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Jun 30, 2021
LSB Industries Q2 2021 Earnings Report
Reported record adjusted EBITDA and significant year-over-year growth in top and bottom line.
Key Takeaways
LSB Industries reported a strong second quarter with a 34% increase in net sales and a nearly 60% increase in adjusted EBITDA compared to the same period last year. The company benefited from robust demand and pricing trends for both agricultural and industrial products, coupled with solid operating performance.
Net sales increased to $140.7 million compared to $105.0 million in Q2 2020.
Adjusted EBITDA reached $46.0 million, compared to $29.2 million in Q2 2020.
Adjusted EBITDA margin improved to 32.7% from 27.8% in the prior year's quarter.
Total liquidity stood at approximately $68 million as of June 30, 2021.
Forward Guidance
The company anticipates significant growth in net sales and adjusted EBITDA for the full year relative to 2020, driven by favorable trends in U.S. agricultural markets and continued recovery in key industrial end markets.
Positive Outlook
- Stronger farmer incomes in 2020
- Increased demand for corn from China and other countries
- Dry conditions in South America leading to higher corn prices
- Positive trends in key industrial end markets including automotive, homebuilding and power generation
- Economic forecasts point to continued expansion, including those from The International Monetary Fund, that predict 7% year-over-year GDP growth for the U.S. in 2021
Historical Earnings Impact
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Avg. Return Before/After Earnings
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