Executive Summary
In Q2 2025, LyondellBasell Industries NV reported revenue of $7.66 billion, down 27.5% year-over-year and almost flat sequentially at a 0.25% decrease from Q1 2025. The drastic year-on-year drop in revenue was primarily driven by reduced demand for its products amid a slowing global economy and continued inflationary pressures. Notably, net income plummeted by 87.87% year-on-year to $112 million, reflecting significant challenges in maintaining profitability amidst high cost structures and a competitive pricing landscape. Management focused on operational efficiency improvements and highlighted ongoing strategic initiatives aimed at enhancing product margins and reducing operating expenses to mitigate these challenges.
Key Performance Indicators
QoQ: -0.25% | YoY:-27.47%
QoQ: 45.72% | YoY:-43.26%
QoQ: 189.47% | YoY:-65.98%
QoQ: -36.00% | YoY:-87.87%
QoQ: -36.17% | YoY:-87.78%
Key Insights
**Revenue Performance**: Q2 2025 revenue was $7.66 billion, a decrease of 27.47% compared to $10.55 billion in Q2 2024 and a slight dip of 0.25% from the previous quarter. Significant year-over-year reduction showcases pervasive market challenges.
**Profitability**: The gross profit margin suffered tremendously, dropping to 10.45%, an indication of rising operational costs against falling sales prices. LyondellBasell reported gross profit of $800 million, down 43.26% year-over-year, although it...
Financial Highlights
Revenue Performance: Q2 2025 revenue was $7.66 billion, a decrease of 27.47% compared to $10.55 billion in Q2 2024 and a slight dip of 0.25% from the previous quarter. Significant year-over-year reduction showcases pervasive market challenges.
Profitability: The gross profit margin suffered tremendously, dropping to 10.45%, an indication of rising operational costs against falling sales prices. LyondellBasell reported gross profit of $800 million, down 43.26% year-over-year, although it reflected a 45.72% increase from Q1 2025.
Net Income: The net income recorded was $112 million, resulting in an EPS of $0.34, both metrics down sharply year-over-year by 87.87%. This highlights the need for improved cost management and operational efficiencies to restore profitability.
Balance Sheet Health: The debt ratios remain stable with net income pressure indicating cautious leverage evaluation necessary moving forward.
Cash Flow: The ongoing pressures may impair cash flows, necessitating close monitoring of capital expenditures and operational cash flows moving forward.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
7.66B |
-27.47% |
-0.25% |
| Gross Profit |
800.00M |
-43.26% |
45.72% |
| Operating Income |
330.00M |
-65.98% |
189.47% |
| Net Income |
112.00M |
-87.87% |
-36.00% |
| EPS |
0.34 |
-87.78% |
-36.17% |
Management Commentary
- Strategic Initiatives: CEO commented, "Our focus remains on driving down costs while addressing the continued market unpredictability. The aggressive steps taken in operational efficiency are beginning to yield results."
- Market Conditions: CFO noted, "Despite the current headwinds in global demand for core products, we see opportunities in specialty chemicals that can help diversify our revenue stream."
- Outlook on Pricing: Management indicated, "Pricing pressures are anticipated to remain as we navigate through the rest of the fiscal year, with keen observations on consumer trends essential for agile pricing strategies."
"Our focus remains on driving down costs while addressing the continued market unpredictability. The aggressive steps taken in operational efficiency are beginning to yield results."
â CEO
"Despite the current headwinds in global demand for core products, we see opportunities in specialty chemicals that can help diversify our revenue stream."
â CFO
Forward Guidance
The management team set forth a cautious outlook for the second half of 2025, indicating challenges in maintaining current revenue levels amid volatile pricing structures and changing consumer demand patterns. Targeted cost-saving initiatives are expected to contribute positively to EBITDA, with the hope of restoring operational income upwards in subsequent quarters. The leadership emphasized the importance of capital allocation toward innovative and high-margin sectors, including advancements in sustainable materials, to drive future growth.