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LXU: A Nitrogen Turnaround with Green Hydrogen Potential
Blank Capital Research Team
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Executive Summary
LSB Industries, Inc. (LXU) is a diversified chemical manufacturer that produces nitrogen-based fertilizers for agriculture and high-purity chemicals for the industrial and mining sectors.
Investment Thesis
LXU is a specialized nitrogen play with an emerging 'green' kicker. After years of operational struggles, new management has successfully modernized the company's facilities, leading to record uptime and reliability. Concurrently, LXU is pioneering 'Blue' and 'Green' ammonia projects, which utilize carbon capture and renewable energy. These products command a significant price premium and are in high demand for power generation and shipping. With a significantly deleveraged balance sheet and a focus on high-margin industrial sales, LXU is no longer just a commodity fertilizer company—it's an evolving energy transition player.
Key Growth Drivers
Operational Reliability Turnaround
Significant investments in plant infrastructure have stabilized production, allowing LXU to fully capture favorable market pricing during upcycles.
Low-Carbon Ammonia Leadership
Early-mover status in the production of low-carbon ammonia positions LXU to be a primary supplier to the nascent clean-energy economy.
Industrial/Mining Revenue Floor
A large portion of LXU's revenue comes from stable, non-agricultural contracts in the mining and industrial sectors, smoothing out its earnings profile.
Valuation & Financial Modeling
LXU trades at a significant discount to its larger nitrogen peers. We believe the market is still valuing the company based on its troubled history rather than its profitable and modernized future. Any successful execution of their green ammonia projects will be a major catalyst for a re-rating.
Risk Factors & Bear Case
Like all nitrogen producers, LXU is sensitive to natural gas prices and global fertilizer supply dynamics. Additionally, as a smaller operator, any prolonged plant outages would disproportionately impact near-term earnings.
Conclusion
LSB Industries is a compelling turnaround and energy transition story. It offers leveraged exposure to the nitrogen cycle with a clear path to premium valuation. Rated 'Buy'.
Upcoming Catalysts
No upcoming catalysts identified.
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Relative valuation derived from Materials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
-3.3%
Sector: 3.3%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, LSB INDUSTRIES, INC. (LXU) receives a "Buy" rating with a composite score of 53.6/100, ranked #91 out of 4446 stocks. Key factor scores: Quality 50/100, Value 54/100, Momentum 73/100. This is quantitative analysis only — not investment advice.
LSB INDUSTRIES, INC. (LXU) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does LSB INDUSTRIES, INC. Do?
LSB Industries, Inc. engages in the manufacture, marketing, and sale of chemical products. The company provides nitrogen-based fertilizers, such as ammonia, fertilizer grade ammonium nitrate (HDAN), and urea ammonia nitrate for fertilizer and fertilizer blends for corn and other crops, and NPK fertilizer blends applications. It also offers high purity and commercial grade ammonia, high purity ammonium nitrate, sulfuric acids, mixed nitrating acids, carbon dioxide, and diesel exhaust fluids, as well as concentrated, and blended and regular nitric acids for various applications, including semi-conductor and polyurethane intermediates; pulp and paper, alum, water treatment, metals, and vanadium processing; power plant emissions abatement, water treatment, refrigerants, and metals processing; exhaust stream additive, and horticulture/greenhouse applications; and refrigeration. In addition, the company provides industrial grade ammonium nitrate, ammonium nitrate, and HDAN solutions for ammonium nitrate fuel oil and specialty emulsions for mining, surface mining, quarries, and construction applications. It sells its products through distributors, as well as directly to end customers in the United States, Mexico, and Canada. The company serves to the agricultural, industrial, and mining markets. LSB Industries, Inc. was founded in 1968 and is headquartered in Oklahoma City, Oklahoma. LSB INDUSTRIES, INC. (LXU) is classified as a small-cap stock in the Materials sector, specifically within the Chemicals industry. The company is led by CEO Mark T. Behrman and employs approximately 570 people, headquartered in Dover, Oklahoma. With a market capitalization of $1.1B, LXU is one of the notable companies in the Materials sector.
LSB INDUSTRIES, INC. (LXU) Stock Rating — Buy (April 2026)
As of April 2026, LSB INDUSTRIES, INC. receives a Buy rating with a composite score of 53.6/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.LXU ranks #91 out of 4,446 stocks in our coverage universe. Within the Materials sector, LSB INDUSTRIES, INC. ranks #4 of 284 stocks, placing it in the top 10% of its Materials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
LXU Stock Price and 52-Week Range
LSB INDUSTRIES, INC. (LXU) currently trades at $13.75. The stock gained $0.26 (1.9%) in the most recent trading session. The 52-week high for LXU is $15.66, which means the stock is currently trading -12.2% from its annual peak. The 52-week low is $4.88, putting the stock 181.8% above its annual trough. Recent trading volume was 1.3M shares, reflecting moderate market activity.
Is LXU Overvalued or Undervalued? — Valuation Analysis
LSB INDUSTRIES, INC. (LXU) carries a value factor score of 54/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 41.24x, compared to the Materials sector average of 26.50x — a premium of 56%. The price-to-book ratio stands at 2.04x, versus the sector average of 2.83x. The price-to-sales ratio is 1.90x, compared to 0.74x for the average Materials stock. On an enterprise value basis, LXU trades at 243.48x EV/EBITDA, versus 6.01x for the sector.
Overall, LXU's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
LSB INDUSTRIES, INC. Profitability — ROE, Margins, and Quality Score
LSB INDUSTRIES, INC. (LXU) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is -3.3%, compared to the Materials sector average of 3.3%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -1.4% versus the sector average of 0.6%.
On a margin basis, LSB INDUSTRIES, INC. reports gross margins of 8.6%, compared to 29.8% for the sector. The operating margin is -0.6% (sector: 6.0%). Net profit margin stands at -4.5%, versus 3.0% for the average Materials stock. Revenue growth is running at 11.0% on a trailing basis, compared to 1.8% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
LXU Debt, Balance Sheet, and Financial Health
LSB INDUSTRIES, INC. has a debt-to-equity ratio of 85.0%, compared to the Materials sector average of 41.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 2.78x, indicating strong short-term liquidity. Total debt on the balance sheet is $441M. Cash and equivalents stand at $28M.
LXU has a beta of 0.97, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for LSB INDUSTRIES, INC. is 45/100, reflecting average volatility within the normal range for its sector.
LSB INDUSTRIES, INC. Revenue and Earnings History — Quarterly Trend
In TTM 2026, LSB INDUSTRIES, INC. reported revenue of $559M and earnings per share (EPS) of $0.34. Net income for the quarter was $-17M. Gross margin was 8.6%. Operating income came in at $6M.
In FY 2025, LSB INDUSTRIES, INC. reported revenue of $615M and earnings per share (EPS) of $0.34. Net income for the quarter was $25M. Gross margin was 17.0%. Revenue grew 17.8% year-over-year compared to FY 2024. Operating income came in at $57M.
In Q3 2025, LSB INDUSTRIES, INC. reported revenue of $155M and earnings per share (EPS) of $0.10. Net income for the quarter was $7M. Gross margin was 16.4%. Revenue grew 42.3% year-over-year compared to Q3 2024. Operating income came in at $16M.
In Q2 2025, LSB INDUSTRIES, INC. reported revenue of $151M and earnings per share (EPS) of $0.04. Net income for the quarter was $3M. Gross margin was 15.3%. Revenue grew 8.0% year-over-year compared to Q2 2024. Operating income came in at $10M.
Over the past 8 quarters, LSB INDUSTRIES, INC. has demonstrated a growth trajectory, with revenue expanding from $140M to $559M. Investors analyzing LXU stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
LXU Dividend Yield and Income Analysis
LSB INDUSTRIES, INC. (LXU) does not currently pay a dividend. This is common among smaller companies in the Chemicals industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Materials dividend stocks may want to explore other Materials stocks or use the stock screener to filter by dividend yield.
LXU Momentum and Technical Analysis Profile
LSB INDUSTRIES, INC. (LXU) has a momentum factor score of 73/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 29/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 48/100 reflects moderate short selling activity.
LXU vs Competitors — Materials Sector Ranking and Peer Comparison
Comparing LXU against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full LXU vs S&P 500 (SPY) comparison to assess how LSB INDUSTRIES, INC. stacks up against the broader market across all factor dimensions.
LXU Next Earnings Date
No upcoming earnings date has been announced for LSB INDUSTRIES, INC. (LXU) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy LXU? — Investment Thesis Summary
The bull case for LSB INDUSTRIES, INC. rests on several quantitative strengths. Price momentum is positive at 73/100, suggesting the trend favors buyers.
In summary, LSB INDUSTRIES, INC. (LXU) earns a Buy rating with a composite score of 53.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on LXU stock.
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Execution Benchmarks audit
Revenue Growth
YOY expansion rate
11.0%
Sector: 1.8%
+526% VS SCTR
Gross Margin
Core pricing power
8.6%
Sector: 29.8%
-71% VS SCTR
Operating Margin
Operating efficiency
-0.6%
Sector: 6.0%
-109% VS SCTR
Net Margin
Bottom-line conversion
-4.5%
Sector: 3.0%
-250% VS SCTR
Return on Equity
Equity capital efficiency
-3.3%
Sector: 3.3%
-198% VS SCTR
Return on Assets
Asset base utilization
-1.4%
Sector: 0.6%
-340% VS SCTR
Debt/Equity
Financial leverage load
85.0%
Sector: 41.0%
-107% VS SCTR
Dividend Yield
Direct cash return
0.0%
Sector: 0.5%
-100% VS SCTR
-28%
Price / Sales
1.9x
+157%
LSB INDUSTRIES, INC. exhibits a 1034% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
-1.4%
Sector: 0.6%
Gross Margin
Pricing power and cost efficiency
8.6%
Sector: 29.8%
Operating Margin
Core business profitability
-0.6%
Sector: 6.0%
Net Margin
Bottom-line profitability
-4.5%
Sector: 3.0%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.