LyondellBasell Industries N.V. (NYSE:LYB) on Friday reported mixed second-quarter 2025 financial results. Its adjusted earnings missed Wall Street estimates despite revenue topping expectations.
The company posted adjusted earnings of 62 cents per share, falling short of the average analyst estimate of 89 cents. Sales declined 11.7% year-over-year to $7.66 billion, beating the estimated $7.60 billion.
While one-time charges led to a reported diluted EPS of 34 cents, adjusted EBITDA saw a solid increase to $715 million from $576 million in the prior quarter.
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The company’s performance was bolstered in North America by the completion of maintenance at its Channelview complex, which led to higher operating rates and improved volumes and margins for integrated polyethylene. In Europe, lower feedstock costs helped improve margins.
Intermediate Chemicals’ profitability improved from stronger styrene margins, thanks to lower benzene costs and industry outages. Oxyfuels’ margins fell as lower crude prices limited the typical summer driving season uplift. Global markets adapted to trade volatility, creating a 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 of a cycle recovery,” said LyondellBasell’s chief executive officer, Peter Vanacker.
LYB announced the planned sale of select European assets, deferred its Flex-2 project to preserve capital, and expanded its cash improvement plan to target at least $1.1 billion in improvements through 2026.
The company generated $351 million in cash from operations during the quarter. It invested $539 million in capital expenditures and returned $536 million to shareholders through dividends and share repurchases.
LyondellBasell ended the quarter with $1.7 billion in cash and $6.4 billion in available liquidity.
“We are encouraged by recent improvements in pricing and demand for polyolefins, and we remain cautiously optimistic regarding policy developments to address excess capacity in China and revitalize the European chemical industry. LYB is well-positioned to capture these market tailwinds and create durable, long-term value for our shareholders through consistent execution of our strategy,” added Vanacker.
Outlook
For North America, the company expects improved integrated polyethylene margins. This is driven by the completion of planned maintenance in April and increased prices supported by strong domestic demand and export volumes.
For Europe, the company anticipates continued steady seasonal demand and favorable feedstock costs. Regional capacity rationalizations are expected to help balance supply and demand.
Oxyfuels margins are projected to remain low for the rest of the summer season. LyondellBasell is carefully evaluating potential risks and opportunities related to evolving tariffs and global trade flows.
The company projects third-quarter operating rates of 85% for North American olefins and polyolefins (O&P), 75% for European O&P, and 80% for Intermediates & Derivatives assets.
Price Action: LYB shares are trading lower by 4.73% to $55.23 at Friday’s last check.
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