Lsb Industries, Inc. (LXU)
NYSE:LXU
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Lsb Industries
(NYSE:LXU)
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Rating:66Neutral
Price Target:
$12.50
▼(-8.16% Downside)
Action:Downgraded
Date:05/22/26
The score is driven primarily by improving financial performance (strong TTM cash flow and much lower leverage) and constructive earnings-call guidance pointing to continued EBITDA/FCF strength, partially offset by weak near-term technical momentum and cyclical/operational risks (turnarounds and legal exposure).
Positive Factors
Strengthened Balance Sheet
Material deleveraging has restored balance-sheet flexibility, reducing refinancing risk and increasing capacity to fund brownfield expansions, sustain capex and opportunistic M&A. Low leverage makes the company more resilient through commodity cycles and supports multi-year strategic options.
Negative Factors
Earnings and Cash Flow Cyclicality
Revenue and margin sensitivity to fertilizer markets and natural gas prices creates persistent volatility in profitability and FCF. This reduces predictability for capital allocation, makes multi-year planning harder, and can pressure margins and returns during weak commodity cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Strengthened Balance Sheet
Material deleveraging has restored balance-sheet flexibility, reducing refinancing risk and increasing capacity to fund brownfield expansions, sustain capex and opportunistic M&A. Low leverage makes the company more resilient through commodity cycles and supports multi-year strategic options.
Read all positive factors
Lsb Industries (LXU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$818.66M
Dividend YieldN/A
Average Volume (3M)897.66K
Price to Earnings (P/E)18.1
Beta (1Y)0.76
Revenue Growth21.54%
EPS GrowthN/A
CountryUS
Employees583
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)0.63
Shares Outstanding71,938,840
10 Day Avg. Volume749,527
30 Day Avg. Volume897,661
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)1.18
Price to Sales (P/S)1.00
P/FCF Ratio34.07
Enterprise Value/Market Cap1.61
Enterprise Value/Revenue2.05
Enterprise Value/Gross Profit10.46
Enterprise Value/Ebitda7.99
Forecast
1Y Price Target
$15.50Price Target Upside13.89% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)1.09
Revenue Forecast (FY)$686.69M
Lsb Industries Business Overview & Revenue Model
Company Description
LSB Industries, Inc. specializes in the production, distribution, and sale of a diverse array of chemical compounds. The company is a key supplier of nitrogen-based agricultural inputs, including ammonia, fertilizer-grade ammonium nitrate (HDAN), ...
How the Company Makes Money
LSB Industries makes money primarily by manufacturing and selling nitrogen-based chemical products. Its core revenue streams are (1) agricultural products—selling ammonia and fertilizer-related nitrogen products to customers in agriculture and who...
Lsb Industries Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call emphasized significant operational progress, strong quarterly financial results (adjusted EBITDA +44% YoY), solid cash generation and balance-sheet strength, along with market dynamics that are supporting favorable pricing. Key near-term negatives include scheduled turnarounds (El Dorado ~35k tons outage and $15–$20M in costs), higher operating costs that partially offset gains, ongoing legal exposure versus Leidos, and persistent global supply-chain and import risks that keep the market uncertain. Management expects continued improvement, meaningful free cash flow, and opportunities to invest in growth supported by market tailwinds and potential government support.Positive Updates
Progress on El Dorado CCS Project
Carbon capture & sequestration project milestones achieved: drilled injection well and completed underground horizontal CO2 pipeline; capture-area civil work and capture equipment deliveries planned for summer with assembly expected late fall; target to begin CO2 sequestration by end of this year or early next year.
Negative Updates
Scheduled Turnarounds and Production Impact
El Dorado turnaround underway expected to reduce ammonia production by approximately 35,000 tons in Q2 and incur ~$15–$20 million of turnaround-related expenses; Pryor turnaround scheduled in Q3 with potential downtime risk.
Read all updates
Q1-2026 Updates
Positive
Negative
Progress on El Dorado CCS Project
Carbon capture & sequestration project milestones achieved: drilled injection well and completed underground horizontal CO2 pipeline; capture-area civil work and capture equipment deliveries planned for summer with assembly expected late fall; target to begin CO2 sequestration by end of this year or early next year.
Read all positive updates
Company Guidance
The company guided to continued improvement and strong cash generation, citing Q1 adjusted EBITDA of $52 million (up 44% YoY from $29M), two consecutive quarters above $50M of EBITDA, roughly $180M in cash, net leverage of 1.4x, operating cash flow of $52M, sustaining capex of $15M and free cash flow of about $37M for the quarter, plus an expected legal settlement of ~$20.9M; they expect Q2 adjusted EBITDA to be meaningfully higher than Q1 and last year’s Q2 despite an El Dorado turnaround that will reduce ammonia production by ~35,000 tons and incur ~$15–20M of turnaround costs. Market guidance included Tampa ammonia ~ $775/mt and NOLA UAN ~ $480/ton so far in Q2, U.S. natural gas trading well below $3/MMBtu, elevated pricing expected through 2026 and into early 2027, a very low UAN carry at June 30 (around 2025 levels), and a USDA corn acreage projection of 95 million acres; operationally, CO2 sequestration at El Dorado is targeted by year-end or early next year, and management expects to realize a substantial portion of a path to $50M of annual EBITDA by year-end with the balance by the end of next year.Lsb Industries Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 641.26M | 615.21M | 522.40M | 593.71M | 901.71M | 556.24M |
| Gross Profit | 125.71M | 104.30M | 47.80M | 86.26M | 348.37M | 138.98M |
| EBITDA | 164.47M | 145.14M | 82.69M | 143.95M | 378.60M | 158.31M |
| Net Income | 45.94M | 24.61M | -19.35M | 27.92M | 230.35M | 43.55M |
Balance Sheet | ||||||
| Total Assets | 1.19B | 1.17B | 1.19B | 1.30B | 1.44B | 1.13B |
| Cash, Cash Equivalents and Short-Term Investments | 181.68M | 148.47M | 184.20M | 305.93M | 394.32M | 82.14M |
| Total Debt | 491.88M | 489.41M | 526.22M | 619.99M | 743.28M | 559.93M |
| Total Liabilities | 648.41M | 653.57M | 695.55M | 779.85M | 923.95M | 672.35M |
| Stockholders Equity | 542.95M | 519.97M | 491.64M | 518.33M | 515.87M | 460.49M |
Cash Flow | ||||||
| Free Cash Flow | 144.37M | 18.06M | -5.72M | 69.92M | 299.82M | 52.50M |
| Operating Cash Flow | 140.48M | 95.52M | 86.58M | 137.52M | 345.65M | 87.63M |
| Investing Cash Flow | -82.56M | -42.36M | -53.08M | 57.40M | -369.74M | -34.69M |
| Financing Cash Flow | -52.31M | -53.88M | -114.30M | -157.66M | 5.71M | 12.95M |
Lsb Industries Technical Analysis
Negative
13.61
Price Trends
13.59
Negative
12.98
Negative
10.88
Positive
Market Momentum
-0.60
Positive
32.98
Neutral
11.66
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LXU, the sentiment is Negative. The current price of 13.61 is above the 20-day moving average (MA) of 12.44, above the 50-day MA of 13.59, and above the 200-day MA of 10.88, indicating a neutral trend. The MACD of -0.60 indicates Positive momentum. The RSI at 32.98 is Neutral, neither overbought nor oversold. The STOCH value of 11.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LXU.
Lsb Industries Risk Analysis
Lsb Industries disclosed 34 risk factors in its most recent earnings report. Lsb Industries reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lsb Industries Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $818.66M | 18.06 | 8.91% | ― | 21.54% | ― | |
65 Neutral | $2.09B | -6.44 | -11.76% | 8.44% | -4.74% | -149.27% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
55 Neutral | $535.41M | 51.54 | 1.28% | 3.81% | -0.63% | -87.72% | |
48 Neutral | $610.32M | -1.29 | -153.52% | ― | -10.59% | -571.99% | |
47 Neutral | $1.18B | -2.54 | -31.25% | 8.27% | -4.02% | -206.93% | |
44 Neutral | $382.93M | -5.32 | -6.96% | 2.71% | -0.68% | -161.91% |
* Basic Materials Sector Average
LXU
Lsb Industries
11.38
3.13
37.94%
HUN
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2.01
20.00%
VHI
Valhi
13.53
-1.83
-11.90%
TROX
TRONOX
7.40
2.42
48.68%
RYAM
Rayonier Advanced Materials
9.05
5.23
136.91%
ASIX
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19.86
-3.15
-13.70%
Lsb Industries Corporate Events
Executive/Board ChangesShareholder Meetings
LSB Industries Shareholders Back Directors, Pay and Auditor
Positive
May 21, 2026
On May 21, 2026, LSB Industries, Inc. held its 2026 annual meeting of stockholders, where investors elected three directors, Jonathan Z. Ackerman, Diana M. Peninger, and Lynn F. White, to serve terms expiring in 2029, with all nominees receiving s...
Business Operations and StrategyFinancial Disclosures
LSB Industries Reports Strong First-Quarter 2026 Earnings Growth
Positive
Apr 30, 2026
On April 30, 2026, LSB Industries published its first-quarter 2026 earnings presentation, reporting significant year-over-year increases in net sales, adjusted EBITDA and diluted EPS, as improved production performance and disciplined commercial e...
Executive/Board Changes
LSB Industries Grants Retention RSUs to CEO Behrman
Positive
Apr 27, 2026
On April 24, 2026, LSB Industries’ board compensation committee approved a one-time retention grant of 706,880 restricted stock units to Chairman, President and CEO Mark T. Behrman under the company’s 2025 Long-Term Incentive Plan. The...
Business Operations and StrategyExecutive/Board Changes
LSB Industries Updates Board, Adopts Modernized Governance Bylaws
Positive
Apr 3, 2026
On March 30, 2026, LSB Industries director Steven L. Packebush retired from the board, with the company noting his departure was not due to any disagreement over operations or policies, and on April 2, 2026, the board appointed Meridian Infrastruc...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.