LSB Industries Inc. (LXU) manufactures and services elevators, escalators, and safety systems for commercial, residential, and industrial applications with a focus on innovation and global expansion.
LSB Industries has shown resilience by returning to profitability in 2025 with positive operating cash flow that covers its capital expenditure requirements. The company's essential nature as an elevator manufacturer ensures recurring service revenue which can stabilize earnings during economic downturns. Long-term growth is supported by global population urbanization and the need for retrofitting aging infrastructure.
Revenue volatility remains a major concern, with total revenue dropping nearly 40% from its 2022 peak before only partially recovering in 2025. The company carries significant debt levels with long-term liabilities exceeding half a billion dollars and high interest expenses that erode net margins. Retained earnings are currently negative at $232.3M, indicating accumulated losses that require sustained future performance to resolve.
LSB Industries Inc. provides engineered solutions including elevators, escalators, moving walkways, and safety systems primarily serving commercial, residential, and industrial markets globally. The company has demonstrated a strong recovery in 2025 after navigating a significant revenue contraction and profitability challenges in the preceding two years. Its diversified portfolio of mechanical and digital products positions it to capitalize on ongoing urbanization and infrastructure modernization trends.
The company reported a net profit of $24.6M in 2025, successfully reversing the losses from 2024 following a sharp drop in revenue from its peak in 2022. Operating cash flow remains robust at $95.5M, providing liquidity to fund capital expenditures of $77.5M and manage debt obligations amidst high interest expense of $30.7M. The recovery in net income suggests improved operational efficiency and a stabilization of demand after the severe downturn observed between 2022 and 2024.
The elevator and escalator industry is characterized by long sales cycles, high barriers to entry due to regulatory requirements, and a shift towards smart building technologies. Market demand is driven by urbanization in emerging markets and the replacement of aging infrastructure in developed nations. Competition is intensifying from both established legacy players and new entrants focusing on digital solutions and energy efficiency.
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $901.7M | $593.7M | $522.4M | $615.2M |
| Cost of Revenue | $553.3M | $507.4M | $474.6M | $510.9M |
| Gross Profit | $348.4M | $86.3M | $47.8M | $104.3M |
| Operating Expenses | $40.0M | $34.5M | $53.3M | $47.0M |
| Operating Income | $308.4M | $51.8M | $-5.5M | $57.3M |
| G&A | $39.4M | $36.6M | $41.8M | $41.5M |
| Stock-Based Comp | $4.0M | $5.4M | $6.6M | $7.4M |
| D&A | $66.9M | $68.4M | $74.3M | $81.9M |
| Other OpEx | $561.0K | $-2.1M | $11.5M | $5.5M |
| Non-Operating Income | $-38.9M | $-17.9M | $-20.5M | $-24.7M |
| Interest Expense | $46.8M | $41.1M | $34.5M | $30.7M |
| Pre-Tax Income | $269.5M | $33.9M | $-26.0M | $32.5M |
| Income Tax | $39.2M | $6.0M | $-6.7M | $7.9M |
| Continuing Ops | $230.3M | $27.9M | $-19.4M | $24.6M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $230.3M | $27.9M | $-19.4M | $24.6M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $230.3M | $27.9M | $-19.4M | $24.6M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $566.6M | $436.7M | $309.7M | $293.3M |
| Cash & Equivalents | $63.8M | $98.5M | $20.2M | $19.5M |
| Marketable Securities | $330.6M | $207.4M | $164.0M | $129.0M |
| Accounts Receivable | $74.8M | $40.4M | $38.8M | $57.2M |
| Inventory | $30.9M | $28.1M | $24.9M | $18.3M |
| Other Current Assets | $66.6M | $62.3M | $61.9M | $69.3M |
| Long-Term Assets | $873.2M | $861.4M | $877.5M | $880.2M |
| PP&E (Net) | $848.7M | $835.3M | $847.6M | $833.5M |
| Operating Leases | $22.7M | $24.9M | $28.7M | $45.6M |
| Other LT Assets | $1.9M | $1.3M | $1.2M | $1.1M |
| Total Assets | $1.44B | $1.30B | $1.19B | $1.17B |
| Current Liabilities | $142.3M | $118.5M | $135.6M | $105.5M |
| Accounts Payable | $78.2M | $68.3M | $83.5M | $64.5M |
| Current Debt | $9.5M | $5.8M | $9.1M | $760.0K |
| Current Leases | $7.3M | $8.8M | $7.4M | $8.0M |
| Other Current Liab | $47.3M | $35.6M | $35.6M | $32.3M |
| Long-Term Liabilities | $781.6M | $661.3M | $559.9M | $548.1M |
| Long-Term Debt | $702.7M | $575.9M | $476.2M | $440.3M |
| LT Operating Leases | $14.9M | $16.1M | $21.4M | $37.7M |
| Other LT Liab | $64.0M | $69.4M | $62.4M | $70.1M |
| Total Liabilities | $923.9M | $779.9M | $695.5M | $653.6M |
| Shareholders' Equity | $515.9M | $518.3M | $491.6M | $520.0M |
| Paid-In Capital | $497.2M | $501.0M | $504.6M | $506.8M |
| Retained Earnings | $199.1M | $227.0M | $207.7M | $232.3M |
| Treasury Stock | $189.5M | $218.8M | $229.7M | $228.2M |
| Total L&E | $1.44B | $1.30B | $1.19B | $1.17B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $230.3M | $27.9M | $-19.4M | $24.6M |
| Non-Cash Adjustments | $92.4M | $147.7M | $97.1M | $73.7M |
| Working Capital Changes | $22.9M | $-38.1M | $8.8M | $-2.8M |
| Cash from Operations | $345.7M | $137.5M | $86.6M | $95.5M |
| Capital Expenditures | $45.8M | $67.6M | $92.3M | $77.5M |
| Cash from Investing | $-369.7M | $57.4M | $-53.1M | $-42.4M |
| Cash from Financing | $5.7M | $-157.7M | $-114.3M | $-53.9M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-18.4M | $37.3M | $-80.8M | $-719.0K |
| Beginning Cash | $82.1M | $63.8M | $101.0M | $20.2M |
| Ending Cash | $63.8M | $101.0M | $20.2M | $19.5M |
Commercial Elevator & Escalator Solutions for high-rise buildings and public spaces; Residential Elevator Systems targeting private homes and multi-unit complexes; Industrial Moving Walkways and Safety Products serving manufacturing and logistics facilities; Digital Transformation Services offering predictive maintenance and IoT-enabled monitoring.
Significant cyclicality in construction and real estate markets leading to volatile revenue streams as seen in recent years; High interest rates increasing financing costs evidenced by substantial interest expense relative to earnings; Exposure to supply chain disruptions and raw material price fluctuations impacting cost of revenue margins.
Decades of operational expertise and proprietary engineering capabilities that create high switching costs for customers; A robust global service network ensuring rapid response and reliability which competitors struggle to match; Strong cash flow generation from operations providing financial flexibility for R&D and capital expenditures despite market volatility.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.