Here's a sign that things are tough in the chemical business: LyondellBasell Industries (LYB) just cut its dividend in half. The company's shares were down in Friday's premarket session after it announced the move, a clear signal it's battening down the hatches for what it calls "one of the longest downturns" the industry has faced.

The Dividend Cut: From $1.37 to 69 Cents

Let's talk numbers. LyondellBasell's board declared a quarterly dividend of 69 cents per share. That's a steep drop from the $1.37 per share it paid out last quarter. If you're a shareholder, you'll get this new, smaller payment on March 9, 2026, provided you owned the stock as of March 2.

Why the drastic cut? The company says it's "recalibrating its financial commitments" to deal with ongoing market challenges. In plainer English, they need to hold onto more cash. The interesting part is their long-term goal: they still aim to return 70% of their free cash flow to shareholders over the full business cycle. They're just acknowledging that right now, in the trough of the cycle, they need to pay out a lot less.

The backdrop, as the company explained when it released fourth-quarter results, is pretty grim for petrochemicals. 2025 brought headwinds from global trade disruptions, falling oil prices, and a simple problem of too much stuff: new factory capacity came online faster than global demand could grow.

Earnings: A Loss, But a Sales Surprise

Speaking of those Q4 results, they were a mixed bag. The company posted an adjusted loss per share of 26 cents. It noted this figure might not be directly comparable to the analyst consensus, which was for a profit of 13 cents per share. So, they lost money when Wall Street thought they might make a little.

On the top line, however, there was a positive surprise. Sales and other operating revenues came in at $7.091 billion. That beat the consensus estimate of $6.799 billion, though it's still down from $7.808 billion a year ago. So, they sold more than expected, but it wasn't enough to turn a profit.

Looking ahead to the current quarter, the company says it's dealing with continued volatility in what it pays for raw materials (feedstock) and energy. Its strategy is to carefully match its production rates to what the global market actually wants to buy.

What the Stock Chart Is Saying

While the broader market dipped slightly on Thursday, LyondellBasell's stock is underperforming its own sector. The Industrials sector was flat, suggesting this move is all about LYB-specific news.

Digging into the technicals paints a picture of short-term resilience but longer-term pain. The stock is currently trading 1.4% above its 20-day simple moving average and a more robust 15% above its 100-day average. That suggests some near-term strength. But zoom out, and the view is different: shares are down nearly 29% over the past year and are hanging out much closer to their 52-week lows than their highs.

The momentum indicators are giving mixed signals. The Relative Strength Index (RSI) is at 57.24, which is smack in the middle of neutral territory—the stock isn't overbought or oversold. However, the MACD indicator is showing a bearish signal; its value is below its signal line. This combo of neutral RSI and bearish MACD suggests traders should probably be cautious here.

The key levels to watch, according to the analysis, are:
Key Resistance: $61.50
Key Support: $47.50

What's Next? The Analyst Take

Mark your calendar: LyondellBasell is scheduled to provide its next financial update on April 24, 2026. For that period, analysts are expecting earnings per share of 25 cents, down from a previous estimate of 33 cents. Revenue is forecast at $7.28 billion, also down from an earlier $7.68 billion estimate.

The overall analyst consensus on the stock is a "Hold," with an average price target of $55.14. It's worth noting that several analysts have recently raised their price targets, even as they maintain cautious ratings:

• RBC Capital: Sector Perform (Raised target to $51.00 on Feb. 3)
• Citigroup: Neutral (Raised target to $49.00 on Feb. 3)
• Wells Fargo: Equal-Weight (Raised target to $48.00 on Feb. 2)

In early trading action Friday, LyondellBasell shares were down 1.48% at $54.51.