Lsb Industries (LXU) AI Stock Analysis

• Market Cap: $857.85M
• Dividend Yield: N/A
• Average Volume (3M): 373.18K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 1.26
• Revenue Growth: 12.49%
• EPS Growth: 95.48%
• Country: US
• Employees: 583
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals
• EPS (TTM): 0.22
• Shares Outstanding: 71,846,840
• 10 Day Avg. Volume: 411,777
• 30 Day Avg. Volume: 373,176
• PEG Ratio: -0.11
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 6.44
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 2.46
• Enterprise Value/Gross Profit: 14.50
• Enterprise Value/Ebitda: 10.42
• 1Y Price Target: $11.38
• Price Target Upside: -10.11% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.4
• Revenue Forecast (FY): $575.24M

• Rating: 66 Neutral
• Price Target: $12.50 ▼(-1.26% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven mainly by improved financial health (notably a stronger balance sheet and a 2025 profitability/FCF rebound) and a constructive technical uptrend. This is partially offset by limited valuation support (negative P/E and no dividend yield provided) and guidance headwinds from 2026 turnaround-related volume reductions and near-term cost volatility.

Positive Factors

Balance Sheet Strength

A markedly stronger balance sheet and very low leverage in 2025 increases financial flexibility for sustaining capex, managing commodity cycles, and opportunistic deleveraging. Durable capital structure improvement reduces refinancing risk and supports multi-year reliability and growth investments.

Improved Cash Generation

Material positive free cash flow and higher EBITDA in 2025 demonstrate the business can convert operational gains into cash. Sustained cash generation enables prioritized EH&S and reliability capex, debt paydown, and selective returns to shareholders, strengthening long-run solvency and investment capacity.

Strategic CCS & Value Roadmap

A defined roadmap (CCS and operational initiatives) that already captured ~$20M and aims for ~$70M of annual EBITDA creates structural margin upside. If permits and commercialization proceed, CCS adds differentiated low‑carbon capability and predictable incremental EBITDA over multiple years.

Negative Factors

Earnings/Cash Flow Volatility

Historic cyclicality in earnings and free cash flow undermines predictability for capital allocation and investor planning. Large swings across commodity and demand cycles mean multi-year forecasting and sustained financing capacity remain exposed to volatile input costs and agricultural demand trends.

2026 Turnarounds Cut Volumes

Scheduled major turnarounds materially lower 2026 output and shift production cadence, pressuring revenue and utilization. Even with planned reliability benefits, the multi-quarter volume reduction can depress near‑term EBITDA and delay full realization of efficiency and margin gains.

Slow Premiums for Low‑Carbon Products

While CCS provides structural decarbonization potential, slow commercial willingness to pay premiums means returns and payback on low‑carbon investments may be delayed. This execution and market-adoption risk can defer expected EBITDA uplift and extend payback horizons for capital deployed.

Lsb Industries Business Overview & Revenue Model

Company Description

LSB Industries, Inc. engages in the manufacture, marketing, and sale of chemical products. The company provides nitrogen-based fertilizers, such as ammonia, fertilizer grade ammonium nitrate (HDAN), and urea ammonia nitrate for fertilizer and fertilizer blends for corn and other crops, and NPK fertilizer blends applications. It also offers high purity and commercial grade ammonia, high purity ammonium nitrate, sulfuric acids, mixed nitrating acids, carbon dioxide, and diesel exhaust fluids, as well as concentrated, and blended and regular nitric acids for various applications, including semi-conductor and polyurethane intermediates; pulp and paper, alum, water treatment, metals, and vanadium processing; power plant emissions abatement, water treatment, refrigerants, and metals processing; exhaust stream additive, and horticulture/greenhouse applications; and refrigeration. In addition, the company provides industrial grade ammonium nitrate, ammonium nitrate, and HDAN solutions for ammonium nitrate fuel oil and specialty emulsions for mining, surface mining, quarries, and construction applications. It sells its products through distributors, as well as directly to end customers in the United States, Mexico, and Canada. The company serves to the agricultural, industrial, and mining markets. LSB Industries, Inc. was founded in 1968 and is headquartered in Oklahoma City, Oklahoma.

How the Company Makes Money

Lsb Industries generates revenue primarily through the sale of its nitrogen-based fertilizers and industrial chemicals. The company’s key revenue streams include the production and distribution of ammonia, urea, and other related nitrogen products, which are sold to agricultural producers and industrial customers. Additionally, the Climate Control segment contributes to revenue through the sale of HVAC systems and related services. Significant factors affecting its earnings include the fluctuating prices of raw materials, demand for agricultural products, and the overall economic conditions affecting the construction and industrial sectors. Partnerships with agricultural cooperatives and distributors also enhance its market reach and sales volume.

Lsb Industries Financial Statement Overview

Summary

Financials improved in 2025 with a return to profitability, sharply stronger balance sheet leverage versus 2021–2024, and positive free cash flow. The main constraint is cyclicality and volatility: results swung from very strong (2022) to a loss (2024), and cash flow consistency remains uneven.

Income Statement

Profitability has improved meaningfully: 2025 returned to positive earnings with stronger operating profitability versus 2024, alongside modest revenue growth. That said, results remain volatile across the cycle—2022 showed exceptionally high margins and profits that did not persist, and 2024 swung back to a loss with weaker revenue. Overall, the income statement shows recovery, but with uneven margin durability and cyclical earnings risk.

Balance Sheet

The balance sheet strengthened sharply in 2025, with very low leverage (debt is a small fraction of equity) compared with the high leverage profile seen from 2021–2024. Equity is sizable relative to assets, and returns on equity turned positive again in 2025 after a loss year in 2024. The main watch-out is the company’s recent history of heavier leverage and profit swings, which can reintroduce balance-sheet strain in a downturn.

Cash Flow

Cash generation is positive in 2025, with operating cash flow solid and free cash flow positive, a clear improvement versus 2024 when free cash flow was negative. However, cash flow consistency is mixed: free cash flow has been highly volatile year-to-year (very strong in 2022, materially weaker afterward), and 2025 shows an extreme negative free-cash-flow growth figure, highlighting instability. Overall, cash flow is currently supportive but not yet steady across the cycle.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	615.21M	522.40M	593.71M	901.71M	556.24M
Gross Profit	104.30M	47.80M	86.26M	348.37M	138.98M
EBITDA	145.14M	82.69M	120.70M	378.60M	158.31M
Net Income	24.61M	-19.35M	27.92M	230.35M	43.55M
Balance Sheet
Total Assets	1.17B	1.19B	1.30B	1.44B	1.13B
Cash, Cash Equivalents and Short-Term Investments	148.47M	184.20M	305.93M	394.32M	82.14M
Total Debt	527.08M	526.22M	619.99M	743.28M	559.93M
Total Liabilities	425.33M	695.55M	779.85M	923.95M	672.35M
Stockholders Equity	748.21M	491.64M	518.33M	515.87M	460.49M
Cash Flow
Free Cash Flow	95.52M	-5.72M	69.92M	299.82M	52.50M
Operating Cash Flow	95.52M	86.58M	137.52M	345.65M	87.63M
Investing Cash Flow	-42.36M	-53.08M	57.40M	-369.74M	-34.69M
Financing Cash Flow	-53.88M	-114.30M	-157.66M	5.71M	12.95M

Lsb Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LXU, the sentiment is Positive. The current price of 12.66 is above the 20-day moving average (MA) of 10.40, above the 50-day MA of 9.66, and above the 200-day MA of 8.66, indicating a bullish trend. The MACD of 0.66 indicates Negative momentum. The RSI at 80.90 is Negative, neither overbought nor oversold. The STOCH value of 98.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LXU.

Lsb Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LXU	66 Neutral	$857.85M	9.54	-0.13%	―	12.49%	95.48%
ASIX	64 Neutral	$495.00M	9.44	6.20%	3.81%	-5.05%	35.01%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HUN	57 Neutral	$2.24B	-6.29	-9.63%	8.44%	-3.46%	-191.77%
RYAM	52 Neutral	$731.70M	-0.94	-78.11%	―	-9.75%	-386.63%
TROX	51 Neutral	$1.10B	―	-29.57%	8.27%	-7.81%	-334.15%
VHI	47 Neutral	$395.38M	-5.06	1.78%	2.71%	-0.65%	-79.35%

Lsb Industries Corporate Events

LSB Industries Reports Strong 2025 Results, Provides 2026 Outlook

On February 26, 2026, LSB Industries released a financial presentation detailing its fourth-quarter and full-year 2025 results, highlighting significant year-over-year growth in net sales, adjusted EBITDA and earnings per share driven by improved production performance and strong market pricing. The company reported record safety metrics, robust demand across industrial and agricultural markets, continued balance sheet strengthening through debt and share repurchases, and issued a 2026 outlook that anticipates continued reliability improvements but lower ammonia production due to planned turnarounds, along with detailed cost and volume guidance for key product lines.

Strong fertilizer pricing, constrained global ammonia supply and steady industrial and mining demand supported LSB’s ability to convert favorable conditions into enhanced profitability, with adjusted EBITDA margins expanding in both the fourth quarter and full year 2025 despite higher natural gas costs. Management underscored ample liquidity, disciplined capital expenditure focused on safety and reliability, and the ongoing protection of tax assets via a stockholder rights plan effective through August 22, 2026, signaling a continued focus on free cash flow generation and shareholder value creation.

The most recent analyst rating on (LXU) stock is a Hold with a $10.50 price target. To see the full list of analyst forecasts on Lsb Industries stock, see the LXU Stock Forecast page.

LSB Industries Updates Executive Long-Term Incentive Arrangements

On February 4, 2026, LSB Industries’ compensation committee adopted a new restricted stock unit award agreement under its 2025 Long-Term Incentive Plan and approved 2026 long-term incentive grants for key executives, combining time-based and performance-based RSUs with updated performance mechanics. The plan introduces a three-year performance cycle starting January 1 of the grant year, uses annual return on net assets targets and a relative total shareholder return modifier against peers, and adds accelerated vesting upon qualifying retirement and other separation events.

The new structure provides for time-based RSUs vesting ratably over three years and performance-based RSUs that vest after three years based on averaged annual performance and TSR-adjusted payouts, subject to caps and committee certification. On February 10, 2026, the committee also entered a side letter with CEO Mark T. Behrman that grants full acceleration of time-based RSUs and at least target-level vesting of performance-based RSUs upon a qualifying retirement, with similar protections to apply to his future equity awards.

The most recent analyst rating on (LXU) stock is a Hold with a $10.50 price target. To see the full list of analyst forecasts on Lsb Industries stock, see the LXU Stock Forecast page.

LSB Industries Adopts New Executive Severance and CIC Agreements

On January 14, 2026, LSB Industries, Inc.’s compensation committee approved, and the company entered into, severance and change-in-control agreements with Executive Vice President and Chief Commercial Officer Damien J. Renwick and Executive Vice President, Manufacturing, Scott D. Bemis, establishing protections tied to potential changes in corporate ownership. Under these agreements, if a qualifying termination without cause or for good reason occurs within a specified window surrounding a change in control, Renwick would receive a cash payment equal to two times his annual base salary and Bemis one times his annual base salary, subject to a release of claims, with the term of the agreements running from January 14, 2026, automatically renewing annually and extending beyond any change in control to ensure continuity and clarity of obligations for both the executives and the company.

The most recent analyst rating on (LXU) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Lsb Industries stock, see the LXU Stock Forecast page.