NYSE:LYB
LyondellBasell Industries N.V.
A global leader in petrochemicals and advanced plastics providing essential materials for diverse industrial and consumer markets.
Key Metrics
Investment Thesis
Bull Case
LYB offers an attractive entry point for value investors willing to tolerate short-term volatility, given its strong cash generation capability evidenced by $2.26B in operating cash flow. The company's integrated business model provides inherent hedging capabilities against raw material price swings, protecting long-term profitability when commodity cycles turn favorable. Strategic reinvestment plans and a solid balance sheet with $3.45B in ending cash position support future expansion and shareholder returns.
Bear Case
The sharp deterioration in net income from positive billions to a -$738M loss signals potential structural issues or major one-time charges that warrant caution. High levels of total liabilities at $23.91B against only $10.09B in shareholders' equity create leverage concerns, especially when operating profit turns negative. The substantial reduction in revenue over five years reflects a shrinking demand outlook or loss of market share, making the stock risky until clear signs of stabilization emerge.
About LyondellBasell Industries N.V.
LyondellBasell Industries N.V. (LYB) is a global petrochemical and plastics manufacturer producing olefins, polyolefins, specialty chemicals, and elastomers. The company serves markets including automotive, construction, healthcare, and consumer goods across the Americas, Europe, and Asia-Pacific. With a diversified product portfolio, LYB aims to deliver sustainable solutions while managing complex refining and chemical production assets.
Analysis
Management Discussion
Management reports a significant decline in net profit to -$738M for 2025, contrasting with the prior years of $1.37B, $2.12B, and $3.89B, indicating severe recent financial stress or accounting adjustments not yet detailed in standard reporting lines. Revenue contraction from $50.45B in 2022 down to $30.15B suggests a challenging market environment or divestiture activity impacting top-line growth. Despite operational cash flow of $2.26B, the company recorded a negative operating profit of -$420M, highlighting the difficulty in covering high capital expenditures of $1.88B against current earnings.
Industry Overview
The petrochemical industry is highly cyclical and capital-intensive, heavily dependent on global crude oil prices and energy availability. Companies face intense competition from both traditional producers and emerging green alternatives as the sector transitions toward low-carbon manufacturing processes. Margins are typically thin but can expand significantly during periods of supply disruption or high energy costs if feedstock advantages exist.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $50.45B | $41.11B | $40.30B | $30.15B |
| Cost of Revenue | $43.85B | $35.85B | $35.74B | $27.58B |
| Gross Profit | $6.60B | $5.26B | $4.56B | $2.58B |
| Operating Expenses | $1.50B | $2.21B | $2.75B | $3.00B |
| Operating Income | $5.10B | $3.05B | $1.82B | $-420.0M |
| R&D | $124.0M | $130.0M | $135.0M | $136.0M |
| G&A | $1.31B | $1.56B | $1.66B | $1.61B |
| Stock-Based Comp | $70.0M | $91.0M | $91.0M | $91.0M |
| D&A | $1.27B | $1.53B | $1.52B | $1.39B |
| Other OpEx | $69.0M | $518.0M | $949.0M | $1.25B |
| Non-Operating Income | $-325.0M | $-426.0M | $-214.0M | $-295.0M |
| Interest Expense | $287.0M | $477.0M | — | — |
| Interest Income | $29.0M | $129.0M | $150.0M | $97.0M |
| Pre-Tax Income | $4.78B | $2.63B | $1.60B | $-715.0M |
| Income Tax | $882.0M | $501.0M | $240.0M | $70.0M |
| Continuing Ops | $3.89B | $2.13B | $1.36B | $-785.0M |
| Discontinued Ops | $-5.0M | $-5.0M | $4.0M | $47.0M |
| Net Income | $3.89B | $2.12B | $1.37B | $-738.0M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $3.89B | $2.12B | $1.37B | $-738.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $11.85B | $13.15B | $12.27B | $10.87B |
| Cash & Equivalents | $2.15B | $3.39B | $3.38B | $3.44B |
| Marketable Securities | $1.19B | $2.43B | $2.61B | $2.03B |
| Accounts Receivable | $3.39B | — | — | — |
| Inventory | $4.80B | $4.76B | $4.66B | $3.53B |
| Prepaid Expenses | $1.29B | $1.48B | $928.0M | $612.0M |
| Other Current Assets | $-985.0M | $1.09B | $695.0M | $1.25B |
| Long-Term Assets | $24.52B | $23.85B | $23.48B | $23.14B |
| PP&E (Net) | $15.39B | $15.55B | $15.07B | $15.83B |
| Intangibles | $662.0M | $641.0M | $577.0M | $450.0M |
| Goodwill | $1.83B | $1.65B | $1.56B | $708.0M |
| Operating Leases | $1.73B | $1.53B | $1.47B | $1.51B |
| Other LT Assets | $624.0M | $577.0M | $688.0M | $667.0M |
| Total Assets | $36.37B | $37.00B | $35.75B | $34.00B |
| Current Liabilities | $6.76B | $7.15B | $6.71B | $6.13B |
| Current Leases | $344.0M | $360.0M | $355.0M | $370.0M |
| Deferred Revenue | — | — | — | $113.0M |
| Taxes Payable | $242.0M | $143.0M | $311.0M | $145.0M |
| Other Current Liab | $3.78B | $4.21B | $3.68B | $3.54B |
| Long-Term Liabilities | $16.98B | $16.91B | $16.57B | $17.78B |
| LT Operating Leases | $1.51B | $1.41B | $1.42B | $1.33B |
| Other LT Liab | $15.47B | $15.50B | $15.15B | $16.45B |
| Total Liabilities | $23.74B | $24.06B | $23.27B | $23.91B |
| Shareholders' Equity | $12.63B | $12.94B | $12.47B | $10.09B |
| Paid-In Capital | $6.12B | $6.14B | $6.15B | $6.15B |
| Retained Earnings | $9.20B | $9.69B | $9.32B | $6.81B |
| AOCI | $-1.37B | $-1.48B | $-1.53B | $-1.31B |
| Treasury Stock | $1.35B | — | — | — |
| Total L&E | $36.37B | $37.00B | $35.75B | $34.00B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $3.89B | $2.12B | $1.37B | $-738.0M |
| Non-Cash Adjustments | $3.61B | $2.81B | $2.73B | $5.40B |
| Working Capital Changes | $-1.38B | $13.0M | $-274.0M | $-2.40B |
| Cash from Operations | $6.12B | $4.94B | $3.82B | $2.26B |
| Capital Expenditures | $1.89B | $1.53B | $1.84B | $1.88B |
| Cash from Investing | $-1.98B | $-1.78B | $-1.85B | $-1.78B |
| Debt Issuances | $0 | $500.0M | $744.0M | $1.99B |
| Debt Repayments | $0 | $425.0M | $776.0M | $492.0M |
| Share Buybacks | $420.0M | $211.0M | $195.0M | $201.0M |
| Dividends Paid | $3.25B | $1.61B | $1.72B | $1.76B |
| Cash from Financing | $-3.41B | $-1.95B | $-1.90B | $-507.0M |
| FX Effect | $-56.0M | $34.0M | $-88.0M | $82.0M |
| Net Change in Cash | $679.0M | $1.25B | $-17.0M | $61.0M |
| Beginning Cash | $1.48B | $2.16B | $3.40B | $3.39B |
| Ending Cash | $2.16B | $3.40B | $3.39B | $3.45B |
Frequently Asked Questions
How does LyondellBasell Industries N.V. make money?
The company's revenue is driven by four primary segments: Olefins & Polyolefins, which produces base chemicals and polyethylene/polypropylene; Specialty Chemicals offering flame retardants and additives; Elastomers manufacturing rubber-like materials for automotive and industrial use; and Performance Materials delivering high-value engineered plastics.
What are the main risks for LYB?
Global commodity price volatility impacts crude oil and natural gas feedstock costs, directly affecting operating margins. The company faces significant exposure to geopolitical tensions and trade restrictions that could disrupt cross-border supply chains for petrochemicals. Environmental regulations and decarbonization mandates pose capital expenditure risks as the firm upgrades aging assets to meet stricter emissions limits.
What is LYB's competitive advantage?
LYB leverages an integrated value chain from crude oil to final plastic products, optimizing margins through economies of scale. The company maintains a robust global footprint with strategic assets in key growth markets, providing resilience against regional supply shocks. Additionally, LYB invests heavily in technology and sustainability initiatives to reduce carbon intensity and meet evolving regulatory standards.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.