LSB Industries, Inc. (LXU): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the companies that power the agricultural and industrial sectors? LSB Industries, Inc. (LXU) is one such player, but what exactly does it do and how does it make money? With a recent 52-week low of $4.88 and a -38.65% drop in share price, is now the time to delve deeper into this Oklahoma City-based chemical manufacturer, which was founded in 1968 and employs 583 people?

This article will explore LSB Industries' history, its ownership structure, and its core mission. We'll break down how it operates, the chemical products it manufactures—including ammonia, fertilizer grade ammonium nitrate, and urea ammonia nitrate—and how these products reach their end users. Keep reading to understand LSB Industries' role in the chemical industry and its strategic initiatives, including its focus on clean ammonia and carbon capture projects, especially as it navigates a market with analyst price targets ranging from $8 to $15.

LSB Industries, Inc. (LXU) History

LSB Industries, Inc. Founding Timeline

Year established

LSB Industries was established in 1968.

Original location

The company was originally located in Oklahoma City, Oklahoma.

Founding team members

The founder of LSB Industries is Jack E. Golsen.

Initial capital/funding

Information regarding the initial capital or funding for LSB Industries' founding is not readily available in the provided search results.

LSB Industries, Inc. Evolution Milestones

LSB Industries, Inc. Transformative Moments

• Strategic Shift to Chemicals: The decision to focus primarily on the chemical business, particularly the production of nitrogen-based products, has been a transformative moment. This strategic clarity allowed LSB to invest in and optimize its chemical operations, leading to improved efficiency and profitability.
• Divestiture of Non-Core Assets: The sale of the Climate Control business in 2016 and the Pryor, Oklahoma facility in 2023 are key examples of LSB streamlining its portfolio to concentrate on core strengths. These divestitures provided capital for reinvestment and debt reduction.
• Investment in Environmental and Safety Upgrades: Recognizing the increasing importance of sustainability, LSB has invested significantly in upgrading its facilities to meet higher environmental standards. This not only ensures compliance but also enhances the company's reputation and operational efficiency.
• Operational Efficiency Initiatives: Implementing various operational efficiency initiatives has been crucial in maintaining competitiveness. These efforts have focused on reducing costs, optimizing production processes, and improving supply chain management.

To gain further insights into the company's guiding principles, explore: Mission Statement, Vision, & Core Values of LSB Industries, Inc. (LXU).

LSB Industries, Inc. (LXU) Ownership Structure

LSB Industries, Inc. features a mixed ownership structure, including institutional and retail investors, which influences its governance and strategic direction.

LSB Industries, Inc.'s Current Status

LSB Industries, Inc. is a publicly traded company, listed on the New York Stock Exchange (NYSE) under the ticker symbol LXU. This means that its shares are available for purchase by the general public, and the company is subject to the regulations and reporting requirements of the U.S. Securities and Exchange Commission (SEC).

LSB Industries, Inc.'s Ownership Breakdown

As of December 31, 2024, the ownership of LSB Industries, Inc. is distributed among various types of shareholders. Here is a breakdown:

LSB Industries, Inc.'s Leadership

The leadership team of LSB Industries, Inc. plays a crucial role in guiding the company's strategy and operations. Key members include:

• Mark Behrman: President and Chief Executive Officer
• Cheryl Maguire: Executive Vice President and Chief Financial Officer
• Kristin Lewin: Executive Vice President, General Counsel and Secretary

Understanding the mission, vision, and core values that drive LSB Industries is crucial for a comprehensive view. Read more at: Mission Statement, Vision, & Core Values of LSB Industries, Inc. (LXU).

LSB Industries, Inc. (LXU) Mission and Values

LSB Industries is committed to optimizing agricultural yields and reducing emissions through innovative solutions. The company's core values emphasize safety, integrity, and environmental stewardship.

LSB Industries, Inc.'s Core Purpose

Official mission statement

LSB Industries doesn't have one official, concise mission statement publicly available. However, LSB's focus can be derived from their business activities and statements:

• Driving efficient crop nutrition through the production of nitrogen-based fertilizers.
• Reducing the carbon footprint through the manufacturing of high-purity ammonia.
• Meeting the needs of the chemical industry by supplying high-quality and reliable products.

Vision statement

Similar to the mission statement, LSB Industries does not have a single, explicitly stated vision statement. However, their goals and strategic priorities suggest a future-oriented vision:

• To be a leading provider of nitrogen and industrial chemical products.
• To achieve operational excellence in all aspects of their business.
• To deliver sustainable value to their shareholders, customers, and employees.

Company slogan/tagline

Currently, there is no widely recognized official slogan or tagline for LSB Industries. For more in-depth information about LSB Industries' mission, vision, and core values, you can explore this resource: Mission Statement, Vision, & Core Values of LSB Industries, Inc. (LXU).

LSB Industries, Inc. (LXU) How It Works

LSB Industries operates as a diversified chemical manufacturer, focusing on agricultural and industrial markets, by producing and selling a range of chemical products.

LSB Industries' Product/Service Portfolio

LSB Industries' Operational Framework

LSB Industries' operations are structured to maximize efficiency and cater to the demands of its key markets. The company’s framework includes:

• Manufacturing Plants: LSB owns and operates chemical manufacturing facilities, primarily in the south-central United States. These plants produce a variety of chemicals, including ammonia, nitric acid, ammonium nitrate, and sulfuric acid.
• Production Processes: The company employs various chemical processes to convert raw materials, such as natural gas and sulfur, into finished products. These processes are monitored and controlled to ensure safety, efficiency, and compliance with environmental regulations.
• Distribution Network: LSB distributes its products through a combination of transportation methods, including pipelines, trucks, and railcars. The company serves customers across the United States and, to a lesser extent, in international markets.
• Supply Chain Management: Effective supply chain management is crucial for securing raw materials and delivering products to customers on time. LSB manages its supply chain to minimize disruptions and optimize costs.
• Customer Relationships: LSB maintains close relationships with its customers, offering technical support and customized solutions to meet their specific needs. This helps to ensure customer satisfaction and loyalty.
• Safety and Environmental Stewardship: LSB is committed to operating its facilities safely and in an environmentally responsible manner. The company invests in safety programs and environmental controls to protect its employees, communities, and the environment.

To learn more about LSB Industries, Inc. (LXU) check this link: Mission Statement, Vision, & Core Values of LSB Industries, Inc. (LXU).

LSB Industries' Strategic Advantages

LSB Industries maintains several strategic advantages that enable it to compete effectively in the chemical manufacturing industry:

• Diverse Product Portfolio: LSB offers a wide range of chemical products, allowing it to serve multiple markets and reduce its reliance on any single product or industry.
• Strategic Locations: The company’s manufacturing plants are strategically located in regions with access to key raw materials and transportation infrastructure, providing a cost advantage.
• Operational Efficiency: LSB focuses on improving its operational efficiency through investments in technology and process optimization, which helps to lower production costs and increase profitability.
• Strong Customer Relationships: The company’s commitment to customer service and technical support fosters long-term relationships with key customers, providing a stable source of revenue.
• Experienced Management Team: LSB’s management team has extensive experience in the chemical industry, providing the leadership and expertise needed to navigate market challenges and drive growth.
• Focus on Safety and Sustainability: LSB’s commitment to safety and environmental stewardship enhances its reputation and helps to ensure compliance with regulations, which is increasingly important to customers and stakeholders.

LSB Industries, Inc. (LXU) How It Makes Money

LSB Industries, Inc. primarily generates revenue through the manufacturing and sale of industrial and agricultural chemicals. These products are essential for various sectors, including agriculture, mining, and industrial applications.

LSB Industries, Inc.'s Revenue Breakdown

LSB Industries, Inc.'s Business Economics

The business economics of LSB Industries, Inc. are influenced by several key factors:

• Pricing Strategies: Prices for agricultural products like fertilizers are heavily influenced by supply and demand dynamics, global commodity prices, and seasonal agricultural cycles. Industrial chemicals pricing depends on production costs, market competition, and specific contract terms with industrial clients.
• Raw Material Costs: The cost of natural gas, a primary raw material in ammonia production, significantly impacts LSB's profitability. Fluctuations in natural gas prices can either enhance or diminish their profit margins.
• Operational Efficiency: Efficient manufacturing processes and plant utilization rates are crucial for maintaining competitive production costs. Investments in technology and infrastructure play a key role in optimizing operational efficiency.
• Regulatory Environment: Environmental regulations and compliance costs can affect production expenses and capital expenditures. Adhering to environmental standards is essential for sustainable operations.

LSB Industries, Inc.'s Financial Performance

LSB Industries, Inc.'s financial performance can be assessed through the following metrics:

• Revenue Growth: Monitoring the year-over-year revenue growth in both agricultural and industrial segments indicates the company's ability to expand its market presence and capitalize on industry trends.
• Gross Profit Margin: The gross profit margin, which reflects the difference between revenue and the cost of goods sold, is a key indicator of production efficiency and pricing power.
• Operating Income: Tracking operating income provides insights into the profitability of core business operations, excluding interest and taxes.
• Net Income: Net income, or the bottom line, shows the overall profitability of the company after all expenses and income items are considered.
• Debt Levels: Analyzing the company's debt-to-equity ratio and interest coverage ratio helps assess its financial leverage and ability to meet its debt obligations.

For an in-depth analysis, check out: Breaking Down LSB Industries, Inc. (LXU) Financial Health: Key Insights for Investors

LSB Industries, Inc. (LXU) Market Position & Future Outlook

LSB Industries is strategically positioned to capitalize on growing demand for its products, particularly in the agriculture and industrial sectors, while navigating a dynamic market influenced by economic cycles and regulatory changes. The company's future hinges on operational efficiency, strategic investments in capacity and technology, and adept management of market risks.

Competitive Landscape

The competitive landscape for LSB Industries includes major players in the nitrogen fertilizer and chemical industries. While specific market share data as of April 2025 is not available, a general overview can be provided based on industry analysis and reports.

Opportunities & Challenges

LSB Industries faces a mix of opportunities and risks that will shape its performance in the coming years.

Industry Position

LSB Industries holds a significant position within the nitrogen fertilizer and chemical industry. Its standing can be further understood through the following points:

• LSB focuses on operational improvements and reliability enhancements to maximize production efficiency and reduce costs.
• The company is investing in environmental projects to reduce emissions and improve sustainability, aligning with increasing environmental concerns.
• LSB serves both the agricultural and industrial sectors, providing a diversified revenue stream that mitigates risks associated with reliance on a single market.

For more insights into LSB Industries and its investors, check out: Exploring LSB Industries, Inc. (LXU) Investor Profile: Who’s Buying and Why?