LYB Set to Report Q2 Earnings: Here's What Investors Should Expect

The company is expected to have faced headwinds from higher feedstock costs amid improved seasonal demand in the second quarter.

LYB's shares are up 4.4% in the past year compared with the Zacks Chemicals Diversified industry’s 1.7% rise.

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Let’s see how things are shaping up for this announcement. 

What Our Model Unveils for LYB 

Our proven model doesn’t predict an earnings beat for LYB this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here. 

Earnings ESP: Earnings ESP for LYB is -5.07%. The Zacks Consensus Estimate for the second quarter is currently pegged at $3.56 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: LYB currently carries a Zacks Rank #3. 

What Do LYB’s Revenue Estimates Say ?

The Zacks Consensus Estimate for second-quarter consolidated revenues for LYB is currently pegged at $8,900.6 million, implying a year-over-year increase of 16.2%. 

For the Olefins and Polyolefins – Americas division, the consensus estimate is $3,456 million, suggesting a year-over-year rise of 26.5%. The same for the Olefins and Polyolefins – Europe, Asia & International division is pegged at $3,243 million, implying a 24.7% increase from last year’s tally. 

For LYB’s Advanced Polymer Solutions (APS) segment, the Zacks Consensus Estimate for second-quarter revenues is $973 million, suggesting a 5.1% rise year over year. 

The consensus estimate for the Intermediaries and Derivatives segment’s revenues is pinned at $2,606 million, suggesting a 12.2% rise from the year-ago reported figure. 

The same for the Technology segment's revenues is pegged at $163 million, indicating a 12.4% fall from a year ago. 

Factors at Play for LYB 

LyondellBasell is expected to have benefited from a stronger operating environment in the second quarter, supported by tightening global petrochemical supply, improving pricing and higher operating rates. Ongoing geopolitical tensions in the Middle East have disrupted energy and petrochemical supply chains, reducing production and exports from key regions. Management expects these supply disruptions to persist for several quarters, creating structurally tighter supply-demand balances across polyethylene, polypropylene and other petrochemical products. This environment is expected to have driven stronger export demand, higher product prices and improved margins. 

North America is expected to have been LYB's strongest growth driver in the second quarter, supported by improving seasonal demand, higher polyethylene and polypropylene prices, and robust export demand. Tight global supply is expected to have kept the company's North American assets running at around 90% of nameplate capacity, boosting volumes and margins.  

Europe is expected to have seen improved demand, stronger polymer margins and an operating rate of around 80%, supported by lower imports from the Middle East and China. The recent sale of four European assets might have further strengthened LYB's portfolio and improved profitability. 

The Intermediates & Derivatives segment is expected to have benefited from stronger seasonal demand, improved oxyfuels margins and the restart of the Bayport PO/TBA facility by the end of the second quarter. The Bayport outage reduced first-quarter EBITDA by around $40 million and is estimated to have negatively impacted earnings by roughly $25 million per week while the asset remained offline, making its restart a key catalyst for second-quarter profitability. 

The APS segment is expected to have faced mixed conditions. While automotive and other durable goods markets remain soft, the company is actively passing through higher raw material, energy and logistics costs to customers. Although contractual pricing mechanisms may temporarily delay margin recovery, customer demand has remained relatively resilient in packaging and other essential end markets, supporting the company's long-term transformation strategy. 

LYB continues to execute initiatives aimed at strengthening profitability and cash generation. The company remains focused on its portfolio transformation, disciplined capital allocation and cost-reduction efforts under its Cash Improvement Plan. Management is targeting $500 million of incremental cash flow in 2026, bringing cumulative improvements since 2025 to $1.3 billion. Lower fixed costs, improved working capital management and ongoing productivity initiatives are expected to have further supported earnings in the June quarter despite higher raw material and logistics costs.  

LyondellBasell Industries N.V. Price and EPS Surprise

Basic Materials Stocks That Warrant a Look

Here are some companies in the basic materials space you may want to consider, as our model shows they have the right combination of elements to post an earnings beat this quarter: 

The Chemours Company CC, scheduled to release earnings on Aug. 4, has an Earnings ESP of +27.17% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here. 

The consensus estimate for CC’s second-quarter earnings is currently pegged at 43 cents per share. 

Avient Corporation AVNT, scheduled to release earnings on Aug. 6, has an Earnings ESP of +0.87% and carries a Zacks Rank #2 at present. 

The consensus mark for AVNT’s second-quarter earnings is currently pegged at 89 cents per share. 

Ternium S.A. TX, slated to release earnings on Aug. 4, has an Earnings ESP of +21.4%. 

The Zacks Consensus Estimate for TX's second-quarter earnings is currently pegged at $1.29 per share. TX currently carries a Zacks Rank #1.

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This article originally published on Zacks Investment Research (zacks.com).

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