A smaller, more specialized CF Industries, producing nitrogen chemicals for agriculture and industrial use.

Like a manufacturing arm of Nutrien, focused on nitrogen fertilizers and industrial chemicals.

• Ammonia: A critical chemical used primarily as an agricultural fertilizer and as a foundational building block for other nitrogen-based chemicals.
• Nitric Acid: An important industrial chemical used in the production of fertilizers, explosives, and various other chemical compounds.
• Ammonium Nitrate: Widely used as a high-nitrogen fertilizer and a component in industrial explosives.
• Urea Ammonium Nitrate (UAN) Solution: A liquid fertilizer mixture of urea and ammonium nitrate dissolved in water, commonly applied directly to crops.
• Diesel Exhaust Fluid (DEF): An aqueous urea solution used to reduce harmful nitrogen oxide emissions from diesel engines.

LSB Industries (NYSE: LXU) sells primarily to other companies (Business-to-Business or B2B) across agricultural, industrial, and mining sectors.

According to its latest annual reports (10-K), no single customer accounted for more than 10% of LSB Industries' consolidated net sales for the years ended December 31, 2023, 2022, or 2021. Therefore, specific names of individual "major customers" are not publicly disclosed by the company, and thus no symbols can be provided for specific customer companies.

Instead, LSB Industries serves a diversified customer base through various channels. Its major customer categories include:

• Agricultural Distributors and Cooperatives: These entities purchase LSB's fertilizers (e.g., urea ammonium nitrate, ammonia, nitric acid) for distribution to farmers and agricultural end-users.
• Industrial Manufacturers and Service Companies: A broad range of companies utilize LSB's chemicals (e.g., nitric acid, ammonia, UAN) for applications such as power generation (NOx abatement), water treatment, metalworking, electronics manufacturing, and other chemical processing.
• Mining Companies (Explosives Manufacturers): Companies that produce explosives for mining operations are significant customers for LSB's ammonium nitrate.

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Mark T. Behrman, Chairman and Chief Executive Officer

Mr. Behrman joined LSB Industries in 2014 as Senior Vice President of Corporate Development. He was appointed Executive Vice President and Chief Financial Officer in June 2015, then became President and Chief Executive Officer in 2018, and was elected Chairman in August 2024. He has over 35 years of experience in operational, financial, executive management, and investment banking. Before joining LSB, 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. Notably, Mr. Behrman was a Founder and Senior Managing Director of BlueStone Capital Partners, LP, where he helped create Trade.com Global Markets Inc., and was also a Founder and Director of the BlueStone AFA Private Equity Fund. He has served on the boards of publicly held companies, including Noble International Ltd., Oakmont Acquisition Corporation, and Robocom Systems International.

Cheryl Maguire, Executive Vice President, Chief Financial Officer

Ms. Maguire became Executive Vice President and Chief Financial Officer in January 2020, having previously served as Senior Vice President and CFO. She joined LSB Industries in November 2015 as Vice President, Financial Planning and Accounting. With over 20 years of financial and accounting experience across manufacturing and energy sectors, her career prior to LSB included roles as a Senior Manager of financial planning and analysis with LyondellBasell and as head of external reporting, corporate accounting, accounting policy, and financial analysis at Petroplus, a European Refining company. She began her career at Grant Thornton, LLP. Ms. Maguire has been instrumental in the financial integration of large-scale acquisitions, the execution of various debt and equity transactions, and the implementation of corporate restructurings and business turnarounds.

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

Mr. Foster was appointed Executive Vice President, General Counsel and Secretary on December 30, 2018, having initially joined LSB Industries as Senior Vice President, General Counsel and Secretary in January 2016. With over 20 years of experience, he specializes in mergers and acquisitions, complex commercial transactions, and restructuring, and possesses significant litigation experience, including high-stakes bankruptcy reorganizations and large settlements. From 2007 to 2014, he held the position of Senior Vice President, General Counsel and Secretary for Tronox, a global mining and manufacturing firm, and prior to that, was a member of the Kerr-McGee legal team.

Scott Bemis, Executive Vice President-Manufacturing

Mr. Bemis joined LSB Industries as Executive Vice President-Manufacturing in May 2024. He brings over 32 years of experience in chemical manufacturing, including leadership positions at Dow Chemical Company and DuPont Water and Protection. Most recently, he served as the Kemerton Site Director for Albemarle Energy Storage since 2023 and as the Richburg MegaFlex Site Director from 2022 to 2023. His expertise spans leading large manufacturing teams, research and development (R&D), managing large capital projects, ensuring reliability and maintenance, and overseeing environmental, health, and safety (EH&S) and regulatory functions.

Damien Renwick, Executive Vice President, Chief Commercial Officer

Mr. Renwick became Executive Vice President and Chief Commercial Officer of LSB Industries in January 2021. He has more than 17 years of experience in the chemical industry. Prior to LSB, he served as President of Cyanco International and Chief Commercial Officer at Cyanco from 2017 to 2019. Earlier in his career, he held various positions of increasing responsibility within the Chemicals, Energy and Fertilizers division of Wesfarmers Limited in Australia, including Director and General Manager of Australian Gold Reagents. He started his career in the consulting division of Arthur Andersen and has been involved in significant commercial transactions, capital growth projects, and acquisition and divestment activities.

The clear emerging threat for LSB Industries is the accelerating global shift towards decarbonization in industrial chemical production, specifically the emergence of "green ammonia." This trend threatens LXU's traditional, natural gas-based ammonia production in two primary ways:

1. Emergence of Green Ammonia: Significant investments and technological advancements are driving the development and scaling of "green ammonia" production, which utilizes renewable energy to produce hydrogen for synthesis. As this technology matures and becomes more commercially viable, it could lead to a preference for sustainably produced chemicals among customers and create a competitive disadvantage for producers relying on fossil fuel feedstocks like LSB Industries, similar to how new, cleaner energy sources challenge traditional fossil fuels.
2. Increased Regulatory and Carbon Pricing Pressure: Governments and international bodies are increasingly implementing carbon taxes, emissions trading schemes, and stricter environmental regulations aimed at reducing industrial emissions. Such measures would directly increase the operational costs for LSB Industries' natural gas-based production, making their products more expensive relative to "green" alternatives and potentially impacting market share and profitability.

LSB Industries (LXU) manufactures and sells chemical products primarily for the agricultural, industrial, and mining sectors in the United States. The addressable markets for its main products are as follows:

• Ammonia and Ammonia-related Products: The U.S. ammonia market was valued at approximately USD 13.51 billion in 2024 and is projected to reach about USD 28.63 billion by 2033, demonstrating a compound annual growth rate (CAGR) of 8.7% during this period. Another estimate places the U.S. ammonia market size at USD 18.85 billion in 2024, growing to around USD 31.65 billion by 2034 with a CAGR of 5.32% from 2025 to 2034. Globally, the ammonia market was valued at USD 224.10 billion in 2024 and is projected to grow to USD 313.21 billion by 2030, at a CAGR of 5.9%. North America is identified as the world's second-largest producer and user in the global ammonia market.
• Nitric Acid: The U.S. nitric acid market was valued at USD 2.25 billion in 2022 and is projected to grow at a CAGR of 3.5% during the forecast period. The global nitric acid market was estimated at USD 29.8 billion in 2022 and is projected to reach USD 35.9 billion by 2030, with a CAGR of 2.4% from 2023 to 2030. Another report indicates the global nitric acid market was valued at USD 32.39 billion in 2024 and is expected to reach USD 39.89 billion in 2033, with a CAGR of 2.34% between 2025 and 2033. The global concentrated nitric acid market was valued at USD 27.11 billion in 2024 and is anticipated to reach approximately USD 38.36 billion by 2034, growing at a CAGR of 3.53% from 2025 to 2034.
• Agricultural Chemicals (Fertilizers and Crop Protection): The U.S. agrochemicals market was valued at USD 35.19 billion in 2024 and is expected to reach about USD 42.69 billion by 2034, growing at a CAGR of 1.95% over the forecast period. Fertilizers constituted the largest segment within the U.S. agrochemicals market, holding a 66.8% revenue share in 2023. The U.S. crop protection chemicals market was valued at USD 22.32 billion in 2024 and is projected to be worth around USD 40.08 billion by 2034, with a CAGR of 6.03% from 2025 to 2034.
• Mining Chemicals: The U.S. mining chemicals market generated revenues of USD 1,470.7 million in 2021 and is expected to reach USD 2,603.8 million by 2030, exhibiting a CAGR of 6.6% from 2022 to 2030. Globally, the mining chemicals market was estimated at USD 11.44 billion in 2023 and is projected to grow at a CAGR of 6.4% from 2024 to 2030. Another estimate for the global mining chemicals market size was USD 12.08 billion in 2024, projected to grow to USD 20.41 billion by 2033, with a CAGR of 6%. The North America mining chemicals market was valued at US$ 1,119.63 million in 2022 and is expected to reach US$ 1,558.03 million by 2030, at a CAGR of 4.2%.
• Industrial Chemicals (General): The U.S. chemical distribution market, which encompasses a wide array of industrial chemicals, was valued at USD 29.24 billion in 2023 and is anticipated to grow from USD 31.01 billion in 2024 to USD 49.99 billion by 2032, exhibiting a CAGR of 6.1% during the forecast period.

LSB Industries (LXU) is poised for future revenue growth over the next 2-3 years, driven by several strategic initiatives and favorable market dynamics:

1. Enhanced Production Volumes and Operational Efficiency: LSB Industries has reported significant progress in the first nine months of 2025, primarily due to increased production volumes of ammonia, urea ammonium nitrate (UAN), and ammonium nitrate (AM). The company continues to invest in the reliability and efficiency of its plants, which is expected to sustain higher production and sales volumes.
2. Strategic Shift to Industrial Sales and Optimized Product Mix: The company is actively transitioning its sales mix towards more contractual industrial sales. This strategy allows LSB Industries to pass natural gas costs through to customers, providing greater earnings stability. Furthermore, LSB completed its shift from high-density ammonium nitrate for fertilizers to an ammonium nitrate solution for explosives, optimizing its product mix. Demand for ammonium nitrate in the mining sector and for infrastructure projects remains robust, while strong nitric acid sales are supported by increased domestic production of methylene diphenyl diisocyanate (MDI) due to tariffs on imports.
3. New Revenue Stream from Low-Carbon Ammonia Project: LSB's low-carbon ammonia project at its El Dorado facility is a significant growth driver. The technical review for its permit is anticipated to conclude in the first quarter of 2026, with operations expected to commence by the end of 2026. This project is projected to generate approximately $15 million in annual EBITDA, with the majority of this contribution starting in 2027.
4. Favorable Market Conditions and Strong Product Pricing: The market outlook for LSB's key products, including ammonia and UAN, remains strong. Ammonia pricing has been healthy, with Tampa ammonia increasing for November settlement. UAN prices have also seen significant support from steady exports, lower imports, and robust demand, with Q3 2025 prices up considerably over Q3 2024. These favorable market conditions are expected to continue into 2026.
5. Continued Investment in Growth Opportunities: After a period of increased capital expenditures in 2024 and the first half of 2025, LSB Industries is generating free cash flow and is well-positioned to continue investing in strategic growth opportunities. The company is actively evaluating potential expansions in ammonia production capacity, which could further contribute to revenue growth.

Share Repurchases

• In May 2023, LSB Industries' Board of Directors authorized a stock repurchase program for up to $150 million of its outstanding common stock, with approximately $121 million remaining as of December 31, 2023.
• In August 2022, the company repurchased 5,500,000 shares of common stock at $13.00 per share, totaling $71.5 million, as part of a secondary offering by selling stockholders.
• During the full year 2024, LSB Industries repurchased approximately 1.5 million shares of common stock for about $12.1 million.

Share Issuance

• In August 2022, affiliates of Eldridge Industries LLC, as selling stockholders, offered 13,500,000 shares of the company's common stock in a secondary offering; LSB Industries itself did not sell shares in this offering.
• A follow-on public offering in August 2022 involved 14.7 million shares of common stock sold by certain selling stockholders, totaling $187 million.
• In November 2022, a selling stockholder offered 14,350,000 shares of common stock in a secondary offering, with no shares sold by the company.

Capital Expenditures

• Capital expenditures for property, plant, and equipment were $35.1 million in 2021 and $67.6 million in 2023.
• For the first quarter of 2024, capital expenditures amounted to $18.3 million.
• Upcoming capital expenditures include planned turnarounds at the Pryor and Cherokee facilities in the second half of 2024, and a major ammonia turnaround at the El Dorado facility scheduled for the third quarter of 2025, aimed at improving reliability and increasing production volumes.
• The low-carbon project at the El Dorado facility is expected to be completed by the end of 2026, targeting the capture and sequestration of 400,000 to 500,000 metric tons of CO2 per year.