LYB Q4 Earnings Miss Estimates Amid Pricing, Volume Pressures

LyondellBasell Industries N.V. LYB recorded a fourth-quarter 2025 loss of $140 million or 45 cents per share. This was narrower than a loss of $603 million or $1.87 per share reported a year ago. 

Barring one-time items, LYB posted an adjusted loss of 26 cents per share, down from the year-ago quarter's earnings of 77 cents. It missed the Zacks Consensus Estimate of earnings of 18 cents. 

The company’s net sales in the reported quarter were $7,091 million, which beat the Zacks Consensus Estimate of $6,984.4 million. Net sales fell around 9.2% from $7,808 million in the prior-year quarter. 

LYB saw lower fourth-quarter margins across most businesses due to higher feedstock and natural gas costs, higher maintenance activities and seasonally lower demand that hurt product prices. Polyethylene volumes fell due to maintenance and lower seasonal demand. Volumes in Europe were also affected by maintenance activities and lower demand.  

LyondellBasell Industries N.V. Price, Consensus and EPS Surprise

LyondellBasell’s Segment Highlights

In the reported quarter, the Olefins & Polyolefins — Americas segment's revenues declined around 15.1% year over year to $2,337 million. The figure fell short of the consensus estimate of $2,536 million.

Similarly, Olefins & Polyolefins — Europe, Asia and the international segment revenues declined 5.5% year over year to $2,336 million. It missed the consensus estimate of $2,378 million. 

In the Intermediates and Derivatives segment, sales were $2,153 million, a decline of roughly 9% year over year, missing the consensus estimate of $2,203 million. 

The Advanced Polymer Solutions revenues were $777 million, representing a decline of around 6% year over year, missing the consensus estimate of $837 million. 

The Technology segment's revenues were $177 million, marking a rise of roughly 2%, and surpassing the consensus estimate of $137 million. 

LYB’s Financials

LYB generated $2.3 billion in cash from its operating activities in 2025. The company continued its balanced capital allocation strategy by spending $450 million on capital expenditures in the fourth quarter and $1.9 billion in 2025. It distributed $2 billion to shareholders via dividends and share buybacks in 2025. At the end of the quarter, LYB had $3.45 billion in cash and cash equivalents, along with $8.1 billion in total available liquidity. 

LYB’s Outlook

The company continues to manage feedstock and energy price volatility. In North America, tight inventories, storm-related supply disruptions and seasonal demand support polyethylene price increases, while Europe is expected to see a seasonal demand recovery. Oxyfuel profitability is likely to normalize after a volatile 2025, with margins improving toward the late first quarter of 2026, per LYB. 

LYB plans to align operating rates with global demand, targeting 85% utilization in Olefins & Polyolefins Americas, 75% in Olefins & Polyolefins EAI and 85% in Intermediates & Derivatives. 

The company has raised its Cash Improvement Plan target from $1.1 billion to $1.3 billion by the end of 2026. 

LYB’s Price Performance

Shares of LyondellBasell have lost 34% in the past year compared with the Zacks Chemicals Diversified industry’s 21.7% decline. 

LYB’s Zacks Rank & Key Picks

LYB currently carries a Zacks Rank #4 (Sell). 

Some better-ranked stocks worth a look in the basic materials space are Albemarle Corporation ALB, Lsb Industries, Inc. LXU, and Methanex Corporation MEOH. 

Albemarle is slated to report fourth-quarter results on Feb. 11. The Zacks Consensus Estimate for fourth-quarter loss is pegged at 54 cents per share. ALB’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once, with the average surprise being 35.5%. Albemarle carries a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

Lsb Industries is expected to report fourth-quarter results on Feb. 25. The Zacks Consensus Estimate for LXU’s fourth-quarter earnings is pegged at 18 cents per share. LXU’s earnings beat the Zacks Consensus Estimate in two of the last four quarters while missing twice, with the average surprise being 141.3%. Lsb Industries currently sports a Zacks Rank #1. 

Methanex is scheduled to report fourth-quarter results on Mar. 5. The Zacks Consensus Estimate for MEOH’s fourth-quarter earnings is pegged at 81 cents per share. MEOH carries a Zacks Rank #2 at present. MEOH’s earnings beat the consensus estimate in three of the last four quarters and missed once, with the average surprise being 17.4%. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research