01—Abstract
Summary
Summary of the 10-Q filed August 1, 2025. Cited figures are marked; the original filing is the authoritative source.
LyondellBasell Industries N.V. reported second-quarter 2025 net income of $115 milliona, down from $924 million in the second quarter of 2024, with operating income of $285 million versus $999 million a year earlier.
Revenues were $7.66 billionb for the quarter compared with $8.68 billion in the prior-year period. For the first six months of 2025, net income was $292 million and operating cash flow was negative at $228 million, as the company paid $384 million in taxes, including $235 million of U.S. federal income tax deferred from 2024 under Hurricane Beryl disaster relief, and recorded a $433 million outflow from accounts payable. The company spent $1,022 million on capital expenditures and returned $1,079 million to shareholders through dividends and share repurchases during the period.
Management announced a Cash Improvement Plan in April 2025 targeting a $600 millionc run-rate in annualized savings for 2025, and in June 2025 entered an agreement to sell select European olefins and polyolefins assets, with an expected loss on sale of approximately $700 million to $900 million upon closing in the first half of 2026. The company ceased operations at its Houston refinery in February 2025, which is now reported as discontinued operations. Cash and cash equivalents were $1.70 billion at June 30, 2025, down from $3.38 billion at year-end 2024, and total debt including current maturities was $11.83 billion.
Management expects third-quarter 2025 operating rates of 85% for O&P-Americas, 75% for O&P-EAI and 80% for I&D, and plans capital expenditures of approximately $1.7 billiond in 2025, with a third-quarter dividend of $1.37 per share. The company's effective tax rate for the second quarter was 30.8%, and its disclosure controls were concluded to be effective as of June 30, 2025.
02—Key points
Key Highlights
- Second-quarter 2025 net income of $115 million versus $924 million in Q2 2024; operating income of $285 million versus $999 million.
- Six-month 2025 operating cash flow was negative $228 million, compared with positive $1,234 million in the first six months of 2024.
- Cash Improvement Plan targets a $600 million run-rate in annualized savings for 2025, including $200 million each from capital spending deferral, working capital reduction and fixed cost reductions.
- Agreement to sell select European olefins and polyolefins assets, with an expected loss on sale of approximately $700 million to $900 million and closing expected in the first half of 2026.
- Houston refinery operations ceased in February 2025; the refining business is reported as discontinued operations, which contributed $114 million of six-month income.
- Issued $500 million of 6.150% guaranteed notes due 2035 in May 2025; cash and cash equivalents declined to $1.70 billion from $3.38 billion at year-end 2024.
- Quarterly dividend of $1.37 per share declared for the third quarter of 2025; $1,079 million returned to shareholders in the first six months through dividends and share repurchases.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, LyondellBasell Industries kept $0.02.
- Revenue$7.66B100.0%
- Cost of revenue−$6.87B89.7%
- Gross profit$787.0M10.3%
- Operating costs−$502.0M6.6%
- Operating income$285.0M3.7%
- Interest, other & tax−$170.0M2.2%
- Net income$115.0M1.5%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 1, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $7.66B$8.68B | −11.8% |
| Cost of Revenue | $6.87B$7.24B | −5.1% |
| Gross Profit | $787.00M$1.43B | −45.1% |
| R&D Expenses | $35.00M$33.00M | +6.1% |
| SG&A Expenses | $435.00M$402.00M | +8.2% |
| Operating Expenses | $7.37B$7.68B | −4.0% |
| Operating Income | $285.00M$999.00M | −71.5% |
| Net Income | $115.00M$924.00M | −87.6% |
| EPS (Basic) | $0.34$2.82 | −87.9% |
| EPS (Diluted) | $0.34$2.82 | −87.9% |
05—Questions
Frequently Asked Questions
Why did LyondellBasell's operating income fall so sharply year over year?
Operating income for the second quarter of 2025 was $285 million compared with $999 million in the second quarter of 2024. For the six months, operating income fell by $1,251 million, or 76%. The filing attributes the decline to lower margins across segments, including lower oxyfuels margins from lower crude oil prices, lower polyethylene margins in O&P-Americas, and the absence of the 2024 gain on the sale of the EO&D business. It also cites $117 million of shutdown costs for the European PO Joint Venture in the first quarter of 2025 and a $32 million impairment in the second quarter of 2025.
What is the status of the planned European asset sale?
In June 2025, the company entered a put option deed under which the purchaser has committed to enter into a purchase agreement if LyondellBasell exercises its put option, after certain works council consultations. Closing is expected in the first half of 2026. The company expects a loss of approximately $700 million to $900 million at closing and a cash contribution of about $300 million to the sold businesses before closing. The assets and liabilities, totaling $832 million and $567 million respectively, are classified as held for sale.
How is the company managing its cash position and capital allocation?
The company's Cash Improvement Plan targets $600 million in annualized savings for 2025, including deferring $200 million of capital spending. Capital expenditures for 2025 are planned at approximately $1.7 billion, with about $1.2 billion for sustaining maintenance, and up to $1.4 billion planned for 2026. The company targets shareholder returns of 70% of free cash flow over the long term and has a 2025 share repurchase authorization of up to 34.0 million ordinary shares through November 23, 2026. Management states it remains committed to an investment grade balance sheet and to funding its dividend.
What drove the negative operating cash flow in the first half of 2025?
Net cash used in operating activities was $228 million in the first six months of 2025. Management attributed this primarily to earnings adjusted for non-cash items, a $433 million decrease in accounts payable driven by the timing of payments, and $384 million of tax payments. The tax payments included $235 million of U.S. federal corporate income tax deferred from 2024 into 2025 under Hurricane Beryl disaster relief.
What is the outlook for the third quarter of 2025?
Management expects North American integrated polyethylene margins to improve in the third quarter due to the completion of planned maintenance in April and higher prices supported by domestic demand and stronger exports. European steady seasonal demand and favorable feedstock costs are expected to continue, and oxyfuels margins are expected to remain low for the rest of the summer season. Planned third-quarter operating rates are 85% for O&P-Americas, 75% for O&P-EAI and 80% for I&D. The company also said it continues to evaluate risks and opportunities associated with evolving tariffs and global trade flows.
06—Continue