LyondellBasell Industries(NYSE) LYB

LyondellBasell makes basic chemicals and plastics used in many everyday items. Its products help create food packaging, car parts, and home furniture. The company serves manufacturers who turn these chemicals into finished goods for consumers.

What LyondellBasell Produces

• Polyethylene and Polypropylene: Plastics used for food containers, beverage bottles, and construction materials; PE accounted for 24% of revenue and PP for 19% of revenue in 2025.
• Olefins and Co-products: Basic chemical building blocks like ethylene and propylene made from natural gas and crude oil; accounted for 14% of revenue in 2025.
• Oxyfuels and Related Products: High-octane gasoline components that help fuel burn cleaner; accounted for 16% of revenue in 2025.
• Intermediates and Derivatives: Chemicals used to make insulation, cushioning, and coatings for various industries.
• Advanced Polymer Solutions: Specialized plastic compounds used in high-performance applications like automotive engineering; accounted for 11% of revenue in 2025.

Strategic Growth and Portfolio Moves

• Agreed in 2025 to sell several European manufacturing sites to focus on more profitable core assets.
• Launched MoReTec-1 in 2024, an industrial plant in Germany that turns plastic waste into raw materials.
• Formed the Louisiana Integrated PolyEthylene JV LLC to expand plastic production capacity in North America.
• Shut down operations at the Houston refinery in early 2025 as part of a move away from crude oil refining.

Standout Operational Strengths

The company uses its own licensed technology to run plants and sells these specialized chemical processes to other manufacturers globally. Its facilities in the U.S. benefit from low-cost natural gas, which is used as a cheap raw material compared to oil-based feedstocks used elsewhere.

The Recent Financial Picture

• Revenue fell to $7.1 billion in Q4 2025, down 25.3% from the previous year.
• Free cash flow rose to $2.9 billion in Q4 2025, a 108% increase over the same period in 2024.
• Operating income improved to negative $40 million in Q4 2025, up 93.9% from a larger loss in Q4 2024.
• Research and development spending reached $136 million in 2025 to support new product and catalyst discovery.

Bottom Line

LyondellBasell is shifting its focus from traditional refining toward sustainable plastic recycling and high-margin chemical technology. This transition aims to improve returns by leveraging its global scale and proprietary manufacturing processes.