LSB Industries, Inc. released its financial results for the third quarter ended September 30, 2026, via a Form 8-K filed on October 29, 2026. The company reported a 55% year-over-year increase in adjusted EBITDA for the quarter, reaching $159 million, compared to $155 million in the prior year. Net sales for the third quarter of 2026 were $402 million, up from $241 million in the third quarter of 2025. Diluted earnings per share (EPS) for the quarter were $0.22, representing a 120% increase over the $0.10 reported in the same period last year.
The filing details a robust liquidity position as of September 30, 2026. The company reported cash and short-term investments of $132 million, with a total debt of $204 million. This resulted in a net debt to trailing twelve-month (TTM) adjusted EBITDA ratio of 1.1x. Free cash flow for the nine months ended September 30, 2026, was reported at $58 million, while operating cash flow totaled $78 million.
Management highlighted that the company has delivered $20 million in estimated annualized adjusted EBITDA run-rate opportunity from company-driven levers, with an additional $75 million to $90 million in execution or identified opportunities expected to be delivered by the end of 2026. The company also noted that approximately 35% to 40% of the potential $95 million to $110 million in estimated annual adjusted EBITDA is expected to be in the run-rate by the end of 2026.
Regarding capital allocation, LSB Industries reported $24 million in year-to-date spending related to the development of the El Dorado Carbon Capture Sequestration (CCS) project. The company stated that it remains focused on reliability, efficiency, and output at its facilities and anticipates positive market conditions for both its industrial and fertilizer businesses to continue into the first quarter of 2027.
