LyondellBasell (LYB)
NYSEMaterialsSpecialty ChemicalsSnapshot 2026-07-08
$55.72+2.04%
Close 2026-07-08 · 1-day change
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Track LYB free→LyondellBasell is improving cash flow with a $1.1 billion target in 2026. The company is growing revenue modestly, above $7 billion in Q1 2026. Profit rose to $239 million in Q1, showing better cost control. Their portfolio changes and cost advantages support recovery.
The company is still losing money and cash flow is negative. Revenue growth is slow and profit gains are fragile. Market conditions and costs may hurt recovery efforts.
The price is about 26% below our fair value near $75. Analysts expect about 8% revenue growth, which matches our view.
Breaks if: Free cash flow falls below $600 million in FY25 or below $1.1 billion in FY26
Focus on reducing fixed costs, maintaining capital spending discipline, and optimizing working capital to support cash generation.
Stated in 4 of last 4 quarters. Cash from operating activities was -$269 million in 2026-Q1, reflecting a typical first quarter working capital build. Despite recurring focus, limited substantive delivery this quarter as cash generation remains negative.
Breaks if: Operating income falls below prior quarter loss of $88 million
Utilize cost-advantaged assets in North America to capture market upside and improve supply security.
Stated in 3 of last 3 quarters. Operating income was $239 million in 2026-Q1, a recovery from a loss of $88 million in 2025-Q4. The strategy of leveraging cost-advantaged production is delivering improved financial resilience, though broader market conditions remain challenging.
Breaks if: Revenue growth falls below 7% next year
Advance transformation with the sale of European sites to enhance future footprint and resilience.
Stated in 2 of last 2 quarters. Revenue was $7.197 billion in 2026-Q1, slightly up from $7.091 billion in 2025-Q4. The portfolio transformation is ongoing, with the sale of European sites completed, but revenue growth remains modest.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“Continuing work to reduce fixed costs, maintaining discipline in capital spending...”
“Our Cash Improvement Plan is on track to achieve our $600 million target in 2025.”
“Cash Improvement Plan costs, pre-tax...”
“The Cash Improvement Plan is focused on strengthening financial performance...”
“LYB is leveraging cost-advantaged production to capture upside...”
“The company expects North American integrated polyethylene margins to improve...”
“Leverage cost-advantaged production to capture market upside...”
“Advancing transformation of the LYB portfolio with the sale of four European sites...”
“Completion of the European asset sale is expected to improve average margins...”