LyondellBasell (LYBN) AI Stock Analysis

LyondellBasell

(BMV:LYBN)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Strong cash generationStrong operating and free cash flow provide internal funding for debt reduction, capital spending and shareholder returns without relying solely on external financing. Free cash flow exceeding net income also indicates solid cash conversion, supporting resilience through the chemical cycle.

Negative Factors

Severe earnings cyclicalityThe sharp revenue decline and negative gross profit show that earnings remain highly sensitive to pricing, spreads, feedstock costs and utilization. Although TTM profitability improved from 2025, the lower margin base limits earnings visibility and makes sustained performance difficult.

LyondellBasell (LYBN) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 22.17B
Dividend Yield: 4.37%
Average Volume (3M): 246
Price to Earnings (P/E): 41.6
Beta (1Y): 0.30
Revenue Growth: -12.21%
EPS Growth: ―
Country: Mexico
Employees: 18,970
Sector: Basic Materials
Sector Strength: 61
Industry: Chemicals - Specialty

LyondellBasell Business Overview & Revenue Model

Company Description

LyondellBasell Industries N.V., established in 2009 and based in Houston, Texas, operates as a prominent global chemical manufacturer with a significant international footprint, including the United States, Germany, Mexico, Italy, Poland, France, Jap...

LyondellBasell Earnings Call Summary

Earnings Call Date:Oct 29, 2026(Q3-2026)|% Change Since:7.39%|Next Earnings Date:Jan 28, 2027

Earnings Call SentimentPositive

The call was broadly positive, supported by strong third-quarter EBITDA margins, record I&D performance, substantial free cash flow, improved liquidity, safety results, portfolio simplification and progress on cost and cash initiatives. However, management highlighted persistent geopolitical uncertainty, weaker European and Asian markets, soft automotive and housing demand, sequential declines in several segments, rising feedstock costs and expected moderation from exceptional third-quarter results.

Positive Updates

Strong EBITDA Margins and Free Cash Flow

LyondellBasell delivered 18% EBITDA margins in the third quarter, $1.4 billion in free cash flow representing 100% of EBITDA, and a $600 million increase in cash after repaying a EUR 500 million bond.

Negative Updates

Persistent Geopolitical and Market Uncertainty

The conflict in the Middle East continues to affect production, feedstock availability, logistics and freight flows. Management said volatility and uncertainty are likely to persist for many quarters and that market normalization is expected to take quarters, not months.

Company Guidance

LyondellBasell expects the Houston refinery site transaction to close by the end of 2026, with the sale improving cash flow by approximately $50 million to $100 million annually; it continues to make progress on its $500 million cash improvement plan goal and expects to be at the upper end of its prior guidance for effective tax rate for the full year 2026. Fourth quarter O&P Americas operating rates are projected to be approximately 85% of nameplate capacity, O&P-EAI operating rates are targeted at approximately 60% versus approximate 65% in the third quarter, and I&D operating rates are targeted at approximately 75% versus approximately 85% in the third quarter; I&D profitability is expected to moderate following the exceptional third quarter, while the fourth quarter outlook remains historically strong. APS expects automotive production to moderate towards year-end, the fourth quarter to be the seasonally weakest period, and a meaningful improvement in full year EBITDA compared to 2025; Technology EBITDA is expected to remain flat sequentially. North America polyethylene demand is expected to remain resilient, Europe presents a more challenged outlook, Asia is expected to remain weak but relatively stable, and China polyethylene imports should be considered in the 750 to 1 million kind of range for 2027.

LyondellBasell Risk Analysis

LyondellBasell disclosed 28 risk factors in its most recent earnings report. LyondellBasell reported the most risks in the "Production" category.

Production - Risks related to the company’s ability to manufacture goods and services

Latest Risks Added

0 New Risks

LyondellBasell Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MX:LYBN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EMN	65Neutral	$7.61B	11.73	10.63%	5.05%	0.40%	-6.58%
PPG	62Neutral	$26.40B	16.98	19.05%	2.40%	6.39%	27.29%
Sector *	61Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
AVNT	58Neutral	$3.93B	23.03	7.17%	2.57%	2.36%	42.56%
WLK	49Neutral	$8.73B	-7.10	-13.93%	3.11%	-3.95%	-1725.20%
CC	43Neutral	$2.04B	-6.76	-170.31%	2.59%	-1.38%	28.10%

* Basic Materials Sector Average

Performance Comparison

MX:LYBN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:LYBN	Lyondellbasell Industries	1267.20	452.96	55.63%
EMN	Eastman Chemical Company	66.53	11.40	20.67%
AVNT	Avient Corporation	42.84	11.74	37.74%
PPG	Ppg Industries, Inc.	119.52	26.98	29.16%
WLK	Westlake Corporation	68.28	1.80	2.71%
CC	Chemours Company	13.53	1.12	9.02%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

LyondellBasell AI Stock Analysis