LSB Industries Posts $158.6 Million in Sales Despite 13% Drop in Sales Volumes in Third Quarter
Key Facts
LSB Industries reported on October 28 results for the third quarter ended September 30, 2026, posting net sales of $158.6 million, compared with $155.4 million in the same period of 2025. Net income rose to $16.3 million from $7.1 million, while diluted earnings per share were $0.22 compared with $0.10. Adjusted earnings before interest, taxes, depreciation and amortization also increased to $62.3 million from $40.1 million. Results improved despite a decline in total product sales volumes, as the company attributed sales growth to higher selling prices and increased sales volumes of ammonium nitrate and nitric acid. The company’s shares, listed under the ticker LXU, closed at $10.37 on October 27; the company did not specify the timing of the announcement relative to the trading session.
Product results show a shift in the sales mix toward ammonium nitrate and nitric acid, with their sales rising 41% to $80.946 million compared with $57.522 million a year earlier. Ammonia sales increased 22% to $45.179 million from $37.072 million. By contrast, sales of urea ammonium nitrate, known as UAN, fell 61% to $20.206 million from $51.423 million. Total product sales volumes were 331,927 short tons, down 13% from 380,618 short tons in the corresponding quarter. But sales volume of ammonium nitrate and nitric acid rose 23% to 196,477 short tons from 159,662 short tons.
Prices varied by product. The average net selling price per short ton of ammonium nitrate and nitric acid rose to $365, up 19% from $307. The average ammonia price climbed to $528 per short ton from $400, an increase of 32%. The average UAN price fell 5% to $316 per short ton from $333. The company said higher selling prices and increased sales volumes for the first two products supported net sales, while lower UAN volume limited total quantities sold. Quarterly revenue therefore rose as overall volume contracted, amid growth in both volumes and prices for ammonium nitrate and nitric acid.
The improvement extended to operating profitability measures. Gross profit was $43.102 million, compared with $25.543 million in the third quarter of 2025, and operating profit rose to $26.807 million from $15.629 million. For the nine months ended September 30, the company posted net sales of $496.181 million, compared with $450.159 million in the same period of the previous year. Chief Executive Mark Behrman said the company’s three facilities recorded monthly production records during the first nine months of 2026. He added that the company was on track to post record annual production of nitric acid and ammonium nitrate solution. This comes as the company said planned maintenance at the Pryor facility began in the second quarter and was completed at the start of the third quarter, reducing ammonia and UAN sales volumes compared with the previous period.
The company linked strong demand for ammonium nitrate to mining-sector investment in North America and global markets, as well as spending tied to AI infrastructure, data centers and energy. It said supply-demand imbalances kept market fundamentals favorable and that ammonium nitrate demand remained strong. These factors provide context for higher sales volumes of the industrial products, while maintenance reduced sales volumes of some other products. On its balance sheet at September 30, 2026, cash and cash equivalents and short-term investments totaled about $203.5 million. Total debt was $442.2 million on the same date.
LSB expects fall applications to support demand in the fourth quarter and nitrogen demand to remain strong during the fall 2026 and spring 2027 fertilizer seasons. It also discussed the carbon capture and storage project in El Dorado, whose completion and start of carbon dioxide injection depend on the U.S. Environmental Protection Agency issuing a Class VI permit. The company said technical review of its resubmitted application remains ongoing. It estimated that, when fully operational, the project could generate annual earnings of between $25 million and $30 million after carbon capture operating costs, over a 12-year tax credit period, subject to continued qualification. The company was scheduled to hold its third-quarter results call on October 29, 2026, at 10 a.m. Eastern Time.