LyondellBasell Industries (LYB) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income was $177 million, or $0.54 per diluted share; excluding identified items, net income was $110 million, or $0.33 per share.

• EBITDA reached $655 million, or $576 million excluding identified items, amid challenging market conditions and significant one-off costs.

• Cash used by operating activities totaled $579 million, with $543 million returned to shareholders via dividends and share repurchases.

• Strategic actions included asset closures, a final investment decision to expand U.S. propylene production, cost-advantaged feedstock allocation in Saudi Arabia, and ceasing refinery operations.

• Announced a $500 million Cash Improvement Plan to strengthen financial results.

Financial highlights

• Q1 2025 sales and operating revenues were $7.68 billion, down from $8.30 billion in Q1 2024.

• EBITDA was $655 million, down from $1.05 billion in Q1 2024; cash conversion for the last 12 months was 87%.

• Cash and cash equivalents at quarter-end were $1.87 billion; total liquidity was $6.52 billion.

• $543 million was returned to shareholders in Q1 2025 through $433 million in dividends and $110 million in share repurchases.

• Q1 capital expenditures were $483 million.

Outlook and guidance

• Seasonal demand improvements are expected in Q2 across most businesses, with targeted operating rates of 85% in O&P America and 75% in O&P Europe, Asia, and International.

• Ongoing caution due to volatile trade policies and uncertain economic outlook, especially in Europe and China.

• $500 million cash improvement plan for 2025, including capex deferral, working capital, and fixed cost reductions.

• U.S. natural gas and ethane costs have moderated; European and Asian operations benefit from lower crude oil costs.

• Long-term target to return 70% of free cash flow to shareholders through dividends and buybacks.