LyondellBasell Industries (NYSE:LYB) Posts Quarterly Earnings Results, Misses Estimates By $0.03 EPS

LyondellBasell Industries (NYSE:LYB) released its quarterly earnings results on Friday. The specialty chemicals company reported $2.54 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.57 by ($0.03), Zacks reports. The company had revenue of $8.50 billion during the quarter, compared to analyst estimates of $8.87 billion. LyondellBasell Industries had a negative net margin of 1.13% and a positive return on equity of 17.44%. LyondellBasell Industries’s revenue was up 10.0% compared to the same quarter last year. During the same period in the prior year, the business 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 Stock Up 4.9%

Shares of NYSE LYB traded up $3.19 during trading hours on Friday, hitting $68.56. The stock had a trading volume of 4,639,872 shares, compared to its average volume of 5,764,647. The company has a market capitalization of $22.15 billion, a P/E ratio of -60.67, a P/E/G ratio of 0.17 and a beta of 0.30. The firm’s 50-day moving average price is $62.74 and its two-hundred day moving average price is $63.49. LyondellBasell Industries has a 52 week low of $41.58 and a 52 week high of $83.94. The company has a debt-to-equity ratio of 1.05, a quick ratio of 1.07 and a current ratio of 1.64.

LyondellBasell Industries Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, August 31st. Investors of record on Monday, August 24th were given a dividend of $0.69 per share. The ex-dividend date of this dividend was Monday, August 24th. This represents a $2.76 dividend on an annualized basis and a yield of 4.0%. LyondellBasell Industries’s dividend payout ratio (DPR) is presently -244.25%.

Trending Headlines about LyondellBasell Industries

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.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on LYB shares. Royal Bank Of Canada dropped their target price on shares of LyondellBasell Industries from $72.00 to $68.00 and set an “outperform” rating for the company in a report on Tuesday, October 13th. Barclays started coverage on shares of LyondellBasell Industries in a research note on Tuesday, October 13th. They set an “equal weight” rating and a $66.00 price target for the company. Alembic Global Advisors cut their price target on shares of LyondellBasell Industries from $95.00 to $83.00 and set an “overweight” rating for the company in a report on Thursday, July 2nd. BMO Capital Markets upped their price target on LyondellBasell Industries from $64.00 to $68.00 and gave the stock a “market perform” rating in a report on Monday, August 3rd. Finally, UBS Group reduced their price target on LyondellBasell Industries from $64.00 to $62.00 and set a “neutral” rating on the stock in a research note on Friday, September 25th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, ten have assigned a Hold rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat, LyondellBasell Industries has an average rating of “Hold” and an average target price of $71.50.

LyondellBasell Industries Company Profile

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.