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Lsb Industries (LXU)
NYSE:LXU

Lsb Industries (LXU) AI Stock Analysis

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Lsb Industries

(NYSE:LXU)

Rating:55Neutral
Price Target:
$8.00
▼(-4.31%Downside)
LSB Industries faces significant profitability and cash flow challenges, impacting its overall financial health. Technical analysis provides a neutral outlook, with no clear momentum signals. The valuation is unattractive due to a negative P/E ratio. The earnings call and corporate events offer some optimism with positive sales growth and strategic focus on low carbon projects, but these are offset by operational and cost challenges.

Lsb Industries (LXU) vs. SPDR S&P 500 ETF (SPY)

Lsb Industries Business Overview & Revenue Model

Company DescriptionLSB 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 MoneyLSB Industries makes money through the production and distribution of its nitrogen-based chemical products. The company's primary revenue streams are derived from the sale of fertilizers to agricultural customers and chemical products to industrial and mining clients. By operating manufacturing facilities strategically located to serve key markets efficiently, LSB Industries can optimize distribution costs and leverage economies of scale. Additionally, the company may engage in strategic partnerships and long-term supply agreements with key customers to secure a stable revenue base and enhance market reach. Fluctuations in commodity prices, agricultural demand, and industrial activity are significant factors influencing the company's earnings.

Lsb Industries Earnings Call Summary

Earnings Call Date:Apr 29, 2025
(Q1-2025)
|
% Change Since: 37.50%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. The company showed improvements in sales volumes and safety, strong demand for industrial products, and increased stability through cost-plus contracts. However, these were counterbalanced by higher natural gas costs, project delays, and the suspension of a significant project due to economic uncertainties.
Q1-2025 Updates
Positive Updates
Improved Sales Volumes
Overall sales volumes improved 4% quarter-over-quarter, driven by solid improvement in sales volumes for ammonium nitrate and UAN.
Zero Recordable Injuries
The company achieved zero recordable injuries across the organization during the first quarter.
Strong Demand for Industrial Products
Demand for industrial products remains robust, with continued ramp-up in ammonium nitrate solutions and strong global demand for copper and gold.
Increased Corn Planting
The USDA reported an increase in intended corn planting acres to 95.3 million, driving strong fertilizer demand and pricing.
Improved Financial Stability
Growth in cost-plus contracts from less than 20% in 2021 to 30% by the end of Q1 2025, with expectations to reach 35% by year-end, enhancing earnings stability.
Negative Updates
Materially Higher Natural Gas Costs
Higher natural gas costs offset improvements in sales volumes and pricing, impacting adjusted EBITDA.
Delayed Turnaround at El Dorado
The turnaround at the El Dorado site has been pushed to 2026 due to delays in equipment delivery, leading to changes in production and expense estimates.
Pause on Houston Ship Channel Project
The company decided to pause the Houston Ship Channel project due to tariff-related price increases and slower-than-anticipated demand for low-carbon ammonia.
Company Guidance
During the LSB Industries First Quarter 2025 Earnings Conference Call, several key metrics and forward-looking guidance were discussed. The company reported a 4% quarter-over-quarter improvement in overall sales volumes, attributed to increased production of ammonium nitrate and UAN, alongside enhanced facility reliability. Despite a decrease in adjusted EBITDA to $29 million from $33 million in the first quarter of 2024, the company highlighted robust demand for its industrial products and strong pricing trends, particularly for UAN, which saw a 73% increase to $350 per ton. The firm also noted a shift towards more stable cost-plus contracts, growing from 20% of sales volumes in 2021 to 30% in Q1 2025, with an expectation to reach 35% by year-end. Furthermore, LSB Industries announced a delay in its Houston Ship Channel project due to tariff-related price increases and postponed the turnaround at its El Dorado site, increasing its 2025 ammonia production outlook by approximately 30,000 tons. The company remains focused on expanding its low-carbon ammonia production, aiming to deliver 250,000 tons by the end of 2026, while maintaining a strong balance sheet and exploring opportunities for growth within its existing asset portfolio.

Lsb Industries Financial Statement Overview

Summary
LSB Industries faces profitability and cash flow challenges, with declining margins and negative free cash flow in the TTM. The balance sheet shows moderate leverage, but the company's financial position indicates pressures in maintaining profitability and liquidity. Continued focus on enhancing operational efficiency and cost control will be crucial moving forward.
Income Statement
45
Neutral
The income statement indicates challenges with profitability. The TTM gross profit margin is approximately 7.56%, and the net profit margin is -5.04%, both reflecting a decline in profitability from prior periods. Revenue growth is negative compared to previous years, indicating potential demand issues or competitive pressures.
Balance Sheet
55
Neutral
The balance sheet shows a moderately leveraged position, with a debt-to-equity ratio of around 1.06 in TTM. The equity ratio is 41.7%, suggesting some reliance on debt but still a fair amount of equity financing. ROE has declined, indicating reduced return on shareholders' equity.
Cash Flow
50
Neutral
Cash flow analysis reveals negative free cash flow in TTM, indicating cash outflows surpassing inflows from operations and investments. The operating cash flow to net income ratio shows operational cash generation, but free cash flow to net income is negative, highlighting cash management challenges.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue527.63M522.40M593.71M901.71M556.24M351.32M
Gross Profit39.90M47.80M86.26M348.37M138.98M17.05M
EBITDA75.92M82.69M120.70M378.60M170.99M55.31M
Net Income-26.62M-19.35M27.92M230.35M43.55M-61.91M
Balance Sheet
Total Assets1.18B1.19B1.30B1.44B1.13B1.05B
Cash, Cash Equivalents and Short-Term Investments163.55M184.20M305.93M394.32M82.14M16.26M
Total Debt519.81M518.81M619.99M743.28M559.93M517.61M
Total Liabilities685.38M695.55M779.85M923.95M672.35M631.56M
Stockholders Equity490.56M491.64M518.33M515.87M460.49M421.74M
Cash Flow
Free Cash Flow-26.35M-5.72M69.92M299.82M52.50M-32.98M
Operating Cash Flow68.53M86.58M137.52M345.65M87.63M-2.51M
Investing Cash Flow-106.25M-53.08M57.40M-369.74M-34.69M-28.43M
Financing Cash Flow-75.77M-114.30M-157.66M5.71M12.95M24.41M

Lsb Industries Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.36
Price Trends
50DMA
7.52
Positive
100DMA
7.05
Positive
200DMA
7.77
Positive
Market Momentum
MACD
0.18
Positive
RSI
61.79
Neutral
STOCH
83.81
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 8.36 is above the 20-day moving average (MA) of 8.11, above the 50-day MA of 7.52, and above the 200-day MA of 7.77, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 61.79 is Neutral, neither overbought nor oversold. The STOCH value of 83.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LXU.

Lsb Industries Risk Analysis

Lsb Industries disclosed 35 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

Overall Rating
UnderperformOutperform
Sector (43)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$662.81M7.5411.26%2.72%6.03%5079.05%
60
Neutral
$285.80M-10.12%2.20%34.71%
LXLXU
55
Neutral
$602.34M-5.28%-4.23%-259.01%
54
Neutral
$868.37M-8.44%8.74%4.15%57.25%
FFFF
54
Neutral
$176.97M11.43-3.29%5.94%-33.92%-58.53%
47
Neutral
$586.29M-127.59%245.97%-16.23%
43
Neutral
AU$1.39B-6.14-40.74%4.06%-3.45%-41.77%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
LXU
Lsb Industries
8.52
0.67
8.54%
FF
Futurefuel
4.11
-0.87
-17.47%
TROX
TRONOX
5.69
-9.90
-63.50%
RYAM
Rayonier Advanced Materials
4.33
-1.14
-20.84%
ASIX
AdvanSix
23.13
0.11
0.48%
ASPI
ASP Isotopes, Inc.
7.52
4.05
116.71%

Lsb Industries Corporate Events

Executive/Board ChangesShareholder Meetings
LSB Industries Holds Annual Stockholders Meeting
Neutral
May 19, 2025

On May 15, 2025, LSB Industries, Inc. conducted its annual meeting of stockholders where key decisions were made, including the election of three directors to the board for terms ending in 2028, and the approval of a new long-term incentive plan. Additionally, Ernst & Young LLP was ratified as the company’s independent accounting firm for 2025, and a non-binding advisory vote approved the compensation for the company’s executive officers, reflecting shareholder support for the company’s strategic direction and governance.

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.

Business Operations and StrategyFinancial Disclosures
LSB Industries Reports Q1 2025 Financial Results
Positive
Apr 30, 2025

On April 30, 2025, LSB Industries, Inc. released its financial results for the first quarter of 2025, highlighting a 4% increase in sales volumes compared to the previous year, despite challenges posed by higher natural gas costs. The company reported strong demand for its fertilizer and industrial products, with UAN pricing and overall demand remaining robust. LSB is also progressing with its El Dorado low carbon ammonia project, which is on track for a late 2026 startup, and has achieved pre-certification status for low carbon ammonia production.

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.Date of analysis: Jun 28, 2025