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Analogy 1: Like Nutrien for fertilizers, but also a key industrial chemical supplier for diverse sectors from semiconductors to mining.

Analogy 2: A diversified nitrogen chemical producer for agriculture, industry, and mining, similar to a focused Dow Chemical.

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• Nitrogen Fertilizers: Manufactures ammonia, fertilizer grade ammonium nitrate (HDAN), urea ammonia nitrate, and NPK fertilizer blends for agricultural use.
• Industrial Chemicals: Produces high purity and commercial grade ammonia, high purity ammonium nitrate, sulfuric acids, various nitric acids, carbon dioxide, and diesel exhaust fluids for diverse industrial applications.
• Mining Chemicals: Offers industrial grade ammonium nitrate and HDAN solutions for ammonium nitrate fuel oil (ANFO) and specialty emulsions used in mining and construction.

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LSB Industries (LXU) primarily sells its chemical products to other companies. The provided background information does not list the names of specific major customer companies. However, based on the applications and markets described, its major customers are businesses operating within the following broad categories:

• Agricultural Sector Customers: This category includes large farms, agricultural cooperatives, and businesses that blend fertilizers for various crops such as corn. It also encompasses operations in horticulture and greenhouses that utilize LSB's nitrogen-based fertilizers.
• Industrial Sector Customers: A diverse group of businesses requiring specialized chemical products for various applications. This includes companies involved in manufacturing semi-conductors and polyurethane intermediates; pulp and paper production; water treatment facilities; metals processing; power generation (for emissions abatement); and industries utilizing refrigerants.
• Mining, Quarry, and Construction Sector Customers: Businesses engaged in mining operations, surface mining, quarries, and construction projects that utilize industrial-grade ammonium nitrate and specialty emulsions provided by LSB Industries.
• Chemical Distributors: LSB Industries sells its products through distributors, who act as intermediaries supplying the end-users across the agricultural, industrial, and mining markets.

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Mark Behrman, Chairman and Chief Executive Officer

Mark Behrman was elected Chairman of the Board of Directors in August 2024 and has served as President and CEO of LSB Industries since 2018. He joined LSB in 2014 as Senior Vice President of Corporate Development and was Executive Vice President, Chief Financial Officer from June 2015 through December 2018. Prior to joining LSB, Mr. Behrman had over 25 years of experience as an investment banker, providing M&A and capital structure advice to companies in the industrial sector. He served as Managing Director, Head of Investment Banking and Head of the Industrial and Energy Practices of Sterne Agee, Inc., from 2007 to 2014. Mr. Behrman was a Founder and Senior Managing Director of BlueStone Capital Partners, LP, where he was part of a team that created Trade.com Global Markets Inc., and was also a Founder and Director of the BlueStone AFA Private Equity Fund. He began his financial career at PaineWebber, Inc., and Drexel Burnham Lambert, Inc. Mr. Behrman currently serves as Non-Executive Chairman of the Board of PHX Minerals, Inc. and has served on the boards of other publicly held companies, including Noble International Ltd., Oakmont Acquisition Corporation, and Robocom Systems International.

Cheryl Maguire, Executive Vice President, Chief Financial Officer

Cheryl Maguire became Executive Vice President and Chief Financial Officer of LSB Industries in January 2020, having previously served as Senior Vice President and Chief Financial Officer, a role she was promoted to in January 2019. She joined the company in November 2015 as Vice President, Financial Planning and Accounting. Ms. Maguire brings more than 20 years of financial and accounting experience across manufacturing and energy industries. Before LSB, she was a Senior Manager of financial planning and analysis with LyondellBasell from July 2012 to June 2015. Her prior experience also includes being head of external reporting, corporate accounting, accounting policy, and financial analysis at Petroplus, a European Refining company. Ms. Maguire began her career at Grant Thornton, LLP. Throughout her career, she has been integral to the financial integration of large-scale acquisitions, the execution of multiple debt and equity transactions, and the implementation of several corporate restructurings and business turnarounds.

Michael J. Foster, Executive Vice President, General Counsel and Secretary

Michael J. Foster became Executive Vice President, General Counsel and Secretary of LSB Industries on December 30, 2018. He joined LSB as Senior Vice President, General Counsel and Secretary in January 2016. Immediately prior to joining the company, Mr. Foster was in private law practice. From 2007 to 2014, he served as Senior Vice President, General Counsel and Secretary for Tronox (NYSE:TROX), a global mining and manufacturing firm.

Scott Bemis, Executive Vice President-Manufacturing

Scott Bemis is the Executive Vice President of Manufacturing for LSB Industries. He assumed this role after John Diesch retired in January 2020. Mr. Bemis has held key roles at various subsidiaries of Koch Industries since 1993. From 2007 to 2014, he was Vice President of North America Nitrogen Operations at Koch Agriculture and Energy Solutions, overseeing five nitrogen chemical manufacturing sites. He also served as Vice President of Koch's Enid, OK Modernization from 2014 to 2015, where he advanced a significant manufacturing site expansion project. Subsequently, he moved into Innovation and Transformation Director positions within Koch's petroleum refining and paper manufacturing businesses, focusing on lean manufacturing methodologies and improving asset reliability and plant productivity.

Damien Renwick, Executive Vice President, Chief Commercial Officer

Damien Renwick became Executive Vice President and Chief Commercial Officer of LSB Industries in January 2021. He has over 17 years of experience in the chemical industry. Prior to joining LSB, Mr. Renwick was President of Cyanco International and also held the position of Chief Commercial Officer at Houston-based Cyanco. He was previously with Wesfarmers Limited, located in Perth, Australia.

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1. Volatility in Natural Gas Prices

LSB Industries heavily relies on natural gas as a primary feedstock for producing ammonia, urea ammonia nitrate (UAN), and nitric acid, which are core to its agricultural and industrial chemical segments. Significant fluctuations in natural gas prices directly and materially impact the company's production costs and overall profitability. While LSB aims to mitigate this risk through strategies like increasing cost-plus contracts, which allow for the pass-through of natural gas costs to customers, unexpected spikes or sustained high prices can compress margins, as demonstrated by past earnings reports where elevated natural gas costs offset benefits from increased sales volumes.

2. Market Conditions and Product Price Volatility

The demand and pricing for LSB's products, particularly nitrogen-based fertilizers, are subject to significant volatility driven by various external factors. These include global grain demand and production levels, competitive pricing, imports, weather patterns affecting planting and crop yields, and broader economic downturns affecting industrial and mining sectors. The company's efforts to diversify into industrial markets are intended to stabilize demand; however, its substantial exposure to agricultural markets means that its revenue and profitability remain susceptible to unpredictable market swings and pricing pressures.

3. Operational Risks and Facility Reliability

LSB Industries faces considerable operational risks, primarily due to the age of its manufacturing facilities and the inherent complexities and hazards of chemical production. The risk of unplanned downtime, equipment failures, or other disruptions can lead to lost production, increased maintenance costs, and negatively impact financial performance. Given that the company's operations are concentrated in a limited number of facilities, any significant disruption, including those caused by natural disasters, poses a material threat. Furthermore, the handling of hazardous chemicals like ammonia and nitric acid necessitates stringent safety protocols to prevent accidents, explosions, chemical releases, and environmental contamination, with compliance and safety failures potentially resulting in significant financial and reputational damage.

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LSB Industries (LXU) operates in various chemical product markets, serving agricultural, industrial, and mining sectors. The addressable markets for its main products are substantial in North America and globally:

Nitrogen-Based Fertilizers

• The U.S. nitrogenous fertilizer market was valued at USD 11.76 billion in 2025 and is projected to reach approximately USD 14.90 billion by 2035, growing at a Compound Annual Growth Rate (CAGR) of 2.39% from 2026 to 2035. Other estimates place the U.S. nitrogenous fertilizer market at USD 20.42 billion in 2025, with a forecast to reach around USD 26.29 billion by 2034, at a CAGR of 2.85% from 2025 to 2034. The U.S. also represented 70.5% of the North American nitrogenous fertilizer market in 2025.
• The global nitrogenous fertilizer market size was valued at USD 67.4 billion in 2025 and is projected to reach USD 113.6 billion by 2033, growing at a CAGR of 6.8% from 2026 to 2033.

Ammonia (High Purity and Commercial Grade)

• The North America ammonia market was valued at over USD 13.92 billion in 2024. The U.S. market is anticipated to achieve a market value of USD 40,080.1 million by 2030, growing at a CAGR of 5.3% during the forecast period (2023-2030).
• The global ammonia market size was valued at USD 240.25 billion in 2024, exhibiting a CAGR of 6.50% during 2025–2034.
• The North America blue ammonia market, a low-carbon form of ammonia, was valued at USD 45.0 million in 2025 and is estimated to reach USD 1,515 million by 2035, with a significant CAGR of 42.5%.

Ammonium Nitrate (High Purity, Industrial Grade, and Fertilizer Grade)

• The U.S. ammonium nitrate market size was valued at USD 3.44 billion in 2025 and is projected to reach USD 5.01 billion by 2033, growing at a CAGR of 4.85% from 2026 to 2033.
• The North America ammonium nitrate market was valued at USD 9.71 billion in 2025 and is anticipated to reach around USD 14.91 billion by 2035, with a CAGR of 4.50%. North America held approximately 40% of the global share, being the largest market for ammonium nitrate.
• The global ammonium nitrate market size was valued at USD 33.48 billion in 2025 and is projected to reach around USD 51.42 billion by 2035, expanding at a CAGR of 4.45% over the forecast period 2026 to 2035.

Sulfuric Acids

• The North America sulfuric acid market demand stood at nearly 43.6 million tonnes in 2023 and is expected to reach approximately 60 million tonnes by 2034. In terms of revenue, the North America sulfuric acid market generated USD 1,962.6 million in 2025 and is expected to reach a projected revenue of US$ 2,698.6 million by 2033, growing at a CAGR of 4.2% from 2026 to 2033. North America is set to lead the sulfuric acid market with a 42.9% share in 2025.
• The global sulfuric acid market size was estimated at USD 14,445.4 million in 2025 and is anticipated to reach USD 21,148.04 million by 2033, growing at a CAGR of 5.0% from 2026 to 2033.

Nitric Acids (Mixed, Concentrated, Blended, and Regular)

• The U.S. nitric acid market generated a revenue of USD 4,187.9 million in 2023 and is expected to reach USD 5,247.6 million by 2030, growing at a CAGR of 3.3% from 2024 to 2030.
• North America's nitric acid capacity was around 11,589 kilotons in 2024.
• The global nitric acid market size was estimated to be approximately 68,930 kilotons in 2024, with demand poised to grow at a CAGR of 2.5% to reach 88,240 kilotons by 2034. In revenue terms, the global nitric acid market was estimated at USD 33.1 billion in 2025 and is projected to reach USD 40.8 billion by 2033, growing at a CAGR of 2.7% from 2026 to 2033.
• The global concentrated nitric acid market size was valued at USD 27.11 billion in 2024 and is anticipated to reach around USD 38.36 billion by 2034, growing at a CAGR of 3.53% from 2025 to 2034.

Carbon Dioxide

• The North America industrial carbon dioxide market is the largest, holding approximately 45% of the global share. North America dominated the industrial carbon dioxide market with 40% of the market share.
• The global industrial carbon dioxide market size was valued at US$ 1.9 billion in 2024 and is projected to be worth US$ 4.3 billion by the end of 2034, with demand forecasted to increase at a CAGR of 8.3% through 2034. Another estimate places the global market size at USD 5.5 billion in 2025, projected to reach USD 6.9 billion by 2032, growing at a CAGR of 3.2%.

Diesel Exhaust Fluids (DEF)

• The North America diesel exhaust fluid market is the largest, holding approximately 45% of the global market share. It generated a revenue of USD 12,359.6 million in 2024 and is expected to reach a projected revenue of US$ 19,749.0 million by 2030, with a CAGR of 8.3% from 2025 to 2030. North America dominated the global DEF market with the highest market share of 34% in 2025.
• The global diesel exhaust fluid market size is expected to be worth USD 42.73 billion in 2025 and is anticipated to reach around USD 90.85 billion by 2035, growing at a CAGR of 7.83% over the forecast period 2026 to 2035.

Mining Chemicals (Ammonium Nitrate Fuel Oil and Specialty Emulsions)

• The North America mining explosives market was valued at USD 3,684.62 million in 2025 and is expected to reach USD 4,632.09 million by 2035, expanding at a CAGR of 2.3%. Another report valued it at US$ 2,006.55 million in 2023, expecting it to reach US$ 2,555.03 million by 2030, growing at a CAGR of 3.5% from 2023 to 2030. The North America industrial explosives market was valued at US$ 1.93 billion in 2023 and is expected to reach US$ 2.78 billion by 2031, with a CAGR of 4.6%.
• The global mining explosives market size was valued at USD 16,424.96 million in 2025 and is expected to reach USD 20,769.78 million by 2035, growing at a CAGR of 2.4%.

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LSB Industries (LXU) is poised for future revenue growth over the next 2-3 years, driven by a combination of operational enhancements, strategic product mix shifts, the launch of low-carbon initiatives, and sustained strong market demand.

Here are 3-5 expected drivers of future revenue growth:

1. Operational Improvements and Increased Production Rates: LSB Industries expects to continue realizing revenue growth through ongoing initiatives focused on improving plant reliability, efficiency, and overall throughput. These efforts are projected to lead to higher production volumes of key products such as nitric acid, ammonium nitrate (AN), and urea ammonium nitrate (UAN). The company anticipates an additional $35 million of incremental annual EBITDA opportunity from higher production rates, efficiency gains, and cost optimization.
2. Shift Towards Higher-Margin Industrial and Upgraded Products: The company is strategically optimizing its product mix by prioritizing the production and sale of higher-margin industrial and upgraded products, often by converting ammonia into more profitable downstream products like AN and UAN. This shift is expected to provide a more stable earnings base with multiyear visibility, partly through contractual industrial sales that allow for the pass-through of natural gas costs.
3. Low-Carbon Ammonia and Carbon Capture & Sequestration (CCS) Project: LSB Industries' El Dorado carbon capture and sequestration (CCS) project is a significant driver, with operations anticipated to commence by late 2026 or early 2027. This initiative aims to produce low-carbon ammonia and capture a substantial amount of CO2 annually. The company projects approximately $15 million of annual EBITDA improvement from this project starting in early 2027, leveraging increasing customer and policy demand for decarbonized solutions and potentially commanding premium pricing.
4. Sustained Strong Market Demand and Favorable Pricing: The company anticipates continued robust demand across its agricultural, industrial, and mining markets. This includes strong agricultural demand for nitrogen fertilizers, supported by projections for significant corn planted acres, and robust demand for industrial products like ammonium nitrate for mining applications. Favorable pricing dynamics, coupled with constrained global supply, are expected to contribute to revenue growth.

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Share Repurchases

• LSB Industries completed a share repurchase program totaling $26.22 million.
• In 2025, the company repurchased approximately 0.3 million shares for $2.8 million.
• In May 2023, the Board of Directors authorized a new stock repurchase program of up to $150 million.

Capital Expenditures

• Capital expenditures for 2026 are projected to be approximately $75 million, with $55 million allocated for Environmental, Health, & Safety (EH&S) and reliability, and $20 million for enhancements in AN-focused logistics and storage.
• In 2025, free cash flow was $44 million after $53 million in sustaining capital spending, with an additional $25 million spent on discretionary growth capital expenditures.
• The company is advancing a low-carbon ammonia and carbon capture project at its El Dorado facility, targeting operations by year-end 2026 or early 2027, with the goal of capturing 400,000–500,000 metric tons of CO2 annually.