Want to see LXU full AI Analyst Report?
Top Page
Lsb Industries
(NYSE:LXU)
Select Model
Select Model
Rating:68Neutral
Price Target:
$12.00
▲(14.94% Upside)
Action:Reiterated
Date:10/30/26
The score is driven primarily by improved financial performance (rebounding margins and strong TTM free cash flow) and a favorable, confidence-building earnings call with concrete EBITDA and CCS earnings catalysts. Offsetting factors include only moderate technical strength (still below the 200-day average) and a valuation that appears average (P/E ~17.65) without a dividend cushion, alongside ongoing cyclicality and event risks highlighted on the call.
Positive Factors
Structural U.S. Natural-Gas Cost Advantage
LSB’s access to substantially lower-cost U.S. natural gas supports a durable manufacturing advantage over higher-cost European producers. This can protect product margins, improve competitiveness in nitrogen markets, and strengthen resilience when global supply conditions become more challenging.
Negative Factors
Cyclical and Volatile Earnings
LSB’s earnings remain exposed to nitrogen prices, energy costs, demand conditions, and plant operating rates. The large historical swings show that current margins may not persist through a weaker cycle, making medium-term cash generation and returns less predictable than recent results suggest.
Read all positive and negative factors
Positive Factors
Negative Factors
Structural U.S. Natural-Gas Cost Advantage
LSB’s access to substantially lower-cost U.S. natural gas supports a durable manufacturing advantage over higher-cost European producers. This can protect product margins, improve competitiveness in nitrogen markets, and strengthen resilience when global supply conditions become more challenging.
Read all positive factors
Lsb Industries (LXU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$829.47M
Dividend YieldN/A
Average Volume (3M)828.57K
Price to Earnings (P/E)18.3
Beta (1Y)0.45
Revenue Growth13.02%
EPS GrowthN/A
CountryUS
Employees513
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)0.63
Shares Outstanding71,997,505
10 Day Avg. Volume987,759
30 Day Avg. Volume828,569
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)1.18
Price to Sales (P/S)1.00
P/FCF Ratio34.07
Enterprise Value/Market Cap1.21
Enterprise Value/Revenue1.52
Enterprise Value/Gross Profit7.63
Enterprise Value/Ebitda6.03
Forecast
1Y Price Target
$11.25Price Target Upside7.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.57
Revenue Forecast (FY)$652.81M
Lsb Industries Business Overview & Revenue Model
Company Description
LSB Industries, Inc. specializes in the production, distribution, and sale of a diverse array of chemical compounds. The company is a key supplier of nitrogen-based agricultural inputs, including ammonia, fertilizer-grade ammonium nitrate (HDAN), ...
How the Company Makes Money
LSB Industries makes money by manufacturing nitrogen-based chemical products and selling them to customers in agricultural and industrial markets. Its core revenue model is product sales: it produces ammonia and other nitrogen-related products at ...
Lsb Industries Earnings Call Summary
Earnings Call Date:Oct 28, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 24, 2027
Earnings Call Sentiment Positive
The call was strongly positive, with significant year-over-year adjusted EBITDA growth, strong demand across both businesses, favorable nitrogen-market conditions, improved plant reliability, solid cash generation, and multiple initiatives expected to add earnings over time. The company also acknowledged geopolitical supply risks, higher SG&A, lower third-quarter volumes related to the turnaround, weather-related agricultural uncertainties, incomplete USDA funding for a later expansion phase, and an unresolved legal trial.Positive Updates
Strong Third-Quarter Financial Performance
Strong demand across the industrial and agricultural businesses, higher nitric acid and AN solution production, and effective commercial execution drove a 55% increase in adjusted EBITDA year over year, from $40 million in the third quarter of 2025 to $62 million in the third quarter of 2026. Adjusted EPS also increased year over year.
Negative Updates
Geopolitical Conflicts Disrupt Global Supply
Supply constraints stemming from continued geopolitical conflicts in the Middle East and Black Sea region continue to challenge global nitrogen and energy markets. The company said the path of these conflicts is difficult to predict.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Financial Performance
Strong demand across the industrial and agricultural businesses, higher nitric acid and AN solution production, and effective commercial execution drove a 55% increase in adjusted EBITDA year over year, from $40 million in the third quarter of 2025 to $62 million in the third quarter of 2026. Adjusted EPS also increased year over year.
Read all positive updates
Company Guidance
Management expects to favor AN until sometime in the first half of 2027, with supply issues resolving sort of towards the end of first half next year; the fourth-quarter order book is “70% or so sold,” with “significantly less sold” for the first quarter, while elevated European gas costs are expected to persist through the winter, supporting a constructive nitrogen market through at least spring 2027. Annual ammonia production could be 875,000 tons-900,000 tons a year with no turnarounds and full-out operation, including El Dorado at between 1,350 and 1,370 tons a day and higher than 1,370 in the winter, Pryor generally between 675 and 700 tons a day, and Cherokee at 520-530 on a daily rate basis. The company expects to add another $15 million of annual EBITDA improvement by the end of 2026, reach approximately $35 million in cumulative annual run rate improvements, capture another $15 million to $20 million of annual EBITDA improvement by the end of 2027, and generate between $25 million and $30 million of annual earnings from CCS when fully operational; the potential El Dorado ammonia expansion could add approximately 100,000 tons of annual ammonia production capacity and between $20 million and $25 million of incremental annual EBITDA, with FID sometime during the second quarter of 2027, total net project cost between $105 million and $120 million, and completion alongside the planned 2029 turnaround.Lsb Industries Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
62
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 661.23M | 615.21M | 522.40M | 593.71M | 901.71M | 556.24M |
| Gross Profit | 131.56M | 104.30M | 47.80M | 86.26M | 348.37M | 138.98M |
| EBITDA | 166.60M | 145.14M | 82.69M | 143.95M | 378.60M | 158.31M |
| Net Income | 45.98M | 24.61M | -19.35M | 27.92M | 230.35M | 43.55M |
Balance Sheet | ||||||
| Total Assets | 1.22B | 1.17B | 1.19B | 1.30B | 1.44B | 1.13B |
| Cash, Cash Equivalents and Short-Term Investments | 203.47M | 148.47M | 184.20M | 305.93M | 394.32M | 82.14M |
| Total Debt | 482.33M | 489.41M | 526.22M | 619.99M | 743.28M | 559.93M |
| Total Liabilities | 666.41M | 653.57M | 695.55M | 779.85M | 923.95M | 672.35M |
| Stockholders Equity | 558.11M | 519.97M | 491.64M | 518.33M | 515.87M | 460.49M |
Cash Flow | ||||||
| Free Cash Flow | 205.93M | 18.06M | -5.72M | 69.92M | 299.82M | 52.50M |
| Operating Cash Flow | 149.60M | 95.52M | 86.58M | 137.52M | 345.65M | 87.63M |
| Investing Cash Flow | -125.69M | -42.36M | -53.08M | 57.40M | -369.74M | -34.69M |
| Financing Cash Flow | -14.17M | -53.88M | -114.30M | -157.66M | 5.71M | 12.95M |
Lsb Industries Technical Analysis
Positive
10.44
Price Trends
10.55
Positive
10.74
Positive
11.79
Negative
Market Momentum
0.11
Negative
66.85
Neutral
65.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LXU, the sentiment is Positive. The current price of 10.44 is above the 20-day moving average (MA) of 10.30, below the 50-day MA of 10.55, and below the 200-day MA of 11.79, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 66.85 is Neutral, neither overbought nor oversold. The STOCH value of 65.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LXU.
Lsb Industries Risk Analysis
Lsb Industries disclosed 34 risk factors in its most recent earnings report. Lsb Industries reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lsb Industries Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $749.33M | 13.04 | 13.12% | 8.87% | 12.06% | 9.40% | |
68 Neutral | $829.47M | 18.29 | 8.51% | ― | 13.02% | ― | |
63 Neutral | $11.07B | 15.38 | 7.73% | 8.55% | 17.90% | 95.98% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
60 Neutral | $25.12B | -27.54 | -4.50% | 4.03% | 4.16% | 20.86% | |
54 Neutral | $2.01B | -11.97 | -9.57% | 4.55% | -0.73% | -415.18% | |
49 Neutral | $1.69B | -9.69 | -6.28% | 3.63% | 0.65% | 45.36% |
* Basic Materials Sector Average
LXU
Lsb Industries
11.52
3.09
36.65%
HUN
Huntsman
9.64
1.61
20.00%
OLN
Olin
17.60
-2.36
-11.85%
SSL
Sasol
17.22
10.89
172.04%
WLKP
Westlake Chemical PRN
21.26
4.01
23.27%
DOW
Dow Inc
34.70
11.97
52.68%
Lsb Industries Corporate Events
Business Operations and StrategyFinancial Disclosures
LSB Industries Reports Strong Q3 Results and Outlook
Positive
Oct 29, 2026
On October 29, 2026, LSB Industries posted its third-quarter 2026 financial presentation, highlighting a roughly 55% year-over-year increase in adjusted EBITDA and a 120% jump in diluted EPS. The company attributed the improved results to better p...
Business Operations and StrategyRegulatory Filings and Compliance
LSB Industries Highlights Strategy in New Investor Presentation
Positive
Sep 9, 2026
LSB Industries has released a new investor presentation for use in meetings with investors and analysts, outlining its position as a diversified U.S. nitrogen producer with strategically located plants and a product mix spanning ammonia, UAN, ammo...
Business Operations and StrategyFinancial Disclosures
LSB Industries Q2 Earnings Highlight Growth and Turnarounds
Positive
Jul 30, 2026
On July 30, 2026, LSB Industries released its second‑quarter 2026 earnings presentation, reporting about 40% year‑over‑year growth in adjusted EBITDA to $53 million on net sales of $168 million, despite reduced production from tu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.