LyondellBasell Industries Set to Report Q1 Earnings Amid Declining Profits

Houston, Texas-based LyondellBasell Industries N.V. (LYB) is a leading chemical firm engaged in the production and marketing of olefins, co-products, oxyfuels, and various intermediate chemicals such as styrene monomer, acetyls, and ethylene oxide. With a market capitalization of $18.4 billion, its diverse products serve industries like electronics, automotive parts, packaging, construction materials, and biofuels. LyondellBasell is set to announce its fiscal Q1 earnings for 2025 before the market opens on Friday, April 25.

Analysts anticipate the specialty chemicals manufacturer will report earnings of $0.43 per share, reflecting a significant decline of 71.9% compared to $1.53 per share in the same quarter last year. Throughout the past four quarters, the company has either met or exceeded Wall Street’s bottom-line estimates in three instances while missing once. Its earnings in the previous quarter were reported at $0.75 per share, aligning with consensus estimates.

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For the full fiscal year, projections suggest LYB will report an EPS of $5.15, marking a 19.5% decline from $6.40 in fiscal 2024. Nevertheless, analysts foresee a rebound with EPS anticipated to climb by 30.3% year-over-year to $6.71 in fiscal 2026.

Over the past 52 weeks, LYB shares have declined by 44.7%, significantly underperforming the S&P 500 Index ($SPX), which saw a modest gain of 3.2%, and the Materials Select Sector SPDR Fund’s (XLB) 12.1% drop within the same timeframe.

On January 31, the company’s shares closed slightly lower following its Q4 earnings release. The results highlighted a 4.4% year-over-year drop in sales and operating revenue, totaling $9.5 billion. Adjusted earnings plummeted by 40.5% to $0.75 per share. The company attributed this decline to margin pressure across most segments, driven by rising costs for NGL feedstocks and natural gas, while product prices remained low due to seasonally weaker demand. Nonetheless, LyondellBasell achieved strong cash performance, which mitigated the impact of these disappointing results. Additionally, robust export demand for North American polyethylene and a resurgence in domestic polyolefin demand following two years of downturn may have provided further support.

Wall Street analysts maintain a cautious outlook on LYB’s Stock, issuing an overall “Hold” rating. Among the 19 analysts monitoring the Stock, three recommend “Strong Buy,” one suggests “Moderate Buy,” 12 propose “Hold,” and three advise “Strong Sell.” The average price target for LYB stands at $74.15, indicating a potential upside of 30.3% from current trading levels.

On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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