Q2 2026 LSB Industries Inc Earnings Call Transcript
Key Points
- Successfully completed complex turnarounds at El Dorado and Pryor on time, on budget, and injury-free, leading to higher production rates and improved reliability.
- Generated $200 million of trailing 12-month adjusted EBITDA as of June 30, 2026, demonstrating strong earnings power across market cycles.
- Secured full ownership of the El Dorado carbon capture and sequestration project, expected to generate $25-$30 million in annual EBITDA starting Q1 2027.
- Advancing a low-cost ammonia expansion at El Dorado with a net project cost of $105-$120 million, expected to add ~100,000 tons of capacity and ~$20 million in annual EBITDA.
- Favorable market conditions driven by Middle East conflict disrupting global supply, high European natural gas prices, and strong demand for ammonium nitrate in industrial markets.
- Planned turnaround activity at El Dorado and Pryor caused an estimated $35-$40 million impact on Q2 2026 adjusted EBITDA.
- Global supply chain disruptions from the Strait of Hormuz closure create ongoing uncertainty and risk for product pricing and availability.
- SG&A costs in the first half of 2026 trended higher than initial guidance, partly due to inflationary pressures and non-cash stock-based compensation.
- Ammonia prices have moderated from first-half highs, with Tampa ammonia settling at $635 per metric ton for August, down from earlier peaks.
- The company faces potential limitations on net operating loss (NOL) usage if a stockholders' rights plan is not renewed, requiring careful board consideration.
Greetings. Welcome to LSB Industries second quarter 2026 earnings conference call. (Operator Instructions) Please note this conference is being recorded.
I will now turn the conference over to Kristy Carver, Senior Vice President and Treasurer. Thank you. You may begin.
Good morning, everyone. Joining me today are Mark Behrman, our Chairman and Chief Executive Officer; Cheryl Maguire, our Chief Financial Officer; and Damien Renwick, our Chief Commercial Officer.
Please note that today's call includes forward-looking statements. These statements are based on the company's current intent, expectations, and projections. They are not guarantees of future performance, and a variety of factors could cause the actual results to differ materially.
For more information about the risks and uncertainties that could cause actual results to differ materially from those projected or implied by forward-looking statements, please see the risk factors set forth in the company's
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