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

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

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 Performance

NYSE:LYB traded up $3.19 during mid-day trading on Friday, hitting $68.56. The stock had a trading volume of 4,642,906 shares, compared to its average volume of 5,773,672. 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 company has a 50 day simple moving average of $62.74 and a 200-day simple moving average of $63.49. The stock has a market capitalization 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 has a 52 week low of $41.58 and a 52 week high of $83.94.

LyondellBasell Industries Announces Dividend

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

Analyst Upgrades and Downgrades

LYB has been the subject of a number of analyst reports. Citigroup downgraded shares of LyondellBasell Industries from a “buy” rating to a “neutral” rating and cut their price objective for the stock from $72.00 to $63.00 in a research report on Wednesday, September 30th. Alembic Global Advisors reduced 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. Mizuho increased their price objective on shares of LyondellBasell Industries from $62.00 to $66.00 and gave the company a “neutral” rating in a research note on Monday, August 3rd. Wall Street Zen downgraded shares of LyondellBasell Industries from a “strong-buy” rating to a “buy” rating in a report on Saturday, September 5th. Finally, Weiss Ratings lowered LyondellBasell Industries from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, August 26th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, ten have given a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $71.50.

Key LyondellBasell Industries News

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.

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.