01—Abstract
Summary
Summary of the 10-Q filed July 31, 2026. Cited figures are marked; the original filing is the authoritative source.
LyondellBasell Industries N.V. reported second-quarter 2026 net income of $559 milliona on revenues of $9.18 billion, compared with net income of $115 million on $7.66 billion of revenues in the second quarter of 2025.
Results were driven by higher average sales prices across many products, which the filing attributes to industry-wide supply constraints stemming from the conflict in the Middle East. Operating income rose to $1.54 billionb from $285 million a year earlier, although the quarter absorbed a pre-tax loss of $734 million on the May 1, 2026 divestiture of select European olefins and polyolefins assets, and a $74 million impairment of a plastic waste sorting facility in Houston. For the first six months of 2026, net income attributable to Company shareholders was $681 million, versus $289 million in the prior-year period, and operating cash flow was $483 million compared with cash used of $228 million a year earlier.
Capital expenditures totaled $539 millionc and dividends paid were $448 million. Cash and cash equivalents were $2.63 billion at June 30, 2026, against total debt including current maturities of $12.91 billion, and total long-term debt fell to $11.22 billion from $12.12 billion at year-end 2025, with the company stating it is in compliance with its debt covenants.
Management's outlook states that the pace and timing of conflict-impacted supply returning to the market remains uncertain, with recovery likely extending into 2027. The company expects third-quarter operating rates of 85%d for O&P-Americas, 70% for O&P-EAI and 85% for I&D assets, and it lists disciplined deleveraging, including a scheduled note maturity repayment in September 2026, among its capital allocation priorities.
02—Key points
Key Highlights
- Net income attributable to Company shareholders was $558 million in Q2 2026 versus $114 million in Q2 2025; diluted EPS was $1.71 versus $0.34.
- Revenues were $9.18 billion in Q2 2026 versus $7.66 billion in Q2 2025, with management citing higher average prices tied to Middle East conflict-related supply constraints.
- A pre-tax loss of $734 million was recognized on the May 2026 divestiture of select European olefins and polyolefins assets, which included a $310 million cash contribution to the businesses at closing.
- Operating income in O&P-Americas reached $1.00 billion in Q2 2026 versus $1.2 billion... see segment data; O&P-EAI posted an EBITDA loss of $432 million in Q2 2026, driven by the divestiture loss.
- Long-term debt declined to $11.22 billion at June 30, 2026 from $12.12 billion at December 31, 2025, and current maturities rose to $1.46 billion; the company had $4.45 billion of total unused credit facility availability.
- The quarterly common dividend was $0.69 per share in each of March and June 2026, and no share repurchases were made in the first six months of 2026; about 34.0 million shares remained under the current authorization as of July 29, 2026.
- Management expects third-quarter operating rates of 85% for O&P-Americas, 70% for O&P-EAI and 85% for I&D, and notes that recovery of conflict-impacted supply could extend into 2027.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, LyondellBasell Industries kept $0.06.
- Revenue$9.18B100.0%
- Cost of revenue−$7.14B77.8%
- Gross profit$2.04B22.2%
- Operating costs−$495.0M5.4%
- Operating income$1.54B16.8%
- Interest, other & tax−$984.0M10.7%
- Net income$559.0M6.1%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 31, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $9.18B$7.66B | +19.8% |
| Cost of Revenue | $7.14B$6.87B | +3.9% |
| Gross Profit | $2.04B$787.00M | +159.0% |
| R&D Expenses | $34.00M$35.00M | −2.9% |
| SG&A Expenses | $387.00M$435.00M | −11.0% |
| Operating Expenses | $7.63B$7.37B | +3.5% |
| Operating Income | $1.54B$285.00M | +441.4% |
| Net Income | $559.00M$115.00M | +386.1% |
| EPS (Basic) | $1.71$0.34 | +402.9% |
| EPS (Diluted) | $1.71$0.34 | +402.9% |
05—Questions
Frequently Asked Questions
What drove the improvement in second-quarter 2026 results?
The filing attributes the improvement primarily to higher average sales prices across many products, which reflected industry-wide supply constraints stemming from the conflict in the Middle East. Operating income rose to $1.54 billion from $285 million a year earlier, and O&P-Americas EBITDA increased to $1.18 billion from $313 million.
How did the European asset divestiture affect the financials?
On May 1, 2026, the company divested select European olefins and polyolefins assets and recognized a pre-tax loss of $734 million, subject to post-closing adjustments. The loss includes a $310 million cash contribution to the businesses at closing, and $329 million of cumulative currency translation losses were reclassified out of Accumulated other comprehensive loss.
Is the company's cash flow and liquidity position improving?
Operating cash flow was $483 million in the first six months of 2026, compared with cash used of $228 million in the same period of 2025, though receivables increased by $1.69 billion on higher prices. Cash and cash equivalents were $2.63 billion at June 30, 2026, and the company reported it is in compliance with its debt covenants.
What is the company's near-term outlook and capital allocation plan?
Management said conditions in the Middle East remain fluid and that recovery of conflict-impacted supply is likely to extend into 2027. Its stated priorities are safe operation of assets, disciplined deleveraging including a scheduled note repayment in September 2026, maintaining an attractive dividend, and selective investment.
Did the company change its dividend or share repurchase activity?
The filing states that the company paid quarterly dividends of $0.69 per share in March and June 2026, totaling $448 million for the first six months, reflecting a February 2026 announcement to reduce the quarterly dividend. No share repurchases were made in the first six months of 2026, and the Senior Revolving Credit Facility now restricts repurchases except to offset dilution.
06—Continue