LyondellBasell (NYSE:LYB) Tops Q3 2025 Earnings and Revenue Estimates

Earnings Overview

LYONDELLBASELL INDU-CL A (NYSE:LYB) reported financial results for the third quarter of 2025, delivering a performance that exceeded analyst expectations on key profitability metrics despite a headline net loss driven by significant one-time charges. The chemical manufacturer's adjusted earnings showcased resilience in a challenging market environment.

Financial Performance vs. Estimates

The company's top and bottom-line results came in ahead of Wall Street forecasts. Sales and other operating revenues of $7.73 billion surpassed analyst estimates of $7.48 billion. More notably, LyondellBasell's performance on an adjusted basis demonstrated stronger operational results than anticipated.

• Earnings Per Share: Reported $1.01 per share (excluding identified items) versus estimates of $0.81 per share
• Revenue: Reported $7.73 billion versus estimates of $7.48 billion
• Net Income: $330 million excluding identified items, compared to a GAAP net loss of $890 million

The substantial difference between GAAP and adjusted results stems primarily from $1.2 billion in non-cash asset write-downs, along with costs related to the company's ongoing restructuring initiatives and European asset sales.

Cash Flow and Operational Highlights

Despite the accounting charges, LyondellBasell generated robust cash flow during the quarter, highlighting the underlying strength of its operations.

• Cash from operating activities: $983 million
• Cash conversion rate: 135%
• Capital expenditures: $406 million
• Shareholder returns: $443 million in dividends
• Liquidity position: $6.5 billion available

Operationally, the company noted improved performance in its Olefins and Polyolefins Americas segment following completed turnarounds at its Channelview, Texas facility. The Intermediates and Derivatives segment benefited from stronger oxyfuels margins, though styrene margins faced pressure from normalized global supply.

Market Reaction and Price Action

Investors responded positively to the earnings beat and strong cash generation, with the stock showing significant pre-market strength. The price action suggests market participants are focusing on the company's operational performance rather than the non-cash impairment charges.

• Pre-market performance: +5.86%
• Recent weekly performance: -3.44%
• Monthly performance: -8.37%

The positive reaction indicates that investors viewed the underlying business performance as stronger than expected, particularly given the earnings beat and maintained outlook for the company's cash improvement initiatives.

Strategic Initiatives and Outlook

CEO Peter Vanacker emphasized the company's focus on navigating challenging market conditions while advancing strategic priorities. The Cash Improvement Plan remains on track to deliver $600 million in 2025 and a minimum of $1.1 billion by the end of 2026. The company is also progressing with its European asset sale, which has reached regulatory approvals and purchase agreement execution stages.

Looking ahead to the fourth quarter, management expects typical year-end seasonality and lower operating rates to impact results. The outlook suggests continued pressure in European markets and higher feedstock costs in North America, while global capacity rationalizations provide a more constructive mid-term industry outlook.

For the next quarter, analysts project revenue of $7.16 billion with earnings per share of $0.62. Full-year 2025 estimates stand at $30.16 billion in revenue and $2.47 in earnings per share.

View more detailed earnings estimates and historical performance for LyondellBasell

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information presented should not be interpreted as a recommendation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.