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Investing.com -- Chemical maker LyondellBasell Industries (NYSE:LYB) reported second quarter earnings that fell well short of analyst expectations, as the company navigated a challenging market environment while implementing cost-cutting measures. Shares fell 2.6% in pre-market trading following the announcement.
The company posted adjusted earnings of $0.62 per share for the second quarter of 2025, missing analyst estimates of $0.87 by $0.25. Revenue came in at $7.66 billion, down 11.8% compared to $8.68 billion in the same quarter last year.
LyondellBasell’s net income excluding identified items reached $202 million in the quarter, significantly lower than the $724 million reported in the second quarter of 2024. The company cited a prolonged cyclical downturn in the chemical industry as a key factor affecting results.
"As we advance our three-pillar strategy, LYB continues to grow and upgrade our core businesses through disciplined capital allocation that extends our competitive advantage," said Peter Vanacker, LyondellBasell chief executive officer. "We are expanding our Cash Improvement Plan to help navigate a prolonged cyclical downturn."
The company has expanded its Cash Improvement Plan, now targeting at least $1.1 billion in cash improvements over 2025 and 2026. LyondellBasell also announced it would delay construction of its Flex-2 project to preserve capital during the downturn and plans to sell select European assets to optimize its business portfolio.
Despite the challenging environment, the company maintained its shareholder returns, delivering $536 million to shareholders through dividends and share repurchases during the quarter. LyondellBasell generated $351 million in cash from operating activities and ended the quarter with $1.7 billion in cash and cash equivalents.
For the third quarter, the company expects North American integrated polyethylene margins to improve due to completed maintenance and increased prices supported by solid domestic demand and stronger export volumes.
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