LyondellBasell Industries ( LYB ) shares surged after the company delivered stronger-than-expected third-quarter 2025 results, signaling resilience amid a challenging chemical market.

The global chemical giant posted adjusted earnings of $1.01 per share, topping the consensus estimate of 81 cents, and revenue of $7.73 billion, beating expectations of $7.41 billion.

Net loss of $890 million, or $2.77 per diluted share, compared with net income of $115 million, or 34 cents per share, in the prior quarter, investors appeared encouraged by the company’s cost discipline, operational improvements, and outlook for steady cash generation. The quarterly loss included $1.2 billion in non-cash asset write-downs.

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EBITDA was $(480) million, or $835 million excluding identified items. Operating cash flow totaled $983 million, reflecting a 135% cash conversion rate.

LyondellBasell returned $443 million to shareholders through dividends and ended the quarter with $1.8 billion in cash and $6.5 billion in available liquidity.

In the Olefins and Polyolefins Americas segment, profitability improved due to higher olefins margins and increased volumes following the completion of turnarounds at the Channelview, Texas, facility. Polyethylene spreads narrowed with higher monomer costs, while polypropylene demand remained soft.

In Europe, stronger operations lifted monomer volumes, though polymer pricing was pressured by imports.

The Intermediates and Derivatives segment benefited from higher oxyfuels margins and lower butane prices, partly offset by weaker styrene margins as global supply normalized. A two-month turnaround began in September at the La Porte, Texas, acetyls unit to boost reliability and productivity.

“Our Cash Improvement Plan is on track to achieve our $600 million target in 2025 and a minimum of $1.1 billion by the end of 2026,” CEO Peter Vanacker said. “We are prioritizing an investment-grade balance sheet and safe, reliable operations while creating long-term value for investors.”

LyondellBasell continues its portfolio transformation, securing approvals and signing a purchase agreement for the sale of four European assets.

The Channelview PO/TBA facility exceeded nameplate rates, and the Hyperzone polyethylene plant showed improved performance.

Outlook

The company expects typical year-end seasonality and lower operating rates to weigh on fourth-quarter results. Rising feedstock costs in North America and weak demand in Europe are expected to pressure margins.

LyondellBasell plans to idle its larger cracker in Wesseling, Germany, and a propylene oxide/styrene monomer unit in Channelview, Texas, for about 40 days.

Fourth-quarter operating rates are projected to average 80% for North American O&P assets, 60% for European O&P assets, and 75% for I&D assets.

Price Action: LYB shares were trading higher by 5.81% to $47.82 premarket at last check Friday.

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