LSB Industries

LSB hit record production levels for nitric acid and ammonium nitrate in 2025, with revenue climbing 22% year over year. The company has a roadmap to add 70 million dollars in annual profit improvements, with 20 million already locked in and another 50 million in progress from better operations and a carbon capture project launching in 2027.

LSB is sitting on roughly 244 million dollars in federal tax credits and 343 million in state credits that let them slash future tax bills. That hidden value is nearly equal to the company's entire market cap, meaning investors are essentially getting those tax savings for free at today's price.

LSB's profits swing with fertilizer and ammonia prices, which can move sharply based on weather, global trade, and energy costs. Natural gas is their main raw material, and if prices spike, it squeezes their margins. They also depend on a small number of big customers, so losing one could hurt.

American farmers are under financial pressure right now, with crop prices staying low and trade uncertainty making planting decisions harder. If farmers cut back on fertilizer spending, LSB feels it directly. The company also has production concentrated in just four facilities, so any shutdown at one plant hits their output significantly.