LY

LyondellBasell Industries N.V. stock research

Mar 31, 2025

FY2025 Q1

LyondellBasell Industries N.V. (LYB) Gross Margin — Quarter Ended Mar 31, 2025

Revenue decreased relative to both the prior quarter and the same quarter last year, while cost of revenue declined less sharply, resulting in lower gross profit and a weakened gross margin. The gross margin declined from both comparison periods, indicating a compression in profitability from sales.

Gross margin takeaway

Quarter ended Mar 31, 2025 · FY2025 Q1

Revenue decreased relative to both the prior quarter and the same quarter last year, while cost of revenue declined less sharply, resulting in lower gross profit and a weakened gross margin. The gross margin declined from both comparison periods, indicating a compression in profitability from sales.

  • The primary observable driver was the relative movement of cost of revenue; it increased from the prior quarter despite lower revenue, and from the year-ago quarter it decreased at a slower pace than revenue.
  • Compared to the immediately preceding quarter, gross margin weakened as revenue decreased while cost of revenue increased. Compared to the same quarter one year earlier, both revenue and gross profit were lower, with gross margin also declining.

Gross margin snapshot

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

Gross margin

7.2%

Gross profit

$549.0M

Revenue

$7.7B

Cost of revenue

$7.1B

Quarter-over-quarter change

-3.2 pts

Year-over-year change

-6.1 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
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%
Mar 31, 2025$7.7B$549.0M$7.1B7.2%

Quarterly comparisons

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

Previous-quarter change

Dec 31, 2024

-3.2 pts

Year-over-year change

Mar 31, 2024

-6.1 pts

What the margin says

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

The primary observable driver was the relative movement of cost of revenue; it increased from the prior quarter despite lower revenue, and from the year-ago quarter it decreased at a slower pace than revenue.

Compared to the immediately preceding quarter, gross margin weakened as revenue decreased while cost of revenue increased. Compared to the same quarter one year earlier, both revenue and gross profit were lower, with gross margin also declining.

Monitor the trend in cost of revenue relative to revenue, as its slower decline is pressuring gross margin.

LYB Gross Margin — Quarter Ended Mar 31, 2025