Back to top

Image: Bigstock

LyondellBasell to Post Q2 Earnings: What's in the Cards?

Read MoreHide Full Article

Key Takeaways

  • LYB's Q2 revenue is expected to fall 29.9% year over year to $7.4B, per the consensus estimate.
  • Second-quarter consensus estimates suggest a year-over-year decline in sales in all LYB segments.
  • LYB is expected to have benefited from seasonal demand recovery and lower feedstock costs.

LyondellBasell Industries N.V. (LYB - Free Report) is set to release second-quarter 2025 results before the opening bell on Aug 1.

LyondellBasell beat the Zacks Consensus Estimate for earnings in one of the trailing four quarters, missed it twice and matched on the other occasion. It delivered a trailing four-quarter negative earnings surprise of around 3.8%, on average. 

LYB's shares are down 37.2% in the past year compared with the industry’s 21.7% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

Let’s see how things are shaping up for this announcement.

What Do LYB’s Revenue Estimates Say?

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $7,405.6 million, indicating a decline of around 29.9% from the prior-year reported number.

For the Olefins and Polyolefins – Americas division, the consensus estimate stands at $2,731.5 million, suggesting a year-over-year decline of 6.6%. The same for the Olefins and Polyolefins – Europe, Asia & International division is pegged at $2,600 million, implying an 8.5% decrease from last year’s tally.

For LYB’s Advanced Polymer Solutions segment, the Zacks Consensus Estimate for second-quarter revenues is $926 million, suggesting a 2.3% decline year over year.

The consensus estimate for the Intermediaries and Derivatives segment’s revenues is pinned at $2,321.5 million, suggesting a 16.9% decrease from the year-ago reported figure.

The same for the Technology segment's revenues is pegged at $145 million, suggesting an 8.8% fall from a year ago.

Factors at Play for LYB

In the second quarter of 2025, LyondellBasell is expected to have benefited from seasonal demand recovery and declining feedstock and natural gas costs. In the Olefins and Polyolefins Americas segment, operating rates are expected to have risen to around 85% as major maintenance activities at the Channelview complex conclude. The European, Asia and International segment is expected to have benefited from seasonal demand improvements and lower feedstock costs, which are likely to have aided margins. The Intermediates and Derivatives segment is expected to have seen stronger seasonal demand, especially in oxyfuels due to the summer driving season, supporting higher margins and asset utilization near 85%.

The company’s Advanced Polymer Solutions (APS) segment, despite continued weakness in U.S. and European automotive markets, is expected to have seen volume growth in the second quarter. This growth is supported by an ongoing transformation strategy focused on customer value, cost optimization and improved working capital efficiency. Meanwhile, the Technology segment is expected to have performed similarly to the first quarter, as licensing revenue remains soft due to fewer global capacity additions.

What Our Model Unveils for LYB Stock

Our proven model does not conclusively predict an earnings beat for LYB this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: Earnings ESP for LYB is -0.67%. The Zacks Consensus Estimate for the second quarter is currently pegged at 87 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: LYB currently carries a Zacks Rank #5 (Strong Sell).

Basic Materials Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider, as our model shows they have the right combination of elements to post an earnings beat this quarter:

Royal Gold, Inc. (RGLD - Free Report) is slated to report second-quarter results on Aug. 6. It has an Earnings ESP of +6.85%. The Zacks Consensus Estimate for earnings is pegged at $1.70. RGLD beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 9%. RGLD carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

ATI Inc. (ATI - Free Report) , slated to release earnings on July 31, has an Earnings ESP of +3.38% and carries a Zacks Rank #3 at present. The consensus mark for ATI’s second-quarter earnings is currently pegged at 71 cents.

CF Industries Holdings, Inc. (CF - Free Report) , scheduled to release earnings on Aug. 6, has an Earnings ESP of +10.03% and carries a Zacks Rank #3 at present. The consensus estimate for CF’s second-quarter earnings is currently pegged at $2.28.




 

Published in