01—Abstract
Summary
Summary of the 8-K filed October 30, 2026. Cited figures are marked; the original filing is the authoritative source.
LyondellBasell Industries N.V. reported third quarter 2026 results on October 30, 2026 (Exhibit 99.1 press release, Exhibit 99.2 segment discussion).
Net income was $758 milliona, or $2.32 per diluted share, compared with $559 million ($1.71 per diluted share) in the second quarter of 2026 and a net loss of $890 million ($(2.77) per diluted share) in the third quarter of 2025. Excluding identified items, net income was $828 million ($2.54 per diluted share). EBITDA was $1,420 million, or $1,512 million excluding identified items.
Identified items in the quarter included site closure costs of $77 millionb, mainly related to the closure of a European propylene oxide joint venture. Sales and other operating revenues were $8,499 million, down from $9,177 million in the prior quarter. Management attributed the sequential decline in profitability in the O&P-Americas segment to lower polymer and olefin prices, while the Intermediates & Derivatives segment delivered materially higher profitability, largely from oxyfuels.
Cash and cash equivalents were $3,227 millionc at quarter end, and total liquidity was $7,685 million. Capital expenditures were $303 million and dividends paid were $224 million. For the fourth quarter, the company expects operating rates of 85% for North American O&P assets, 60% for European O&P assets and 75% for Intermediates & Derivatives assets, and a seasonal release of working capital.
Management said conditions in the Middle East are likely to remain fluid, with a return to pre-conflict conditions expected to be non-linear and take longer than anticipated. Separately, on October 29, 2026, the company agreed to sell its wholly owned subsidiary Houston Refining, L.P., which owns the former Houston refinery site and related assets, to a subsidiary of Valero Energy Corporation for $320.5 milliond. The sale is expected to close in the fourth quarter of 2026, subject to regulatory and other customary closing conditions.
02—Key points
Key Highlights
- Q3 2026 net income of $758 million ($2.32 per diluted share), versus $559 million in Q2 2026 and a net loss of $890 million in Q3 2025; excluding identified items, net income was $828 million ($2.54 per share).
- Q3 2026 EBITDA of $1,420 million, or $1,512 million excluding identified items, compared with $2,127 million excluding identified items in Q2 2026.
- Intermediates & Derivatives EBITDA rose to $720 million from $377 million in Q2 2026, largely driven by oxyfuels; O&P-Americas EBITDA fell to $641 million from $1,183 million.
- Sales and other operating revenues were $8,499 million in Q3 2026, down from $9,177 million in Q2 2026 and up from $7,727 million in Q3 2025.
- Cash and liquid investments were $3,235 million and total liquidity was $7,685 million at September 30, 2026, after repaying a €500 million note in September.
- Agreed to sell Houston Refining, L.P. (former Houston refinery site) to a Valero Energy subsidiary for $320.5 million, expected to close in Q4 2026 subject to regulatory and customary conditions.
- Fourth-quarter outlook includes operating rates of 85% for North American O&P, 60% for European O&P and 75% for I&D, plus a planned maintenance project at a North American polypropylene asset.
03—Questions
Frequently Asked Questions
What drove LYB's third-quarter 2026 earnings?
The filing attributes the quarter's results mainly to the I&D segment, where profitability rose materially, largely from oxyfuels, aided by higher crack spreads, favorable gasoline blend economics and the restart of the Bayport PO/TBA site. These gains offset lower O&P-Americas profitability, which the company tied to lower polymer and olefin prices.
What identified items affected third-quarter results?
Identified items reduced net income by $70 million, or $0.22 per diluted share, according to the press release. They included site closure costs of $77 million, mainly for the closure of a European propylene oxide joint venture, and Cash Improvement Plan costs of $2 million.
What is the Houston refinery sale?
On October 29, 2026, LYB agreed to sell Houston Refining, L.P., which owns the former Houston refinery site and related assets, to a subsidiary of Valero Energy Corporation for $320.5 million. The sale follows the company's February 2025 shutdown of refining operations at the site and is expected to close in the fourth quarter of 2026, subject to regulatory approvals and other customary closing conditions.
What does management expect for the fourth quarter of 2026?
Management expects normal seasonal demand patterns alongside ongoing supply uncertainty. Planned operating rates are 85% for North American O&P assets, 60% for European O&P assets and 75% for Intermediates & Derivatives assets, reflecting a planned maintenance project at a North American polypropylene asset. The company also expects a seasonal release of working capital.
How is LYB's liquidity and cash position?
At September 30, 2026, LYB held $3,227 million in cash and cash equivalents and $7,685 million in total liquidity, including $3,750 million of availability under its Senior Revolving Credit Facility and $700 million under its U.S. Receivables Facility. During the quarter the company generated $1.7 billion in operating cash flow and repaid a €500 million note maturity.
04—Continue