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Mar 31
LSB Industries Q1 2025 Earnings Report
LSB Industries reported operating results for the first quarter ended March 31, 2025.
Key Takeaways
LSB Industries reported a decrease in net income and EPS for Q1 2025 compared to the prior year, primarily due to higher natural gas costs, despite an increase in net sales driven by higher volumes of UAN and AN and improved pricing for ammonia and AN.
Net sales increased by 4% to $143.4 million in Q1 2025 compared to $138.2 million in Q1 2024.
The company reported a net loss of $1.6 million in Q1 2025, a decrease from a net income of $5.6 million in Q1 2024.
Diluted EPS was $(0.02) in Q1 2025, down from $0.08 in Q1 2024.
Adjusted EBITDA decreased to $29.1 million in Q1 2025 from $32.6 million in Q1 2024, largely due to higher natural gas costs.
LSB Industries
LSB Industries
LSB Industries Revenue by Segment
Revenue by Segment
AN & Nitric Acid Revenue
CapyFin.comUrea Ammonium Nitrate (UAN) Revenue
CapyFin.comAmmonia Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
LSB Industries expects to benefit from moderated natural gas prices in the second quarter and sees strong market conditions for their products, particularly in agricultural and industrial sectors. They plan to continue investing in reliability improvements and projects that increase profits while managing leverage.
Positive Outlook
- Expectation of benefiting from moderated natural gas prices in Q2.
- Strong market conditions for nitrogen fertilizers due to historically high U.S. corn plantings.
- Healthy ammonia application season and UAN prices well above year-ago levels.
- Robust demand for nitric acid and ammonium nitrate in the industrial sector.
- Strong balance sheet to support investments in core business and profitable projects.
Challenges Ahead
- Uncertainty in the industry and broader economy due to the effect of tariffs.
- Potential impact of tariffs on the cost side of the business for parts, components, and equipment sourced from outside the U.S.
- Decision to pause the Houston Ship Channel project due to U.S. tariff-related price increases and global economic uncertainties.
- Slower-than-anticipated ramp-up of low carbon ammonia demand impacting project decisions.
- Natural gas prices remain volatile despite recent moderation.
Revenue & Expenses
Visualization of income flow from segment revenue to net income