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LYB Stock Jumps 10.3% After Q4 Earnings Miss as Investors Bet on Chemical Industry Recovery

Earnings Per Share (GAAP)
$-0.26
vs $0.25 est. (-205.0%)
Revenue
$7.1B
estimate N/A

Earnings collapse sends shares soaring. LyondellBasell Industries NV reported a loss of $0.26 per share for Q4 2025, missing the consensus estimate of $0.25 by 205.0%. The specialty chemicals maker posted a net loss of $79 million on revenue of $7.09 billion. Despite the miss, shares surged 10.3% to $74.33 on volume of 13.3 million shares, suggesting investors anticipated worse results or are positioning for a cyclical recovery.

Margins compressed sharply. Gross profit of $2.58 billion on revenue of $7.09 billion translates to a gross margin of 36.4%. Operating income of $831 million yielded an operating margin of 11.7%, while EBITDA reached $1.16 billion for a 16.4% EBITDA margin. The quarter marks a sharp reversal from Q3 2025’s $1.01 per share profit, which beat estimates by 25.9% on revenue of $7.73 billion. Sequential revenue declined 8.2% from Q3’s $7.73 billion to Q4’s $7.09 billion, reflecting weaker demand across petrochemical end markets.

Balance sheet remains solid. LyondellBasell held $3.44 billion in cash against $14.64 billion in total debt, with total assets of $34.00 billion and stockholders’ equity of $10.08 billion. The company generated $1.51 billion in operating cash flow and $1.06 billion in free cash flow during the quarter, while paying $443 million in dividends. Analyst sentiment remains cautious, with 11 of 19 analysts rating the stock a Hold, 5 rating it a Buy or Strong Buy, and 3 rating it a Sell.

What to Watch: Management’s commentary on petrochemical pricing trends and capacity utilization rates will determine whether Q4 marks the trough or signals prolonged margin pressure through 2026.

This article was generated using AlphaStreet’s proprietary financial analysis technology and reviewed by our editorial team.

Tags: LYB
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