LyondellBasell Industries (LYB) Q3 2025 earnings summary

Executive summary

• Reported a net loss of $890 million for Q3 2025, driven by $1.2 billion in non-cash asset write-downs, primarily in O&P-EAI and APS segments, reflecting a prolonged downturn in European petrochemicals and global automotive markets.

• Adjusted net income excluding identified items was $330 million, with adjusted EPS of $1.01.

• EBITDA was $835 million excluding identified items; cash from operating activities reached $983 million with a 135% cash conversion rate.

• Returned $443 million to shareholders via dividends in Q3; maintained an investment-grade balance sheet and $1.8 billion in cash at quarter-end.

• Safety performance improved, with a recordable incident rate of 0.12 YTD.

Financial highlights

• Q3 2025 sales and operating revenues were $7.73 billion, down from $8.60 billion in Q3 2024; nine-month revenues were $23.06 billion, a 10% decrease year-over-year.

• Net loss of $890 million and diluted loss per share of $(2.77); adjusted EBITDA was $835 million, and adjusted net income was $330 million.

• Cash conversion rate was 135% in Q3 and 99% over the last 12 months; cash from operations for the first nine months was $755 million.

• Dividends and share repurchases totaled $2 billion over the last 12 months.

• Identified items of $1.2 billion net of tax, mainly asset write-downs in O&P-EAI and APS segments.

Outlook and guidance

• Q4 2025 expected to be impacted by year-end seasonality, lower operating rates, and continued weak demand in Europe; asset downtime planned to align production with demand.

• North America faces higher feedstock costs, pressuring polyolefins margins; European demand remains weak.

• Cash Improvement Plan on track for $600 million in 2025 and at least $1.1 billion by end of 2026.

• Capital expenditures expected to be $1.7 billion in 2025 and reduced to $1.2 billion in 2026; further CapEx flexibility expected post-European asset sales.

• 2025 full-year effective tax rate updated to -13% due to non-cash impairments.