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Jun 30, 2025
LSB Industries Q2 2025 Earnings Report
LSB Industries, Inc. reported its operating results for the second quarter of 2025, showing an increase in net sales but a decrease in net income and adjusted EBITDA compared to the prior year.
Key Takeaways
LSB Industries reported a 6% year-over-year increase in sales volumes for the second quarter of 2025, driven by higher sales volumes of UAN and AN, and stronger UAN selling prices. However, net income and adjusted EBITDA decreased due to materially higher natural gas input costs compared to the multi-year low levels in the prior year period.
Net sales increased to $151.3 million in Q2 2025, up from $140.1 million in Q2 2024.
Net income decreased significantly to $3.0 million in Q2 2025, compared to $9.6 million in Q2 2024.
Diluted EPS was $0.04, down from $0.13 in the second quarter of 2024.
Adjusted EBITDA was $38.3 million, a decrease from $41.9 million in the same period last year, primarily due to higher natural gas costs.
Revenue by Segment
Forward Guidance
LSB Industries expects natural gas costs to be less of a year-over-year headwind in the third quarter. The company anticipates continued strong demand and favorable pricing dynamics across its end markets, particularly for UAN, nitric acid, and ammonium nitrate. The El Dorado Carbon Capture and Sequestration (CCS) Project is on track to be operational by the end of 2026, pending EPA approval.
Positive Outlook
- Expectation of natural gas costs being less of a headwind in Q3.
- Favorable demand dynamics across end markets, especially for UAN, nitric acid, and ammonium nitrate.
- Robust pricing for UAN, well above year-ago levels.
- Strong end market demand for nitric acid and ammonium nitrate, benefiting from U.S. copper mining activity and quarrying/aggregate production.
- Low carbon project at El Dorado facility remains on track for operation by end of 2026, pending EPA approval.
Challenges Ahead
- Higher natural gas input costs continue to offset higher selling prices and operating improvements.
- Reliance on EPA approval for Class VI permit application for the El Dorado CCS project.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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