LSB Industries (LXU) Investor presentation summary

Business overview and strategy

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

• Operates three main production facilities in Oklahoma, Alabama, and Arkansas, plus a nitric acid facility in Texas.

• Focuses on a diversified product mix, including ammonia, UAN, AN, nitric acid, sulfuric acid, and CO₂, serving multiple end markets.

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

• Experienced management team drives operational improvements and shareholder returns.

Market dynamics and growth drivers

• Industrial demand for ammonium nitrate remains strong, especially in mining for copper and gold, supported by high commodity prices.

• Agricultural market benefits from strong fertilizer pricing due to constrained global ammonia supply and robust corn planting projections.

• Increasing portion of sales tied to natural gas cost-plus contracts, reducing exposure to gas price volatility.

• Ongoing transformation focuses on expanding competencies, end markets, and operational scale for lower earnings volatility.

Financial performance and capital allocation

• Achieved significant year-over-year growth in net sales, adjusted EBITDA, and EPS in 2025, driven by improved production and commercial execution.

• Maintains a strong balance sheet with robust liquidity, net debt/EBITDA below 2.0x, and ongoing debt reduction.

• Returned over $460 million to shareholders via stock and debt repurchases since 2022.

• Focuses on free cash flow generation, with positive net cash after all CAPEX in 2025.