LSB Industries Inc 2025年度报告

2025 Chairman’s Letter to StockholdersDear Fellow Stockholders, I am pleased with the progress that we made in 2025. We delivered positive results across our operations bysignificantly improving our safety and manufacturing performance, executing with commercial discipline, andmaking meaningful progress in overall plant reliability, production throughput, and operational efficiency. Thisallowed us to capitalize on strong market conditions and report net sales of $615 million, a 15% increase over2024, adjusted EBITDA of $162 million, a 25% year-over-year increase, and EPS of $0.34, a 180% increasefrom the prior year. At year end, our net debt-to-adjusted EBITDA was 1.8x, allowing us to continue to invest inour business and to seek growth opportunities. Manufacturing Improvements In early 2025 a select team of LSB employees were tasked to develop a standard, consistent way to operate andmaintain our manufacturing sites and plants. The outcome was the “LSB Way,” a complete revamp ourmanufacturing processes and operating culture. Implementing The LSB Way required a significant culturechange from the past, but one that was needed to achieve our goals of increased safety and reliability at ourmanufacturing sites. The initial implementation began at our El Dorado site, where significant operationalimprovements have taken place. The rollout of the “LSB Way” will continue in 2026, as we are scheduled toimplement it at both our Cherokee and Pryor locations. The cultural change initiated by The LSB Way helped us achieve a record safety performance in 2025. Our12-month rolling total reportable incident rate, at December 31, 2025, of 0.40 incidents per 200,000 work hours,was a meaningful improvement over 2024. Additionally, three of our four sites operated injury-free for the fullyear. We also achieved numerous site level production records in 2025 and overall company production recordsfor nitric acid and ammonium nitrate solution (ANS). These accomplishments have set us up for continued futuresuccess. Product Mix Shift and Optimization Heading into 2025, a core focus was to improve our product and end market mix while creating more optionalityin order to optimize our production. During the third quarter of 2025, we completed our previously announcedtransition away from producing High Density Ammonium Nitrate (HDAN), which we sold as a fertilizer, intoANS that is used for explosives in the mining sector. This was a strategic decision that advanced our sales-mix optimization strategy and allowed us to expand into agrowing market, while taking seasonality and cyclicality out of our business. We’ve also added more stability inour earnings, as this market allows us to pass the cost of our natural gas feedstock through to our customers. The importance of this decision became evident in 2025 as demand for ammonium nitrate, both ANS and prill,increased and continues to remain strong across most commodities. In particular, demand from copper and goldminers is strong as they seek to maximize production volumes in a record-price environment. Kudos to ourcommercial team on the successful execution of this core initiative. El Dorado Carbon Capture and Sequestration Project We believe that reducing our CO2 emissions and making low carbon products is core to our long-term strategy.To support that, we have an active project to capture and sequester CO2 at our El Dorado facility. Late last year, our partner, Lapis Carbon Solutions (“Lapis”), joined us in meeting with senior officials from theEnvironmental Protection Agency’s Region 6 office to discuss the status and timing of our Class VI injectionwell permit application. Based on that discussion, we expect the technical review of the permit to be completedthis spring, followed by approval of the permit to construct in August. We anticipate finalizing the permit to inject CO2 and first injection by year-end Additionally, in anticipation of completion of this project, ourcommercial team is exploring options to monetize our low carbon ammonia either by the sale of low carbonproducts, the sale of CO2 credits, or both. Facility Turnarounds Scheduled for 2026 We continue to improve the safety and reliability of our manufacturing facilities and 2026 is no exception withtwo scheduled turnarounds for the year. The first turnaround, at our El Dorado facility, is scheduled for thesecond quarter of this year and the second turnaround, at our Pryor facility, is scheduled in the third quarter ofthis year. Despite these planned outages, we expect the operational improvements already implemented across our facilitiesto support continued strong production volume momentum. We also expect that the work performed during theseturnarounds will further improve the safety and reliability of our plants and ultimately yield greater overallproduction in the future. Positive 2025 Set the Stage for a Strong Future We made meaningful progress in 2025 across many fronts and drove strong results thr