LyondellBasell Industries (NYSE:LYB) Releases Earnings Results, Misses Expectations By $0.03 EPS

LyondellBasell Industries (NYSE:LYB) issued its earnings results on Friday. The specialty chemicals company reported $2.54 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.57 by ($0.03), Zacks reports. The company had revenue of $8.50 billion for the quarter, compared to analyst estimates of $8.87 billion. LyondellBasell Industries had a negative net margin of 1.13% and a positive return on equity of 17.44%. The company’s quarterly revenue was up 10.0% on a year-over-year basis. During the same period last year, the business earned $1.01 EPS.

Here are the key takeaways from LyondellBasell Industries’ conference call:

• Strong third-quarter cash generation: EBITDA was $1.5 billion, with an 18% margin, while free cash flow reached $1.4 billion and cash increased by approximately $600 million to $3.2 billion. Management attributed the performance to portfolio changes, working-capital discipline, and its Value Enhancement and Cash Improvement programs.
• Intermediates and Derivatives delivered record EBITDA of $795 million, more than doubling sequentially, supported by stronger oxyfuel margins and the Bayport PO/TBA restart. Management expects results to moderate in the fourth quarter but still anticipates historically strong profitability, particularly in oxyfuels.
• North American polyolefin conditions improved late in the quarter: polyethylene and polypropylene demand strengthened, inventories remained lean, and price increases were announced. However, higher ethane and other feedstock costs could offset some pricing benefits, while management expects demand to moderate toward year-end.
• Europe remains a significant pressure point, with elevated energy and logistics costs, low Rhine water levels, weak polymer spreads, and cautious customer purchasing. O&P Europe, Asia and International operating rates are expected to decline to approximately 60% in the fourth quarter from 65% in the third quarter.
• LyondellBasell agreed to sell its former Houston refinery site to Valero for $320.5 million, with closing expected by the end of 2026, subject to approvals. The transaction should reduce complexity and ongoing obligations, improve annual cash flow by approximately $50 million-$100 million, and provide additional balance-sheet flexibility, although management said capital allocation will remain conservative.

LyondellBasell Industries Stock Up 4.9%

Shares of LyondellBasell Industries stock opened at $68.56 on Friday. The firm has a market cap of $22.15 billion, a price-to-earnings ratio of 17.31, a PEG ratio of 0.17 and a beta of 0.30. The company has a 50-day moving average of $62.75 and a 200 day moving average of $63.59. LyondellBasell Industries has a 1 year low of $41.58 and a 1 year high of $83.94. The company has a debt-to-equity ratio of 1.05, a current ratio of 1.64 and a quick ratio of 1.07.

LyondellBasell Industries Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, August 31st. Shareholders of record on Monday, August 24th were paid a $0.69 dividend. The ex-dividend date of this dividend was Monday, August 24th. This represents a $2.76 annualized dividend and a yield of 4.0%. LyondellBasell Industries’s payout ratio is currently -244.25%.

Analyst Ratings Changes

Several analysts have recently weighed in on the stock. KeyCorp assumed coverage on shares of LyondellBasell Industries in a research report on Thursday, September 10th. They set a “sector weight” rating on the stock. Wall Street Zen lowered shares of LyondellBasell Industries from a “strong-buy” rating to a “buy” rating in a report on Saturday, September 5th. Mizuho increased their price target on LyondellBasell Industries from $62.00 to $66.00 and gave the stock a “neutral” rating in a report on Monday, August 3rd. Morgan Stanley reduced their price objective on shares of LyondellBasell Industries from $77.00 to $72.00 and set an “overweight” rating for the company in a research note on Monday, July 20th. Finally, BMO Capital Markets lifted their target price on shares of LyondellBasell Industries from $64.00 to $68.00 and gave the stock a “market perform” rating in a report on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, ten have assigned a Hold rating and four have given a Sell rating to the stock. According to MarketBeat.com, LyondellBasell Industries has an average rating of “Hold” and an average target price of $71.50.

LyondellBasell Industries News Roundup

Here are the key news stories impacting LyondellBasell Industries this week:

• Positive Sentiment: Third-quarter adjusted EPS rose to $2.54 from $1.01 a year earlier, while revenue increased 10% to $8.50 billion. Oxyfuels margins were strong, and polyethylene margins improved late in the quarter. LyondellBasell reports third quarter 2026 earnings
• Positive Sentiment: LYB generated approximately $1.7 billion in operating cash flow and about $1.4 billion in free cash flow during the quarter. That comfortably covered the reduced quarterly dividend, supporting management’s deleveraging and capital-allocation strategy. LyondellBasell third-quarter earnings report
• Positive Sentiment: The company agreed to sell its former Houston refinery site and related assets to Valero for approximately $320.5 million. The transaction should provide additional liquidity while removing non-core assets and associated operating, environmental and pension obligations. LyondellBasell agrees to sell former refinery site in Houston
• Neutral Sentiment: Management expects fourth-quarter operating rates of 85% for North American Olefins and Polyolefins, 60% in Europe and 75% for Intermediates and Derivatives, reflecting maintenance, demand conditions and supply uncertainty rather than a full-capacity recovery. LyondellBasell Q3 2026 earnings call transcript
• Negative Sentiment: Adjusted EPS missed consensus estimates, and revenue was below expectations. Weak polymer prices and softer demand offset the oxyfuels improvement, limiting the quarter’s upside surprise. LYB Q3 earnings miss on weak polymer prices
• Negative Sentiment: Unconfirmed reports that LYB may pursue a large acquisition of Shell chemical assets create balance-sheet risk. A debt-funded transaction could conflict with deleveraging goals and pressure future dividend flexibility, although no deal has been announced. LyondellBasell financial and dividend analysis

LyondellBasell Industries Company Profile

LyondellBasell Industries N.V. is a global chemical company that produces polymers, chemicals and related products used in packaging, transportation, construction, healthcare, consumer goods and other industries. Its portfolio includes polyethylene, polypropylene, advanced polymers, propylene oxide, solvents, acetyls and other chemical intermediates.

The company also operates businesses involved in refining and in the development and licensing of chemical and polymer technologies. Its products are used to manufacture items such as food and beverage packaging, automotive components, medical products, coatings, adhesives and household goods.