Lsb Industries, Inc. (NYSE: LXU)

LSB Industries, Inc. manufactures ammonia and ammonia based chemicals for agricultural and industrial markets. The company operates production facilities in El Dorado, Arkansas; Cherokee, Alabama; Pryor, Oklahoma; and operates a facility on behalf of Covestro in Baytown, Texas. LSB focuses on developing low and no carbon products while serving farmers, ranchers, fertilizer dealers and explosives manufacturers across the United States and parts of Canada.

The company generates revenue primarily from the sale of ammonia, urea ammonium nitrate (UAN), nitric acid and related chemical products. In 2025, ammonia accounted for 24% of consolidated net sales, UAN for 31%, nitric acid and related AN products for 39%, and other products for the remaining 6%. Sales are made through distributors and directly to end customers such as farmers, ranchers, fertilizer dealers and explosives manufacturers, with additional revenue earned from operating the Baytown facility for Covestro under a management fee arrangement.

The company operates through the following segments: Industrial and Agricultural.

• Industrial: This segment produces nitric acid, high purity ammonia and related chemicals for use in polyurethane intermediates, paper, fibers, emission control, electronics and explosives markets, and operates the Baytown facility on behalf of Covestro under a long term operating contract.

• Agricultural: This segment manufactures nitrogen based fertilizers including urea ammonium nitrate (UAN) and ammonia for sale to farmers, ranchers, fertilizer dealers and distributors to support food crop, biofuel feedstock and pasture forage production.

LSB Industries holds a competitive position in the nitrogen chemical industry through its strategically located assets, low cost natural gas supply, and diversified product mix. The company benefits from access to the Sunoco LP ammonia pipeline at its El Dorado site, rail connections and barge access via the Tennessee River at the Cherokee facility, which together provide logistical advantages over many rivals. Its competitors include large integrated producers such as CF Industries Holdings, Inc., CVR Partners, Dyno Nobel, Eurochem North America, Helm AG, Koch Industries, Macro Source L. L. C., Nutrien, Orica Limited and Yara International, yet LSB differentiates itself by balancing agricultural and industrial sales, leveraging long term contracts that pass through raw material costs and maintaining flexibility to shift production toward higher margin products.

The company’s principal customers are distributors and end users such as farmers, ranchers, fertilizer dealers and explosives manufacturers throughout the United States and parts of Canada. A notable specific customer is Covestro, for which LSB operates the Baytown facility under a long term agreement. Additional customers include industrial users in the polyurethane, paper, fiber, emission control and electronics sectors, as well as mining companies that purchase ammonium nitrate for explosives applications.