LyondellBasell Tops Q4 Revenue Estimates, Eyes Growth In 2025 Despite Market Headwinds

LyondellBasell Industries (NYSE: LYB) shares are trading higher after the company reported better-than-expected fourth-quarter 2024 results. The company reported revenues of $9.497 billion, down 4.4% year-over-year but above the consensus of $9.225 billion. Adjusted EPS was at $0.75, which is in-line with the consensus. Adjusted EBITDA stood at $689 million (-24.3% Y/Y), and the margin contracted 191 bps to 7.2%. Despite the challenging market conditions, LyondellBasell generated a $3.80 billion operating cash flow in 2024, with 90% cash conversion over 12 months. The company's robust balance sheet, with $8.0 billion in liquidity and $3.4 billion in cash, allows it to fund capital expenditures and shareholder returns while continuing to invest in growth initiatives.



LyondellBasell's focus on cost-advantaged feedstocks and financial strength positions the company to navigate market headwinds in 2025. The company's strategy to leverage its technology leadership, scale, and market access to create value from plastic waste and circular materials enables it to grow its Circular and Low Carbon Solutions (CLCS) business, which saw a 65% year-over-year volume growth in 2024. Additionally, LyondellBasell's robust balance sheet, with $8.0 billion in liquidity and $3.4 billion in cash, allows it to fund capital expenditures and shareholder returns while continuing to invest in growth initiatives. The company's disciplined capital allocation approach and commitment to a growing dividend further demonstrate its financial strength and ability to navigate market headwinds.

LyondellBasell plans to implement several growth initiatives in 2025 to offset market headwinds and drive future profitability. These initiatives include seasonal demand improvements, aligning operations with global demand, focusing on cost-advantaged feedstocks, financial strength and sustained shareholder returns, and growth in sustainable products. The company anticipates seasonal demand improvements in the first quarter of 2025, supported by lower interest rates, moderate inflation, and rising durable goods consumption. LyondellBasell expects to align its operations with global demand, with Olefins & Polyolefins Americas at 80%, EAI at 75%, and Intermediates & Derivatives at 80%. The company will continue to focus on cost-advantaged feedstocks to maintain its competitive edge in the market. LyondellBasell will maintain its financial strength and continue to deliver sustained shareholder returns, which will help drive future profitability. The company is rapidly growing the volumes of its sustainable products, which are aligned with its profitability targets. This focus on value creation and diligent management through a highly disciplined Value Enhancement Program will help LyondellBasell deliver on its strategic promises and reward shareholders with a growing dividend.



In conclusion, LyondellBasell's strong fourth-quarter 2024 results and growth initiatives position the company well to navigate market headwinds in 2025. The company's focus on cost-advantaged feedstocks, financial strength, and growth in sustainable products enables it to maintain profitability and sustainability despite challenging market conditions. LyondellBasell's disciplined capital allocation approach and commitment to a growing dividend further demonstrate its financial strength and ability to deliver on its strategic promises. As the company continues to execute its growth initiatives, investors should keep a close eye on LyondellBasell's progress in 2025.