LyondellBasell Reports Second Quarter 2025 Financial Results, Highlights Progress on Strategic Initiatives Amid Market Recovery
LyondellBasell Industries , a global leader in the chemical and plastics industries, announced its financial and operational results for the second quarter of 2025. The company delivered solid performance amidst continued cyclical industry pressures and demonstrated its commitment to long-term value creation through strategic execution and disciplined capital deployment.
CEO Commentary and Strategic Outlook
“As we advance our three-pillar strategy, LYB continues to grow and upgrade our core businesses through disciplined capital allocation that extends our competitive advantage,” said Peter Vanacker, Chief Executive Officer of LyondellBasell. “We are expanding our Cash Improvement Plan to help navigate a prolonged cyclical downturn. Our Value Enhancement Program and portfolio optimization actions remain on track to reap the benefits from a cycle recovery.”
Vanacker also emphasized the company’s ability to adapt to shifting global market conditions, citing encouraging signs in the polyolefins segment. “We are encouraged by recent improvements in pricing and demand for polyolefins, and we remain cautiously optimistic regarding policy developments to address excess capacity in China and revitalize the European chemical industry. LYB is well-positioned to capture these market tailwinds and create durable, long-term value for our shareholders through consistent execution of our strategy,” he added.
Financial Results Overview
LyondellBasell reported second-quarter 2025 net income of $115 million, or $0.34 per diluted share. This figure includes identified items totaling $87 million, net of tax, which impacted earnings by approximately $0.28 per share. These items were primarily related to asset impairments, transaction-related costs, restructuring efforts under the Cash Improvement Plan, and discontinued operations.
Adjusted for these one-time items, the company posted EBITDA of $715 million for the quarter. On an unadjusted basis, EBITDA was $606 million. These figures reflect a combination of improving fundamentals in core markets, successful cost-control measures, and selective investments aimed at enhancing operational efficiency.
Segment Performance Highlights
Olefins and Polyolefins – Americas and Europe
In North America, LyondellBasell completed turnaround activities at its Channelview manufacturing complex, which led to improved operational reliability and higher production rates. The increased availability of assets contributed to sequential gains in integrated polyethylene production and margin expansion.
Polyethylene and polypropylene demand in North America followed typical seasonal trends and remained strong. Key end markets, including consumer packaging, healthcare, building and construction, and infrastructure, supported healthy volume levels. Importantly, a contract price increase for polyethylene in June provided additional momentum going into the third quarter.
In Europe, the polyolefins business also benefited from improved conditions. Lower feedstock costs contributed to enhanced integrated polyethylene margins, while rising seasonal demand helped boost volumes. Although structural challenges persist in the European chemicals industry, these short-term gains provide a measure of relief and support LYB’s broader strategy to optimize its European asset base.
Intermediate and Derivatives Segment
Intermediate Chemicals performance improved during the quarter, driven by stronger styrene margins. The improvement was largely due to a decline in benzene feedstock prices and tighter market conditions resulting from industry outages in the second quarter.
However, not all segments experienced favorable conditions. Margins for oxyfuels declined due to lower crude oil prices, which muted the typical seasonal uplift seen during the summer driving season. Nonetheless, this was partially offset by stabilization across several product chains as global trade flows began adjusting to earlier disruptions and volatility.
Cash Flow and Capital Allocation
LyondellBasell generated $351 million in cash from operating activities during the second quarter. Despite a challenging macroeconomic environment, the company continued to maintain a disciplined and balanced approach to capital allocation.
During the quarter, LYB invested $539 million in capital expenditures, focusing on asset reliability, efficiency improvements, and long-term value creation. Additionally, the company returned $536 million to shareholders through a combination of dividends and share repurchases—demonstrating its ongoing commitment to delivering shareholder value while maintaining financial flexibility.
At the end of the quarter, LYB reported holding $1.7 billion in cash and cash equivalents, with total available liquidity of $6.4 billion. The company continues to maintain a strong, investment-grade balance sheet that supports both operational resilience and strategic flexibility.
Strategic Initiatives and Operational Milestones
LyondellBasell continues to execute on its three-pillar strategy, which focuses on:
- Strengthening and Upgrading Core Businesses
- Driving Performance Through Operational Excellence and Cost Management
- Enhancing Long-Term Value Through Portfolio Optimization and Strategic Investment
To that end, the company has taken decisive steps to reshape its global asset portfolio. The planned sale of four European assets is a key element of this repositioning strategy. These divestitures will allow LYB to concentrate resources on cost-advantaged assets and global markets where it can maintain or enhance competitive strength.
Additionally, the company announced the postponement of the Flex-2 project, a strategic move intended to better align capital investment levels with near-term cash flow expectations. This delay will help preserve capital and enhance flexibility while maintaining a focus on long-term growth priorities.
Cash Improvement Plan Expansion
LyondellBasell also announced an expansion of its Cash Improvement Plan, which is now targeting at least $1.1 billion in cash improvements across 2025 and 2026. The expanded plan includes cost reductions, working capital efficiencies, and strategic asset optimization to help buffer against ongoing macroeconomic uncertainty and industry cyclicality.
By executing this plan, the company aims to safeguard its financial health, sustain its dividend, and maintain the ability to invest prudently in future growth opportunities. These efforts are a continuation of LYB’s disciplined capital management approach, which balances reinvestment, returns to shareholders, and financial resilience.
Market Outlook and Industry Trends
Looking ahead, LyondellBasell remains cautiously optimistic about near-term market trends. Improvements in global polyolefins pricing and demand are expected to continue into the third quarter, supported by seasonal trends and some signs of recovery in industrial activity. The recent increase in polyethylene contract pricing is likely to provide a tailwind for earnings in the coming quarter.
The company also noted some positive developments on the policy front, particularly concerning China’s efforts to address chemical overcapacity and Europe’s push to revitalize its industrial base. While these policy trends are still evolving, LYB views them as potential long-term catalysts for improved industry fundamentals.
Commitment to Shareholders and Long-Term Growth
Despite ongoing volatility in global markets, LyondellBasell reaffirmed its commitment to safe and reliable operations, disciplined growth, and strong shareholder returns. The company’s strategic framework, backed by an investment-grade balance sheet and strong liquidity, positions it to weather cyclical downturns and emerge stronger as industry conditions normalize.
“Our focus remains on executing with discipline and staying true to our strategy,” Vanacker said. “By doing so, we are confident in our ability to create long-term value for our shareholders and maintain our position as a global leader in the chemical industry.”
