LyondellBasell Industries

LYB

Market cap $16.7B

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LyondellBasell Industries (LYB) faces significant EBITDA margin declines across all segments, driven by weak European demand and global automotive downturn. LYB's O&P International and APS segments reported negative profitability, with impairment charges signaling asset value concerns and ongoing sector headwinds. Long-term trends show negative CAGRs for EBITDA, operating income, and levered free cash flow, highlighting deteriorating fundamentals and capital intensity risks.

HOUSTON and LONDON, Jan. 05, 2026 (GLOBE NEWSWIRE) -- LyondellBasell (NYSE: LYB), a leader in the global chemical industry, will announce its fourth-quarter 2025 financial results before the U.S. market opens Friday, Jan. 30, followed by a webcast and teleconference to discuss the results at 11 a.m. EST. Teleconference and webcast details Friday, January 30, 202611 a.m. ESTHosted by David Kinney, head of investor relationsAccess the webcast 10 to 15 minutes prior to the start of the call at www.lyb.com/earnings.

LyondellBasell faces a more structural than cyclical downturn as Chinese capacity additions and below-cost operations for non-economic reasons prolong oversupply in key petrochemical markets, pressuring revenues for several years. A declining oil-to-gas price ratio is eroding LyondellBasell's feedstock cost advantage, and the outlook for oil and gas prices suggests further gross margin pressure ahead. LyondellBasell's free cash flow has turned insufficient to fully cover dividends, and limited liquidity runway raises the likelihood of a dividend reduction to protect its credit profile.

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LyondellBasell is rated Hold due to elevated recession risk, unsustainable dividend, and uncertain cycle timing. Q3 results showed stabilization with adjusted EBITDA of $835M, but significant impairments and weak segments persist. Dividend yield stands at 12.5%, but negative FCF and management commentary signal a likely cut within two quarters.

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LyondellBasell Industries (LYB) faces deteriorating financials and segment declines, raising concerns about dividend sustainability despite management's commitment. Q3 saw double-digit sales and EPS declines year-over-year, with all five segments posting weaker results and significant impairment charges. LYB's current near-13% dividend yield signals elevated risk; rising leverage (net debt/EBITDA up to 3.6x) further heightens caution.

Dividend Kings emphasizes dividend growth and value investing, prioritizing stable, growing payouts for long-term wealth. 3 companies that have arguably have had terrible years: LyondellBasell, Dow, Eastman Chemical Company.