01—Abstract
Summary
Summary of the 10-Q filed April 25, 2025. Cited figures are marked; the original filing is the authoritative source.
LyondellBasell Industries N.V. reported first-quarter 2025 net income of $177 milliona, down from $473 million in the first quarter of 2024, with net income attributable to Company shareholders of $175 million and diluted EPS of $0.54 versus $1.44.
Revenue was $7.68 billionb, down from $8.30 billion a year earlier, and operating income was $114 million versus $651 million. Results were helped by discontinued operations: income from discontinued operations, net of tax, was $154 million, which includes a $196 million after-tax LIFO benefit from inventory liquidations tied to the exit from the Houston refinery, which ceased operations in February 2025. Income from continuing operations fell to $23 million from $433 million, and the effective tax rate rose to 61.0% from 20.3%.
Operating cash flow was negative at $579 millionc, versus negative $114 million a year earlier, primarily due to working capital build. Capital expenditures were $483 million, and the company paid $433 million in dividends and repurchased $110 million of shares. Cash and cash equivalents fell to $1.87 billion from $3.38 billion at year-end 2024, and total debt including current maturities was $11.22 billion.
The company reported $3.75 billiond of unused availability under its senior revolving credit facility and $900 million under its U.S. Receivables Facility. Management announced in April 2025 a Cash Improvement Plan targeting a $500 million run-rate in annualized savings, comprising $100 million of capital spending deferral, a $200 million working capital reduction and $200 million of fixed cost reductions. The company also outlined second-quarter 2025 operating rates of 85% for O&P-Americas, 75% for O&P-EAI and 85% for I&D, and disclosed a planned permanent closure of a propylene oxide/styrene monomer unit at the Maasvlakte joint venture with Covestro, with the company's share of shutdown costs estimated at approximately $215 million through 2027.
02—Key points
Key Highlights
- Net income was $177 million in Q1 2025 versus $473 million in Q1 2024; diluted EPS was $0.54 versus $1.44.
- Continuing operations income fell to $23 million from $433 million, while discontinued operations (the Houston refinery exit) contributed $154 million, including a $196 million after-tax LIFO benefit.
- Revenues were $7.68 billion versus $8.30 billion, and operating income was $114 million versus $651 million.
- Operating cash flow was negative $579 million, driven by working capital build; capital expenditures were $483 million.
- Shareholder returns were $433 million in dividends and $110 million in share repurchases; approximately 28.8 million shares remained under the authorization as of April 23, 2025.
- Management launched a Cash Improvement Plan in April 2025 targeting a $500 million run-rate in annualized savings.
- Cash and cash equivalents declined to $1.87 billion from $3.38 billion at year-end 2024; the company was in compliance with its debt covenants and had $4.65 billion of total unused credit facility availability.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, LyondellBasell Industries kept $0.02.
- Revenue$7.68B100.0%
- Cost of revenue−$7.13B92.8%
- Gross profit$549.0M7.2%
- Operating costs−$435.0M5.7%
- Operating income$114.0M1.5%
- Interest, other & tax$63.0M0.8%
- Net income$177.0M2.3%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed April 25, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $7.68B$8.30B | −7.6% |
| Cost of Revenue | $7.13B$7.20B | −1.0% |
| Gross Profit | $549.00M$1.10B | −50.3% |
| R&D Expenses | $34.00M$32.00M | +6.3% |
| SG&A Expenses | $401.00M$421.00M | −4.8% |
| Operating Expenses | $7.56B$7.65B | −1.2% |
| Operating Income | $114.00M$651.00M | −82.5% |
| Net Income | $177.00M$473.00M | −62.6% |
| EPS (Basic) | $0.54$1.45 | −62.8% |
| EPS (Diluted) | $0.54$1.44 | −62.5% |
05—Questions
Frequently Asked Questions
Why did net income fall so sharply, and what was the role of the refinery exit?
Income from continuing operations fell to $23 million from $433 million, driven by lower operating income in the O&P-Americas, I&D and Technology segments and higher feedstock and natural gas costs. Net income was supported by $154 million from discontinued operations, which includes a $196 million after-tax LIFO benefit from inventory liquidations tied to the exit from the Houston refinery, which ceased operations in February 2025.
Why was operating cash flow negative this quarter?
Cash used in operating activities was $579 million, primarily reflecting a working capital build of $716 million, driven by higher accounts receivable and inventories associated with higher volumes following maintenance downtime.
What is the Cash Improvement Plan?
Announced in April 2025, the plan targets a $500 million run-rate in annualized savings through $100 million of deferred capital spending, a $200 million reduction in working capital and $200 million of fixed cost reductions, with one-time implementation costs estimated to be less than $50 million. Working capital and fixed cost reductions are measured relative to the internal 2025 plan.
How is the company funding dividends and buybacks, and what liquidity is available?
The company paid $433 million in dividends and repurchased $110 million of shares in the quarter. At March 31, 2025 it held $1.87 billion of cash and cash equivalents, with $3.75 billion unused under its Senior Revolving Credit Facility and $900 million under its U.S. Receivables Facility. Total debt including current maturities was $11.22 billion.
What is the outlook for the second quarter of 2025?
Management expects seasonal demand improvements across most businesses, with operating rates of 85% for O&P-Americas assets, 75% for European O&P-EAI assets and 85% for I&D assets. It also noted that less than 10% of polyolefin sales volumes are expected to experience direct effects from escalating U.S. tariffs and counter-tariffs.
06—Continue