Lsb Industries Stock Earnings Reports

LSB Industries reported Q1 2026 results in line with expectations, driven by operational improvements that increased reliability, output, and margins. Q1 adjusted EBITDA rose 44% year-over-year to $52 million, operating cash flow was $52 million, free cash flow approximately $37 million, and cash on hand was about $180 million with net leverage ~1.4x. Management highlighted solid commercial demand across fertilizer and industrial markets, constrained global supply (notably due to the Middle East conflict and disruptions like reduced Trinidad production and global outages), and the expectation that elevated pricing will persist through 2026 into early 2027. The El Dorado carbon capture and sequestration (CCS) project remains on track for CO2 sequestration by year-end or early next year, and a settlement with Benham Constructors will yield ~$20.9 million; litigation with Leidos continues. Planned turnarounds (El Dorado in Q2 and Pryor in Q3) will temporarily reduce ammonia output (~35,000 tons) and incur $15–20 million in turnaround expenses, but management expects Q2 adjusted EBITDA to be meaningfully higher year-over-year despite outages. Management is evaluating brownfield expansions, debottlenecking and potential acquisitions to capture long-term upside, supported by free cash flow and potential government funding for domestic fertilizer capacity.