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LyondellBasell's Earnings Lag Estimates, Revenues Beat in Q2

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Key Takeaways

  • LyondellBasell posted Q2 adjusted earnings of 62 cents, missing estimates and down 71.8% year over year.
  • Revenue dropped across all LYB segments, but consolidated sales topped the consensus estimate.
  • LYB expects better North American integrated polyethylene margins in Q3, but weak oxyfuels margins.

LyondellBasell Industries N.V. (LYB - Free Report) recorded a second-quarter 2025 profit of $115 million or 34 cents per share, reflecting a decrease of 87.5% from $924 million or $2.82 per share reported a year ago.

LYB posted adjusted earnings of 62 cents, down 71.8% from the year-ago quarter figure of $2.20. Adjusted earnings missed the Zacks Consensus Estimate of 87 cents.

The company’s net sales in the second quarter were $7,658 million, which beat the Zacks Consensus Estimate of $7,405.6 million. Net sales fell around 11.7% from $8,678 million in the prior-year quarter.

LYB’s Segment Highlights

In the reported quarter, the Olefins & Polyolefins — Americas segment's revenues declined 18.8% amounting to $2,377 million, lagging the consensus estimate of $2,731.5 million. 

Similarly, Olefins & Polyolefins — Europe, Asia, the international segment revenues declined 4.8% year over year to $2,704 million. It topped the consensus estimate of $2,600 million.

In the Intermediates and Derivatives segment sales were $2,275 million, a decline of 18.6% year over year, missing the consensus estimate of $2,321.5 million.

The Advanced Polymer Solutions revenues were $917 million, representing a decline of 3.3% year over year, missing the consensus estimate of $926 million.

The Technology segment's revenues were $137 million, marking a decline of 13.8%, and lagging the consensus estimate of $145 million.

LYB’s Financials

LYB generated $351 million in cash from its operating activities in the reported quarter. The company continued its balanced capital allocation strategy by spending $539 million on capital spending and distributing $536 million to shareholders via dividends and share buybacks. By the end of the quarter, LYB had $1.7 billion in cash and cash equivalents, along with $6.4 billion in total available liquidity.

LYB’s Outlook

In the third quarter, LyondellBasell anticipates an improvement in North American integrated polyethylene margins, driven by the completion of scheduled maintenance in April and higher prices supported by strong domestic demand and increased export activity. In Europe, steady seasonal demand and favorable feedstock costs are expected to persist, while ongoing capacity reductions across the region are expected to help balance supply and demand. However, oxyfuels margins are projected to remain weak throughout the summer.

To align production with global demand and planned maintenance activities, LYB expects to operate its North American olefins and polyolefins (O&P) assets at 85% capacity, European O&P facilities at 75% and Intermediates & Derivatives (I&D) assets at 80%. The company continues to closely monitor potential risks and opportunities related to shifting tariffs and global trade patterns.

LYB’s Price Performance

Shares of LyondellBasell have lost 41% in the past year compared with a 26.6% decline of the industry.

Zacks Investment Research
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LYB’s Zacks Rank & Key Picks

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

Better-ranked stocks worth a look in the basic materials space include Royal Gold, Inc. (RGLD - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Barrick Mining Corporation (B - Free Report) .

Royal Gold is slated to report second-quarter results on Aug 6. 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.

Avino Silver is scheduled to report second-quarter results on Aug 13. The Zacks Consensus Estimate for ASM’s second-quarter earnings is pegged at 3 cents. ASM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 104.2%. ASM currently carries a Zacks Rank #1.

Barrick Mining is slated to report second-quarter results on Aug 11. The consensus estimate for Barrick’s earnings is pegged at 47 cents. Barrick, carrying a Zacks Rank #1, beat the consensus estimate in three of the last four quarters, with the average earnings surprise being 12.5%.

 

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