LSB Industries, Inc. (LXU): Business Model Canvas [Dec-2025 Updated]

You're looking at LSB Industries, Inc. (LXU) at a real inflection point, moving from a reliable supplier of essential nitrogen products to a key player in the energy transition. Honestly, the numbers from Q3 2025 tell the story: they posted $155.4 million in Net Sales while holding $152.0 million in cash, all while managing $448.4 million in debt as they pour capital into the future. This isn't just about selling Urea Ammonium Nitrate (UAN) to farmers anymore; it's about locking in partnerships for Carbon Capture and Sequestration (CCS) and green ammonia, aiming to be an early entrant in a market that desperately needs decarbonization. To understand how LSB Industries is balancing its current robust demand from mining and agriculture with this massive, capital-intensive pivot, you need to see the full Business Model Canvas laid out below.

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

You're looking at the core relationships LSB Industries, Inc. is building to pivot its business toward low-carbon products. These alliances are critical for securing future revenue streams and meeting decarbonization targets, so the details matter.

Lapis Carbon Solutions for El Dorado CCS infrastructure

The partnership with Lapis Carbon Solutions centers on the Carbon Capture and Sequestration (CCS) retrofit at the El Dorado, Arkansas facility. Lapis is the CCS operator, responsible for the infrastructure, pipeline, and sequestration injection well. The sequestration injection well was drilled in April 2025.

This project is set to capture and permanently sequester more than 450,000 metric tons of CO2 annually from the El Dorado ammonia production. The goal is to reduce LSB Industries' Scope 1 greenhouse gas (GHG) emissions by approximately 25% from current levels. The project targets the Hosston and the Cotton Valley geologic formations for permanent storage.

Bloom Energy and thyssenkrupp Uhde for Pryor green ammonia project

LSB Industries, Inc. entered agreements with Bloom Energy and thyssenkrupp Uhde USA, LLC to develop a project at the Pryor, Oklahoma facility. The objective is to produce approximately 30,000 metric tons of zero carbon ammonia per year. This capacity represents about 12% of Pryor's current ammonia production capacity.

The construction is planned in two phases, utilizing a total of 30 MW of electrolyzer capacity. Bloom Energy will supply a 10 megawatt (MW) solid oxide electrolyzer, which is intended to be the largest of its kind in the world once operational. The second phase involves an additional 20MW alkaline electrolyzer unit.

Freeport Minerals Corporation for low-carbon ANS offtake

LSB Industries, Inc. secured a landmark 5-year agreement with Freeport Minerals Corporation to supply low-carbon Ammonium Nitrate Solution (ANS). This agreement commences on January 1, 2025, with a gradual ramp-up of the contracted volume. The maximum contracted volume is up to 150,000 short tons per annum. Freeport intends to use this low-carbon ANS for its copper mining operations in the United States.

The low-carbon ANS will be produced from ammonia resulting from the El Dorado CCS project, which is expected to yield more than 375,000 tons of low carbon ammonia annually. The low-carbon product is anticipated to have roughly a 30% emissions savings. The operational launch for the project is slated for 2026, pending the Environmental Protection Agency (EPA) approval of the Class VI permit application, which LSB and Lapis expected in the latter half of 2025.

Amogy for low-carbon ammonia marine fuel pilot

A Memorandum of Understanding (MOU) exists with Amogy, Inc. to promote low-carbon ammonia as a marine fuel, focusing initially on U.S. inland waterways transportation. The collaboration involves a pilot project integrating LSB's low-carbon ammonia with Amogy's proprietary ammonia-to-power system. The El Dorado CCS project is expected to result in 375,000 tonnes per year of CCS-based ammonia, with operations anticipated in 2025 (though later reports suggest 2026).

Distributors and logistics partners for product delivery

LSB Industries, Inc.'s overall financial performance in late 2025 reflects the scale supported by its distribution network. The Trailing Twelve Months (TTM) revenue as of the quarter ending September 30, 2025, was $585.07M, showing growth of 12.49% year-over-year. For the second quarter ended June 30, 2025, net sales reached $151.3 million. The third quarter of 2025 saw net sales increase to $155 million from $109 million in Q3 2024. The company's total cash, cash equivalents, and short-term investments stood at approximately $124.9 million as of June 30, 2025.

The Key Partnerships supporting the low-carbon transition can be summarized by project scope:

Project/Partnership	Location	Partner(s)	Capacity/Volume Target	Status/Timeline
CCS Retrofit	El Dorado, AR	Lapis Carbon Solutions	Sequester over 450,000 metric tons of CO2 annually	Injection well drilled April 2025; Operations targeted for 2026
Low-Carbon ANS Offtake	El Dorado, AR	Freeport Minerals Corporation	Up to 150,000 short tons per annum of ANS	Agreement starts January 1, 2025 for 5 years
Green Ammonia Project	Pryor, OK	Bloom Energy, thyssenkrupp Uhde	Produce approx. 30,000 metric tons of green ammonia per year	Total electrolysis capacity of 30 MW (10 MW SOEC + 20 MW Alkaline)
Marine Fuel Pilot	U.S. Inland Waterways	Amogy	Integrate LSB's low-carbon ammonia supply	Pilot program evaluation underway

The strategic focus areas for LSB Industries, Inc. through these key partnerships include:

• Decarbonization Impact: Expected 25% reduction in Scope 1 GHG emissions at El Dorado.
• Low-Carbon Production: Potential to produce over 375,000 tons of low-carbon ammonia annually from El Dorado.
• Tax Credit Qualification: Sequestered CO2 expected to qualify for the $85 per metric ton 45Q tax credit starting in 2026.
• Product Differentiation: Securing a multi-year, high-volume offtake for a premium, low-carbon product.

Finance: review the Q3 2025 cash flow statement against the $448 million total debt reported as of September 30, 2025.

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

You're looking at the core engine of LSB Industries, Inc. (LXU) operations as of late 2025. The key activities revolve around the complex, capital-intensive process of turning natural gas into essential nitrogen products, while simultaneously executing major decarbonization projects.

Manufacturing ammonia and upgraded nitrogen products

LSB Industries, Inc. (LXU) focuses on the manufacture, marketing, and sale of nitrogen-based fertilizers and industrial chemicals. The core output includes ammonia, which is then upgraded into higher-margin products like fertilizer grade high density ammonium nitrate (HDAN), urea ammonia nitrate (UAN), and nitric acid. For industrial markets, they also supply commercial grade ammonia, sulfuric acid, and CO2. The company operates three main facilities: El Dorado, Pryor, and Cherokee, which historically have had ammonia production capacities of 450,000 tons, 235,000 tons, and 180,000 tons, respectively. LSB Industries, Inc. (LXU) has been actively shifting its sales mix toward more contractual industrial sales, which helps stabilize earnings.

The operational tempo in 2025 showed volume growth, though profitability was pressured by input costs. For instance, in the third quarter of 2025, net sales reached $155 million, a significant increase from $109 million in the third quarter of 2024. This was supported by a substantial year-over-year increase in sales volumes across key product categories. Pricing for UAN, a key fertilizer product, averaged $336 per ton on a NOLA basis in Q3 2025, marking a 65% increase over Q3 2024 levels. To be fair, Q1 2025 saw urea prices above $500 per ton, showing the strength of the fertilizer market environment.

Here's a quick look at the recent financial performance tied to these production activities:

Metric (2025 Period)	Value	Comparison Point
Q3 2025 Net Sales	$155 million	Up from $109 million in Q3 2024
Q2 2025 Total Sales Volume	Up 6% year-over-year	Driven by UAN and AN sales
Q3 2025 UAN Price (NOLA)	$336 per ton	Up 65% over Q3 2024
Q1 2025 Adjusted EBITDA	$29.1 million	Down from $32.6 million in Q1 2024

Executing Carbon Capture and Sequestration (CCS) projects

A major ongoing activity is the execution of the Carbon Capture and Sequestration (CCS) project at the El Dorado facility in partnership with Lapis Carbon Solutions. This project aims to capture and permanently sequester CO2 from the ammonia production process, positioning LSB Industries, Inc. (LXU) as a supplier of low-carbon or 'Blue Ammonia.' Lapis Carbon Solutions finalized its investment decision and intends to provide 100% funding for the capital and operations expenditures. Once fully operational, LSB anticipates capturing more than 400,000 metric tons of CO2 annually, which is expected to reduce the company's Scope 1 emissions by 25%. This captured CO2 will yield between 305,000 and 380,000 metric tons per year of low carbon ammonia. The project's timeline has shifted; while initial expectations targeted 2025, the current expectation is to begin operations by the end of 2026, pending approval of the Class VI permit application by the EPA. In June 2025, Lapis completed the drilling of a stratigraphic injection well to gather data supporting the EPA's technical review.

Developing green ammonia production capacity

LSB Industries, Inc. (LXU) is also developing capacity for zero-carbon or 'Green Ammonia' at its Pryor facility through a collaboration with Bloom Energy and thyssenkrupp Uhde. This activity is a step toward decarbonization that uses no fossil fuels as feedstock. The project is designed to produce approximately 30,000 metric tons of green ammonia per year, which is expected to qualify for federal incentives, such as $3/kg in incentives. The development involves two phases of electrolyzer installation: a 10 MW solid oxide electrolyzer supplied by Bloom, followed by an additional 20MW alkaline electrolyzer unit. Historically, production was expected to start in late 2024 or early 2025.

Optimizing plant reliability and operational efficiency

Sustained focus on plant reliability is a critical activity that directly impacts production output and cost structure. The operational improvement measures implemented over the past several quarters in 2025 resulted in higher sales volumes for UAN and AN. For example, the Q3 2025 results benefited from improved operational reliability and the absence of planned turnarounds during that quarter. Safety performance is a key metric here; LSB Industries, Inc. (LXU) reported zero recordable injuries for the first quarter of 2025 and again for the second quarter of 2025. The company continues to make investments in reliability to enhance future financial performance.

Key operational performance indicators for 2025 include:

• Reported zero recordable injuries for Q1 2025.
• Achieved a 4% year-over-year improvement in overall sales volumes in Q1 2025.
• Reported a 6% year-over-year increase in total sales volume in Q2 2025.
• Continued to upgrade more ammonia into higher margin products.

Managing natural gas procurement and hedging

Natural gas is the primary feedstock, and its cost management is paramount, as volatility significantly impacts profitability. Materially higher natural gas prices in the first half of 2025 offset higher selling prices and operating improvements. In Q2 2025, variable costs, primarily natural gas, reduced Adjusted EBITDA by $15 million year-over-year. To mitigate this risk, LSB Industries, Inc. (LXU) is actively increasing its use of cost-plus contracts, which allow the pass-through of natural gas costs to customers. As of Q1 2025, this model represented approximately 30% of sales volumes, with a target to increase it to 35% by the end of 2025. With the transition of the HDAN business, approximately 35% of natural gas costs are now passed through in the selling price. Historically, the company engaged in direct procurement hedging, such as the 2012 acquisition of a working interest in Marcellus Shale natural gas properties for $49 million to protect against rising prices for a portion of its feedstock requirements.

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

You're looking at the core assets LSB Industries, Inc. relies on to run its business as of late 2025. These aren't just line items; they are the physical and intellectual anchors of their operations.

The physical footprint includes four strategically located US manufacturing facilities. You have one multi-product site in El Dorado, AR, which is also the site for their carbon capture project; another multi-product site in Cherokee, AL, positioned for Eastern Corn Belt fertilizer markets; a facility in Pryor, OK, serving the Southern Plains with direct rail access; and the nitric acid facility operated for Covestro LLC in Baytown, TX. These locations give LSB Industries, Inc. proximity to key end users and leverage globally competitive, low-cost US natural gas.

Here's a quick look at the balance sheet strength as of September 30, 2025, based on their Q3 results:

Financial Metric	Amount as of September 30, 2025
Total Cash, Cash Equivalents and Short-Term Investments	$152.0 million
Total Debt	$448.4 million
Net Debt to Trailing Twelve Months Adjusted EBITDA Ratio	2.0x
Free Cash Flow (Period Ending Q3 2025)	$21 million

The proprietary chemical production and upgrading technology is central, enabling the production of products like fertilizer grade high density ammonium nitrate (HDAN), urea ammonium nitrate (UAN), and nitric acid. Backing this up are the experienced chemical engineering and operations teams, essential for maintaining reliability and driving the complex low-carbon transition projects forward.

The push toward low-carbon production is a major resource focus, centered around the El Dorado, AR, facility:

• Awaiting EPA approval of Class VI permit application to commence construction for CO2 sequestration.
• The project targets sequestering between 400,000 and 500,000 metric tons of CO2 per year.
• This sequestration is expected to reduce Scope 1 emissions by approximately 25%.
• The project is designed to yield between 305,000 and 380,000 metric tons per year of low carbon ammonia.
• Federal tax credits under IRC Section 45Q are available, currently up to $85 per metric ton of CO2 captured, beginning in 2026.

Finance: draft 13-week cash view by Friday.

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.