LyondellBasell Industries N.V. (LYB): A Bull Case Theory 

We came across a bullish thesis on LyondellBasell Industries N.V. on Aurelion Research’s Substack. In this article, we will summarize the bulls’ thesis on LYB. LyondellBasell Industries N.V.’s share was trading at $50.47 as of January 28th. LYB’s trailing and forward P/E were 104.96 and 14.84 respectively according to Yahoo Finance.

LyondellBasell Industries N.V. operates as a chemical company in the United States and internationally. LYB’s third-quarter 2025 results marked an important inflection point for the company and the broader chemicals sector, with earnings exceeding expectations and early signs of stabilization emerging after a prolonged downturn. The quarter highlighted tangible progress in cost control, operational reliability, and margin recovery, alongside improving demand trends in polyethylene and intermediates.

While end-market conditions in Europe and North America remain soft, particularly in construction and automotive, more resilient demand in packaging and healthcare and a leveling off in polyethylene volumes point to a gradual normalization in mature markets. In the U.S., polyethylene sales are beginning to recover after two years of decline, and European demand has grown modestly year-to-date, suggesting that the destocking cycle is largely complete.

LyondellBasell’s results also reinforced the durability of long-term demand for polyolefins, which has consistently returned to trend growth after prior slowdowns. Mature markets continue to lead consumption on a per-capita basis, while emerging economies drive incremental growth through population expansion, rising incomes, and infrastructure investment. These structural drivers underpin a constructive long-term outlook, particularly as end uses expand into electrification, energy, healthcare, and mobility.

The most bullish signal from the quarter was management’s emphasis on capacity rationalization. Global ethylene closures and idling are expected to reach roughly 21 million tonnes by 2028, representing about 10% of current supply, with significant cuts planned across Asia and Europe. This removal of high-cost capacity should help rebalance supply, support pricing, and improve industry profitability.

Combined with LyondellBasell’s focus on efficiency, reliability, and disciplined capital allocation, these trends position the company to benefit from a gradual recovery. While market conditions are likely to remain uneven through late 2025, the setup points to firmer margins and improving earnings power into 2026, supporting a bullish outlook for LyondellBasell as the sector transitions from contraction toward normalization.

Previously, we covered a bullish thesis on Eastman Chemical Company (EMN) by Necessary-Damage5658 in November 2024, which highlighted the impact of export controls, regulatory compliance, and rising demand for compliant chemical suppliers. EMN’s stock price has depreciated by approximately 31.70% since our coverage due to continued sector weakness. Aurelion Research shares a similar view but emphasizes cyclical recovery, margin stabilization, and capacity rationalization at LyondellBasell Industries N.V.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.