LyondellBasell Industries NV - Class A
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.74%.
Did LYB Beat Earnings? Q1 2025 Results
LyondellBasell Industries delivered a mixed first quarter for 2025, posting adjusted earnings of $0.33 per share that fell well short of the $0.43 consensus estimate — a 24.02% miss — even as revenue of $7.68 billion edged 3.56% above expectations. The earnings shortfall tells the deeper story: EBITDA excluding identified items collapsed to $576 million from $963 million a year earlier, hammered by higher ethane and natural gas feedstock costs, planned maintenance outages at key U.S. and European crackers, and $117 million in exit costs tied to the permanent closure of a Dutch propylene oxide joint venture. North America's O&P segment bore the brunt, with EBITDA plunging to $251 million from $521 million year-over-year as ethylene and polyethylene margins eroded sharply. Looking ahead, management cited moderating U.S. feedstock costs and an anticipated summer-season lift in oxyfuels margins as near-term tailwinds, while a newly announced $500 million Cash Improvement Plan signals the company is actively tightening its financial posture amid persistent macroeconomic uncertainty.
- Planned and unplanned maintenance at largest ethylene crackers reduced volumes and margins
- Higher ethane and natural gas feedstock costs compressed olefins margins in North America
- Lower oil-to-gas price ratio remained a headwind for relative feedstock economics
- U.S. polypropylene volumes increased 12% sequentially on market share gains with operating rates reaching 85%
- European integrated polyethylene profitability improved from higher cracker utilization and seasonal demand recovery
- Oxyfuels margins significantly compressed by lower gasoline pricing and blend premiums
- Licensing revenue decreased as global polyolefins capacity additions moderated
“The LYB team continued to execute well during the first quarter. With planned maintenance at our largest ethylene crackers successfully completed in Europe and the U.S., our assets are well-positioned to serve improving seasonal demand while adapting to dynamic trade flows through a flexible and global manufacturing network. And as we did during the last two years, we continue to take sensible measures to strengthen our near-term cash generation while remaining committed to delivering on our three-pillar strategy through this prolonged industry downturn. Our financial and operational discipline enables us to effectively navigate macroeconomic challenges, achieve sustainable growth and provide a strong and reliable dividend throughout the cycle.”
LyondellBasell Industries CEO, on the earnings call
Forward Guidance & Outlook
In Q2 2025, LYB expects seasonal demand improvements across most businesses. U.S. natural gas and ethane feedstock costs have moderated, and operations in Europe and Asia are benefiting from lower crude oil costs. Oxyfuels margins should improve with higher gasoline crack spreads during the summer driving season. European capacity rationalization is expected to improve regional supply-demand balances over coming years, and more constructive European economic and regulatory policies provide measured optimism. Global packaging demand is expected to remain resilient despite economic uncertainty. Q2 expected operating rates: 85% for North American O&P assets, 75% for European O&P assets, and 85% for I&D assets. The company announced a $500 million Cash Improvement Plan focused on strengthening financial results.
LYB YoY Financials
Figures from SEC filings and company reports. Not investment advice.