LyondellBasell Industries: Questionable Capital Allocation Raises Red Flags About Dividend Sustainability
LyondellBasell Industries N.V. appears attractively valued with a high dividend yield but faces deep structural and cyclical challenges. LYB's declining margins, rising debt, and shareholder returns outpacing cash generation raise concerns about dividend sustainability and long-term capital discipline. Valuation metrics look cheap but depend on a cyclical rebound; recent financial performance and margin trends suggest future upcycles may have less upside than previously.
Why I've Changed My Mind On LyondellBasell's Dividend
LyondellBasell faces significant industry headwinds, with declining revenues, margins, and cash flow, but retains a cost advantage from U.S.-based production. LYB's dividend yield is exceptionally high at 9.82%, but current payout exceeds cash flow, raising concerns about sustainability amid rising debt and new credit restrictions. Despite the risk of a dividend cut, LYB remains better positioned than peers to rebound, especially if it reallocates capital to strengthen its balance sheet and margins.
LYB Teams With Shiseido, Futamura & Iwatani for Sustainable Packaging
LyondellBasell partners with Shiseido, Futamura and Iwatani to launch bio-based film packaging using its CirculenRenew polymer.
LyondellBasell Dividend: Reckless Decision Or Smart Capital Allocation?
Capital allocation at LyondellBasell differs materially from that of its major peer. The current dividend yield is now above 10%, a signal the market doesn't believe that it can be sustained. Even given the challenges, I believe LYB should be able to sustain its dividend in 2025 and beyond.
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LyondellBasell Industries N.V. (LYB) Q2 2025 Earnings Call Transcript
LyondellBasell Industries N.V. (NYSE:LYB ) Q2 2025 Earnings Call August 1, 2025 11:00 AM ET Company Participants Aaron Ledet - Executive Vice President of Intermediates & Derivatives and Supply Chain Agustin Izquierdo - Executive VP & CFO David Kinney - Head of Investor Relations Kimberly A.
LyondellBasell's Earnings Lag Estimates, Revenues Beat in Q2
LYB's Q2 profit sinks 87.5% on lower sales across all segments, with adjusted earnings missing estimates.
LyondellBasell (LYB) Q2 Earnings: How Key Metrics Compare to Wall Street Estimates
Although the revenue and EPS for LyondellBasell (LYB) give a sense of how its business performed in the quarter ended June 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
LyondellBasell (LYB) Q2 Earnings Miss Estimates
LyondellBasell (LYB) came out with quarterly earnings of $0.62 per share, missing the Zacks Consensus Estimate of $0.87 per share. This compares to earnings of $2.24 per share a year ago.
Curious about LyondellBasell (LYB) Q2 Performance? Explore Wall Street Estimates for Key Metrics
Besides Wall Street's top-and-bottom-line estimates for LyondellBasell (LYB), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended June 2025.
Will LyondellBasell Industries Stock Move On Earnings?
LyondellBasell Industries (NYSE:LYB) is scheduled to announce its earnings on Friday, August 1, 2025. The company's current market capitalization stands at $21 Bil.
LyondellBasell: Little Reason For Optimism Ahead Of Q2 Earnings (Rating Downgrade)
LyondellBasell's high dividend yield looks increasingly tenuous given the company's slumping earnings estimates. Management is making needed restructuring moves, but it will have to reinvest meaningful cash into new business lines. I see reinvesting in the business and paying down debt as potentially better uses of capital right now than maintaining the current dividend level.
