LyondellBasell Industries (LYB) Q4 2024 earnings summary

Executive summary

• Achieved strong safety performance in 2024, with a record low injury rate and several sites surpassing 10+ years without injuries.

• Generated $3.8B cash from operations in 2024 with 90% cash conversion; $1.8B in capex and $1.9B returned to shareholders via dividends and buybacks.

• Net income for 2024 was $1.4B ($4.15/share); adjusted net income $2.1B and adjusted EPS $6.40.

• Advanced strategic initiatives, including portfolio upgrades, divestments, growth in Circular & Low Carbon Solutions (CLCS), and transformation of the Houston refinery.

• Announced CFO transition: Agustin Izquierdo to succeed Michael McMurray effective March 1, 2025.

Financial highlights

• 2024 sales: $40.3B; full-year EBITDA: $3.5B ($4.3B excluding identified items); Q4 EBITDA: $(409)M ($689M excluding identified items).

• Diluted EPS for 2024: $4.15; $6.40 excluding identified items.

• Cash from operations: $3.8B; cash conversion rate: 90%.

• Ended the year with $3.4B in cash and $8.0B in available liquidity.

• Returned $1.7B in dividends and $195M in share repurchases; increased quarterly dividend by 7% in May.

Outlook and guidance

• Expects gradual demand recovery in 2025, with modest seasonal improvements in Q1 and ongoing industry downtime tightening supply in the Americas.

• European markets to face continued energy cost pressures, but some support from seasonal demand recovery and inventory restocking.

• Focus on growing CLCS, progressing MoReTec-1, and achieving $1B recurring annual EBITDA from Value Enhancement Program by year-end 2025.

• 2025 CapEx planned at $1.9B, with $700M for growth projects and $1.2B for sustaining investments; effective tax rate expected at 17%.

• Refining operations to cease in Q1 2025, supporting growth in circular and low-carbon products.