Overview

* LSB Q2 net sales rise to $151.3 mln but miss analyst expectations as per LSEG data

* Net income falls to $3.0 mln from $9.6 mln year-over-year

* Adjusted EBITDA declines to $38.3 mln due to higher natural gas costs

Outlook

* Company expects gas costs to be less of a headwind in Q3

* LSB sees robust demand for nitric acid and ammonium nitrate

* UAN pricing strengthened due to tight U.S. supply fundamentals

* Low carbon project expected operational by end of 2026

Result Drivers

* SALES VOLUME INCREASE - 6% year-over-year increase in sales volumes driven by improved ammonia production and higher margin upgraded products, per CEO Mark Behrman

* HIGHER NATURAL GAS COSTS - Materially higher natural gas prices offset gains from increased sales volumes and higher UAN selling prices, impacting operating income and adjusted EBITDA

* FAVORABLE DEMAND - Robust demand in end markets, with tight inventories and global supply disruptions boosting UAN pricing and sales volumes for nitric acid and ammonium nitrate

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $151.30 $157.30

mln mln (1

Analyst)

Q2 Net $3.01

Income mln

Q2 Gross $23.17

Profit mln

Q2 $10.49

Operatin mln

g income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the diversified chemicals peer group is "buy"

* Wall Street's median 12-month price target for LSB Industries Inc ( LXU ) is $9.00, about 4% above its July 28 closing price of $8.64

* The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)