LyondellBasell Industries (NYSE:LYB) Issues Earnings Results

LyondellBasell Industries (NYSE:LYB) issued its quarterly earnings results on Friday. The specialty chemicals company reported $2.54 EPS for the quarter, missing analysts’ consensus estimates of $2.57 by ($0.03), Zacks reports. The firm had revenue of $8.50 billion for the quarter, compared to the consensus estimate of $8.87 billion. LyondellBasell Industries had a negative net margin of 1.13% and a positive return on equity of 17.44%. The business’s revenue was up 10.0% compared to the same quarter last year. During the same period last year, the company posted $1.01 EPS.

Here are the key takeaways from LyondellBasell Industries’ conference call:

• Strong third-quarter cash generation: EBITDA was $1.5 billion, with an 18% margin, while free cash flow reached $1.4 billion and cash increased by approximately $600 million to $3.2 billion. Management attributed the performance to portfolio changes, working-capital discipline, and its Value Enhancement and Cash Improvement programs.
• Intermediates and Derivatives delivered record EBITDA of $795 million, more than doubling sequentially, supported by stronger oxyfuel margins and the Bayport PO/TBA restart. Management expects results to moderate in the fourth quarter but still anticipates historically strong profitability, particularly in oxyfuels.
• North American polyolefin conditions improved late in the quarter: polyethylene and polypropylene demand strengthened, inventories remained lean, and price increases were announced. However, higher ethane and other feedstock costs could offset some pricing benefits, while management expects demand to moderate toward year-end.
• Europe remains a significant pressure point, with elevated energy and logistics costs, low Rhine water levels, weak polymer spreads, and cautious customer purchasing. O&P Europe, Asia and International operating rates are expected to decline to approximately 60% in the fourth quarter from 65% in the third quarter.
• LyondellBasell agreed to sell its former Houston refinery site to Valero for $320.5 million, with closing expected by the end of 2026, subject to approvals. The transaction should reduce complexity and ongoing obligations, improve annual cash flow by approximately $50 million-$100 million, and provide additional balance-sheet flexibility, although management said capital allocation will remain conservative.

LyondellBasell Industries Price Performance

LYB traded up $3.19 during trading hours on Friday, hitting $68.56. The company’s stock had a trading volume of 4,639,872 shares, compared to its average volume of 5,764,647. LyondellBasell Industries has a 12 month low of $41.58 and a 12 month high of $83.94. The company has a current ratio of 1.64, a quick ratio of 1.07 and a debt-to-equity ratio of 1.05. The business’s 50-day moving average price is $62.74 and its 200-day moving average price is $63.49. The stock has a market cap of $22.15 billion, a price-to-earnings ratio of -60.67, a P/E/G ratio of 0.17 and a beta of 0.30.

LyondellBasell Industries Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, August 31st. Shareholders of record on Monday, August 24th were paid a $0.69 dividend. The ex-dividend date was Monday, August 24th. This represents a $2.76 annualized dividend and a yield of 4.0%. LyondellBasell Industries’s payout ratio is presently -244.25%.

LyondellBasell Industries News Roundup

Here are the key news stories impacting LyondellBasell Industries this week:

• Positive Sentiment: Third-quarter adjusted earnings per share rose 151.5% year over year to $2.54, while revenue increased 10% to $8.50 billion. Oxyfuels margins were strong, Bayport returned to full capacity, and integrated polyethylene margins improved late in the quarter. LYB Q3 Earnings Miss on Weak Polymer Prices Despite Oxyfuels Gains
• Positive Sentiment: Operating cash flow reached approximately $1.7 billion and free cash flow was about $1.4 billion, comfortably covering the reduced quarterly dividend of 69 cents per share. The lower payout improves dividend protection and leaves more cash for debt reduction, reinvestment, or buybacks. LyondellBasell stock and dividend information
• Positive Sentiment: LYB agreed to sell its former Houston refinery site to Valero for approximately $320.5 million. The transaction would provide additional liquidity and transfer certain operating, environmental, and pension obligations to the buyer, subject to closing conditions. LyondellBasell agrees to sell former refinery site in Houston
• Neutral Sentiment: Management expects reduced fourth-quarter operating rates—85% in North American Olefins and Polyolefins, 60% in Europe, and 75% in Intermediates and Derivatives—as it aligns production with demand and maintenance needs. LyondellBasell Revenue Rises; Warns of Slow Recovery in Middle East
• Negative Sentiment: Adjusted EPS of $2.54 fell short of analyst estimates ranging from $2.57 to $2.73, while revenue also missed expectations. Weak polymer prices, softer demand, and continued industry oversupply limited the benefit from oxyfuels. LyondellBasell Q3 Earnings Lag Estimates
• Negative Sentiment: Unconfirmed reports that LYB may pursue up to $8 billion of Shell chemical assets create balance-sheet concerns. New debt or equity issuance could conflict with management’s deleveraging priorities and pressure future dividend flexibility.

Wall Street Analyst Weigh In

LYB has been the subject of a number of analyst reports. Citigroup lowered LyondellBasell Industries from a “buy” rating to a “neutral” rating and lowered their price target for the company from $72.00 to $63.00 in a research report on Wednesday, September 30th. JPMorgan Chase & Co. raised LyondellBasell Industries from a “neutral” rating to an “overweight” rating and upped their target price for the company from $75.00 to $80.00 in a report on Monday, August 3rd. Alembic Global Advisors decreased their price objective on LyondellBasell Industries from $95.00 to $83.00 and set an “overweight” rating for the company in a report on Thursday, July 2nd. Barclays started coverage on shares of LyondellBasell Industries in a report on Tuesday, October 13th. They issued an “equal weight” rating and a $66.00 price target on the stock. Finally, Mizuho raised their price objective on shares of LyondellBasell Industries from $62.00 to $66.00 and gave the company a “neutral” rating in a research report on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, ten have issued a Hold rating and four have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $71.50.

About LyondellBasell Industries

LyondellBasell Industries N.V. is a global chemical company that produces polymers, chemicals and related products used in packaging, transportation, construction, healthcare, consumer goods and other industries. Its portfolio includes polyethylene, polypropylene, advanced polymers, propylene oxide, solvents, acetyls and other chemical intermediates.

The company also operates businesses involved in refining and in the development and licensing of chemical and polymer technologies. Its products are used to manufacture items such as food and beverage packaging, automotive components, medical products, coatings, adhesives and household goods.