LY

LyondellBasell Industries N.V. stock research

Dec 31, 2024

FY2024 Q4

LyondellBasell Industries N.V. (LYB) Gross Margin — Quarter Ended Dec 31, 2024

Revenue decreased compared to the prior quarter, and gross profit fell by a larger proportion, resulting in a lower gross margin. Relative to the same quarter a year earlier, revenue was significantly higher while gross margin was lower, as cost of revenue increased more than proportionally.

Gross margin takeaway

Quarter ended Dec 31, 2024 · FY2024 Q4

Revenue decreased compared to the prior quarter, and gross profit fell by a larger proportion, resulting in a lower gross margin. Relative to the same quarter a year earlier, revenue was significantly higher while gross margin was lower, as cost of revenue increased more than proportionally.

  • The strongest observable margin driver is the relationship between cost of revenue and revenue: cost of revenue declined less than the decline in revenue, compressing the gross margin.
  • Gross margin weakened compared to both the preceding quarter and the same quarter a year earlier. The decline was more pronounced versus the prior quarter.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

10.3%

Gross profit

$805.0M

Revenue

$7.8B

Cost of revenue

$7.0B

Quarter-over-quarter change

-4.8 pts

Year-over-year change

-19.0 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2024$8.3B$1.1B$7.2B13.3%
Jun 30, 2024$8.7B$1.4B$7.2B16.5%
Sep 30, 2024$8.6B$1.3B$7.3B15.1%
Dec 31, 2024$7.8B$805.0M$7.0B10.3%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2024

-4.8 pts

Year-over-year change

Dec 31, 2023

-19.0 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the relationship between cost of revenue and revenue: cost of revenue declined less than the decline in revenue, compressing the gross margin.

Gross margin weakened compared to both the preceding quarter and the same quarter a year earlier. The decline was more pronounced versus the prior quarter.

Monitor the trend in cost of revenue relative to revenue, as the company's liquidity discussion notes reliance on cash from operations which may be affected by external factors.

LYB Gross Margin — Quarter Ended Dec 31, 2024