LSB Industries, Inc. (NYSE: LXU) reported fourth‑quarter 2025 results that included net sales of $165.049 million, a 22.8% year‑over‑year increase from $134.9 million in Q4 2024. Diluted earnings per share rose to $0.22, beating the consensus estimate of $0.18 by $0.04 (a 22% beat) and turning a $0.13 loss in the same quarter a year earlier into a profit.
Revenue growth was driven by higher pricing power and increased volumes of ammonium nitrate solution and nitric acid, coupled with reliability gains across the company’s three owned plants. Adjusted gross margin expanded to 29.6%, up 6.7 percentage points from 22.9% in Q3 2025, reflecting the combined effect of a favorable mix and disciplined cost management.
The company highlighted a 12‑month rolling total reportable incident rate (TRIR) of 0.40 incidents per 200,000 work hours, a record low that underscores its focus on safety. CEO Mark Behrman said, "I am proud of the progress that the team made across our business in 2025. We continued to improve our overall safety performance by achieving a 12‑month rolling total reportable incident rate of 0.40 incidents per 200,000 work hours as of December 31, 2025, a record low."
LSB’s guidance for 2026 projects full‑year net sales of $615.2 million to $647.0 million, reflecting continued demand for industrial‑grade ammonia and the anticipated ramp‑up of its low‑carbon ammonia initiative. Management noted that planned turnarounds could reduce ammonia and UAN production, but the company expects to sustain margin recovery into the next fiscal year.
Prior‑period context shows a clear turnaround: Q4 2024 net sales were $134.9 million with a diluted EPS of $(0.13), while full‑year 2024 net sales were $522.4 million and EPS was $(0.27). The 2025 results therefore represent a significant shift from loss to profit and a strong rebound in sales.
"We delivered significant year‑over‑year growth in net sales, adjusted EBITDA and EPS in both the fourth quarter and full‑year 2025," Behrman added, emphasizing the company’s disciplined commercial execution and operational progress that enabled it to capitalize on favorable pricing momentum across its key products.
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