# LSB Industries, Inc > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/en/companies/LSB Industries, Inc). ## Overview 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. ## Products & services • Ammonia • Nitric acid and AN (ammonium nitrate) products • Urea ammonium nitrate (UAN) • LDAN and AN solution for mining and blasting • Industrial chemical manufacturing and tolling services - **Industrial products** (45%) — Nitric acid, AN solutions, LDAN and related products sold to mining, explosives, and industrial users. - **Agricultural products** (55%) — Ammonia, UAN and other nitrogen fertilizers sold to farm and fertilizer distribution channels. - Ammonia - Nitric acid and AN (ammonium nitrate) products - Urea ammonium nitrate (UAN) - LDAN and AN solution for mining and blasting - Industrial chemical manufacturing and tolling services ## 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. - **Agricultural distributors and end farmers** (primary) — Buy ammonia and UAN for crop nutrition and fertilizer application, driven by planting economics and weather. - **Explosives and mining customers** (primary) — Buy AN solution and LDAN for blasting and mining applications, where demand tracks mining activity and infrastructure work. - **Industrial chemical users** (secondary) — Buy nitric acid and ammonia-related products for industrial processes, with demand linked to broader manufacturing activity. - **Fertilizer dealers and distributors** (secondary) — Purchase product for resale and regional distribution, helping LSB reach fragmented agricultural end markets. - Farmers and ranchers buying nitrogen fertilizer inputs - Fertilizer dealers and distributors serving agricultural demand - Explosives manufacturers using ammonium nitrate-based products - Mining, quarry, and construction customers using AN solutions - Industrial users needing nitric acid and ammonia derivatives ## 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. - **United States** (90%) — Primary sales and manufacturing base; exact share not disclosed. - **Canada** (10%) — Part of North American sales footprint; exact share not disclosed. - Headquartered in Oklahoma City, Oklahoma - Manufacturing in Alabama, Arkansas, Oklahoma, and Texas - Sales primarily across the United States and parts of Canada - Industrial customers are mostly in the U.S. and North America - Facility location affects freight cost and customer reach ## 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. - **Low- and no-carbon product development** (medium-term) — Positions the company for future demand from decarbonization and cleaner industrial inputs. - **Operational flexibility and product mix optimization** (short-term) — Allows LSB to shift output toward the strongest end markets and pricing conditions. - **Capital discipline and capacity sustainment** (short-term) — Supports reliability and preserves production capability while funding targeted growth. - Expand low- and no-carbon product opportunities - Use existing ammonia and hydrogen assets more efficiently - Optimize free cash flow and liquidity to fund growth - Invest in sustaining and selective growth capex - Pursue partnerships such as carbon capture projects - Leverage U.S. natural gas cost advantage and logistics ## 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. - **Cyclical end-market demand** [high] — Sales depend on crop economics, mining activity, and industrial production levels. - **Natural gas feedstock volatility** [high] — Natural gas is the primary input for nitrogen products and drives cost competitiveness. - **Customer concentration** [high] — A limited number of customers can materially affect sales if purchasing patterns change. - **Cybersecurity and IT disruption** [medium] — Manufacturing, supply chain, accounting, and financial functions rely on ERP and cloud systems. - **Strategic project and acquisition execution** [medium] — New projects can divert management attention and may not deliver expected returns. - Cyclical demand in agriculture and industrial end markets - Natural gas price swings affect feedstock cost and competitiveness - Customer concentration can amplify revenue volatility - Cybersecurity incidents could disrupt operations and systems - Project execution risk on acquisitions and carbon capture initiatives ## Accounting Investors should watch estimates around income taxes, deferred tax asset valuation allowances, and environmental and legal matters, as these can materially affect reported earnings and balance sheet values. The company also uses adjusted gross profit, excluding depreciation, amortization, and turnaround costs, which can change the apparent profitability of core operations. Capitalized project spending, lease accounting for railcars, and debt extinguishment gains or losses are also relevant because they can shift period-to-period comparability. - **Income tax valuation allowances** — Can materially change tax expense and equity - **Environmental and legal contingencies** — Can affect provisions, liabilities, and cash needs - **Non-GAAP adjusted gross profit** — Affects how investors assess underlying operating performance - **Lease accounting for railcars** — Affects operating expenses, liabilities, and leverage metrics - Deferred tax asset valuation allowances require significant judgment - Environmental and legal contingencies can affect liabilities and expense - Adjusted gross profit excludes depreciation, amortization, and turnaround costs - Railcar leases affect operating expense and balance sheet leverage - Debt repurchases can create gains or losses on extinguishment --- *Last updated: 2026-09-24T12:18:40.419749+00:00*