What drove the year-over-year decline in second quarter 2025 earnings?

Net income fell to $115 million from $924 million in the second quarter of 2024. The second quarter of 2024 included a $293 million pre-tax gain on the sale of the Ethylene Oxide and Derivatives business. The filing also cites lower polyethylene pricing and margins in O&P-Americas, and a $220 million decline in Oxyfuels & Related Products results in the Intermediates & Derivatives segment as margins were significantly compressed on lower crude oil prices.

What are the identified items that affected second quarter 2025 results?

Identified items reduced second quarter 2025 earnings by $87 million, net of tax, or $0.28 per diluted share. They include a $32 million pre-tax asset write-down related to European assets held for sale, $20 million in Cash Improvement Plan costs, $10 million in European transaction costs, and a $47 million pre-tax loss from discontinued operations.

What are the strategic actions announced, and what do they aim to achieve?

LYB announced the planned sale of four European assets to position the company to serve global markets from a more cost-advantaged asset base. It is delaying construction of the Flex-2 project to better align investment with cash generation. The Cash Improvement Plan was expanded to target at least $1.1 billion in cash improvements over 2025 and 2026, to protect the balance sheet and support shareholder returns while maintaining an investment-grade balance sheet.

What does the company expect for the third quarter of 2025?

The company expects North American integrated polyethylene margins to improve, supported by completed planned maintenance in April, a June polyethylene contract price increase, and solid domestic demand. European demand and feedstock costs are expected to remain steady, and oxyfuels margins are expected to stay low for the rest of the summer season. Planned operating rates are 85% for North American O&P assets, 75% for European O&P assets and 80% for I&D assets.

LYB 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed August 1, 2025. Cited figures are marked; the original filing is the authoritative source.

LyondellBasell Industries N.V.

(NYSE: LYB) reported second quarter 2025 results on August 1, 2025, with net income of $115 million^a, or $0.34 per diluted share, and EBITDA of $606 million. Excluding identified items, net income was $202 million, or $0.62 per diluted share, and EBITDA was $715 million. Identified items in the quarter, which the company says reduced earnings by $0.28 per share, related to asset write-downs, European transaction costs, Cash Improvement Plan costs and discontinued operations.

Sales and other operating revenues were $7,658 million^b, compared with $7,677 million in the first quarter of 2025 and $8,678 million in the second quarter of 2024. The company generated $351 million in cash from operating activities and invested $539 million in capital expenditures. It returned $536 million to shareholders through dividends ($445 million) and share repurchases ($91 million).

At quarter end, LYB held $1.7 billion^c in cash and cash equivalents and $6.4 billion in total liquidity. Management highlighted several strategic actions: the planned sale of select European olefins and polyolefins assets, deferral of construction of the Flex-2 project to preserve capital, and an expanded Cash Improvement Plan targeting at least $1.1 billion in cash improvements over 2025 and 2026. For the third quarter, the company expects North American integrated polyethylene margins to improve, with a June polyethylene contract price increase supporting profitability.

It expects oxyfuels margins to remain low through the summer season. Planned third quarter operating rates are 85%^d for North American olefins and polyolefins assets, 75% for European olefins and polyolefins assets, and 80% for Intermediates and Derivatives assets.

02—Key points

Key Highlights

Second quarter 2025 net income was $115 million ($0.34 per diluted share), versus $924 million ($2.82 per diluted share) in the second quarter of 2024; excluding identified items, net income was $202 million ($0.62 per diluted share).
EBITDA was $606 million, or $715 million excluding identified items, compared with $1,643 million in the second quarter of 2024 and $655 million in the first quarter of 2025.
Cash from operating activities was $351 million, and capital expenditures were $539 million in the quarter.
LYB returned $536 million to shareholders through dividends ($445 million) and share repurchases ($91 million) in the quarter.
Liquidity stood at $6,354 million at June 30, 2025, including $1,704 million in cash and liquid investments and $3,750 million of availability under the Senior Revolving Credit Facility.
The company announced the planned sale of four European assets, deferred construction of the Flex-2 project, and expanded the Cash Improvement Plan to at least $1.1 billion in cash improvements over 2025 and 2026.
Third quarter outlook calls for improved North American integrated polyethylene margins, low oxyfuels margins, and planned operating rates of 85% for North American O&P assets, 75% for European O&P assets and 80% for I&D assets.

03—Questions

Frequently Asked Questions

What drove the year-over-year decline in second quarter 2025 earnings?
Net income fell to $115 million from $924 million in the second quarter of 2024. The second quarter of 2024 included a $293 million pre-tax gain on the sale of the Ethylene Oxide and Derivatives business. The filing also cites lower polyethylene pricing and margins in O&P-Americas, and a $220 million decline in Oxyfuels & Related Products results in the Intermediates & Derivatives segment as margins were significantly compressed on lower crude oil prices.
What are the identified items that affected second quarter 2025 results?
Identified items reduced second quarter 2025 earnings by $87 million, net of tax, or $0.28 per diluted share. They include a $32 million pre-tax asset write-down related to European assets held for sale, $20 million in Cash Improvement Plan costs, $10 million in European transaction costs, and a $47 million pre-tax loss from discontinued operations.
What are the strategic actions announced, and what do they aim to achieve?
LYB announced the planned sale of four European assets to position the company to serve global markets from a more cost-advantaged asset base. It is delaying construction of the Flex-2 project to better align investment with cash generation. The Cash Improvement Plan was expanded to target at least $1.1 billion in cash improvements over 2025 and 2026, to protect the balance sheet and support shareholder returns while maintaining an investment-grade balance sheet.
What does the company expect for the third quarter of 2025?
The company expects North American integrated polyethylene margins to improve, supported by completed planned maintenance in April, a June polyethylene contract price increase, and solid domestic demand. European demand and feedstock costs are expected to remain steady, and oxyfuels margins are expected to stay low for the rest of the summer season. Planned operating rates are 85% for North American O&P assets, 75% for European O&P assets and 80% for I&D assets.

04—Continue

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