LyondellBasell Industries (NYSE:LYB) Issues Quarterly Earnings Results

Key Points

• Q1 results: LyondellBasell reported EPS of $0.49 vs. $0.31 expected and EBITDA of $615 million with $2.6 billion cash and $7.3 billion liquidity, but revenue missed at $7.20B and the company still showed a negative net margin (-2.46%).
• Dividend cut: The board approved a 50% cut to the quarterly dividend to bolster the balance sheet after the company consumed $269 million of operating cash in Q1 and plans an intentional working‑capital build in Q2.
• Restructuring and strategic actions: Management completed the sale of select European assets, reduced ~3,000 positions (~15%), and targets $500 million of incremental cash this year, while Middle East supply disruptions have tightened markets and supported pricing and export opportunities.

LyondellBasell Industries (NYSE:LYB - Get Free Report) posted its quarterly earnings data on Friday. The specialty chemicals company reported $0.49 earnings per share for the quarter, beating the consensus estimate of $0.31 by $0.18, Briefing.com reports. The firm had revenue of $7.20 billion during the quarter, compared to analysts' expectations of $7.53 billion. LyondellBasell Industries had a negative net margin of 2.46% and a positive return on equity of 4.93%. The company's quarterly revenue was down 6.3% compared to the same quarter last year. During the same quarter last year, the company posted $0.33 EPS.

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

• LyondellBasell says the Middle East conflict has created durable global supply tightness and a geopolitical risk premium, and its low‑cost U.S. Gulf Coast and European capacity position the company to capture higher export volumes and margins.
• First‑quarter results improved meaningfully with EBITDA of $615 million, EPS of $0.49, $2.6 billion cash and $7.3 billion liquidity, and a 12‑month EBITDA‑to‑cash conversion of 111%, highlighting strong cash generation and financial flexibility.
• To bolster the balance sheet the board approved a 50% cut to the quarterly dividend, and the company consumed $269 million of operating cash in Q1 while planning an intentional working‑capital build in Q2, signaling near‑term cautiousness despite improving markets.
• Strategic portfolio and cost actions — completion of the sale of four European assets, ~3,000 headcount reductions (~15%), and the Value Enhancement/Cash Improvement programs targeting $500 million incremental cash this year — are expected to lower fixed costs and improve mid‑cycle returns.
• Near‑term operations were hurt by unplanned outages (notably Bayport PO/TBA and LaPorte acetyls) and weather impacts that reduced first‑quarter EBITDA (Bayport ~ $40M), though management expects restarts and higher utilization in coming quarters.

LyondellBasell Industries Trading Up 0.5%

Shares of NYSE:LYB traded up $0.36 during trading on Friday, hitting $74.96. 7,589,201 shares of the company's stock were exchanged, compared to its average volume of 7,798,004. LyondellBasell Industries has a 1-year low of $41.58 and a 1-year high of $83.94. The firm has a 50-day moving average price of $70.67 and a two-hundred day moving average price of $55.53. The company has a current ratio of 1.77, a quick ratio of 1.20 and a debt-to-equity ratio of 1.20. The firm has a market cap of $24.19 billion, a P/E ratio of -32.17, a PEG ratio of 0.26 and a beta of 0.40.

LyondellBasell Industries Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, March 9th. Stockholders of record on Monday, March 2nd were given a dividend of $0.69 per share. The ex-dividend date was Monday, March 2nd. This represents a $2.76 annualized dividend and a dividend yield of 3.7%. LyondellBasell Industries's payout ratio is currently -118.45%.

LyondellBasell Industries News Roundup

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

• Positive Sentiment: Q1 EPS topped expectations — LYB reported $0.49 EPS vs. the $0.31 consensus, driven by pricing gains and cost management; the beat is the primary catalyst for the stock lift. Article Title
• Positive Sentiment: Supply disruptions in the Middle East tightened markets and supported pricing for polymers, helping margins and offsetting weaker volumes. Article Title
• Positive Sentiment: Completed sale of select European olefins and polyolefins assets to AEQUITA — a strategic step that can simplify operations and potentially free cash/redirect capital. Article Title
• Neutral Sentiment: Revenue missed estimates — Q1 revenue was $7.20B vs. the $7.53B consensus and was down ~6.3% year‑over‑year, reflecting volume pressures even as pricing improved. Article Title
• Neutral Sentiment: Analyst commentary is mixed — positive EPS surprise and pricing offset by higher feedstock costs and uneven segment performance, so near-term outlook depends on feedstock/volume trends. Article Title
• Negative Sentiment: Profitability metrics remain mixed — the company reported a negative net margin (-2.46%) despite the EPS beat, suggesting non-operating items, inventory effects or restructuring costs are weighing on reported margins. Article Title

Analysts Set New Price Targets

Several equities research analysts have weighed in on the stock. Evercore raised their price objective on shares of LyondellBasell Industries from $57.00 to $70.00 in a research report on Wednesday, April 22nd. Fermium Researc raised LyondellBasell Industries from a "hold" rating to a "strong-buy" rating in a research note on Monday, March 9th. Wells Fargo & Company lifted their target price on LyondellBasell Industries from $70.00 to $87.00 and gave the company an "equal weight" rating in a research note on Monday, March 30th. Deutsche Bank Aktiengesellschaft lifted their target price on LyondellBasell Industries from $52.00 to $75.00 and gave the company a "hold" rating in a research note on Thursday, March 19th. Finally, Morgan Stanley lifted their target price on LyondellBasell Industries from $52.00 to $77.00 and gave the company an "overweight" rating in a research note on Tuesday, April 21st. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, ten have given a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, LyondellBasell Industries currently has a consensus rating of "Hold" and an average price target of $73.00.

Insider Activity at LyondellBasell Industries

In related news, major shareholder Ai Investments Holdings Llc sold 384,548 shares of LyondellBasell Industries stock in a transaction on Monday, March 9th. The stock was sold at an average price of $68.13, for a total transaction of $26,199,255.24. Following the completion of the sale, the insider directly owned 5,270,918 shares of the company's stock, valued at $359,107,643.34. The trade was a 6.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.14% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On LyondellBasell Industries

Institutional investors have recently made changes to their positions in the stock. Investment Research Partners LLC increased its position in shares of LyondellBasell Industries by 4.4% in the fourth quarter. Investment Research Partners LLC now owns 5,100 shares of the specialty chemicals company's stock valued at $221,000 after buying an additional 214 shares in the last quarter. Moors & Cabot Inc. increased its position in shares of LyondellBasell Industries by 5.6% during the third quarter. Moors & Cabot Inc. now owns 5,495 shares of the specialty chemicals company's stock worth $269,000 after purchasing an additional 293 shares in the last quarter. Vident Advisory LLC increased its position in shares of LyondellBasell Industries by 1.1% during the second quarter. Vident Advisory LLC now owns 26,406 shares of the specialty chemicals company's stock worth $1,528,000 after purchasing an additional 297 shares in the last quarter. Ancora Advisors LLC increased its position in shares of LyondellBasell Industries by 2.7% during the third quarter. Ancora Advisors LLC now owns 11,497 shares of the specialty chemicals company's stock worth $564,000 after purchasing an additional 305 shares in the last quarter. Finally, DRW Securities LLC grew its stake in shares of LyondellBasell Industries by 8.5% in the 4th quarter. DRW Securities LLC now owns 6,177 shares of the specialty chemicals company's stock valued at $267,000 after buying an additional 486 shares during the period. 71.20% of the stock is owned by institutional investors and hedge funds.

LyondellBasell Industries Company Profile

LyondellBasell Industries N.V. NYSE: LYB is a global chemical company headquartered in Houston, Texas, that specializes in the production of polyolefins and advanced polymers. Through its extensive portfolio, the company supplies raw materials for a wide range of end markets, including packaging, automotive, construction, electronics and consumer goods. By combining proprietary process technologies with expertise in catalysts, LyondellBasell aims to deliver value-added solutions that enhance product performance and sustainability.

The company's integrated operations encompass the manufacture of olefins and polyolefins, advanced polymer products, chemical intermediates and refining activities.

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