LSB Industries posts FY 2025 results with return to profitability
LSB Industries (LXU) has capped FY 2025 with fourth quarter total revenue of US$165.0 million, Basic EPS of US$0.22 and net income excluding extra items of US$16.1 million, with trailing twelve month EPS at US$0.34 and net income of US$24.6 million on US$615.2 million of revenue.
Over recent periods, the company has seen quarterly revenue move from US$143.4 million in Q1 2025 to US$165.0 million in Q4 2025. Basic EPS has shifted from an EPS loss of US$0.13 in Q4 2024 to EPS of US$0.22 in Q4 2025. This sets up a story where profitability and margins sit squarely in focus for investors parsing this latest earnings print.
See our full analysis for LSB Industries.With the fresh numbers on the table, the next step is to see how this earnings profile lines up against the key narratives around LSB Industries, highlighting where the data supports the story and where it raises new questions.
See what the community is saying about LSB Industries
EPS swings from loss to US$0.34 over twelve months
- On a trailing twelve month basis, Basic EPS moved from a loss of US$0.37 at Q1 2025 to a profit of US$0.34 by Q4 2025, alongside net income excluding extra items of US$24.6 million on US$615.2 million of revenue.
- Supporters of the bullish view focus on this profit shift and five year annualized earnings growth of 28.9%. However, they are still relying on forecasts of earnings growth of about 9.8% a year while revenue is expected to edge down 0.2% a year. The resulting tension is that the historic EPS turnaround is strong while the revenue outlook in the data is flat to slightly weaker.
Bulls argue that this kind of earnings profile could still justify further margin expansion and higher profitability over time, particularly if efficiency projects and low carbon ammonia contribute more meaningfully to earnings per share.
- What stands out is that trailing twelve month net income excluding extra items went from a loss of US$26.6 million at Q1 2025 to a profit of US$24.6 million by Q4 2025. This heavily supports the bullish focus on improving profitability, even though the provided forecasts point to only moderate earnings growth ahead.
- At the same time, bullish arguments that long term demand and higher margin products can support stronger earnings sit alongside the data point that revenue is expected to decline slightly over the next three years. Anyone leaning on the optimistic view needs to be comfortable with an earnings story that is doing more work than the top line in the information provided.
- This mix of improving trailing EPS and cautious revenue expectations is what bulls see as an efficiency and mix opportunity, while the numbers here show that any earnings growth has to come from margin gains rather than sales expansion in the forecasts you have.
- Because the forecasts in the data already assume earnings growth with a flat to slightly weaker revenue path, there is less room for upside surprise from basic volume growth than a simple read of the recent EPS rebound might suggest.
Bulls argue that this profit turnaround could be the starting point for a stronger multi year story if margins keep improving and low carbon projects add new earnings streams. However, the figures here show that expectations for revenue growth are restrained, so most of the heavy lifting in any bullish case is on margins, not sales. 🐂 LSB Industries Bull Case
High P/E of 33.6x against industry and peers
- The stock trades on a trailing P/E of 33.6x, compared with 24.4x for the broader US chemicals industry and a much lower peer average P/E of about 3.6x, while the current share price of US$11.54 also sits below a stated DCF fair value of about US$12.52.
- Critics in the bearish narrative highlight this richer P/E as a key concern, arguing that if earnings reach the levels in their scenario, the required P/E of 19.7x by 2028 would still leave LSB priced above the peer average multiple in the data. From that perspective, the current 33.6x starting point gives less room for any disappointment in the assumed earnings path.
- What is striking is the mixed message between the DCF fair value of about US$12.52, which is only modestly above the current US$11.54 share price, and the P/E that is well above the 24.4x industry average. The data therefore shows a small DCF discount but a premium earnings multiple at the same time.
- Bears argue that this combination reinforces their concern that valuation is leaning heavily on continued earnings growth, especially with forecasts of roughly 9.8% annual earnings growth and a slight 0.2% annual revenue decline. They see a risk that any slowdown in earnings relative to these figures could put pressure on a 33.6x P/E even if the DCF number appears slightly higher than the current price.
- The bearish price target framework in the data uses a P/E of 19.7x on 2028 earnings, which is still below the current 33.6x but above the peer average. If the market were to move toward that multiple while earnings follow their projections, the upside from here using just multiples Next Steps
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for LSB Industries on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.
If the mix of optimism and concern here feels familiar, take a moment to review the numbers yourself and decide where you stand, including how you weigh the 3 key rewards and 2 important warning signs for your own view.
See What Else Is Out There
LSB Industries pairs a relatively rich 33.6x P/E and cautious revenue expectations with an earnings story that has limited room for disappointment in the current data.
If you are uneasy about paying up for a full valuation and want potential upside from a cheaper starting point, check out our 54 high quality undervalued stocks that filters for companies where the numbers may offer more room for error and opportunity.
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