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1. Company Snapshot

1.a. Company Description

LyondellBasell Industries N.V. operates as a chemical company in the United States, Germany, Mexico, Italy, Poland, France, Japan, China, the Netherlands, and internationally.The company operates in six segments: Olefins and Polyolefins—Americas; Olefins and Polyolefins—Europe, Asia, International; Intermediates and Derivatives; Advanced Polymer Solutions; Refining; and Technology.It produces and markets olefins and co-products; polyolefins; polyethylene products, which consist of high density polyethylene, low density polyethylene, and linear low density polyethylene; and polypropylene (PP) products, such as PP homopolymers and copolymers.


The company also produces and sells propylene oxide and its derivatives; oxyfuels and related products; and intermediate chemicals, such as styrene monomers, acetyls, ethylene glycols, and ethylene oxides and derivatives.In addition, it produces and markets compounds and solutions, such as polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors, and powders; and advanced polymers.Further, the company refines crude oil and other crude oils of varied types and sources into gasoline and distillates; develops and licenses chemical and polyolefin process technologies; and manufactures and sells polyolefin catalysts.


LyondellBasell Industries N.V. was incorporated in 2009 and is headquartered in Houston, Texas.

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1.b. Last Insights on LYB

LyondellBasell Industries N.V. has recalibrated its dividend, cutting it by 50% to $0.69/share, prioritizing capital efficiency and balance sheet strength. The company exceeded cash improvement targets, achieving $800 million in cash conservation. Analysts at BMO Capital Markets upgraded the stock from underperform to market perform, citing a $68.00 price target. Additionally, the company's strategic cash management and growth plans have been highlighted, with $2.3 billion generated from operations. A leaner cost structure positions LYB for improved profitability.

1.c. Company Highlights

2. LYB Q1 Earnings: Strong EBITDA, Cash Resilience Amid Global Supply Tightness

LYB delivered a robust first‑quarter earnings of $0.49 per diluted share, comfortably eclipsing the $0.31 consensus estimate, while EBITDA surged to $615 million—up nearly 50% YoY. Revenue growth, driven by higher polyethylene margins and volumes, underpins the company’s ability to generate $500 million incremental cash flow this year, positioning the stock with a P/E of –31.33 and an EV/EBITDA of 40.84.

Publication Date: May -02

📋 Highlights
  • Strong EBITDA Growth: First-quarter EBITDA reached $615 million, up nearly 50% year-over-year, driven by improved polyethylene margins and volumes.
  • Robust Liquidity: Cash balances totaled $2.6 billion, with $7.3 billion in liquidity, supporting disciplined capital allocation post-European asset sales.
  • Portfolio Restructuring: Sale of four European assets reduced annual CapEx by EUR 110 million and fixed costs by EUR 400 million, improving credit metrics.
  • Margin Expansion Outlook: Oxyfuels and Olefins segments expect second-quarter margin growth due to global supply tightness and facility restarts (e.g., Bayport PO/TBA asset adding $25M/week earnings).
  • Cash Efficiency Gains: $500 million incremental cash flow target for 2025 is on track, with cumulative savings since 2025 reaching $1.3 billion.

Financial Highlights

Operating performance was bolstered by a $50 million reduction in fixed costs versus the same quarter in 2025, and a 15% headcount cut amounting to roughly 3,000 positions. The company’s cash and liquidity balances stood at $2.6 billion and $7.3 billion, respectively, reinforcing its capacity to weather market volatility.

Cash & Liquidity

With $7.3 billion in liquid assets, LYB can comfortably fund ongoing capital allocation initiatives while maintaining a dividend yield of 6.4%. The free‑cash‑flow yield of 12.65% reflects a strong cash‑generating platform, despite the negative ROE of –7.26% driven by high net debt levels.

Portfolio Transformation

The divestiture of four European assets for €110 million has cut annual CapEx by €400 million and trimmed fixed costs, improving credit metrics and freeing capital for disciplined investment. This structural shift is expected to lift mid‑cycle EBITDA margins and enhance shareholder value.

Production & Capacity

LYB’s U.S. and European plants are ramping output to fill the global supply gap, with the O&P‑Americas segment projecting a return to $1.5‑$1.6 billion quarterly EBITDA if pricing remains favorable. The company’s “sleeping giant” polypropylene capacity is poised to benefit from the current feedstock disruptions.

Segment Performance

The O&P‑Americas segment posted $327 million EBITDA, double the prior quarter, thanks to improved polyethylene margins and volumes. Advanced Polymer Solutions EBITDA of $58 million reflected volume gains but margin compression from rising raw material costs. Technology EBITDA dipped to $18 million due to lower licensing activity.

Oxyfuels & Advanced Polymers

Oxyfuels EBITDA fell due to low winter demand and higher butane costs, yet the Bayport PO/TBA asset’s planned restart is expected to add $25 million weekly. Crude oil price swings exert a $20 million annualized impact per $1 change, underscoring the sensitivity of oxyfuel margins.

Future Outlook

LYB anticipates higher margins in Q2 from stronger seasonal demand, reduced supply, and the successful restart of the Bayport asset. With strategic pricing power in methanol and polypropylene and a disciplined cash‑improvement plan, the company is well‑positioned to navigate the Middle East‑induced market turbulence and deliver value to shareholders.

3. NewsRoom

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Best Income Stocks to Buy for May 4th

14:25

Source: zacks.com

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LyondellBasell Industries NV (LYB) Q1 2026 Earnings Call Highlights: Strong EBITDA Growth Amid Market Challenges

May -02

Source: gurufocus.com

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LyondellBasell (LYB) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates

May -01

Source: zacks.com

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LyondellBasell Industries N.V. (LYB) Q1 2026 Earnings Call Transcript

May -01

Source: seekingalpha.com

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Is LyondellBasell (LYB) 12.3% Overvalued After Q1 2026 Earnings? GAAP EPS $0.38 vs $0.14 Est (Beat); Revenue $7,197M vs $7,322.86M Est (Miss); GF Score 62/100

May -01

Source: gurufocus.com

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LYB Q1 Earnings Beat Estimates, Sales Miss on Volume Pressures

May -01

Source: zacks.com

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LyondellBasell (LYB) Q1 Earnings Surpass Estimates

May -01

Source: zacks.com

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LyondellBasell reports first quarter 2026 earnings

May -01

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.21%)

6. Segments

Olefins and Polyolefins - Americas

Expected Growth: 4.5%

Growing demand for polyethylene and polypropylene from packaging, automotive, and construction industries, driven by increasing urbanization, consumer spending, and substituting traditional materials with lighter and more sustainable options, will drive LyondellBasell's Olefins and Polyolefins growth in the Americas region.

Olefins and Polyolefins - Europe, Asia and International

Expected Growth: 4.5%

LyondellBasell's polyolefins and olefins production is driven by increasing demand for packaging materials in e-commerce and rising automotive production in Europe and Asia.

Intermediates & Derivatives

Expected Growth: 4.2%

Driven by increasing demand in packaging and construction, LyondellBasell Industries N.V. is expected to benefit from growth in the plastics and materials industry, supported by innovative product offerings and expanding production capacities

Refining

Expected Growth: 3.5%

Strong demand for transportation fuels and petrochemicals drives growth in LyondellBasell’s refining segment, supported by the company’s strategic investments in refining and capacity expansion.

Advanced Polymer Solutions

Expected Growth: 4.5%

Growing demand for advanced polymer solutions in automotive, construction, and packaging industries, driven by increasing focus on sustainability and efficiency, is expected to drive LyondellBasell's polymer business.

Technology

Expected Growth: 4.5%

LyondellBasell’s technology segment will benefit from growing global demand for polyolefins, driven by increasing use in packaging, automotive, and construction applications.

Other

Expected Growth: 4.5%

LyondellBasell’s miscellaneous business benefits from a diversified product portfolio, strong distribution networks, and a growing demand for industrial materials, driving growth in this segment.

7. Detailed Products

Olefins

LyondellBasell produces olefins, which are the building blocks of plastics, through the cracking of petroleum-based feedstocks.

Polyolefins

LyondellBasell produces polyolefins, including polyethylene and polypropylene, which are used in packaging, plastics, and other applications.

Intermediates

LyondellBasell produces intermediates, including propylene oxide, styrene, and butadiene, which are used to manufacture a range of chemicals and plastics.

Refinery Products

LyondellBasell produces refinery products, including diesel fuel, gasoline, and jet fuel, through its refining operations.

Lubricants

LyondellBasell produces lubricants, including base oils and finished lubricants, for use in automotive, industrial, and marine applications.

Fuel Oils

LyondellBasell produces fuel oils, including marine fuels, heating oils, and other specialty fuels.

8. LyondellBasell Industries N.V.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for LyondellBasell Industries N.V. is medium due to the availability of alternative products and technologies in the petrochemical industry.

Bargaining Power Of Customers

The bargaining power of customers for LyondellBasell Industries N.V. is low due to the company's strong market position and diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for LyondellBasell Industries N.V. is medium due to the company's dependence on a few key suppliers for raw materials.

Threat Of New Entrants

The threat of new entrants for LyondellBasell Industries N.V. is low due to the high barriers to entry in the petrochemical industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry for LyondellBasell Industries N.V. is high due to the competitive nature of the petrochemical industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.14%
Debt Cost 4.53%
Equity Weight 49.86%
Equity Cost 9.89%
WACC 7.20%
Leverage 100.55%

11. Quality Control: LyondellBasell Industries N.V. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Ecolab

A-Score: 5.2/10

Value: 1.2

Growth: 5.1

Quality: 6.2

Yield: 2.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

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Stock-Card
PPG

A-Score: 5.0/10

Value: 4.0

Growth: 2.8

Quality: 6.5

Yield: 5.0

Momentum: 3.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Sherwin-Williams

A-Score: 4.9/10

Value: 1.7

Growth: 6.4

Quality: 6.0

Yield: 2.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
LyondellBasell

A-Score: 4.6/10

Value: 6.8

Growth: 2.6

Quality: 1.9

Yield: 10.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Air Products

A-Score: 4.4/10

Value: 4.8

Growth: 2.9

Quality: 2.1

Yield: 6.0

Momentum: 2.5

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
IFF

A-Score: 4.4/10

Value: 5.4

Growth: 2.3

Quality: 3.1

Yield: 6.0

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

75.97$

Current Price

75.97$

Potential

-0.00%

Expected Cash-Flows