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LyondellBasell Industries N.V. (LyondellBasell (LYB)) reported second-quarter results on Friday that topped Wall Street estimates on both earnings and revenue.
The chemical company reported adjusted earnings of $4.30 per share, beating the analyst consensus estimate of $3.41. Revenue rose to $9.18 billion, exceeding analysts' expectations of $9.15 billion.
Cash from operating activities totaled $752 million during the quarter. Working capital used cash due to higher prices and increased operating rates as the company responded to global supply disruptions.
The quarter also included a $310 million cash contribution related to the completed divestiture of European assets, in line with expectations.
Capital expenditures totaled $270 million, while the company returned $224 million to shareholders through dividends. LyondellBasell ended the quarter with $2.6 billion in cash and cash equivalents and total available liquidity of $7.1 billion.
EBITDA increased to $1.252 billion from $606 million in the year-ago quarter. EBITDA excluding identified items increased to $2.127 billion from $715 million in the year-ago quarter.
CEO Peter Vanacker said the company's performance reflected disciplined commercial execution, the strength of its portfolio and improving market conditions that supported margin expansion.
He said LyondellBasell increased operating rates to meet customer demand during global supply disruptions and continued executing its strategy through selective European asset divestitures and progress on its Cash Improvement Plan.
Vanacker said those initiatives are lowering the company's structural cost base, improving margins and enhancing cash generation. He added that the company remains focused on safety, operational reliability, cost discipline and disciplined capital allocation to create long-term shareholder value.
Looking ahead, LyondellBasell said ongoing geopolitical tensions in the Middle East continue to create volatility across energy and petrochemical markets.
The company expects uncertainty over the timing and pace of supply recovery to extend into 2027. While it does not anticipate a material slowdown in demand across its core end markets, it said near-term pricing uncertainty could temporarily affect customer purchasing patterns.
LYB Price Action: LyondellBasell Industries shares were up 3.99% at $62.85 during premarket trading on Friday, according to market data.
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