LyondellBasell Shares Plunge 7.79% on Weak Earnings as $580M Volume Ranks 232nd

LyondellBasell (NYSE: LYB) fell 7.79% on August 1, 2025, with a trading volume of $0.58 billion, ranking 232nd in market activity. The decline followed the company’s Q2 2025 earnings report, which highlighted significant margin compression and strategic adjustments amid challenging market conditions.

The company reported net income of $115 million ($0.34 per diluted share) for Q2 2025, a sharp drop from $924 million ($2.82 per share) in Q2 2024. Excluding identified items—such as asset write-downs, transaction costs, and restructuring charges—adjusted net income was $202 million ($0.62 per share). EBITDA fell to $606 million ($715 million excluding items), reflecting a 63% decline compared to $1.64 billion in the prior year. Revenue contracted 11.8% to $7.66 billion, underscoring persistent demand challenges.

LyondellBasell announced strategic actions to stabilize its balance sheet and optimize its asset base. Key measures include the planned sale of four European assets to enhance cost efficiency, deferral of the Flex-2 project to preserve capital, and expansion of its Cash Improvement Plan to target $1.1 billion in cash savings by 2026. Despite weak earnings, the company maintained disciplined capital allocation, returning $536 million to shareholders through dividends and buybacks while generating $351 million in operating cash flow. At quarter-end, LYB held $1.7 billion in cash and $6.4 billion in liquidity.

Management highlighted cautious optimism for Q3, citing improved polyethylene pricing and seasonal demand in North America. Operating rates for Q3 are projected at 85% for North American olefins and polyolefins, 75% for European assets, and 80% for Intermediates & Derivatives. The company emphasized its focus on navigating cyclical downturns while positioning for long-term value creation through portfolio optimization and cost discipline.

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