LSB Industries Q2 Sales Beat, But Turnaround Costs Drive Net Loss

summarizeSummary

LSB Industries beat Q2 revenue estimates with $168.1M in sales, but $28.8M in turnaround expenses resulted in a net loss of $6.2M. Adjusted EBITDA rose to $53.1M, and the company highlighted progress on its El Dorado carbon capture project.

check_boxKey Events · Earnings and Guidance · LXU

• Q2 Revenue Beat, Net Loss

  Net sales of $168.1M exceeded the $157.3M consensus, but a net loss of $6.2M ($0.09/share) was driven by $28.8M in planned turnaround expenses at El Dorado and Pryor facilities.

• Adjusted EBITDA Growth

  Adjusted EBITDA rose to $53.1M from $38.3M in Q2 2025, reflecting higher selling prices and lower natural gas costs, partially offset by lower production volumes.

• Carbon Capture Project Update

  LSB assumed full ownership of the El Dorado CCS project, expected to be operational in Q1 2027, with estimated annual earnings of $25-30M from 45Q tax credits over a 12-year period.

• Turnaround Impact and Outlook

  The El Dorado turnaround was completed on time and on budget; Pryor turnaround work was accelerated into Q2. Management expects higher production rates and stronger results in H2 2026.

auto_awesomeAnalysis · LXU · Industrial Applications And Services

LSB Industries reported Q2 sales of $168.1M, beating consensus by nearly 7%, but heavy planned maintenance at two plants pushed the bottom line to a $6.2M loss. Adjusted EBITDA of $53.1M shows the underlying business remains healthy, and management expects stronger second-half production now that the El Dorado turnaround is complete. The company also provided an update on its carbon capture project, which could add $25-30M in annual earnings once operational in early 2027.