226 (State of o ...

LSB Industries, Inc. (NYSE:LXU) Q4 2023 Earnings Conference Call March 6, 2024 10:00 AM ET Company Participants Fred Buonocore - Vice President of Investor Relations Mark Behrman - Chief Executive Officer Cheryl Maguire - Chief Financial Officer Conference Call Participants Josh Spector - UBS Anthony Mercandetti - Deutsche Bank Adam Samuelson - Goldman Sachs Dan Rizzo - Jefferies Andrew Rong - RBC Capital Markets Rob McGuire - Granite Research Operator Greetings and welcome to the LSB Industries' Fourth Qua ...

Q4 2023 EARNINGS PRESENTATION March 6, 2024 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 growth and other strategies and ...

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $9 million for Q3 2023, a significant decline from the record $50 million in Q3 2022, primarily due to lower market prices for nitrogen products and reduced nitric acid production [14][15][8] - Year-to-date cash flow from operations reached approximately $120 million, with capital expenditures of $41 million, resulting in nearly $80 million of free cash flow and a conversion rate of over 70% [16][60] - The company expects capital expenditures for Q4 2023 to be between $15 million and $20 million, with total CapEx for the year around $60 million [16] Business Line Data and Key Metrics Changes - Demand for ammonium nitrate in mining applications remains strong, driven by infrastructure projects and the growth of electric vehicles [13] - Sales volumes of nitric acid and derivative products were somewhat lower, but the company managed to meet most customer commitments by purchasing nitric acid or transporting products from other facilities [34][8] Market Data and Key Metrics Changes - Corn prices have decreased from recent highs of $7 per bushel to around $5, which is still considered healthy and incentivizes farmers to plant more corn [2][12] - Nitrogen prices are firming up, with Tampa ammonia currently at $625 per metric ton, a significant increase from the low of $285 per metric ton in July [36] - The company anticipates that average fertilizer prices, particularly nitrogen fertilizer prices, in 2024 will be higher than in 2023 [108] Company Strategy and Development Direction - The company is focused on expanding its El Dorado facility with an estimated cost of $400 million, with the USDA proposing to fund 25% of the project costs [10][30] - LSB Industries is advancing several core growth projects, including a partnership with INPEX and Air Liquide to develop a low-carbon ammonia production facility [19][29] - The company is prioritizing blue ammonia projects over green ammonia due to current market conditions and regulatory uncertainties [42][43] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment with Q3 results but remains optimistic about strong fertilizer demand due to lower farm input costs and the goal of maximizing yields [8][12] - The company expects a good fall ammonia run and anticipates healthy demand for fertilizer across the board in 2024 [107][108] - Management noted that the pricing challenges faced in 2023 have not deterred their long-term growth strategy and they continue to generate positive free cash flow [60] Other Important Information - The company has a stockholder rights plan to protect certain tax attributes [25] - The trailing 12-month total recordable injury rate was 0.34, reflecting the company's commitment to safety [26] - The company is in discussions with potential off-takers for its ammonia production and expects to finalize agreements as they progress through the pre-FEED phase [73][87] Q&A Session Summary Question: Can you provide more granularity on the Houston Ship Channel projects? - Management indicated that the project cost is estimated between $500 million and $750 million, with a potential 50/50 ownership structure with INPEX [62][47] Question: How has the UAW strike impacted nitric acid volumes? - Management stated there has been no impact on nitric acid volumes, as the strikes were short-lived [112] Question: What are the trends for nitric acid into year-end? - Management expects strong demand for nitric acid, with healthy market conditions continuing [87] Question: When do you expect to have off-take agreements for blue ammonia? - Management is currently in discussions and anticipates moving into the feed phase by the second quarter of 2025 [73] Question: What is the outlook for ammonia pricing in Q1 2024? - Management expects a significant increase in ammonia pricing for Q1 2024, as they have not sold anything forward [80]

Forward-looking statements Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward- looking statements. Although we believe the expectations re ...

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 September 30, 2023 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) (State or other jurisdiction of incorporation or organiz ...

July 27, 2023 Q2'23 Overview – Healthy Volume Increase Offset by Lower Prices Return of capital to shareholders through the repurchase of $125 million of debt and 1.8 million shares of common stock | --- | --- | |--------------------------------------------|------------------------------------------------------------------------------------| | | | | have recently begun to increase | Nitrogen price trends have hit an inflection point and | | Tampa ammonia price settled at $295/MT for | August, up $10/MT; fir ...

LSB Industries, Inc. (NYSE:LXU) Q2 2023 Earnings Conference Call July 27, 2023 10:00 AM ET Company Participants Fred Buonocore - Vice President of Investor Relations Mark Behrman - Chief Executive Officer Cheryl Maguire - Chief Financial Officer Conference Call Participants Josh Spector - UBS David Begleiter - Deutsche Bank Andrew Wong - RBC Capital Markets Adam Samuelson - Goldman Sachs Dan Rizzo - Jefferies Rob McGuire - Granite Research Operator Greetings, and welcome to the LSB Industries Second Quarter ...

Environmental Initiatives - The company is developing projects to produce blue and green ammonia, with blue ammonia expected to capture and sequester over 450,000 metric tons of CO2 annually, potentially increasing production to over 375,000 metric tons of blue ammonia [97]. - The company has entered into a non-binding MOU with Amogy Inc. to develop low-carbon ammonia as a marine fuel, focusing on the U.S. inland waterways transportation sector [99]. - The company achieved a key milestone in its blue ammonia project by filing a pre-construction Class VI permit application with the EPA, recognized as complete in March 2023 [97]. Financial Performance - Consolidated net sales for Q2 2023 were $165.8 million, a decrease of 42% compared to $284.8 million in Q2 2022 [125]. - Average selling prices for key products decreased significantly, with ammonia prices dropping by 67% from $1,184 per ton in Q2 2022 to $388 per ton in Q2 2023 [135]. - Gross profit for Q2 2023 was $36.0 million, down 75% from $142.9 million in Q2 2022, resulting in a gross profit percentage of 21.7% compared to 50.2% in the prior year [138]. - Total net sales for the first half of 2023 were $346.8 million, a decrease of 28% compared to $483.8 million in the same period of 2022 [145]. - Adjusted gross profit for the first half of 2023 was $112.0 million, down 59% from $273.3 million in the first half of 2022 [145]. - Net income for the first half of 2023 was $41.0 million, a decline of 75% compared to $162.2 million for the same period in 2022 [145]. Production and Capacity - Ammonia production is targeted at approximately 830,000 to 850,000 tons for 2023, reflecting investments in plant reliability [123]. - The company is evaluating organic capacity expansion opportunities across all facilities, with potential projects expected to enhance annual profitability [100]. - The company has a three-year ammonia plant turnaround cycle, with the next planned for Q3 2024 [122]. Market Dynamics - The U.S. corn market dynamics are favorable, with corn prices above 10-year averages, which may support stronger fertilizer pricing in late 2023 and early 2024 [106]. - The company expects nitrogen pricing to stabilize near current levels, with anticipated demand increases as the 2024 planting season approaches [105]. - The USDA estimates a 62% increase in U.S. ending stocks for the 2023 harvest, indicating a potential impact on fertilizer demand [111]. Cost Management and Investments - The company plans to invest in improving Environmental, Health & Safety and Reliability at its facilities, aiming for a 95% ammonia on-stream operating rate to enhance profitability [95]. - The company is evaluating supply chain efficiencies to mitigate rising transportation costs impacting margins [120]. - Capital expenditures for 2023 are expected to be between $60 million and $80 million, primarily for reliability and maintenance projects [167]. Debt and Cash Management - The company repurchased $125 million in principal amount of Senior Secured Notes for approximately $114.3 million, recognizing a gain on extinguishment of approximately $8.6 million [127]. - Total long-term debt as of June 30, 2023, was $583.6 million, down from $712.3 million at the end of 2022 [166]. - Net cash provided by operating activities was $102.9 million for the first half of 2023, down from $220.8 million in the first half of 2022, a change of $117.9 million [159]. - Net cash provided by investing activities was $30.2 million for the first half of 2023, a significant improvement from net cash used of $341.9 million in the same period of 2022 [162]. - The company has approximately $55.4 million of availability on its undrawn Working Capital Revolver Loan as of June 30, 2023 [167]. - As of June 30, 2023, the company had approximately $314 million in cash and short-term investments [169].

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 March 31, 2023 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) | Delaware | | --- | (State or other jurisdiction of incorpo ...