LyondellBasell Misses Q1 Estimates, Stock Slips As Profit Margins Narrow

LyondellBasell Industries N.V. LYB stock traded lower premarket on Friday after the company reported mixed first-quarter 2025 results.

LyondellBasell posted revenue of $7.677 billion, down 7.6% year-over-year but topping estimates of $7.47 billion. Adjusted EPS came in at 33 cents, missing the consensus of 43 cents.

Adjusted EBITDA stood at 576 million (-40.2% YoY), and the margin contracted 410 bps to 7.5%.

U.S. polyethylene margins fell due to maintenance and higher feedstock costs, while polypropylene volumes rose 12% with better utilization.

European polyethylene profitability improved with increased cracker utilization and seasonal demand; rising natural gas prices hit acetyls and oxyfuels margins.

LyondellBasell used $579 million in operating cash flow in Q1, driven by higher receivables, inventory buildup, and delayed tax payments. The company invested $483 million in capex and returned $543M to shareholders via dividends and buybacks, maintaining a balanced strategy.

LyondellBasell ended the quarter with $1.9 billion in cash and $6.5 billion in total available liquidity, exceeding its 12-month cash conversion target.

LyondellBasell advanced its three-pillar strategy by approving a U.S. propylene expansion, securing cost-advantaged feedstocks in Saudi Arabia, exiting non-core Dutch and refinery assets, and launching a $500M 2025 Cash Improvement Plan.

Peter Vanacker, LyondellBasell’s chief executive officer, said the company continues to “take sensible measures” to strengthen its near-term cash generation amid a prolonged industry downturn.

“Our financial and operational discipline enables us to effectively navigate macroeconomic challenges, achieve sustainable growth and provide a strong and reliable dividend throughout the cycle," added Vanacker.

Q2 Outlook: The company expects seasonal demand recovery, easing U.S. feedstock costs, and improved oxyfuels margins amid summer gasoline demand.

LyondellBasell projects Q2 asset operating rates of 85% for North American O&P, 75% for European O&P, and 85% for I&D segments.

Price Action: LYB shares traded lower by 1.34% at $58.40 premarket at the last check Friday.

Now Read:

• Trump Will Be First To ‘Blink' In China Trade War, Flexport's Ryan Petersen Tells Scott Galloway