Shares of LSB Industries Inc (LXU) plummeted 5.33% in intraday trading on Thursday, following the release of the company's disappointing third-quarter financial results. The chemical manufacturing company reported a substantial net loss of $25.4 million for Q3 2024, a stark contrast to the profitable quarters earlier in the year.

According to the earnings report, LSB Industries' net sales for Q3 2024 were $155.4 million, showing a slight increase from $151.3 million in Q2 and $143.4 million in Q1. However, the company's bottom line took a significant hit. The Q3 net loss of $25.4 million represents a dramatic reversal from the net income of $9.6 million in Q2 and $5.6 million in Q1 2024. This poor performance likely triggered the selloff, as investors reacted to the unexpected financial downturn.

Despite the negative net income, LSB Industries reported an adjusted EBITDA of $17.5 million for Q3. The company also highlighted its shift in turnaround strategy, moving from an annual cycle to a two- or three-year cycle, with related costs now being recognized as incurred rather than capitalized. This change in accounting practice may have contributed to the reported loss. Additionally, LSB maintained its Section 382 Stockholder Rights Plan to protect its tax attributes, indicating the company's focus on long-term financial planning despite the current setback.