LSB Industries, Inc
LSB Industries is a U.S.-based manufacturer of ammonia and ammonia-related nitrogen products used in agriculture and industrial applications. The company operates multi-plant facilities in Alabama, Arkansas, and Oklahoma, and also runs a facility for Covestro in Texas, with sales reaching customers across the United States and parts of Canada and North America.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueNitric acid, AN solutions, LDAN and related products sold to mining, explosives, and industrial users.
Ammonia, UAN and other nitrogen fertilizers sold to farm and fertilizer distribution channels.
Customers
LSB sells through distributors and directly to end users, with agricultural demand tied to farmers, ranchers, and fertilizer dealers. Its industrial customers include explosives manufacturers and users in mining, construction, and other industrial end markets that need nitrogen-based inputs. Customer demand is influenced by crop economics, weather, energy prices, and industrial activity, which makes end-market mix important to the business model.
Buy ammonia and UAN for crop nutrition and fertilizer application, driven by planting economics and weather.
Buy AN solution and LDAN for blasting and mining applications, where demand tracks mining activity and infrastructure work.
Buy nitric acid and ammonia-related products for industrial processes, with demand linked to broader manufacturing activity.
Purchase product for resale and regional distribution, helping LSB reach fragmented agricultural end markets.
Strategy
LSB’s strategy is centered on using its ammonia and hydrogen manufacturing platform to support low- and no-carbon products while continuing to serve agricultural and industrial end markets. Management is also focused on optimizing liquidity and free cash flow, sustaining and selectively growing capacity, and partnering on projects such as carbon capture at El Dorado. The company’s location advantages, flexible product mix, and access to low-cost U.S. natural gas are key to maintaining competitiveness.
Positions the company for future demand from decarbonization and cleaner industrial inputs.
Allows LSB to shift output toward the strongest end markets and pricing conditions.
Supports reliability and preserves production capability while funding targeted growth.
Geography
LSB is headquartered in Oklahoma City and operates manufacturing sites in Cherokee, Alabama; El Dorado, Arkansas; Pryor, Oklahoma; and Baytown, Texas. Its products are sold primarily throughout the United States and parts of Canada, with industrial sales also reaching other parts of North America. Geography matters because plant location, rail/truck/barge access, and proximity to customers influence freight economics and competitive positioning.
Risks
LSB is exposed to cyclical demand in agriculture, mining, housing, automotive, and paper, so macro weakness can quickly affect volumes and pricing. The business also depends on natural gas, logistics, and plant reliability, while cybersecurity, customer concentration, and execution on strategic projects add company-specific risk. Because the company operates in a competitive commodity-like market, margins can move with feedstock costs, freight, and end-market conditions.
- Natural gas feedstock volatilityImpact: HighLikelihood: High
Natural gas is the primary input for nitrogen products and drives cost competitiveness.
Exposure - Cyclical end-market demandImpact: HighLikelihood: Medium
Sales depend on crop economics, mining activity, and industrial production levels.
Exposure - Customer concentrationImpact: HighLikelihood: Medium
A limited number of customers can materially affect sales if purchasing patterns change.
Exposure: Five customers represented about 32% of consolidated net sales in 2025
- Cybersecurity and IT disruptionImpact: MediumLikelihood: Medium
Manufacturing, supply chain, accounting, and financial functions rely on ERP and cloud systems.
Exposure: Operational continuity and data integrity
- Strategic project and acquisition executionImpact: MediumLikelihood: Medium
New projects can divert management attention and may not deliver expected returns.
Exposure
Accounting
Judgemental itemsRealizability of deferred tax assets depends on future taxable income and judgment.
Impact: Can materially change tax expense and equity
The company references environmental and legal matters as key estimates.
Impact: Can affect provisions, liabilities, and cash needs
Excludes depreciation, amortization, and turnaround costs from cost of sales.
Impact: Affects how investors assess underlying operating performance
Railcar leases are a meaningful part of logistics and production support.
Impact: Affects operating expenses, liabilities, and leverage metrics
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Last updated: 24/09/2026