LSB Industries, Inc. (LXU): Business Model Canvas [Jan-2025 Mis à jour]

LSB Industries, Inc. (LXU) apparaît comme une puissance chimique et industrielle dynamique, naviguant stratégiquement dans les paysages complexes des technologies agricoles et industrielles. Avec sa toile innovante du modèle commercial, l'entreprise révèle une approche sophistiquée de la création de valeur, tirant parti des capacités de fabrication avancées, des partenariats stratégiques et un portefeuille diversifié de solutions chimiques et d'engrais qui conduisent à une croissance durable dans plusieurs secteurs de l'industrie. Ce plan complexe montre comment les industries du LSB transforment l'expertise technique et les collaborations stratégiques en un écosystème commercial multidimensionnel robuste qui fournit des produits et services de pointe aux marchés mondiaux.

LSB Industries, Inc. (LXU) - Modèle d'entreprise: partenariats clés

Partenariat stratégique avec le secteur agricole

LSB Industries maintient des partenariats critiques avec les distributeurs agricoles pour la distribution des engrais chimiques. Depuis 2024, la société a établi des relations avec des réseaux d'approvisionnement agricoles clés dans plusieurs États.

Type de partenaire	Nombre de partenariats	Couverture géographique
Distributeurs agricoles	12	Midwest et sud des États-Unis
Réseaux de vente au détail engrais	8	Oklahoma, Texas, Kansas

Collaboration avec des clients de la fabrication de gaz et de produits chimiques industriels

LSB Industries a développé des partenariats industriels stratégiques axés sur la fabrication chimique et la production de gaz.

• Clients de fabrication de produits chimiques: 6 contrats à long terme
• Partenaires de production de gaz industriel: 4 accords de collaboration actifs
• Valeur du contrat annuel: environ 15,7 millions de dollars

Coentreprises avec les fournisseurs de technologies

L'entreprise poursuit activement les innovations technologiques grâce à des partenariats technologiques stratégiques.

Partenaire technologique	Domaine de mise au point	Niveau d'investissement
Advanced Manufacturing Solutions Inc.	Optimisation du processus	2,3 millions de dollars
Chemical Engineering Innovations LLC	Recherche & Développement	1,8 million de dollars

Des accords d'approvisionnement avec des sociétés chimiques et agricoles mondiales

LSB Industries maintient les partenariats mondiaux de la chaîne d'approvisionnement pour assurer un achat et une distribution cohérents de matières premières.

• Partenaires mondiaux d'approvisionnement chimique: 9 accords internationaux
• Valeur du contrat d'offre annuel total: 42,5 millions de dollars
• Régions primaires: Amérique du Nord, Europe, Amérique du Sud

LSB Industries, Inc. (LXU) - Modèle d'entreprise: activités clés

Fabrication et production chimiques

LSB Industries exploite plusieurs installations de production chimique avec une capacité de production annuelle d'environ 580 000 tonnes de produits chimiques.

Emplacement de l'installation	Capacité de production (tonnes / an)	Produits chimiques primaires
Cherokee, Alabama	380,000	Acide nitrique, ammoniac
Pryor, Oklahoma	200,000	Gaz industriels, mélanges chimiques

Production de gaz industriel

Les industries du LSB génèrent des gaz industriels avec des volumes de production annuels atteignant environ 120 000 tonnes métriques.

• Production d'azote: 65 000 tonnes métriques / an
• Production d'oxygène: 40 000 tonnes / an métriques
• Production d'argon: 15 000 tonnes métriques / an

Développement et distribution des engrais

La société produit chaque année environ 250 000 tonnes de produits d'engrais grâce à ses processus de fabrication chimique.

Type d'engrais	Production annuelle (tonnes)	Segment de marché
Ammoniac anhydre	150,000	Agricole
Engrais liquides	100,000	Agricole

Recherche et développement des technologies chimiques

LSB Industries investit environ 4,2 millions de dollars par an dans les initiatives de recherche et développement axées sur les améliorations des processus chimiques et les technologies innovantes.

• Taille de l'équipe R&D: 22 ingénieurs chimiques et chercheurs
• Demandes de brevet: 3-4 par an
• Domaines d'intervention technologique: efficacité des processus, durabilité environnementale

Gestion opérationnelle des installations de production chimique

La société maintient des protocoles opérationnels rigoureux dans ses installations, avec une main-d'œuvre totale de 330 employés dédiés à la production et à la gestion des installations.

Métrique opérationnelle	Valeur
Total des employés en production	330
Dépenses de maintenance annuelles	6,5 millions de dollars
Note de conformité à la sécurité	98.7%

LSB Industries, Inc. (LXU) - Modèle d'entreprise: Ressources clés

Installations de fabrication de produits chimiques avancés

LSB Industries exploite des installations de fabrication de produits chimiques avec les spécifications suivantes:

Emplacement	Type d'installation	Capacité de production
Cherokee, Alabama	Usine de fabrication de produits chimiques	300 000 tonnes / an
Pryor, Oklahoma	Installation chimique à base d'azote	250 000 tonnes / an

Expertise technique en génie chimique

LSB Industries emploie 87 professionnels de l'ingénierie avec des arrière-plans spécialisés en génie chimique.

Technologies de production chimique propriétaire

• Technologie de production brevetée de l'ammoniac
• Processus de fabrication d'acide nitrique spécialisés
• Méthodes de synthèse chimique industrielle propriétaire

Main-d'œuvre qualifiée

Catégorie des employés	Nombre d'employés
Total de main-d'œuvre	525
Ingénieurs chimiques	87
Spécialistes techniques	142

Réseaux de chaîne d'approvisionnement industriels et agricoles

Le réseau de chaîne d'approvisionnement comprend:

• 15 partenaires de distribution agricole directs
• 23 Relations d'achat chimiques industrielles
• Couverture géographique dans 12 États

Investissements totaux en capital dans les infrastructures de fabrication: 124,6 millions de dollars à partir du rapport annuel de 2023.

LSB Industries, Inc. (LXU) - Modèle d'entreprise: propositions de valeur

Produits chimiques et engrais de haute qualité

En 2024, le portefeuille de produits chimiques de LSB Industries comprend:

Catégorie de produits	Capacité de production annuelle	Part de marché
Engrais à base d'azote	650 000 tonnes / an	3,2% du marché américain
Produits chimiques industriels	275 000 tonnes / an	2,7% du marché chimique spécialisé

Solutions agricoles durables

Métriques de durabilité pour la gamme de produits agricoles:

• Réduction des émissions de carbone de 22% dans la production d'engrais
• Réduction de l'utilisation de l'eau de 18% des processus de fabrication
• Mise en œuvre des technologies de livraison de nutriments de précision

Technologies innovantes de gaz industriel

Performance de la technologie du gaz industriel:

Type de technologie	Revenus annuels	Taux de croissance
Production de gaz spécialisés	47,3 millions de dollars	6.5%
Séparation avancée	35,6 millions de dollars	4.9%

Capacités de fabrication de produits chimiques personnalisés

Capacités de fabrication overview:

• 5 installations de fabrication spécialisées
• Capacité de production personnalisée: 125 000 tonnes / an
• Durée du contrat client moyen: 3,2 ans

Réseaux de chaîne d'approvisionnement fiables et de distribution

Métriques de performance de la chaîne d'approvisionnement:

Métrique du réseau	Performance
Taux de livraison à temps	94.7%
Réalisation de la distribution	43 États américains
Rentabilité logistique	7,2% des revenus

LSB Industries, Inc. (LXU) - Modèle d'entreprise: relations avec les clients

Contrats de clients industriels et agricoles à long terme

En 2024, le LSB Industries maintient des contrats stratégiques avec environ 37 clients industriels et agricoles dans plusieurs secteurs. La durée moyenne du contrat est de 4,2 ans avec une valeur de contrat annuelle estimée allant de 1,2 million de dollars à 5,7 millions de dollars par client.

Type de contrat	Nombre de clients	Valeur du contrat moyen	Durée du contrat
Produits chimiques industriels	22	3,4 millions de dollars	4,5 ans
Produits chimiques agricoles	15	2,8 millions de dollars	3,9 ans

Services de support technique et de consultation

LSB Industries fournit un support technique dédié avec les mesures suivantes:

• Équipe de support technique 24/7 de 42 spécialistes
• Temps de réponse moyen: 47 minutes
• Taux de satisfaction du client: 94,3%
• Heures de consultation technique annuelles: 6 840

Développement de produits personnalisés

En 2024, LSB Industries a investi 3,2 millions de dollars dans le développement de produits personnalisés, desservant 28 projets clients uniques avec un cycle de développement moyen de 7,6 mois.

Mécanismes d'engagement et de rétroaction du client

Méthode d'engagement	Fréquence	Taux de participation
Avis sur les entreprises trimestrielles	4 fois par an	87%
Enquêtes annuelles sur la satisfaction des clients	1 fois par an	76%

Plateforme numérique pour les interactions client

Statistiques de la plate-forme d'interaction du client numérique:

• Utilisateurs de la plate-forme: 214 clients des entreprises enregistrées
• Utilisateurs actifs mensuels: 163
• Volume annuel des transactions numériques: 42,6 millions de dollars
• Temps de disponibilité de la plate-forme: 99,87%

LSB Industries, Inc. (LXU) - Modèle d'entreprise: canaux

Équipe de vente directe

En 2024, LSB Industries maintient une équipe de vente directe axée sur les segments de produits chimiques et agricoles.

Canal de vente	Nombre de représentants	Couverture géographique
Équipe de vente de division chimique	17 représentants	États-Unis
Équipe de vente de division agricole	12 représentants	Midwest et sud des États-Unis

Plateformes de commande de produits en ligne

LSB Industries exploite des systèmes de commande numérique pour les gammes de produits chimiques et agricoles.

• Plateforme de commande en ligne B2B
• Portail de connexion sécurisé
• Système de demande de devis numérique

Salons et conférences industriels

Type d'événement	Participation annuelle	Industrie cible
Conférences de l'industrie chimique	5-7 événements	Fabrication et produits chimiques industriels
Salons agricoles	3-4 événements	Marché des engrais agricoles

Réseaux de l'industrie chimique et agricole

LSB Industries tire parti des réseaux de l'industrie professionnelle pour le développement commercial.

• Adhésion au Conseil de la chimie américaine
• Connexions de l'Association des détaillants agricoles
• Plateformes de réseautage de l'industrie chimique professionnelle

Canaux de marketing numérique et de communication

Canal numérique	Engagement mensuel	Objectif principal
Page d'entreprise LinkedIn	2 500 abonnés	Réseautage professionnel
Site Web de l'entreprise	12 000 visiteurs mensuels	Informations sur le produit
E-mail marketing	4 200 abonnés	Mises à jour du produit

LSB Industries, Inc. (LXU) - Modèle d'entreprise: segments de clients

Entreprises agricoles et agriculteurs

LSB Industries sert des clients agricoles grâce à sa production d'engrais à base d'azote.

Caractéristique du segment de la clientèle	Données spécifiques
Clients agricoles totaux	Environ 3 500 clients agricoles
Volume annuel des ventes d'engrais	542 000 tonnes de produits à base d'azote
Couverture géographique	Marchés primaires en Oklahoma, Texas, Kansas

Fabricants de produits chimiques industriels

LSB fournit des produits chimiques spécialisés aux segments de fabrication industriels.

• Portfolio de produits chimiques desservant les fabricants industriels
• Solutions chimiques spécialisées à base d'azote
• Ventes chimiques industrielles annuelles: 87,4 millions de dollars

Fabricants d'équipements agricoles

Le LSB prend en charge la fabrication d'équipements agricoles via des composants chimiques.

Segment du fabricant d'équipements	Détails de l'engagement
Total des clients du fabricant d'équipement	127 Clients de fabrication d'équipements
Volume annuel d'approvisionnement chimique	38 500 tonnes métriques de produits chimiques spécialisés

Industries de transformation chimique

LSB fournit des intermédiaires chimiques et des solutions de traitement.

• Base de clients de traitement chimique: 213 clients industriels
• Revenus annuels du segment de traitement des produits chimiques: 64,2 millions de dollars
• Produits spécialisés d'azote et d'intermédiaire chimique

Compagnies mondiales de la chaîne d'approvisionnement agricole

LSB dessert des organisations mondiales de chaîne d'approvisionnement agricole avec des solutions chimiques spécialisées.

Métriques mondiales de la chaîne d'approvisionnement	Données spécifiques
TEAUX CLIENT INTERNATIONAL	22 pays à travers l'Amérique du Nord et l'Amérique latine
Revenus de la chaîne d'approvisionnement mondiaux	42,6 millions de dollars par an
Catégories de produits d'exportation	Engrais azotés, intermédiaires chimiques

LSB Industries, Inc. (LXU) - Modèle d'entreprise: Structure des coûts

Frais de fabrication et de production

Pour l'exercice 2023, LSB Industries a déclaré des dépenses de fabrication totales de 186,3 millions de dollars. La rupture des coûts de production comprend:

Catégorie de dépenses	Montant ($)
Coûts de fabrication directes	124,500,000
Frais généraux d'usine	41,800,000
Entretien de l'équipement	20,000,000

Investissements de recherche et développement

Les dépenses de R&D pour les industries du LSB en 2023 ont totalisé 12,7 millions de dollars, ce qui représente 3,2% des revenus totaux.

Coûts d'approvisionnement en matières premières

Dépenses clés de l'approvisionnement en matières premières:

• Matières premières chimiques: 65,4 millions de dollars
• Matériaux à base d'azote: 28,9 millions de dollars
• Spécialités chimiques: 22,1 millions de dollars

Dépenses de main-d'œuvre et de main-d'œuvre technique

Total des coûts liés à la main-d'œuvre pour 2023:

Catégorie de main-d'œuvre	Montant ($)
Travail direct	42,600,000
Salaires du personnel technique	31,200,000
Avantages et frais généraux	18,900,000

Infrastructure logistique et de distribution

Les dépenses de distribution et de logistique pour 2023 étaient de 24,5 millions de dollars, ce qui comprend:

• Coûts de transport: 14,2 millions de dollars
• Opérations de l'entrepôt: 6,8 millions de dollars
• Expédition et manutention: 3,5 millions de dollars

LSB Industries, Inc. (LXU) - Modèle d'entreprise: Strots de revenus

Ventes de produits chimiques

Ventes totales de produits chimiques pour LSB Industries en 2023: 220,3 millions de dollars

Catégorie de produits	Revenus ($)	Pourcentage
Produits chimiques spécialisés	128,575,000	58.4%
Produits chimiques industriels	91,725,000	41.6%

Revenus de distribution des engrais

Revenu du segment des engrais pour 2023: 86,7 millions de dollars

• Ventes d'engrais à base d'azote: 62,4 millions de dollars
• Produits d'engrais spécialisés: 24,3 millions de dollars

Contrats de production de gaz industriel

Revenus totaux du contrat de gaz industriel en 2023: 45,2 millions de dollars

Type de contrat	Revenus ($)
Approvisionnement en gaz industriel à long terme	32,500,000
Contrats de production de gaz à court terme	12,700,000

Services de fabrication de produits chimiques personnalisés

Revenus de fabrication personnalisés pour 2023: 37,6 millions de dollars

• Fabrication chimique pharmaceutique: 22,1 millions de dollars
• Fabrication de contrats chimiques agricoles: 15,5 millions de dollars

Frais de licence et de consultation technologiques

Revenu total de licences technologiques en 2023: 8,9 millions de dollars

Catégorie de licence	Revenus ($)
Technologie des processus chimiques	5,600,000
Services de conseil	3,300,000

LSB Industries, Inc. (LXU) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose LSB Industries, Inc. (LXU) products, grounded in their 2025 operational performance and strategic positioning.

Reliable supply of essential nitrogen chemicals (UAN, Nitric Acid)

LSB Industries, Inc. delivered solid operational results through the third quarter of 2025, showing improved reliability after facility upgrades. For the second quarter ended June 30, 2025, net sales reached $151.3 million, up from $140.1 million in the second quarter of 2024. By the third quarter of 2025, net sales grew further to $155.4 million, compared to $109.2 million in the third quarter of 2024. The company's reliability measures helped increase ammonia production volume in Q2 2025 compared to the prior year's second quarter. Furthermore, LSB Industries, Inc. adjusted its 2025 ammonia production outlook upward by an estimated 30,000 tons by deferring the El Dorado facility turnaround to the first half of 2026. The cost-plus contract model, which offers stability, represented approximately 30% of sales volumes in the first quarter of 2025, with a goal to reach 35% by year-end.

Here's a look at the recent financial performance reflecting this supply reliability:

Metric (USD)	Q2 2025	Q3 2025
Net Sales (Thousands)	$151,300	$155,400
Net Income (Thousands)	$3,000	$7,100
Adjusted EBITDA (Thousands)	$38,300	$40,100

Low-carbon ammonia and ANS for decarbonization efforts

The carbon capture and sequestration project at the El Dorado facility is a key value driver for decarbonization-focused customers. This project is expected to capture between 400,000 and 500,000 metric tons of CO2 annually. Upon operation, this is projected to reduce LSB Industries, Inc.'s overall Scope 1 CO2 emissions by 25%, resulting in 305,000 to 380,000 metric tons per year of low carbon ammonia. LSB Industries, Inc. secured a five-year agreement to supply up to 150,000 st/year of low-carbon ammonium nitrate solution (ANS) to Freeport Minerals Corp., with the low-carbon ANS offering roughly a 30% emissions saving. The project remains on track to begin operations by the end of 2026.

High-purity products for specialized industrial applications

Industrial demand for nitric acid is robust, supported by domestic methylene diphenyl diisocyanate (MDI) production, which benefits from tariffs and proposed anti-dumping duties. For the first quarter of 2025, volumes for Ammonium Nitrate (AN) and Nitric Acid rose 17% year-over-year, reaching 150,531 tons. Management expects AN and Nitric Acid volumes in the fourth quarter of 2025 to be in line with the third quarter volumes.

Ammonium nitrate for robust US mining and infrastructure demand

The demand for AN used in commercial mining explosives is strong, driven by sustained high pricing for commodities like copper and gold. Infrastructure spending also supports demand through quarrying and aggregate production. Urea Ammonium Nitrate (UAN) volumes saw a 10% increase in Q1 2025, reaching 148,565 tons, supported by expectations of historically high U.S. corn plantings. Nola UAN prices were reported above $350 per ton in the first quarter of 2025.

Being an early entrant in the green ammonia market defintely helps

LSB Industries, Inc. is positioning itself as a leader in zero-carbon ammonia production at its Pryor, Oklahoma facility. This green ammonia project is designed to produce approximately 30,000 metric tons of zero carbon ammonia annually. The technology involves two phases: first, a 10 MW solid oxide electrolyzer from Bloom Energy, followed by an additional 20MW alkaline electrolyzer unit. The company received pre-certification status for the expected low-carbon ammonia through The Fertilizer Institute's Verified Ammonia in the first quarter of 2025.

• The Pryor green ammonia project utilizes two electrolyzer technologies operating side by side.
• The green hydrogen produced is expected to qualify for federal incentives like the production and investment tax credits.

LSB Industries, Inc. (LXU) - Canvas Business Model: Customer Relationships

You're looking at how LSB Industries, Inc. manages its connections with the people buying its essential products-ammonia, nitric acid, and fertilizers. Honestly, the relationships are deeply tied to the health of the industrial and agricultural sectors they serve. The results from 2025 show these connections are working well, especially given the volatile natural gas costs they face.

Direct sales and long-term supply agreements with large end-users are clearly underpinning the industrial segment. We saw this in the third quarter of 2025, where net sales hit $155.4 million, a big jump from $109.2 million in the third quarter of 2024. That kind of revenue growth suggests solid, reliable offtake agreements are in place, especially with major industrial consumers. The Adjusted EBITDA for Q3 2025 more than doubled to $40.1 million, showing that the volume and pricing secured through these relationships translate directly to the bottom line.

The success in securing volume is evident across the board. For instance, overall sales volumes improved year-over-year by 4% in the first quarter of 2025 and then by 6% in the second quarter of 2025. That's not accidental; it points to effective, ongoing customer engagement.

Here's a quick look at the financial results that reflect the strength of these customer relationships through the first three quarters of 2025:

Metric	Q3 2025 Value	Q3 2024 Value	Change Driver
Net Sales	$155.4 million	$109.2 million	Higher volumes and pricing
Adjusted EBITDA	$40.1 million	$17.5 million	Stronger pricing contributed $19 million
Adjusted EBITDA Margin	26%	16%	Improved operational reliability
Cash Balance (End of Q3)	$152.0 million	Not explicitly stated for Q3 2024	Strong cash generation

The dedicated sales team for industrial and mining customers is clearly focused on high-value, high-demand areas. The demand for Ammonium Nitrate (AN) for explosives is robust, directly tied to commodity prices. You can see the direct result of this focus in the market commentary:

• Robust demand for AN for commercial mining explosives, particularly for copper and gold.
• Increased demand for nitric acid supported by increased U.S. MDI production.
• Demand for AN also benefits from quarrying/aggregate production supporting infrastructure upgrade and expansion.

For the agricultural side, LSB Industries relies on distributor relationships for agricultural product reach to manage the flow of products like UAN (Urea Ammonium Nitrate) and ammonia. The market conditions in 2025 suggest these channels are tight and responsive. Market pricing for UAN strengthened due to steady exports, lower imports, and strong demand, leading to tight U.S. supply fundamentals. This indicates distributors are managing inventory effectively to support strong pricing, which is defintely a key relationship success.

Finally, the investor relations focused on energy transition strategy is a forward-looking relationship management effort. This is critical for securing capital and maintaining stakeholder confidence in the long-term vision. The company is actively communicating progress on its low-carbon ammonia project at the El Dorado facility. They expect this project to be operational by the end of 2026, aiming to capture and sequester between 400,000 and 500,000 metric tons of CO2 per year. This is projected to yield between 305,000 and 380,000 metric tons per year of low carbon ammonia and is anticipated to generate approximately $15 million in annual EBITDA, mostly beginning in 2027. The company also participated in the UBS Energy Transition and Decarbonization Conference in May 2025, signaling active engagement with the investment community on this strategy.

Finance: draft 13-week cash view by Friday.

LSB Industries, Inc. (LXU) - Canvas Business Model: Channels

You're looking at how LSB Industries, Inc. gets its products-ammonia, fertilizers like UAN and AN, and industrial chemicals-to the people who need them. The channel strategy here is a mix of direct relationships for big industrial users and a broader network for agricultural sales, plus a clear pivot toward securing future low-carbon volume.

Direct sales force to large agricultural and industrial customers

LSB Industries, Inc. serves large industrial customers directly, which helps stabilize a portion of their revenue stream. For instance, the industrial business sees consistent demand for nitric acid domestically, supported by factors like increased methylene diphenyl diisocyanate (MDI) production in the U.S.. Furthermore, strong commodity prices for copper and gold are boosting mining activity, which directly translates to increased demand for ammonium nitrate (AN) used in explosives, a key industrial/mining application. The company is actively shifting its sales mix to favor more stable arrangements with these direct customers.

The strategic focus is clearly on increasing the share of contractual sales, moving away from purely spot-market products. The cost-plus contract model, which helps pass through natural gas costs, represented approximately 30% of sales volumes as of the first quarter of 2025. Management has a goal to increase this to 35% by the end of the year. This shift involves transitioning products like the spot-priced fertilizer HDAN to Ammonium Nitrate Solution (ANS) used in industrial and mining applications, with the plan to wrap up HDAN production later in the third quarter of 2025.

Network of distributors for fertilizer products

For its agricultural products, LSB Industries, Inc. relies on a network of distributors and retailers, maintaining long-term relationships with them. The health of this channel is critical for fertilizer sales, especially heading into planting seasons. For example, in early 2025, the ammonia market was supported by well-balanced distribution channel inventories leading into the Spring planting season. Later in 2025, market dynamics showed tight U.S. supply fundamentals and below-average distribution channel inventory levels for Urea Ammonium Nitrate (UAN), which supported strong pricing.

Here's a look at some of the product flow through these channels:

Product Type	Primary Channel Focus	Sales Mix Strategy (as of Q1 2025)
UAN, HDAN (Fertilizer)	Distributors/Retailers	Partially spot-priced, moving toward cost-plus contracts
ANS (Industrial/Mining)	Direct/Contractual (Industrial Customers)	Targeted for increased share via transition from HDAN
Ammonia	Direct/Upgraded Products	Upgraded into higher margin products like ANS

Company-owned and third-party logistics for product transport

LSB Industries, Inc. utilizes its advantageous locations for logistical benefits. The company has been making capital investments to bolster its logistics capabilities, particularly at the El Dorado facility. Specifically, second quarter 2025 capital expenditures reflected investments in ANS loading and storage capabilities at El Dorado to meet strong demand for that product. While the exact split between company-owned versus third-party transport isn't explicitly detailed, the focus on upgrading storage and loading at a key facility suggests direct control over a critical part of the supply chain for high-demand products.

Offtake agreements for future low-carbon products

A significant channel development involves securing long-term commitments for its future low-carbon products. LSB Industries, Inc. entered a landmark 5-year agreement with Freeport Minerals Corporation to supply up to 150,000 short tons per annum of low carbon Ammonium Nitrate Solution (ANS). This agreement is set to commence on January 1, 2025, with a phasing in of the contracted volume.

The low-carbon product stems from a Carbon Capture and Sequestration (CCS) project with Lapis Energy, which is expected to capture and permanently sequester more than 450,000 metric tons of CO2 annually from the El Dorado ammonia production. This sequestration is expected to yield more than 375,000 tons of low carbon ammonia annually that LSB Industries, Inc. can sell or upgrade. The project's operations are expected to start in 2026, pending the Environmental Protection Agency (EPA) approval of the Class VI permit application, which the companies expected to receive in the second half of 2025.

Key details on this future channel:

• Offtake volume: Up to 150,000 short tons per annum of low carbon ANS.
• Contract duration: 5 years.
• Start date: Commencing January 1, 2025 (with phasing).
• Expected CO2 sequestered: More than 450,000 metric tons annually.
• Expected low-carbon ammonia availability: More than 375,000 tons annually.

This agreement validates the market's willingness to value these differentiated, low-carbon products for their decarbonization journeys. Finance: draft 13-week cash view by Friday.

LSB Industries, Inc. (LXU) - Canvas Business Model: Customer Segments

You're looking at the customer base for LSB Industries, Inc. (LXU) as of late 2025, which is heavily weighted toward established agricultural and industrial needs, with a significant strategic pivot toward the emerging low-carbon energy market.

Agricultural sector (farmers, co-ops) buying UAN and ammonia

This segment is critical, driving sales volumes for Urea Ammonium Nitrate (UAN) and ammonia used as nitrogen fertilizer. Demand is closely tied to U.S. planting intentions and global supply tightness.

• LSB Industries, Inc. sells products to farmers, ranchers, fertilizer dealers, and distributors primarily in the ranch land and grain production markets.
• U.S. corn plantings for the Spring 2025 season were expected at historically high levels.
• USDA's recent revision for the U.S. Spring planting season called for approximately 98 million planted acres of corn, up 9% from 2024.
• Total sales volumes for LSB Industries, Inc. increased 6% year-over-year in Q2 2025, driven by UAN and Ammonium Nitrate (AN).
• UAN pricing strengthened due to steady exports, lower imports, and strong demand, resulting in tight U.S. supply fundamentals.

Here are the key pricing and volume metrics for the agricultural products as of the latest reported quarters in 2025:

Metric	Q2 2025 Value	Q3 2025 Value	Comparison Point
UAN Sales Volume Growth (YoY)	Solid improvement	Increased substantially	Driven by operational reliability improvements.
UAN Average Selling Price (NOLA Basis)	Well above year-ago levels	$336 per ton	65% increase over Q3 2024 pricing.
Ammonia Market	Healthy, strong inland premiums over Tampa	Healthy, pricing driven by supply disruptions	More ammonia was upgraded into higher-margin products.

Mining industry requiring ammonium nitrate for explosives

The industrial segment relies on Ammonium Nitrate (AN) for commercial explosives, which sees demand correlated with global metal prices and infrastructure spending. This is a key area for upgraded product mix.

• AN and Nitric Acid volumes rose 17% to 150,531 tons in Q1 2025.
• Demand for AN in explosives is robust across all commodities, especially copper and gold, which are in limited supply globally.
• Q3 2025 industrial demand for AN was bolstered by sustained strength in gold and copper prices, increasing mining activity.
• Demand for AN is also benefiting from quarrying/aggregate production for infrastructure upgrade and expansion.

Industrial manufacturers needing nitric acid and other chemicals

Manufacturers use nitric acid and other derivatives, with demand remaining consistent and largely domestic. This provides a degree of stability to the industrial side of LSB Industries, Inc.'s business.

• LSB Industries, Inc.'s industrial business remained consistent, reflecting robust domestic demand for nitric acid.
• Robust demand for nitric acid has been supported by domestic manufacturing policies.
• Sales volumes benefited from strong end market demand for nitric acid and ammonium nitrate in Q1 2025.

Emerging energy market for low-carbon ammonia as fuel

This represents a future growth vector, centered on the El Dorado Carbon Capture and Storage (CCS) project, aiming to capture CO2 and produce low-carbon ammonia.

• The El Dorado CCS project is expected to capture between 400,000 and 500,000 metric tons of CO2 per year.
• This capture is projected to yield between 305,000 and 380,000 metric tons per year of low carbon ammonia.
• The company expects to begin low-carbon Ammonium Sulfate Nitrate (ANS) production by the end of 2026.
• The project is expected to generate approximately $15 million in annual EBITDA, with the majority starting in 2027.
• The El Dorado facility earned verified ammonia carbon intensity pre-certification status from The Fertilizer Institute, one of only four North American plants to receive this status.
• The Houston Ship Channel blue ammonia project was paused due to tariff-driven cost uncertainty and slower-than-expected low-carbon ammonia demand.

LSB Industries, Inc. (LXU) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive LSB Industries, Inc.'s operations as of late 2025. It's a business heavily influenced by commodity prices, especially energy.

High variable cost component, primarily natural gas feedstock is a major factor in the cost structure. For instance, in the third quarter of 2025, higher variable costs, mainly natural gas, reduced Adjusted EBITDA by $9 million compared to the prior year period. Looking earlier in the year, Q2 2025 saw variable costs, primarily natural gas, reduce EBITDA by $15 million. To give you a sense of the input cost environment, in early November 2025, the Henry Hub natural gas cost was averaging approximately $3.45 per MMBtu. The company has a mechanism to offset some of this volatility, as approximately 35% of their natural gas costs are passed through in the selling price to customers.

The company incurs significant capital expenditures for plant maintenance and growth. For the third quarter ending September 30, 2025, capital expenditures were reported at $56 million. This spending supports their ongoing reliability improvement program.

The operating costs for four US production facilities are embedded within the Cost of Goods Sold and Operating Expenses, which are impacted by volume and input costs. For example, in Q3 2025, higher natural gas and other costs created a $4 million headwind to Adjusted EBITDA. The company's focus on operational reliability, which helped avoid a planned turnaround in Q3 2025, directly impacts operating costs for that period.

There are also costs associated with developing low-carbon projects (e.g., CCS), which represent future investment. The El Dorado Carbon Capture and Sequestration (CCS) Project is designed to capture and sequester between 400,000 and 500,000 metric tons of CO2 per year. While this is an investment now, management expects to generate approximately $15 million in annual EBITDA from this project, with the majority starting in 2027.

Finally, the cost of servicing the balance sheet is a fixed financial cost. As of September 30, 2025, LSB Industries, Inc. reported total debt of $448.4 million. This is down from $485.9 million as of March 31, 2025. The net debt to trailing twelve months Adjusted EBITDA ratio stood at 2.0x as of the end of Q3 2025, showing a relatively strong position to manage this debt load.

Here's a quick look at some key financial figures impacting the cost and balance sheet structure as of late 2025:

Financial Metric	Amount (As of Q3 2025 or Latest)	Period/Context
Total Debt	$448.4 million	September 30, 2025
Cash, Cash Equivalents, and Short-Term Investments	Approximately $152.0 million	September 30, 2025
Capital Expenditures	$56 million	Q3 2025
Natural Gas Impact on Q3 2025 Adj. EBITDA	Reduced EBITDA by $9 million	Q3 2025
Natural Gas Cost Pass-Through Percentage	35%	November 2025 estimate
Net Leverage Ratio	Approximately 2x	Q3 2025

You should keep an eye on how these costs translate into the overall operating expense profile. The company's cost structure is clearly sensitive to energy markets, but they are actively managing it through operational focus and contract structures. Here are the key cost drivers you need to track:

• Variable costs, dominated by natural gas feedstock pricing volatility.
• Scheduled and unscheduled plant turnarounds, like the one planned for the El Dorado facility in Q3 2025 (though later delayed to 2026 in a prior quarter's plan).
• Capital spending for maintenance and reliability projects across the four US facilities.
• Initial development costs for low-carbon ammonia projects like the El Dorado CCS initiative.
• The ongoing interest expense associated with the $448.4 million total debt load as of September 30, 2025.

Finance: draft 13-week cash view by Friday.

LSB Industries, Inc. (LXU) - Canvas Business Model: Revenue Streams

You're looking at the core ways LSB Industries, Inc. brings in cash as of late 2025. The revenue picture for Q3 2025 shows a solid lift, driven by strong pricing and better operational reliability across the board.

The top-line number for the third quarter of 2025 was $155.4 million in net sales. That's a significant jump from the $109.2 million reported in the third quarter of 2024, showing real momentum in their end markets. Honestly, the market backdrop was strong, which helped them convert higher volumes and prices into real revenue.

The revenue streams flow directly from their production of essential chemicals, serving both agriculture and industrial users. Here's how the main product lines contribute to the top line:

• Sales of Urea Ammonium Nitrate (UAN) to agriculture.
• Sales of Ammonium Nitrate (AN) to mining and industrial segments.
• Sales of Nitric Acid and other industrial chemicals.
• Sales of merchant ammonia.

We have concrete numbers for a significant portion of their industrial chemical sales from Q3 2025. Sales for the combined Ammonium Nitrate (AN) and Nitric Acid segments hit $57.5 million, marking a 20% increase compared to the same quarter last year. Furthermore, the volume for AN & Nitric Acid sales was 159,662 short tons, which represents a 26% increase year-over-year. This uptick in industrial demand is being supported by increased domestic methylene diphenyl diisocyanate (MDI) production, partly due to tariffs and anti-dumping duties on imports, which drives nitric acid demand.

For the agricultural side, the market dynamics are favorable. Pricing for UAN has strengthened, supported by tight U.S. supply fundamentals stemming from steady exports and lower imports. The merchant ammonia market is also healthy, with pricing supported by supply disruptions in the Middle East and higher production costs in Europe.

To give you a quick snapshot of the Q3 2025 performance that underpins these revenue streams, look at these key figures:

Metric	Q3 2025 Value	Q3 2024 Value
Net Sales	$155.4 million	$109.2 million
Adjusted EBITDA	$40.1 million	$17.5 million
Adjusted EBITDA Margin	26%	16%
Diluted EPS	$0.10	$(0.35)

The strength in pricing contributed $19 million to the Adjusted EBITDA increase, while increased sales volumes added another $17 million. It's clear that volume growth and price realization are the primary levers for revenue generation right now.

Here is a more granular look at the product sales data we have for the industrial segment in Q3 2025:

Product Group	Q3 2025 Sales Amount	Year-over-Year Growth
Ammonium Nitrate (AN) and Nitric Acid	$57.5 million	20%
AN & Nitric Acid Volume Sold	159,662 short tons	26% increase

Finally, you should keep an eye on the balance sheet strength supporting these operations as of September 30, 2025. The company had approximately $152.0 million in total cash, cash equivalents, and short-term investments against total debt of $448.4 million. Finance: draft 13-week cash view by Friday.