01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
LyondellBasell Industries N.V. reported first-quarter 2026 net income of $125 milliona, compared with $177 million in the first quarter of 2025, and income from continuing operations of $139 million versus $23 million a year earlier.
Sales and other operating revenues were $7.20 billionb, down from $7.68 billion, with the filing attributing the decline mainly to lower average sales prices. Operating income rose to $239 million from $114 million, helped by lower cost of sales (driven by feedstock costs) and the absence of the $117 million European PO Joint Venture closure costs recognized in the prior-year quarter. Diluted earnings per share were $0.38, including a $0.04 loss from discontinued operations, compared with $0.54 a year earlier, which included a $0.48 gain from discontinued operations tied to the Houston refinery exit.
Cash flow and balance sheet items weighed on the quarter. Cash used in operating activities was $269 millionc, driven largely by a $797 million increase in accounts receivable, and cash and cash equivalents fell to $2.64 billion from $3.44 billion at year-end 2025. Total debt including current maturities was $12.92 billion, and the company paid $224 million in common dividends after reducing its quarterly dividend.
No share repurchases occurred in the quarter, and approximately 34.0 million shares remained under the current authorization as of April 29, 2026. The filing notes the completion, announced May 1, 2026, of the sale of select European olefins and polyolefins assets, with a pre-tax loss expected in the range of $700 million to $800 milliond.
Management's outlook for the second quarter of 2026 anticipates improved market conditions across most businesses, citing tighter supply and favorable pricing tied to Middle East disruption. The company expects further margin expansion in North America and improved average European margins following the asset sale, while Technology segment licensing results remain under pressure.
02—Key points
Key Highlights
- Operating income of $239 million, up from $114 million in Q1 2025, reflecting lower feedstock costs and the absence of $117 million in prior-year European PO Joint Venture closure costs.
- Net income of $125 million versus $177 million a year earlier; income from discontinued operations was a $14 million loss, compared with $154 million of income in Q1 2025 that included a $196 million net-of-tax LIFO benefit.
- Revenues of $7.20 billion, down from $7.68 billion, with lower average sales prices for many products partially offset by favorable foreign exchange impacts.
- Cash used in operating activities of $269 million, driven by a $797 million increase in accounts receivable, with cash and cash equivalents declining to $2.64 billion from $3.44 billion at December 31, 2025.
- Dividends paid totaled $224 million, reflecting the February 2026 announcement to reduce the quarterly dividend; no share repurchases were made in the quarter.
- Completed the sale of select European olefins and polyolefins assets on May 1, 2026, with an expected pre-tax loss of approximately $700 million to $800 million.
- Outlook for Q2 2026 points to improved market conditions across most businesses, with raised operating rates for European O&P-EAI assets to 80% and further North American margin expansion anticipated.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, LyondellBasell Industries kept $0.02.
- Revenue$7.20B100.0%
- Cost of revenue−$6.50B90.3%
- Gross profit$701.0M9.7%
- Operating costs−$462.0M6.4%
- Operating income$239.0M3.3%
- Interest, other & tax−$114.0M1.6%
- Net income$125.0M1.7%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 1, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $7.20B$7.68B | −6.3% |
| Cost of Revenue | $6.50B$7.13B | −8.9% |
| Gross Profit | $701.00M$549.00M | +27.7% |
| R&D Expenses | $36.00M$34.00M | +5.9% |
| SG&A Expenses | $411.00M$401.00M | +2.5% |
| Operating Expenses | $6.96B$7.56B | −8.0% |
| Operating Income | $239.00M$114.00M | +109.6% |
| Net Income | $125.00M$177.00M | −29.4% |
| EPS (Basic) | $0.38$0.54 | −29.6% |
| EPS (Diluted) | $0.38$0.54 | −29.6% |
05—Questions
Frequently Asked Questions
Why did LyondellBasell's operating income improve despite lower revenues?
Operating income rose to $239 million from $114 million, mainly because cost of sales fell by $632 million, or 9%, driven by lower feedstock costs. The first quarter of 2025 also included $117 million of costs tied to the permanent closure of the European PO Joint Venture, which did not recur. Higher margins in the I&D and O&P-Americas segments contributed as well.
How did the sale of European assets affect the company's financial outlook?
On May 1, 2026, the company announced completion of the sale of select European olefins and polyolefins assets, and expects to record a pre-tax loss of approximately $700 million to $800 million. This includes an approximately $300 million cash contribution to the sold businesses before closing. Management expects the sale to improve average European margins and reduce costs, though lower volumes will result from the divestiture.
Why did cash decline and what is the company's liquidity position?
Cash and cash equivalents fell to $2,635 million from $3,443 million at year-end 2025, as operating cash use of $269 million, capital expenditures of $269 million, and dividends of $224 million exceeded cash inflows. The operating outflow was driven mainly by a $797 million increase in accounts receivable reflecting higher crude-linked prices. The company had $4,650 million of total unused credit facility availability as of March 31, 2026.
What is the status of the dividend and share repurchases?
The company paid a common dividend of $0.69 per share, totaling $224 million, in March 2026, following its February 2026 announcement to reduce the quarterly dividend. No shares were repurchased in the first quarter of 2026. Approximately 34.0 million shares remained under the current authorization as of April 29, 2026, and the Senior Revolving Credit Facility restricts repurchases except to offset dilution.
What drove the change in discontinued operations compared with last year?
Income from discontinued operations swung to a $14 million loss in Q1 2026 from $154 million of income in Q1 2025. The prior-year result included a $196 million net-of-tax LIFO benefit from liquidating low-cost inventory tied to the exit from the refinery business, which the company ceased operating at its Houston refinery in February 2025.
06—Continue