10 High Growth Chemical Stocks to Buy

4. LyondellBasell Industries NV (NYSE:LYB)

Revenue CAGR: 7.30%

Market Capitalization: $24.85 billion

LyondellBasell Industries NV (NYSE:LYB) is a leading global chemical manufacturer. It is one of the largest licensors of polypropylene and polyethylene manufacturing technologies. It has operations in North America, Europe, and Asia, generating over half of its output in North America. The company plays a major role in the global petrochemical supply chain.

LyondellBasell Industries NV (NYSE:LYB) generated $3.8 billion in cash from operations in 2024, achieving a 90% cash conversion ratio. The company paid $1.9 billion back to shareholders through dividends and share repurchases. The Value Enhancement Program, which is a cost-efficient strategy program, also exceeded expectations, adding $600 million to EBITDA. Additionally, its successful Circular and Low Carbon Solutions segment grew its volume by 65% and it is projected to contribute a $1 billion EBITDA boost by 2030 through an annual production of 2 million tons.

Despite these advancements, LyondellBasell Industries NV (NYSE:LYB) faced significant setbacks in 2024 with Q4 industry margins at just 60% of the historical average. The company’s Olefins and Polyolefins segment in Europe, Asia, and the international markets reported a $146 million EBITDA loss due to the seasonal shift in demand for olefins and polyolefins. Moreover, due to lower automotive demand, the Advanced Polymer Solutions segment only generated $15 million in Q4 EBITDA, while the Refining sector posted a loss of $24 million due to lower gasoline crack spreads.

Looking ahead, LyondellBasell Industries NV (NYSE:LYB) anticipates near-term pressures from rising ethane and natural gas costs in Q1 2025. It remains optimistic about demand for polyethylene and polypropylene in North America, which grew by 4% year-over-year. The company is also investing in sustainability, including a new 50,000-ton chemical recycling facility in Cologne by 2026 and a larger project in Houston.

Thus, given its strong future prospects, analysts are projecting a 12-month price target of $94.97 per share, which represents a potential 26% upside, making LyondellBasell one of the top high growth chemical stocks to invest in.