01—Abstract
Summary
Summary of the 10-Q filed October 30, 2026. Cited figures are marked; the original filing is the authoritative source.
LyondellBasell Industries N.V. reported net income of $758 milliona for the third quarter of 2026, compared with a net loss of $890 million in the third quarter of 2025.
Sales and other operating revenues were $8,499 millionb, up from $7,727 million a year earlier, and operating income was $1,067 million, compared with an operating loss of $731 million. For the first nine months of 2026, net income was $1,442 million, versus a net loss of $598 million in the same period of 2025. The 2025 comparison includes $1,234 million of impairment charges, while the 2026 period includes a $734 million pre-tax loss on the divestiture of select European olefins and polyolefins assets, completed May 1, 2026.
Revenues decreased 7% in the third quarter compared with the second quarter of 2026, reflecting lower average sales prices, and management attributes the margin improvement in the first nine months to industry supply constraints related to the conflict in the Middle East. Cash generation improved. Net cash provided by operating activities was $2,199 millionc for the first nine months of 2026, compared with $755 million in 2025.
Capital expenditures were $842 milliond, down from $1,428 million, and dividend payments were $672 million, down from $1,321 million, reflecting the February 2026 reduction in the quarterly dividend to $0.69 per share. The company repaid the €500 million ($577 million) 0.875% guaranteed notes due 2026. At September 30, 2026, cash and cash equivalents were $3,227 million, total debt including current maturities was $12,331 million, and unused credit facility availability was $4,450 million.
Management states it remained in compliance with its debt covenants. A subsequent event occurred on October 29, 2026, when the company agreed to sell its wholly owned subsidiary Houston Refining, L.P., which owns the site of the former Houston refinery, to a subsidiary of Valero Energy Corporation for $321 million, with closing expected in the fourth quarter of 2026. For the fourth quarter, management expects operating rates of 85% for O&P-Americas assets, 60% for European O&P-EAI assets and 75% for I&D assets, and expects a seasonal release of working capital.
02—Key points
Key Highlights
- Third-quarter 2026 net income was $758 million, versus a net loss of $890 million in the third quarter of 2025; nine-month net income was $1,442 million versus a net loss of $598 million.
- Third-quarter 2026 revenues were $8,499 million (up from $7,727 million) and operating income was $1,067 million (versus an operating loss of $731 million), with the prior-year quarter including goodwill and other impairments.
- A $734 million pre-tax loss was recorded on the May 1, 2026 divestiture of select European olefins and polyolefins assets, which the filing states represented approximately 25% of O&P-EAI production capacity.
- Operating cash flow for the first nine months of 2026 was $2,199 million, compared with $755 million a year earlier; capital expenditures were $842 million versus $1,428 million.
- Dividends paid were $672 million for the first nine months of 2026 ($0.69 per share quarterly), down from $1,321 million, and no share repurchases were made in 2026 through September 30.
- Balance sheet at September 30, 2026 showed $3,227 million of cash, $12,331 million of total debt including current maturities, and $4,450 million of unused credit facility availability.
- On October 29, 2026, the company agreed to sell Houston Refining, L.P. to a Valero Energy Corporation subsidiary for $321 million, with closing expected in the fourth quarter of 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, LyondellBasell Industries kept $0.09.
- Revenue$8.50B100.0%
- Cost of revenue−$7.00B82.4%
- Gross profit$1.50B17.6%
- Operating costs−$429.0M5.0%
- Operating income$1.07B12.6%
- Interest, other & tax−$309.0M3.6%
- Net income$758.0M8.9%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 30, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $8.50B$7.73B | +10.0% |
| Cost of Revenue | $7.00B$6.82B | +2.7% |
| Gross Profit | $1.50B$906.00M | +65.1% |
| R&D Expenses | $35.00M$34.00M | +2.9% |
| SG&A Expenses | $394.00M$401.00M | −1.7% |
| Operating Expenses | $7.43B$8.46B | −12.1% |
| Operating Income | $1.07B-$731.00M | +246.0% |
| Net Income | $758.00M-$890.00M | +185.2% |
| EPS (Basic) | $2.32$-2.77 | +183.8% |
| EPS (Diluted) | $2.32$-2.77 | +183.8% |
05—Questions
Frequently Asked Questions
How did LyondellBasell's profitability change compared with last year?
Third-quarter 2026 net income was $758 million compared with a net loss of $890 million in the third quarter of 2025, and operating income was $1,067 million compared with an operating loss of $731 million. The prior-year period included $972 million of goodwill impairments and $230 million of other impairments, and no impairments were recorded in the third quarter of 2026.
What drove the large loss on the European asset sale?
The company recognized a pre-tax loss of $734 million on the May 1, 2026 divestiture of select European olefins and polyolefins assets and related businesses in Berre l'Etang, Münchsmünster, Carrington and Tarragona. The loss includes a $310 million cash contribution to the businesses at closing, and the filing notes the loss is subject to post-closing adjustments.
How is the company managing its cash, dividends and debt?
Operating cash flow was $2,199 million for the first nine months of 2026, and the company funded $842 million of capital expenditures and $672 million of dividends. It repaid €500 million ($577 million) of notes due 2026 and reduced the U.S. Receivables Facility maximum to $700 million. Management states its capital allocation priorities include disciplined deleveraging and maintaining an attractive dividend, and that it remains focused on a cash improvement plan.
What is the outlook for the fourth quarter?
Management expects normal seasonal demand patterns along with ongoing supply uncertainty in the fourth quarter. Planned operating rates are 85% for O&P-Americas assets, 60% for European O&P-EAI assets and 75% for I&D assets, with a planned maintenance project at a North American polypropylene asset. The company also expects a seasonal release of working capital and notes that conditions in the Middle East are likely to remain fluid.
What is the status of share repurchases and the buyback authorization?
No shares were repurchased during the first nine months of 2026, compared with $201 million of repurchases in the same period of 2025. Shareholders approved a new authorization in May 2026 to repurchase up to 34.0 million ordinary shares through November 22, 2027, and as of October 28, 2026 approximately 34.0 million shares remained under it. The Senior Revolving Credit Facility, as amended in September 2025, restricts share repurchases except to offset dilution.
06—Continue