LyondellBasell Industries (NYSE: LYB) reported Friday fourth-quarter 2025 results that showed revenue above analyst expectations while adjusted earnings came in below estimates. Shares were trading higher following the release.
The company posted adjusted diluted earnings per share of $(0.26), which it said may not be comparable to the $0.13 analyst estimate. Sales and other operating revenues of $7.091 billion beat the $6.799 billion consensus estimate and declined from $7.808 billion a year earlier.
LyondellBasell reported a fourth-quarter net loss of $140 million, or 45 cents per diluted share, versus a net loss of $603 million, or $1.87 per diluted share, in the prior-year period. EBITDA was $345 million, or $417 million excluding identified items.
Margins declined across most businesses due to higher NGL feedstock and natural gas costs, maintenance activity and seasonally lower demand. North American and European polyethylene volumes and margins were impacted, while oxyfuel margins declined but "outperformed typical fourth quarter seasonality due to industry outages earlier in the quarter."
Full-Year 2025 Performance
For full-year 2025, LyondellBasell reported a net loss of $738 million, or $(2.34) per diluted share, compared with net income of $1.367 billion, or $4.15 per diluted share, in 2024. Excluding identified items, net income was $563 million, and diluted EPS was $1.70.
Full-year EBITDA was $1.1 billion, or $2.543 billion excluding identified items. Sales and other operating revenues were $30.153 billion, down from $33.394 billion a year earlier.
The company said petrochemical markets faced headwinds from global trade disruptions, falling oil prices, and capacity additions, which outpaced global demand growth. The Advanced Polymer Solutions segment delivered meaningful gains through margin improvement, portfolio optimization, and increased business win rates.
Cash Generation, Liquidity And Returns
In 2025, LyondellBasell generated $2.262 billion of net cash provided by operating activities with 95% cash conversion.
The company reinvested $1.9 billion through capital expenditures and returned $1.965 billion to shareholders, including $1.764 billion in dividends and $201 million in share repurchases.
LyondellBasell ended 2025 with $8.099 billion of total liquidity, including $3.449 billion of cash and cash equivalents and restricted cash, $3.75 billion available under its senior revolving credit facility, and $900 million under its U.S. receivables facility.
Strategy Updates And Near-Term Operating Plan
“During 2025 LyondellBasell continued to navigate the cycle while maintaining focus on our long-term strategy. Despite challenging markets, our Cash Improvement Plan achieved $800 million in 2025, well above our $600 million target. With this momentum, we are increasing our cumulative target from $1.1 billion to $1.3 billion by the end of 2026 and expect to generate an additional $500 million of cash relative to 2025 actuals,” commented Peter Vanacker, LYB chief executive officer.
The company said the divestment of four European assets remains on track for completion in the second quarter of 2026. LyondellBasell plans to invest $1.2 billion in capital expenditures in 2026 while continuing construction of MoReTec-1.
Entering the first quarter, the company said it is managing continued volatility in feedstock and energy prices and is aligning operating rates with global demand.
LyondellBasell plans to operate Olefins & Polyolefins Americas assets at approximately 85%, Olefins & Polyolefins EAI assets at approximately 75%, and Intermediates & Derivatives assets at approximately 85%.
Price Action: LYB shares were trading 1.20% higher at $50.55 premarket at the last check on Friday.
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