LyondellBasell reports 2025 earnings

Core Insights - LyondellBasell reported a net loss of $738 million for the full year 2025, with diluted earnings per share of $(2.34), and a fourth quarter net loss of $140 million, or $(0.45) per diluted share [5][9][7] - The company achieved $800 million in cash improvements in 2025, exceeding its target of $600 million, and is targeting an additional $500 million by the end of 2026 [4][6] - EBITDA for 2025 was $1.1 billion, or $2.5 billion excluding identified items, reflecting the impact of challenging market conditions [9][5] Financial Performance - Sales and other operating revenues for Q4 2025 were $7.091 billion, down from $7.727 billion in Q3 2025 and $7.808 billion in Q4 2024 [1] - Full year 2025 net income excluding identified items was $563 million, with diluted earnings per share of $1.70 [4][9] - The company generated $2.3 billion in cash from operating activities with a cash conversion rate of 95% [5][32] Market Conditions - The petrochemical markets faced significant challenges in 2025, including global trade disruptions, falling oil prices, and increased capacity that outpaced demand growth [11] - North American polyethylene margins were compressed due to higher feedstock costs and trade issues, while European margins declined due to competition from imports [11][8] Strategic Initiatives - The company is focusing on operational excellence and safety, with record safety performance reported [6][12] - LyondellBasell plans to invest $1.2 billion in capital expenditures for 2026, emphasizing safe operations and ongoing projects like MoReTec-1 [13] - The Cash Improvement Plan has been expanded to target $1.3 billion by the end of 2026, reflecting a commitment to financial performance [16][4] Outlook - The company anticipates continued volatility in feedstock and energy prices entering Q1 2026, with expectations for improved polyethylene demand as seasonal trends unfold [14][15] - Operating rates are being aligned with global demand, with plans to operate various assets at approximately 75-85% capacity [15]