LSB Industries Reports Q1 2025 Net Loss of $1.64 Million Amid Increased Sales

LSB Industries, Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $1.64 million, or $0.02 per share, compared to a net income of $5.62 million, or $0.08 per share, in the same period last year. The company's net sales increased by 4% to $143.43 million from $138.20 million, driven primarily by higher sales volumes of ammonium nitrate (AN) and urea ammonium nitrate (UAN). However, gross profit fell significantly to $14.38 million, down 35% from $22.28 million in the prior year, largely due to increased costs associated with natural gas and higher depreciation and turnaround expenses.

In terms of operational metrics, LSB Industries experienced a 17% increase in sales volume for AN and nitric acid, totaling 150,531 tons sold, while UAN sales rose by 10% to 148,565 tons. Conversely, ammonia sales volumes decreased by 23% to 73,403 tons. The average selling price for ammonia rose by 9% to $453 per ton, while UAN prices fell by 3% to $295 per ton. The overall gross profit margin declined to 10.0% from 16.1% year-over-year, reflecting the impact of rising input costs.

The company’s balance sheet as of March 31, 2025, showed total assets of $1.18 billion, a slight decrease from $1.19 billion at the end of 2024. Current assets decreased to $299.33 million, primarily due to a reduction in cash and cash equivalents, which fell to $15.03 million from $20.23 million. Current liabilities also decreased to $119.47 million, down from $135.63 million, indicating improved management of short-term obligations. Long-term debt remained stable at $478.17 million, with no new borrowings reported during the quarter.

Strategically, LSB Industries is focusing on enhancing its operational reliability and safety across its facilities while expanding its product distribution. The company is also pursuing initiatives to develop low carbon ammonia, which is expected to meet growing environmental standards and market demand. A significant project in collaboration with Lapis Carbon Solutions aims to capture and sequester CO2 emissions at the El Dorado Facility, with operations expected to commence by the end of 2026. The company is also evaluating potential acquisitions to enhance its product offerings and market reach.

Looking ahead, LSB Industries anticipates continued challenges from fluctuating natural gas prices and market conditions affecting ammonia and fertilizer pricing. The company plans to invest between $80 million and $90 million in capital expenditures for 2025, focusing on sustaining production and growth initiatives. Despite the current losses, management remains optimistic about the long-term potential of its low carbon initiatives and the overall stability of its industrial product demand.