Core Insights - The demand for ammonium nitrate (AN) in mining remains strong, particularly from copper and gold miners, as they maximize production at record prices [1] - The company has optimized its production balance by reducing UAN volumes to enhance AN spot sales, supporting customers facing supply constraints [1] - LSB Industries reported record production levels for nitric acid and ammonium nitrate solution in 2025, driven by operational improvements [2][6] Financial Performance - Full-year adjusted EBITDA for 2025 reached $162 million, a 25% increase year-over-year, with Q4 EBITDA at $54 million, up 42% from the previous year [6][9] - The company ended 2025 with approximately $150 million in cash and a net leverage ratio of 1.8x, while free cash flow for the year was $44 million after sustaining capital expenditures of $53 million [17] - Operating costs were elevated due to timing of expenses and increased maintenance, but free cash flow generation remained consistent with expectations [10] Production and Pricing Outlook - UAN pricing averaged $320 per ton in Q4, reflecting a 39% increase from the prior year, with expectations of continued tight domestic supply through mid-2026 [7] - Ammonia prices remain above year-ago levels, influenced by reduced supply from the Middle East and higher production costs in Europe [8] - The company anticipates a production loss of approximately 60,000 tons of ammonia and 50,000 tons of UAN due to planned turnarounds in 2026 [5][12] Safety and Operational Improvements - LSB Industries achieved a record low reportable incident rate of 0.40 incidents per 200,000 work hours as of December 31, 2025, with three out of four sites operating injury-free for the full year [3] - The company is focused on enhancing operational efficiency and reliability, which has contributed to record production levels [2][4] Future Initiatives - LSB plans to invest approximately $75 million in capital expenditures for 2026, including environmental and reliability improvements [5][13] - The company is on track to begin CO2 sequestration as part of its carbon capture project by the end of 2026 or early 2027, with expectations of significant annual EBITDA uplift from this initiative [19][16] - Management sees an additional $35 million of incremental annual EBITDA opportunity from higher production rates and efficiency gains [18]

Q4/FY'25 Earnings Presentation February 26, 2026 Forward-Looking Statements Statements in this release 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, include, but are not limited to, statements regarding: our business strategy; anticipated future operating results and operating expenses, cash flows, ca ...

Financial Performance - Net sales increased to $155 million in Q3'25 from $109 million in Q3'24[16] - Adjusted EBITDA rose to $40 million in Q3'25, compared to $17 million in Q3'24[16] - Adjusted EBITDA margin improved to 26% in Q3'25 from 16% in Q3'24[16] - Diluted EPS was $010 in Q3'25, a significant improvement from $(035) in Q3'24[16] Sales and Production - The company saw increased sales volumes of AN (Ammonium Nitrate) and Nitric Acid in Q3'25 compared to Q3'24[8] - UAN (Urea Ammonium Nitrate) sales volumes also increased in Q3'25 compared to Q3'24[8] Market Conditions and Outlook - The company anticipates a strong market outlook for both fertilizer and industrial end markets into 2026[9] - Demand for industrial products is robust, supported by strong gold and copper prices[10, 11] - Strong fertilizer pricing is expected to continue, driven by ammonia supply disruptions and strong demand[13, 15] Balance Sheet and Liquidity - The company's cash and short-term investments totaled $152 million as of September 30, 2025[22] - Total debt was $448 million as of September 30, 2025[22] - Net debt to TTM (Trailing Twelve Months) Adjusted EBITDA was 20X[22]

Q2'25 Performance Highlights - Increased total sales volumes by 6% compared with Q2'24, driven by UAN and AN sales[10] - Net sales increased to $151 million in Q2'25 from $140 million in Q2'24[17] - Adjusted EBITDA was $38 million in Q2'25, compared to $42 million in Q2'24[17] - Adjusted EBITDA margin decreased to 25% in Q2'25 from 30% in Q2'24[17] - Diluted EPS was $004 in Q2'25, compared to $013 in Q2'24[17] Balance Sheet and Capital Allocation - Reduced debt by $32 million[10] - Cash and short-term investments were $125 million as of June 30, 2025, compared to $216 million as of June 30, 2024[23] - Total debt was $453 million as of June 30, 2025, compared to $486 million as of June 30, 2024[23] - Net debt to TTM Adjusted EBITDA was 27x[23] El Dorado CCS Project - The El Dorado low carbon ammonia project is progressing towards a 2H'26 startup[10]

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]