[Q2 2025 Earnings Overview](index=1&type=section&id=Q2%202025%20Earnings%20Overview) LyondellBasell reported Q2 2025 net income of $115 million and EBITDA of $606 million, with $351 million cash from operations and $536 million returned to shareholders [1.1 Key Financial Highlights](index=1&type=section&id=1.1%20Key%20Financial%20Highlights) The company reported Q2 2025 net income of $115 million and EBITDA of $606 million, alongside significant cash generation and shareholder returns **Q2 2025 Earnings Summary (Millions of U.S. dollars, except share data):** | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Sales and other operating revenues | $7,658 | $7,677 | $8,678 | | Net income | $115 | $177 | $924 | | Diluted earnings per share | $0.34 | $0.54 | $2.82 | | Net income excluding identified items | $202 | $110 | $724 | | Diluted earnings per share excluding identified items | $0.62 | $0.33 | $2.20 | | EBITDA | $606 | $655 | $1,643 | | EBITDA excluding identified items | $715 | $576 | $1,330 | - Cash from operating activities: **$351 million**[4](index=4&type=chunk) - Returned **$536 million** to shareholders through dividends and share repurchases[4](index=4&type=chunk) [1.2 CEO's Perspective](index=2&type=section&id=1.2%20CEO's%20Perspective) CEO Peter Vanacker emphasized strategic progress, disciplined capital allocation, and an expanded Cash Improvement Plan, expressing cautious optimism for polyolefins and policy developments - Advancing a three-pillar strategy with disciplined capital allocation to extend competitive advantage[5](index=5&type=chunk) - Expanding the Cash Improvement Plan to navigate a prolonged cyclical downturn[5](index=5&type=chunk) - Encouraged by recent improvements in pricing and demand for polyolefins, and cautiously optimistic about policy developments addressing excess capacity in China and revitalizing the European chemical industry[5](index=5&type=chunk) [Detailed Second Quarter 2025 Performance](index=2&type=section&id=Detailed%20Second%20Quarter%202025%20Performance) This section provides a detailed analysis of LyondellBasell's Q2 2025 financial results, operational performance by segment, and cash flow activities [2.1 Consolidated Financial Results](index=2&type=section&id=2.1%20Consolidated%20Financial%20Results) Q2 2025 consolidated financial results were significantly impacted by $87 million in identified items, reducing diluted EPS by $0.28 - Identified items of **$87 million**, net of tax, impacted Q2 2025 earnings by **$0.28 per diluted share**[6](index=6&type=chunk) - Identified items related to asset write-downs, transaction costs, Cash Improvement Plan, and discontinued operations[6](index=6&type=chunk) [2.1.1 Net Income and EPS](index=2&type=section&id=2.1.1%20Net%20Income%20and%20EPS) Q2 2025 net income was $115 million ($0.34 diluted EPS), increasing to $202 million ($0.62 diluted EPS) excluding identified items **Q2 2025 Net Income and Diluted EPS (Millions of U.S. dollars, except share data):** | Metric | Q2 2025 | | :--- | :--- | | Net income | $115 | | Diluted earnings per share | $0.34 | | Net income excluding identified items | $202 | | Diluted earnings per share excluding identified items | $0.62 | [2.1.2 EBITDA](index=2&type=section&id=2.1.2%20EBITDA) Q2 2025 EBITDA was $606 million, rising to $715 million when excluding identified items **Q2 2025 EBITDA (Millions of U.S. dollars):** | Metric | Q2 2025 | | :--- | :--- | | EBITDA | $606 | | EBITDA excluding identified items | $715 | [2.2 Operational Performance by Segment](index=2&type=section&id=2.2%20Operational%20Performance%20by%20Segment) Operational performance improved in North America and Europe due to demand and cost factors, while Intermediate Chemicals saw mixed results [2.2.1 North America O&P](index=2&type=section&id=2.2.1%20North%20America%20O%26P) North American O&P experienced improved polyethylene volumes and margins from successful turnarounds and stronger seasonal demand, with Q3 profitability expected to benefit from price increases - Successful completion of turnarounds at Channelview complex led to higher operating rates and sequential improvement in integrated polyethylene volumes and margins[7](index=7&type=chunk) - Domestic demand for polyethylene and polypropylene was seasonally stronger, supported by consumer packaging, healthcare, building & construction, and infrastructure markets[7](index=7&type=chunk) - June increase in polyethylene contract prices provides momentum for third quarter profitability[7](index=7&type=chunk) [2.2.2 Europe O&P](index=2&type=section&id=2.2.2%20Europe%20O%26P) Europe O&P saw improved integrated polyethylene margins due to lower feedstock costs and increased seasonal polyolefins demand - Lower feedstock costs helped improve integrated polyethylene margins[7](index=7&type=chunk) - Polyolefins volumes benefited from increased seasonal demand[7](index=7&type=chunk) [2.2.3 Intermediate Chemicals](index=2&type=section&id=2.2.3%20Intermediate%20Chemicals) Intermediate Chemicals profitability improved from stronger styrene margins but saw a decline in oxyfuels margins due to lower crude oil prices - Intermediate Chemicals profitability improved with stronger styrene margins due to lower benzene costs and price support from industry outages[8](index=8&type=chunk) - Oxyfuels margins fell as lower crude oil prices limited typical seasonal uplift[8](index=8&type=chunk) [2.3 Cash Flow, Capital Allocation, and Liquidity](index=2&type=section&id=2.3%20Cash%20Flow,%20Capital%20Allocation,%20and%20Liquidity) LyondellBasell generated $351 million in operating cash flow, invested $539 million in capital expenditures, returned $536 million to shareholders, and maintained $6.4 billion in liquidity **Q2 2025 Cash Flow and Capital Allocation (Millions of U.S. dollars):** | Metric | Q2 2025 | | :--- | :--- | | Cash from operating activities | $351 | | Capital expenditures | $539 | | Returned to shareholders (dividends & share repurchases) | $536 | - Maintained **$1.7 billion** in cash and cash equivalents and **$6.4 billion** in available liquidity at quarter-end[9](index=9&type=chunk) [Strategic Direction and Future Outlook](index=2&type=section&id=Strategic%20Direction%20and%20Future%20Outlook) This section outlines LyondellBasell's strategic initiatives, including asset optimization and capital preservation, and provides the outlook for Q3 2025 market conditions and operating rates [3.1 Strategic Highlights](index=2&type=section&id=3.1%20Strategic%20Highlights) LyondellBasell advanced its three-pillar strategy through asset optimization, capital preservation, and an expanded Cash Improvement Plan targeting $1.1 billion in improvements - Planned sale of four European assets to reposition for global markets from a more cost-advantaged asset base[10](index=10&type=chunk) - Delaying construction of the Flex-2 project to align investment levels with cash generation and preserve capital[10](index=10&type=chunk) - Expanded Cash Improvement Plan targeting at least **$1.1 billion** in cash improvements over 2025 and 2026[10](index=10&type=chunk) [3.2 Third Quarter 2025 Outlook](index=3&type=section&id=3.2%20Third%20Quarter%202025%20Outlook) Q3 2025 outlook anticipates improved North American polyethylene margins, steady European demand, favorable feedstock costs, and continued low oxyfuels margins [3.2.1 Market and Margin Expectations](index=3&type=section&id=3.2.1%20Market%20and%20Margin%20Expectations) Q3 market expectations include improved North American polyethylene margins, steady European demand with favorable feedstock costs, and persistently low oxyfuels margins - North American integrated polyethylene margins expected to improve due to completed maintenance and increased prices supported by solid domestic demand and stronger export volumes[11](index=11&type=chunk) - Europe expects steady seasonal demand and favorable feedstock costs, with ongoing capacity rationalizations aiding regional supply and demand balance[11](index=11&type=chunk) - Oxyfuels margins are expected to remain low for the remainder of the summer season[11](index=11&type=chunk) [3.2.2 Operating Rate Guidance](index=3&type=section&id=3.2.2%20Operating%20Rate%20Guidance) LyondellBasell provides Q3 2025 operating rate guidance of 85% for North American O&P, 75% for European O&P, and 80% for I&D assets **Q3 2025 Operating Rate Guidance:** | Segment | Expected Operating Rate | | :--- | :--- | | North American O&P assets | 85% | | European O&P assets | 75% | | Intermediates & Derivatives (I&D) assets | 80% | [Supplemental Information](index=3&type=section&id=Supplemental%20Information) This section provides additional context, including conference call details, company overview, forward-looking statement disclaimers, non-GAAP financial measure definitions, and detailed financial reconciliations [4.1 Conference Call Information](index=3&type=section&id=4.1%20Conference%20Call%20Information) LyondellBasell will host a conference call on August 1 at 11 a.m. ET to discuss Q2 2025 results, with access details and replay information provided - Conference call to be held on August 1 at 11 a.m. ET, featuring CEO Peter Vanacker and other executives[13](index=13&type=chunk) - Access via toll-free dial-in (1-877-407-8029), international dial-in (201-689-8029), or webcast at investors.lyondellbasell.com/earnings[13](index=13&type=chunk) - Replay available from August 1 to September 1, 2025, via dial-in (1-877-660-6853 or 201-612-7415, Access ID: 13746206)[13](index=13&type=chunk) [4.2 About LyondellBasell](index=3&type=section&id=4.2%20About%20LyondellBasell) LyondellBasell is a global chemical industry leader focused on sustainable living, enabling a circular economy, and is a major producer of polymers and polyolefin technologies - A leader in the global chemical industry, creating solutions for everyday sustainable living[14](index=14&type=chunk) - Enabling a circular and low carbon economy through advanced technology and focused investments[14](index=14&type=chunk) - One of the world's largest producers of polymers and a leader in polyolefin technologies, developing high-quality products for applications from sustainable transportation to healthcare[14](index=14&type=chunk) [4.3 Forward-Looking Statements](index=4&type=section&id=4.3%20Forward-Looking%20Statements) This section clarifies that the release contains forward-looking statements subject to significant risks and uncertainties, with no obligation for the company to update them - Statements not historical facts are forward-looking, based on management's reasonable assumptions but subject to significant risks and uncertainties[15](index=15&type=chunk) - Actual results could differ materially due to factors such as market conditions, business cyclicality, raw material volatility, competitive pressures, operating interruptions, and regulatory actions[15](index=15&type=chunk) - The company does not assume any obligation to update forward-looking statements, except as required by law[15](index=15&type=chunk) [4.4 Information Related to Non-GAAP Financial Measures](index=4&type=section&id=4.4%20Information%20Related%20to%20Non-GAAP%20Financial%20Measures) This section defines and explains the company's use of non-GAAP financial measures like EBITDA and adjusted figures, provided as supplemental information for understanding business trends - Non-GAAP measures (EBITDA, adjusted net income/EPS) provide useful supplemental information for understanding underlying business trends and performance, and for period-over-period comparisons[19](index=19&type=chunk) - EBITDA is calculated as net income (loss) plus interest expense (net), provision for (benefit from) income taxes, and depreciation and amortization[20](index=20&type=chunk) - Identified items include adjustments for lower of cost or market (LCM), gain on sale of business, asset write-downs, Cash Improvement Plan costs, Dutch PO joint venture exit costs, European transaction costs, and discontinued operations[3](index=3&type=chunk)[20](index=20&type=chunk) [4.5 Financial Reconciliations and Tables](index=7&type=section&id=4.5%20Financial%20Reconciliations%20and%20Tables) This section provides detailed reconciliations of GAAP to non-GAAP financial measures, including net income, EBITDA, diluted EPS, and calculations for cash, liquidity, and shareholder returns [4.5.1 Net Income and EBITDA Reconciliations](index=7&type=section&id=4.5.1%20Net%20Income%20and%20EBITDA%20Reconciliations) Table 2 reconciles net income to net income excluding identified items, and to EBITDA, for Q2 and YTD 2025 and 2024, with footnotes explaining identified items **Table 2 - Reconciliations of Net Income to Net Income Excluding Identified Items and to EBITDA (Millions of U.S. dollars):** | Metric | Q2 2025 | Q1 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Net income | $115 | $177 | $924 | $292 | $1,397 | | Net income excluding identified items | $202 | $110 | $724 | $312 | $1,157 | | EBITDA | $606 | $655 | $1,643 | $1,261 | $2,689 | | EBITDA excluding identified items | $715 | $576 | $1,330 | $1,291 | $2,293 | - Identified items include gain on sale of business, asset write-downs, Cash Improvement Plan costs, Dutch PO joint venture exit costs, European transaction costs, and loss (income) from discontinued operations[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) [4.5.2 Diluted EPS Reconciliations](index=8&type=section&id=4.5.2%20Diluted%20EPS%20Reconciliations) Table 3 reconciles diluted EPS to diluted EPS excluding identified items for Q2 and YTD 2025 and 2024 **Table 3 - Reconciliation of Diluted EPS to Diluted EPS Excluding Identified Items:** | Metric | Q2 2025 | Q1 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Diluted earnings per share | $0.34 | $0.54 | $2.82 | $0.88 | $4.25 | | Diluted earnings per share excluding identified items | $0.62 | $0.33 | $2.20 | $0.95 | $3.52 | [4.5.3 Cash, Liquid Investments, and Total Liquidity](index=8&type=section&id=4.5.3%20Cash,%20Liquid%20Investments,%20and%20Total%20Liquidity) Table 4 details cash, liquid investments, and total liquidity as of June 30, 2025, showing $1.704 billion in cash and $6.354 billion in total liquidity **Table 4 - Calculation of Cash and Liquid Investments and Total Liquidity (Millions of U.S. dollars, as of June 30, 2025):** | Metric | Amount | | :--- | :--- | | Cash and cash equivalents and restricted cash | $1,704 | | Cash and liquid investments | $1,704 | | Availability under Senior Revolving Credit Facility | $3,750 | | Availability under U.S. Receivables Facility | $900 | | Total liquidity | $6,354 | [4.5.4 Dividends and Share Repurchases](index=8&type=section&id=4.5.4%20Dividends%20and%20Share%20Repurchases) Table 5 breaks down the $536 million returned to shareholders in Q2 2025, comprising $445 million in dividends and $91 million in share repurchases **Table 5 - Calculation of Dividends and Share Repurchases (Millions of U.S. dollars, Three Months Ended June 30, 2025):** | Metric | Amount | | :--- | :--- | | Dividends paid - common stock | $445 | | Repurchase of Company ordinary shares | $91 | | Dividends and share repurchases | $536 |

Core Insights - LyondellBasell Industries reported a net income of $115 million for Q2 2025, a decrease from $177 million in Q1 2025 and $924 million in Q2 2024 [5][22] - The diluted earnings per share (EPS) for Q2 2025 was $0.34, down from $0.54 in Q1 2025 and $2.82 in Q2 2024 [5][26] - The company generated $606 million in EBITDA for Q2 2025, compared to $655 million in Q1 2025 and $1.643 billion in Q2 2024 [5][22] Financial Performance - Sales and other operating revenues for Q2 2025 were $7.658 billion, slightly down from $7.677 billion in Q1 2025 and significantly lower than $8.678 billion in Q2 2024 [1][22] - Net income excluding identified items was $202 million for Q2 2025, compared to $110 million in Q1 2025 and $724 million in Q2 2024 [2][22] - EBITDA excluding identified items was $715 million for Q2 2025, up from $576 million in Q1 2025 but down from $1.330 billion in Q2 2024 [2][22] Strategic Initiatives - The company is expanding its Cash Improvement Plan, targeting an increased run-rate of $600 million for 2025 and an additional $500 million for 2026 [4][9] - LyondellBasell announced the planned sale of select European assets to optimize its business portfolio [4][9] - The construction of the Flex-2 project has been deferred to preserve capital during the cyclical downturn [4][9] Market Conditions - In North America, stronger domestic demand for polyethylene and polypropylene was noted, driven by sectors such as consumer packaging and healthcare [6] - European operations benefited from lower feedstock costs, which improved integrated polyethylene margins [6] - The company remains cautiously optimistic about policy developments in China and the European chemical industry, which could address excess capacity [3][10] Cash Flow and Liquidity - LyondellBasell generated $351 million in cash from operating activities during Q2 2025 [8] - The company returned $536 million to shareholders through dividends and share repurchases [4][29] - As of the end of Q2 2025, LyondellBasell held $1.7 billion in cash and cash equivalents, with total liquidity of $6.354 billion [8][28]

Core Viewpoint - LyondellBasell (LYB) is expected to report a significant decline in quarterly earnings and revenues, with analysts revising their estimates downward, indicating a challenging financial environment for the company. Financial Performance - The anticipated quarterly earnings per share (EPS) for LyondellBasell is $0.87, reflecting a decline of 61.2% year-over-year [1] - Analysts forecast revenues of $7.41 billion, which represents a decline of 29.9% compared to the previous year [1] - The consensus EPS estimate has been revised 3.3% lower over the last 30 days, indicating a reevaluation by analysts [1] Revenue Estimates by Segment - Revenues from Advanced Polymer Solutions are expected to be $926.05 million, down 2.3% from the year-ago quarter [4] - Revenues from Olefins and Polyolefins in the Americas are projected to reach $2.73 billion, indicating a year-over-year decline of 6.7% [4] - Revenues from Intermediates & Derivatives are estimated at $2.32 billion, reflecting a decrease of 16.9% from the previous year [4] - Revenues from Olefins and Polyolefins in Europe, Asia, and International are forecasted to be $2.60 billion, down 8.5% year-over-year [5] - Revenues from Technology are expected to be $145.00 million, indicating an 8.8% decline from the prior-year quarter [5] EBITDA Estimates - EBITDA for Olefins & Polyolefins in the Americas is projected at $323.25 million, down from $670.00 million in the same quarter last year [6] - EBITDA for Olefins & Polyolefins in Europe, Asia, and International is expected to be $45.75 million, compared to $70.00 million a year ago [6] - EBITDA for Advanced Polymer Solutions is estimated at $31.88 million, down from $40.00 million in the previous year [7] - EBITDA for Technology is projected to be $67.58 million, compared to $84.00 million last year [7] - EBITDA for Intermediates & Derivatives is expected to reach $253.36 million, down from $794.00 million in the same quarter last year [8] Stock Performance - LyondellBasell shares have increased by 2.1% over the past month, while the Zacks S&P 500 composite has risen by 3.4% [8] - The company holds a Zacks Rank of 5 (Strong Sell), indicating expectations of underperformance relative to the overall market in the near term [8]

Company Overview - LyondellBasell Industries is set to announce its earnings on August 1, 2025, with a current market capitalization of $21 billion [2] - The company reported revenue of $38 billion over the past twelve months, achieving operational profitability with $2.2 billion in operating profits and a net income of $1.1 billion [2] Earnings Performance Insights - Historical data shows that LyondellBasell has had 20 earnings data points over the last five years, with 7 positive and 13 negative one-day (1D) returns, resulting in a positive return rate of approximately 35% [5] - This positive return rate increases to 50% when considering only the last three years [5] - The median of the 7 positive returns is 0.6%, while the median of the 13 negative returns is -1.8% [5] Correlation with Peers - The performance of peers can influence post-earnings stock reactions, with market pricing potentially beginning before earnings announcements [6] - Historical data on LyondellBasell's stock performance is compared with peers that published earnings prior, focusing on post-earnings one-day (1D) returns [6]

Group 1 - LyondellBasell Industries N.V. (NYSE: LYB) is set to report its earnings on August 1st before the market opens, with investors closely monitoring the results due to the contentious nature of LYB stock [1] - The upcoming earnings report is significant for investors as it may influence stock performance and investor sentiment towards the company [1] Group 2 - The investing group Ian's Insider Corner offers features such as a Weekend Digest, trade alerts, and direct access to insights from the leader, Ian Bezek [2] - Ian Bezek has a background as a hedge fund analyst and has conducted extensive research in Latin American markets, focusing on high-quality growth stocks [3]

Group 1 - The global chemical industry is experiencing stagnation, characterized by a down cycle due to oversupply and weak demand, with the top 50 companies' sales remaining nearly flat for two consecutive years [1][2] - BASF leads the ranking with sales of $70.612 billion, followed by Sinopec at $58.131 billion and Dow at $42.964 billion, with total sales for the top 50 companies amounting to $1.014 trillion, a slight decrease of 0.07% from the previous year [1] - The profits of the top 50 companies reached $56.8 billion in 2024, an increase of 8.1% compared to 2023, following a significant drop of 44.1% in the previous year [1][3] Group 2 - Capital expenditures for the top 50 companies increased by 3.5% to $73 billion, while R&D spending rose by 3.0% to $12.3 billion, indicating a slight recovery in executive confidence [2] - Many companies are downsizing operations, particularly in Europe, due to high energy and other costs, with companies like LyondellBasell and Dow closing or selling facilities [2] - The profitability of the petrochemical sector is mixed, with some companies like ExxonMobil and SABIC showing profit growth, while others like LyondellBasell and Dow experienced declines [3]

Core Viewpoint - Clariant has received a damage claim of approximately EUR 1.6 billion from LyondellBasell related to alleged competition law infringement in the ethylene purchasing market, which the company firmly rejects and plans to defend vigorously [1]. Company Overview - Clariant is a sustainability-focused specialty chemical company based in Switzerland, with a total staff of 10,465 and recorded sales of CHF 4.152 billion for the fiscal year ending December 31, 2024 [6]. - The company operates through three business units: Care Chemicals, Catalysts, and Adsorbents & Additives [6]. Legal Context - The claim from LyondellBasell is linked to a competition law infringement case sanctioned by the European Commission in July 2020 [1]. - Clariant asserts that it has economic evidence demonstrating that the alleged conduct did not impact the market [1].

Industry Overview - The petrochemical industry is believed to be at or near a cyclical bottom after several years of declining profitability [1] - LyondellBasell is identified as one of the more attractive investments in the petrochemical space due to its strong fundamentals [1]

In addition to its improved climate score, LYB also raised its water security score to a B and received its first- ever forests score, reinforcing its commitment to nature-related disclosure and responsible environmental stewardship. About LyondellBasell We are LyondellBasell (NYSE: LYB) – a leader in the global chemical industry creating solutions for everyday sustainable living. Through advanced technology and focused investments, we are enabling a circular and low carbon economy. Across all we do, we aim ...

Core Insights - LyondellBasell Industries N.V. (LYB) has expanded its partnership with Polynt to develop a high-quality resin for the marine sector using LYB's Styrene +LC solution [1][8] - The Styrene +LC solutions are produced using a mass balance method under the ISCC PLUS system, derived from bio-circular feedstocks, which help reduce scope 3 greenhouse gas emissions while maintaining performance standards [2][8] - Polynt is utilizing LYB's Styrene +LC to create advanced resins for boat and yacht construction, enhancing durability and sustainability in the marine industry [3][8] Industry Context - The company is enhancing its technological capabilities while maintaining environmental responsibility through collaboration with LYB and industry leaders, positioning itself to adapt to changing regulations and increasing demand for sustainable products [4] - Despite a 30.2% decline in LYB's stock over the past year, the industry has seen a 17.1% decline, indicating a challenging market environment [6] - For the second quarter, LYB anticipates improved seasonal demand across its business segments, with easing natural gas and ethane feedstock prices benefiting operations in the U.S., Europe, and Asia [7]