LSB Industries Q3 net income more than doubles to $16.3M as AN demand surges
LSB Industries posted Q3 2026 net income of $16.3M, up from $7.1M a year earlier, as higher ammonia and ammonium nitrate (AN) prices offset lower fertilizer volumes, the Oklahoma City-based nitrogen producer said on October 28.
Net sales rose to $158.6M from $155.4M. Diluted earnings per share doubled to $0.22, and adjusted EBITDA climbed 55% to $62.3M.
The quarter showed a clear shift in product mix toward industrial customers. AN and nitric acid sales jumped 41% to $80.9M on 23% higher volumes and a 19% rise in netback prices to $365 per short ton. UAN sales fell 61% to $20.2M, as LSB moved production from UAN to AN and completed a planned turnaround at its Pryor, Oklahoma, plant early in the quarter. Ammonia sales rose 22% to $45.2M, with netbacks up 32% to $528 per ton.
“During the first nine months of 2026, each of our three facilities set new monthly production records, and we are on pace for record annual nitric acid and AN solution production this year,” said Mark Behrman, chairman and CEO.
LSB said AN demand is supported by mining investment and by capital spending on AI infrastructure, data centers and power generation. On the fertilizer side, it expects robust nitrogen demand through the fall 2026 and spring 2027 seasons. It cited USDA’s projection of about 96.8 million acres of corn for 2026/27 and global ending stocks at their lowest in more than a decade.
Source: LSB Industries
Key facts about LSB Industries’ Q3 2026 results
Total volumes fell 13% to 331,927 short tons. AN and nitric acid rose to 196,477 tons, while UAN dropped 59% to 55,510 tons and ammonia slipped 7% to 79,940 tons, according to the company’s results release.
LSB’s average natural gas cost was $2.93/MMBtu in Q3 2026, down 5% from $3.10 a year earlier. That gives U.S. producers a wide cost advantage over European plants, where LSB said high gas costs continue to challenge production economics.
LSB makes ammonia and ammonia-based products at Cherokee, Alabama; El Dorado, Arkansas; and Pryor, Oklahoma. It also operates a facility in Baytown, Texas, on behalf of a global chemical company.
LSB took full ownership of the project in May 2026 and is waiting for the EPA’s Class VI injection permit. It expects to sequester 400,000 to 500,000 tonnes of CO2 a year, yielding 305,000 to 380,000 tonnes of low-carbon ammonia, and estimates $25M to $30M of annual earnings from 45Q tax credits once fully operational. Fertilizer Daily covered the El Dorado ownership deal in May.
LSB held about $203.5M in cash and short-term investments against $442.2M of total debt at September 30, 2026. Nine-month net income reached $29.8M, compared with $8.5M in the same period of 2025.
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