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Dec 31, 2021
LSB Industries Q4 2021 Earnings Report
LSB Industries reported record operating results driven by a confluence of positive factors including favorable trends in product selling prices coupled with ability to operate facilities reliably and benefits of commercial initiatives.
Key Takeaways
LSB Industries reported a significant increase in net sales and adjusted EBITDA for both the fourth quarter and the full year 2021. The company's strong performance was attributed to favorable product selling prices, reliable facility operations, and successful commercial initiatives.
Net sales increased to $190.2 million compared to $88.9 million in Q4 2020.
Adjusted EBITDA reached $90.1 million compared to $10.4 million in Q4 2020.
Adjusted EBITDA margin was 47.4% compared to 11.7% in Q4 2020.
Adjusted EPS was $0.72 in Q4 2021.
Forward Guidance
LSB Industries anticipates robust demand for agricultural products and continued economic growth to drive strong sales and adjusted EBITDA levels in 2022.
Positive Outlook
- Corn prices expected to remain strong, supporting farmer income and fertilizer demand.
- U.S. ethanol demand near pre-pandemic levels.
- Dry conditions in South America and the Western U.S. constricting global corn supplies.
- The Conference Board forecasts full year 2022 GDP expansion of 3.5%.
- Strength in the Tampa ammonia price has positive implications for our industrial business as a number of industrial chemical contracts are indexed to the Tampa ammonia price.
Challenges Ahead
- Planned turnarounds at Pryor and El Dorado facilities may reduce certain product volumes.
- Microprocessor shortage continues to impact automobile production and sales
- Domestic gas prices are at multi-year high levels
Historical Earnings Impact
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Avg. Return Before/After Earnings
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