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Investing.com - LyondellBasell Industries (NYSE:LYB) stock fell to $51.98, approaching its 52-week low of $51.11, after Goldman Sachs maintained its Sell rating and $59.00 price target following the company’s second-quarter earnings report. According to InvestingPro analysis, the company maintains a "Fair" overall financial health score, though current market pricing suggests the stock is undervalued.
The chemical company reported second-quarter 2025 adjusted EBITDA of $715 million, falling short of the Bloomberg consensus estimate of $759 million. For the third quarter, LyondellBasell plans to operate its OPAM assets at 85%, OPEAI assets at 75%, and I&D assets at 80%, compared to second-quarter target rates of 85%, 75%, and 85% respectively.
LyondellBasell expects North American integrated polyethylene margins to improve following the completion of April planned maintenance and a June price increase, supported by solid domestic demand and stronger export volumes. In Europe, the company anticipates steady seasonal demand and favorable feedstock costs to continue, while oxyfuel margins are expected to remain low during the summer season.
The company has expanded its Cash Improvement Plan to target $1.1 billion over 2025/2026. For 2025, this includes a $200 million reduction in trade working capital, a $200 million reduction in fixed costs, and lowered capital expenditure to $1.7 billion from the previous $1.9 billion guidance. For 2026, capital expenditure will be reduced to $1.4 billion, with an additional $200 million in trade working capital and fixed cost reductions. Get deeper insights into LyondellBasell’s financial strategy with a comprehensive Pro Research Report, available exclusively on InvestingPro.
LyondellBasell also confirmed it would not conduct any additional share buybacks for the remainder of 2025 or in 2026, while reaffirming its commitment to maintaining its dividend payments. The company currently offers a substantial 10.26% dividend yield, with a 2.24% dividend growth rate over the last twelve months.
In other recent news, LyondellBasell Industries reported its Q2 2025 earnings, revealing a focus on cash flow and innovation despite challenging market conditions. The company announced earnings of $0.62 per share and an EBITDA of $715 million. LyondellBasell emphasized ongoing development in chemical recycling technology, which they expect to positively impact their operations in the latter half of 2025. The company’s earnings report did not lead to any changes in its stock price. Analysts have not indicated any upgrades or downgrades following this announcement. LyondellBasell’s strategic focus remains on maintaining steady cash flow and pursuing innovations. The firm maintains a positive outlook for the remainder of the year. These developments reflect the company’s strategic shifts in a complex market environment.
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