LSB Industries: Strong 2025 And Massive NOLs Lead To Poison Pill Defense

Damon JuddInvesting GroupFollow5ShareSavePlay(15min)CommentsSummaryLSB Industries is upgraded to buy after strong FY25 results, robust NOL carryforwards, and an optimistic 2026 outlook.LXU reported FY25 revenues up 22.3% YoY and EPS of $0.22, beating estimates, with EBITDA up 25% and further improvements targeted.Substantial NOLs ($243.9M federal, $342.7M state) are protected by a poison pill, enhancing future tax efficiency and takeover defense.I expect a 15% upside for LXU, targeting $13/share by year-end 2026, with continued EBITDA growth and sector tailwinds.Looking for more investing ideas like this one? Get them exclusively at Inside the Income Factory. Learn More »Olena_T/E+ via Getty Images While I mostly like to write about income investments now that I am now retired, I sometimes like to revisit under-covered growth stocks that I highlighted in the past. Occasionally, I will revisit an earlier pick that has suddenly This article was written byDamon Judd8.54K FollowersFollowNow retired, I am an income-oriented investor seeking high yield income to support my lifestyle in retirement.I became deeply interested in the stock market beginning in late 2007 (bad timing for me but worse for my uncle) when I received an unexpected inheritance. Since that time I have done considerable research and vowed to make smarter long-term investing decisions after suffering through the Great Recession with minimal losses to my inherited portfolio, after firing my financial advisor.I look for mostly dividend paying income stocks and funds (BDCs, REITs, CEFs, ETFs) that offer high yield income to increase my retirement income beyond my pension and Social Security. I also enjoy reading investment/financial and business information and following trends in technology and markets. The human psychology of markets is as fascinating and inscrutable to me as the financial side. I am not a financial advisor so please do your own due diligence before making any buy or sell decisions.“The race is not always to the swift, nor the battle to the strong, but that's the way to bet.” Damon RunyonAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.