The tariff war hasn’t hurt LSB Industries, Inc. so far, according to Mark Behrman, LSB Industries’ Chairman & Chief Executive Officer as he reported improved first quarter net sales.
The Oklahoma City fertilizer manufacturing firm’s net sales were $143.4 million, improved from the $138.2 million in the first quarter of 2024. But LSB still recorded a net loss of $1.6 million compared to net income of $5.6 million a year earlier. As a result, its earnings per share were a minus 2 cents this year compared to 8 cents for the first quarter of 2024.
The company’s adjusted EBITDA was $29.1 million compared to $32.6 million a year ago. Still, Behrman indicated the company operations had improved productivity.
“Not only did we produce more ammonia as compared to the 2024 first quarter, but we also continue to upgrade more of our ammonia into higher margin products. Additionally, we saw stronger ammonia selling prices. However, during the quarter we experienced materially higher natural gas prices which offset the higher selling prices and the operating improvements we made,” he explained.
But he said markets remain strong for LSB and U.S. corn plantings are expected to be at historically high levels.
As for the tariff war between the U.S. and other countries, LSB has avoided much impact, stated Behrman.
“Our exposure to direct tariff impacts is limited, as less than 10% of our sales are made to customers outside the U.S. We are more likely to see the impact of tariffs on the cost side of our business, as some of the parts, components and equipment we use to maintain our plants come from outside of the U.S., particularly Europe. We are seeking opportunities to source domestically wherever possible so that we can minimize the potential impacts of tariffs on our costs.”
LSB launched a carbon capture project in Arkansas two years ago. With Lapis Energy, the project at El Dorado, Arkansas plans to inject CO2 into deep geological formations under LSB’s existing 1,400-acre plant site. The project is the first in Arkansas and the third of its kind in the U.S. as it would result in low carbon or blue ammonia production. It would also make LSB one of the first suppliers of blue ammonia to the international markets.
In a first quarter status report, LSB indicated it expects operations to begin by the end of 2026 and capture and sequester between 400,000 and 500,000 metric tons of CO2 a year. Currently, the company is awaiting EPA approval of Class VI permit application to begin construction.