LyondellBasell's Earnings Miss Expectations, Shares Plummet

LyondellBasell's stock price dropped 4.72% to $50.9 on Monday, extending its six-day losing streak, after the company reported an 87% decline in Q2 net income to $115 million, driven by asset write-downs, transaction costs, and discontinued operations. Sales and operating revenues decreased 11% to $7.66 billion. The company also announced a $1.37 per share dividend.

Chemical conglomerate LyondellBasell Industries (NYSE: LYB) faced a challenging quarter, with its stock price dropping 4.72% to $50.9 on Monday, extending a six-day losing streak. The company reported an 87% decline in Q2 net income to $115 million, driven by asset write-downs, transaction costs, and discontinued operations. Sales and operating revenues decreased 11% to $7.66 billion. The company also announced a $1.37 per share dividend.

Analysts reacted swiftly to the earnings report, with several cutting their price targets or reiterating sell recommendations. Wells Fargo's Michael Sison reduced his fair value assessment to $65 per share, while John Roberts of Mizuho shaved $5 from his LyondellBasell price target for a new level of $62. Goldman Sachs' Duffy Fischer reiterated his sell rating and $59 per-share price target, citing plans to reduce capital expenditures and no further share buybacks.

LyondellBasell's performance for the quarter wasn't overly impressive. Revenue sank marginally on a year-over-year basis to just under $7.66 billion. Although non-GAAP (adjusted) net income nearly doubled to $202 million, it fell short of the consensus analyst estimate. The fallout within the pundit community on Monday was pronounced, as analysts weighed in with either price target cuts or reiterations of existing bearish takes.

The company's stock has fallen by approximately 26% year-to-date, as investors grapple with the company's ongoing margin pressures, significant one-time charges, and active progress on portfolio reshaping and cost improvement initiatives. LyondellBasell has focused its strategy on advancing its Circular & Low Carbon Solutions product line, reshaping its business portfolio, driving operational efficiency, and completing its exit from the refining business.

Management points to cost containment, innovation in recycling and sustainability, and disciplined investment as critical to its future performance. The company paid out $536 million to shareholders through dividends and buybacks, a combined return for the quarter. At quarter end, the company reported cash and equivalents of $1.7 billion and total available liquidity of $6.4 billion.

References:
[1] https://www.mitrade.com/insights/news/live-news/article-8-1010896-20250805
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TT1SI:0-lyondellbasell-falls-on-q2-profit-miss/
[3] https://www.nasdaq.com/articles/lyondellbasell-lyb-q2-revenue-tops-7