01—Abstract
Summary
Summary of the 8-K filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
LyondellBasell Industries N.V.
(LYB) reported first quarter 2026 net income of $125 milliona, or $0.38 per diluted share, and EBITDA of $568 million. Excluding identified items, net income was $163 million ($0.49 per diluted share) and EBITDA was $615 million, compared with $0.33 per diluted share excluding identified items and $576 million of EBITDA excluding identified items in the first quarter of 2025. Management attributed the sequential improvement to the Middle East war, which it said has steepened the global petrochemical cost curve.
The Olefins and Polyolefins-Americas segment's EBITDA rose to $327 millionb from $162 million in the prior quarter, while Olefins and Polyolefins-EAI remained negative at $(35) million. The company used $269 million of cash in operations during the quarter, spent $269 million on capital expenditures and paid $224 million in dividends, ending with $2.6 billion in cash and $7.3 billion in total liquidity. The filing also reports completion of the sale of select European olefins and polyolefins assets and the associated business to AEQUITA, under a sale and purchase agreement dated October 29, 2025.
Management said the divestiture is expected to improve average European margins and reduce costs in the second quarter, even though it lowers volumes. For the second quarter, management expects significant sequential improvement across almost all businesses, further North American margin expansion, and operating rates of 80%c for European O&P assets and 75% for Intermediates and Derivatives.
The Bayport PO/TBA outage that began in March and a delayed restart of the La Porte acetyls assets weighed on Intermediates and Derivatives results. Management also flagged ongoing geopolitical uncertainty and price volatility as risks to the outlook.
02—Key points
Key Highlights
- Net income of $125 million ($0.38 per diluted share) versus a net loss of $(140) million in Q4 2025 and net income of $177 million in Q1 2025.
- Excluding identified items, net income was $163 million ($0.49 per diluted share) and EBITDA was $615 million, up from $417 million in Q4 2025.
- Olefins and Polyolefins-Americas EBITDA was $327 million, up from $162 million in Q4 2025, driven by lower feedstock costs and higher polyethylene prices.
- Completed the sale of select European olefins and polyolefins assets to AEQUITA, which management said will improve European margins and reduce costs.
- Operating cash flow was negative $269 million in the quarter due to a typical first-quarter working capital build; the company ended with $2.6 billion in cash and $7.3 billion in total liquidity.
- Capital expenditures were $269 million and dividends were $224 million; no shares were repurchased in the quarter.
- Management expects significant sequential improvement in Q2 2026 across almost all businesses, citing Middle East supply disruptions, with North American O&P at maximum rates and European O&P operating at 80%.
03—Questions
Frequently Asked Questions
What drove the improvement in first-quarter 2026 results compared with the prior quarter?
Management attributed the improvement to lower feedstock costs and accelerating product prices in the Olefins and Polyolefins-Americas segment, where EBITDA more than doubled to $327 million. Tighter market conditions linked to the Middle East war also supported higher polyethylene prices in domestic and export markets, and the Intermediates and Derivatives segment benefited from stronger propylene oxide and derivatives margins.
What was the impact of the European asset sale?
LYB completed the sale of select European olefins and polyolefins assets and the associated business, including corporate functions, to AEQUITA. Management said the divestiture is expected to improve average margins and reduce costs in Europe, while lowering volumes. It also expects the reduced Middle East and Asian exports to Europe to increase polymer spreads and more than offset the lower volumes.
What were the main headwinds in the quarter?
The Bayport PO/TBA site outage that began in March reduced oxyfuels volumes, and oxyfuels margins compressed due to lower gasoline cracks and octane premiums. A delayed restart of the La Porte acetyls assets hurt I&D profitability, and polypropylene margins declined because prices lagged higher monomer costs in the early weeks of the war. The Olefins and Polyolefins-EAI segment still posted negative EBITDA of $(35) million, and the Technology segment's EBITDA fell to $18 million from $80 million in the prior quarter.
How strong is LYB's liquidity position?
At March 31, 2026, LYB held $2.6 billion in cash and cash equivalents and maintained $7.3 billion in total liquidity. Total liquidity includes $3.75 billion of availability under the Senior Revolving Credit Facility and $900 million under the U.S. Receivables Facility.
What does management expect for the second quarter of 2026?
Management expects significant sequential improvement across almost all businesses, driven by tighter supply and favorable pricing from the Middle East disruption. It anticipates further margin expansion in North America and maximizing rates for North American O&P assets, raising European O&P rates to 80%, and keeping I&D rates at 75%. It also noted that ongoing geopolitical uncertainty is likely to keep supply dislocations and price volatility elevated.
04—Continue