LSB Industries Q2 sales beat estimates on higher prices

Overview

• U.S. ammonia and fertilizer producer's Q2 revenue rose 11% yr/yr on higher prices and volumes

• Company posted Q2 net loss, citing $28.8 mln in turnaround expenses for plant maintenance

• Adjusted EBITDA rose to $53.1 mln from $38.3 mln, helped by higher sales and pricing

Outlook

• Company expects higher production rates and improved performance in the second half of 2026

• Market conditions for industrial and fertilizer businesses remain constructive, with strong demand outlook

• Company anticipates robust nitrogen demand through the full fertilizer application season

Result Drivers

• PLANNED TURNAROUNDS - Significant maintenance at El Dorado and Pryor plants led to $28.8 mln in turnaround expenses and reduced production and sales volumes for ammonia and UAN

• HIGHER SELLING PRICES - Increased prices for AN, UAN and ammonia contributed to higher net sales

• LOWER INPUT COSTS - Average natural gas costs fell 15% yr/yr, supporting margins

Company press release: ID:nBw3VNY62a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the diversified chemicals peer group is "buy."

• Wall Street's median 12-month price target for LSB Industries Inc is $13.25, about 15.9% above its July 28 closing price of $11.43

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 25 three months ago

Reuters Recommended Reads

• July 28 - Canada's Methanex Q2 revenue and adjusted EPS rise less than expected

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• July 29 - Stepan Q2 net sales rise on surfactant, polymer growth; to cut jobs

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)