LyondellBasell Industries NV - Class A
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.54%.
Did LYB Beat Earnings? Q2 2025 Results
LyondellBasell Industries delivered a deeply mixed second quarter, as the global chemicals giant continued to absorb the weight of a prolonged industry downturn. Adjusted EPS came in at $0.62, missing the $0.78 consensus estimate by 20.84%, while revenue of $7.66 billion edged past the $7.51 billion forecast by 1.99% — a combination that sent shares tumbling more than 9% in the days following the report. The earnings shortfall was rooted in a collapse in EBITDA, which fell to $715 million on an adjusted basis, down sharply from $1.64 billion in Q2 2024, as weak integrated polyethylene margins and a near-breakeven European O&P segment weighed heavily on profitability. In response, management expanded its Cash Improvement Plan to target at least $1.10 billion in savings across 2025 and 2026, while also announcing the planned sale of four European olefins and polyolefins assets to pivot toward a more cost-advantaged global footprint. Looking ahead, LyondellBasell expects Q3 North American polyethylene margins to improve on completed maintenance and solid domestic demand, targeting 85% operating rates for North American O&P assets.
- Completion of Channelview complex turnarounds enabled higher operating rates and improved integrated polyethylene volumes and margins in North America
- Seasonally stronger domestic demand for polyethylene and polypropylene from consumer packaging, healthcare, building and construction, and infrastructure markets
- June polyethylene contract price increase providing momentum for Q3 profitability
- Stronger styrene margins due to lower benzene costs and industry outages
- Lower feedstock costs improved integrated polyethylene margins in Europe
- Oxyfuels margins fell as lower crude oil prices limited seasonal uplift from summer driving season
- Global markets began to adapt to trade volatility contributing to more stable operating environment
“As we advance our three-pillar strategy, LYB continues to grow and upgrade our core businesses through disciplined capital allocation that extends our competitive advantage. We are expanding our Cash Improvement Plan to help navigate a prolonged cyclical downturn. Our Value Enhancement Program and portfolio optimization actions remain on track to reap the benefits from a cycle recovery.”
LyondellBasell Industries CEO, on the earnings call
Forward Guidance & Outlook
In Q3 2025, LYB expects North American integrated polyethylene margins to improve due to completed planned maintenance and increased prices supported by solid domestic demand and stronger export volumes. In Europe, steady seasonal demand and favorable feedstock costs are expected to continue, with ongoing capacity rationalizations helping balance regional supply and demand. Oxyfuels margins are expected to remain low for the remainder of the summer season. LYB expects Q3 operating rates of 85% for North American O&P assets, 75% for European O&P assets, and 80% for I&D assets. The company continues to evaluate risks and opportunities associated with evolving tariffs and global trade flows. The Cash Improvement Plan targets at least $1.1 billion in cash improvements over 2025 and 2026, with a $600 million run-rate for 2025 and an incremental $500 million target for 2026.
LYB YoY Financials
Figures from SEC filings and company reports. Not investment advice.