LSB Industries (LXU) investor relations material

Business overview and market position

• Manufactures and sells nitrogen-based products for industrial and agricultural markets, ranking as the fifth largest ammonia producer and leading merchant marketer of nitric acid in the U.S.

• Operates three main production facilities in Oklahoma, Arkansas, and Alabama, with an additional nitric acid facility in Texas.

• Product portfolio includes ammonia, nitric acid, ammonium nitrate, urea ammonium nitrate, sulfuric acid, and CO₂, serving diverse end markets such as mining, agriculture, chemical manufacturing, and water treatment.

• Strategic facility locations provide regional competitive advantages, leveraging low-cost U.S. natural gas and integrated logistics.

Financial performance and balance sheet

• Achieved significant year-over-year growth in net sales, adjusted EBITDA, and EPS through improved production and disciplined commercial execution.

• Net sales reached $641M and adjusted EBITDA $185M for the trailing twelve months ending March 31, 2026, with a 29% EBITDA margin.

• Net debt to adjusted EBITDA improved to 1.4x, supported by strong operating and free cash flow.

• Over $460 million returned to shareholders via stock and debt repurchases since 2022, while reducing net leverage from 11.3x to 1.4x.

Growth strategy and operational improvements

• Focused on upgrading ammonia to higher-value downstream products, increasing sales volumes of nitric acid, ammonium nitrate, and UAN.

• Identified $70 million in annual EBITDA improvements, with $20 million already captured through production targets and operational excellence.

• Pursuing low-carbon opportunities, including carbon capture and sequestration (CCS) at El Dorado, expected to impact EBITDA from 2027.

• Pre-certification for low-carbon ammonia at El Dorado achieved, positioning for environmental credit sales.