Investment Thesis
LyondellBasell is experiencing severe profitability deterioration with negative operating margins (-1.4%) and substantial net losses (-$738M) despite flat revenue, indicating fundamental operational challenges in the chemical sector. The company's negative interest coverage ratio (-3.3x) and weak net margins (-2.4%) demonstrate inability to service debt from operations, creating acute financial distress. High leverage (1.20x D/E) combined with persistent losses threatens financial stability and shareholder value.
LYB Strengths
- Strong liquidity position with $3.4B cash and 1.77x current ratio providing near-term operational flexibility
- Positive operating cash flow of $2.3B suggests underlying business can still generate cash despite accounting losses
- Diversified industrial chemicals business with global market presence provides revenue stability
LYB Risks
- Massive net losses ($738M) with negative ROE (-7.3%) and ROA (-2.2%) indicating severe profitability crisis and value destruction
- Negative interest coverage (-3.3x) and $12.1B debt load creates refinancing and default risk if losses persist
- Collapsing margins across all levels (gross 4.1%, operating -1.4%, net -2.4%) suggest structural cost issues or demand collapse in core markets
- Free cash flow margin of only 1.3% leaves minimal buffer for debt service, capex, and dividends
Key Metrics to Watch
- Operating margin recovery (currently -1.4%, must return to positive territory)
- Debt service capability and interest coverage ratio improvement (currently -3.3x)
- Gross margin stabilization and cost structure analysis (currently collapsed at 4.1%)
LYB Financial Metrics
LYB Profitability Ratios
LYB Balance Sheet & Liquidity
LYB 5-Year Financial Trend
5-Year Trend Summary: LyondellBasell Industries N.V.'s revenue has declined by 26% over the 5-year period, indicating business contraction. The most recent EPS of $6.46 reflects profitable operations.
LYB Growth Metrics (YoY)
LYB Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $7.7B | $573.0M | $1.75 |
| Q2 2025 | $7.7B | $115.0M | $0.34 |
| Q1 2025 | $7.7B | $177.0M | $0.54 |
| Q3 2024 | $10.3B | $573.0M | $1.75 |
| Q2 2024 | $10.3B | $715.0M | $2.18 |
| Q1 2024 | $9.9B | $473.0M | $1.44 |
| Q2 2023 | $10.1B | $715.0M | $2.18 |
| Q1 2023 | $10.1B | $474.0M | $1.44 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
LYB Capital Allocation
LYB SEC Filings
Access official SEC EDGAR filings for LyondellBasell Industries N.V. (CIK: 0001489393)