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Mar 31, 2022
LSB Industries Q1 2022 Earnings Report
Reported record operating results and achieved all-time highest quarterly EBITDA in company history.
Key Takeaways
LSB Industries reported a strong first quarter in 2022, marked by record results and substantial growth in net sales, adjusted EBITDA, and EPS. The company's performance was driven by increased product selling prices and successful commercial initiatives, supported by robust nitrogen industry market dynamics.
Net sales increased to $199.0 million compared to $98.1 million in the first quarter of 2021.
Adjusted EBITDA reached $101.1 million, a significant increase from $17.3 million in the same period last year.
Adjusted EBITDA margin improved to 50.8% compared to 17.6% in the first quarter of 2021.
Adjusted EPS was reported at $0.69 in the first quarter of 2022.
Revenue by Segment
Forward Guidance
Demand for fertilizers is expected to remain robust for the balance 2022. Corn prices are currently near record-high levels, and corn futures point to corn prices remaining at elevated levels throughout 2022 and through the first half of 2023.
Positive Outlook
- Corn prices are near record highs, supporting strong farmer income.
- U.S. ethanol demand is near pre-pandemic levels, boosting domestic corn prices.
- Dry conditions in South America and the Western U.S. have constricted global corn supplies.
- Selling prices for products have significantly outpaced the increase in gas costs.
- Industrial business is expected to see continued strong demand due to a healthy economic growth forecast.
Challenges Ahead
- Domestic gas prices are at their highest levels since 2008, increasing feedstock costs.
- The microprocessor shortage continues to impact automobile production and sales.
- Geopolitical instability, particularly the Russian invasion of Ukraine, is disrupting the global supply of corn, wheat, and ammonia.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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