LSB Posts Second-Quarter Loss After Pulling Forward Pryor Turnaround

The Tip Desk · July 30, 2026 · 3 min read

Adjusted EBITDA was $53.1 million as net sales reached $168.1 million and turnaround costs of about $28.8 million produced a $6.2 million net loss.

LSB Industries, Inc. (LXU), the Oklahoma City nitrogen producer, swung to a net loss of $6.2 million, or $0.09 a share, in the second quarter ended June 30, 2026, after recording about $28.8 million of turnaround expenses. A year earlier, the company posted net income of $3.0 million, or $0.04 a share, with about $2.6 million of turnaround costs.

The loss reversed first-quarter 2026 net income of $19.7 million, or $0.27 a share. Adjusted EBITDA was $53.1 million, essentially unchanged from $52.1 million in the first quarter. Net sales were $168.1 million, up 11% from $151.3 million a year earlier and slightly below $169.5 million in the first quarter.

Chairman and Chief Executive Officer Mark Behrman said the quarter reflected planned maintenance at two of three production facilities. The company completed an ammonia-plant turnaround at El Dorado, Arkansas, and pulled forward scheduled work at Pryor, Oklahoma, from the third quarter into the second. He said the activity reduced production and earnings but supported reliability objectives, and that the company was already seeing higher production rates at El Dorado and expected improved performance at Pryor as that work finished in the third quarter.

Total product volumes sold were 345,824 short tons, down 9% from 379,385 tons a year earlier. Ammonia volumes fell 46% to 35,667 tons on the El Dorado and Pryor turnarounds, and UAN volumes fell 14% to 130,818 tons as tight markets shifted production toward ammonium nitrate and turnarounds cut output.

AN and nitric acid sales were $69.5 million on 179,339 tons at a $333 netback price, versus $61.7 million, 161,509 tons, and $328 a year earlier. The company said higher selling prices combined with increased volumes lifted that line. UAN sales were $62.5 million on 130,818 tons at a $433 netback price. Ammonia sales were $25.5 million on 35,667 tons at a $658 netback price. Other product sales were $10.6 million.

Gross profit was $11.5 million, and the company reported an operating loss of $2.7 million. Average natural gas cost in cost of materials and other was $2.96 per MMBtu. Cash, cash equivalents, and short-term investments were about $218.0 million as of June 30, 2026, with total debt of $441.3 million.

Behrman said nitrogen prices had moderated from first-half highs and that market conditions for both the industrial and fertilizer businesses remained constructive. Demand for ammonium nitrate remained strong on mining investment and capital spending tied to AI-related infrastructure, data centers, power generation, and electrification, and producer outages continued to support spot and contract pricing. Ammonia prices remained elevated relative to historical averages even as they eased from first-half highs, and UAN pricing remained favorable as prices normalized. The company believed an improved operating platform, higher expected production rates, and constructive markets positioned it to generate stronger results in the second half of 2026.

In May 2026, the company agreed to assume full ownership of the El Dorado carbon-capture project from Lapis Carbon Solutions. It is expected to be operational in the first quarter of 2027, subject to EPA Class VI approval, capturing 400,000 to 500,000 metric tons of CO2 a year and yielding 305,000 to 380,000 metric tons of low-carbon ammonia. The company estimates the project could generate about $25 million to $30 million of annual earnings, net of CCS operating costs, over a 12-year credit period.