LYB

It has been about a month since the last earnings report for Albemarle (ALB). Shares have added about 5.4% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Albemarle due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Albemarle Corporation before we dive into how investors and analysts have reacted as of late. Albemarle posted second-quarter 2026 adjusted earnings of $3.75 per share, up from 11 cents a year ago. The figure beat the Zacks Consensus Estimate of $3.35 by 11.9%, supported by stronger lithium pricing, Specialties growth and productivity gains.On a reported basis, net income (attributable to Albemarle common shareholders) was $438.3 million or $3.52 per share. This compares favorably with a loss of $18.8 million or 16 cents per share in the prior-year quarter. Net sales increased 31.1% year over year to $1.74 billion and topped the consensus mark of $1.59 billion by 9.9%. Energy Storage sales volume rose 11% to 65 kilotons of lithium carbonate equivalent, while average realized pricing advanced 60.5% to $19.53 per kilogram. Adjusted EBITDA climbed 155% year over year to $858.1 million. The increase reflected higher Energy Storage pricing, stronger Specialties pricing and volumes, and ongoing cost and productivity improvements. Energy Storage net sales surged 77.9% year over year to $1.28 billion. It beat the consensus estimate of $1.19 billion. The improvement was driven by higher pricing, with volume also increasing from the year-ago period. The segment’s adjusted EBITDA advanced 229.3% to $723.5 million. Higher lithium pricing drove the gain, partly offset by increased CORFO commissions.Specialties net sales rose 20.5% year over year to $423.5 million. It was above the consensus estimate of $363 million. Volumes increased 8%, while pricing improved 11%, reflecting strength across bromine and derivatives.Adjusted EBITDA for the segment increased 61.3% to $117.7 million. Favorable pricing, higher volumes, productivity gains and proactive management of Middle East-related cost escalation supported profitability. Cash from operating activities totaled $710 million in the quarter, while free cash flow was $638.3 million. Operating cash flow conversion reached 83%, helped by the timing of a larger Talison joint venture dividend and non-recurring working capital benefits.As of June 30, 2026, cash and cash equivalents were $1.63 billion, and estimated liquidity was about $3.2 billion. Total debt totaled $1.9 billion, with net debt to adjusted EBITDA of roughly 0.5.For the first half of 2026, operating cash flow increased $518 million year over year to $1.06 billion. Capital expenditures declined $131.8 million to $170.4 million. Albemarle increased its 2026 Specialties net sales outlook to $1.4-$1.6 billion from the prior $1.3-$1.5 billion range. The adjusted EBITDA forecast rose to $275-$325 million from $225-$275 million, reflecting stronger-than-expected year-to-date pricing and volume performance. The company cut its capital expenditure forecast to about $500 million from $550-$600 million expected earlier. Albemarle also expects Energy Storage sales volumes of 225-235 kilotons, as higher Wodgina output partly offsets a delay in the Talison CGP3 ramp following the June 9 fire. Since the earnings release, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -30.79% due to these changes. At this time, Albemarle has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the top 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Albemarle has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Albemarle is part of the Zacks Chemical - Diversified industry. Over the past month, LyondellBasell (LYB), a stock from the same industry, has gained 5.4%. The company reported its results for the quarter ended June 2026 more than a month ago. LyondellBasell reported revenues of $9.18 billion in the last reported quarter, representing a year-over-year change of +19.8%. EPS of $4.30 for the same period compares with $0.62 a year ago. For the current quarter, LyondellBasell is expected to post earnings of $2.46 per share, indicating a change of +143.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days. LyondellBasell has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Albemarle Corporation (ALB) : Free Stock Analysis Report LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Cabot (CBT). Shares have lost about 1.6% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Cabot due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Cabot Corporation before we dive into how investors and analysts have reacted as of late. Cabot posted third-quarter fiscal 2026 (ended June 30, 2026) adjusted earnings of $1.67 per share, down 12.1% year over year but ahead of the Zacks Consensus Estimate of $1.66. Revenues increased 6.4% year over year to $982 million and surpassed the consensus mark of $914.5 million by 7.4%. Performance Chemicals delivered stronger profitability, supported by higher volumes and gross profit per ton, while Reinforcement Materials faced pressure from lower gross profit per ton. Reinforcement Materials sales increased 4.5% year over year to $599 million from $573 million. It beat the Zacks Consensus Estimate of $543 million. Segment EBIT declined to $97 million from $128 million in the prior-year period. The decrease primarily reflected lower gross profit per ton due to the outcomes of calendar 2026 customer agreements, partially offset by higher volumes and a more favorable regional product mix. Reinforcement Materials volumes increased 5% globally. Asia Pacific volumes rose 10%, and Americas volumes increased 4%, while Europe, Middle East and Africa volumes declined 4%. Growth also benefited from additional capacity in Indonesia and the company's acquisition in Mexico. Performance Chemicals sales advanced 9.7% year over year to $351 million from $320 million. It surpassed the Zacks Consensus Estimate of $339 million. Segment EBIT increased to $68 million from $57 million, supported by higher volumes and increased gross profit per ton. Battery materials volumes benefited from stronger demand for electric vehicles and battery energy storage systems, as well as increased participation with leading global battery manufacturers. Fumed metal oxides volumes rose on growth in electronics applications. Higher gross profit per ton reflected price increases implemented ahead of rising raw material costs and a favorable product mix. Cabot exited the third quarter of fiscal 2026 with cash and cash equivalents of $250 million. Cash provided by operating activities totaled $75 million during the quarter. Capital expenditures were $38 million, while dividend payments totaled $24 million. The company ended the quarter with $1.3 billion of available liquidity and a net debt-to-EBITDA ratio of 1.4 times as of June 30, 2026. Free cash flow was $37 million, while discretionary free cash flow totaled $91 million. For fiscal 2026, Cabot tightened its adjusted earnings guidance to $6.15-$6.45 per share from the previous range of $6-$6.5. The company expects its full-year fiscal 2026 operating tax rate to be in the range of 28-30%. Cabot also reaffirmed its expectation of approximately $40 million of EBITDA from its battery materials product line for fiscal 2026. The company is expanding global conductive additive capacity through targeted investments in the United States and China to support expected growth in global battery demand and broaden its participation with leading battery manufacturers. It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 6.12% due to these changes. At this time, Cabot has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Cabot has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Cabot belongs to the Zacks Chemical - Diversified industry. Another stock from the same industry, LyondellBasell (LYB), has gained 6.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. LyondellBasell reported revenues of $9.18 billion in the last reported quarter, representing a year-over-year change of +19.8%. EPS of $4.30 for the same period compares with $0.62 a year ago. For the current quarter, LyondellBasell is expected to post earnings of $2.46 per share, indicating a change of +143.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -6.8% over the last 30 days. LyondellBasell has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cabot Corporation (CBT) : Free Stock Analysis Report LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Friday, July 31, 2026 at 11:00 a.m. ET Head of Investor Relations - David Dennison Chief Executive Officer - Peter Vanacker Chief Financial Officer - Agustin Izquierdo Executive Vice President of Global Olefins and Polyolefins - Kim Foley Executive Vice President of Intermediates and Derivatives - Aaron Ledet Executive Vice President of Advanced Polymer Solutions - Torkel Rhenman Operator: Hello, and welcome to LyondellBasell Teleconference. At the request of LyondellBasell, this conference is being recorded for replay purposes. I would now like to turn the conference over to Mr. David Dennison, Head of Investor Relations. Sir, you may now begin. David Dennison: Thank you, operator, and welcome, everyone, to today's call. Before we begin the discussion, I would like to point out that a slide presentation accompanies the call and is available on our website at investors.lyondellbasell.com. Today, we will be discussing our quarter results while making reference to some forward-looking statements and non-GAAP financial measures. We believe the forward-looking statements are based upon reasonable assumptions and the alternative measures are useful to investors. Nonetheless, the forward-looking statements are subject to significant risk and uncertainty. We encourage you to learn more about the factors that could lead our actual results to differ by reviewing the cautionary statements in the presentation slides and our regulatory filings, which are also available on our Investor Relations website. Comments made on this call will be in regard to our underlying business results using non-GAAP financial measures, such as EBITDA and earnings per diluted share, excluding identified items. Additional documents on our investor website provide reconciliations of non-GAAP financial measures to GAAP financial measures, together with other disclosures, including the earnings release and our business results discussion. A recording of this call will be available by telephone beginning at 1:00 p.m. Eastern Time today until August 31 by calling (877) 660-6853 in the United States and (201) 612-7415 outside of the United States. The access code for both numbers is 13746218. Joining today's call will be Peter Vanacker, LyondellBasell's Chief Executive Officer; our CFO, Agustin Izquierdo; Kim Foley, our Executive Vice President of Global Olefins and Polyolefins Aaron Lade, our EVP of Intermediates and Derivatives and Torkel Redman, our EVP of Advanced Polymer Solutions. With that being said, I would now like to turn the call over to Peter. Peter Z. Vanacker: Thank you, David, and thank you all for joining today's call as we discuss our second quarter results. The global disruption in the petrochemical markets from the conflict in the Middle East impacted production, feedstock availability, logistics and trade flows across the industry. It also led to substantially improved earnings performance for LYB in the second quarter. The LYB team delivered an impressive EBITDA margin of 23%, which clearly demonstrates the power of our value enhancement program and cash improvement plan actions when market conditions are favorable. We continue to believe that market normalization will be a long process extending beyond this year. This is already being demonstrated by the continued volatility of the conflict in the Middle East. Throughout this dynamic period, we continue to successfully execute our strategy and advance the transformation of LYB while diligently implementing our cash improvement plan. During the quarter, we completed the divestiture of 4 European assets and combined with the intended closure of our Brindisi site for further reshaping our portfolio toward more advantaged assets. These strategic actions are along with our disciplined capital allocation support our ability to create long-term value for shareholders. With that being said, let's take a moment to review LYB safety performance with Slide 3. Safety remains foundational to how we operate. Our year-to-date total recordable incident rate of 0.1% is among best in our sector and reflects the commitment of our employees and contractors. Importantly, this performance continues the improvement we have achieved over the last several years and is a direct reflection of our disciplined operating culture and unwavered focus on conducting every task safely and reliably at all of our sites. Now turning to Slide 4. The conflict in the Middle East has created an unusually large disruption to bulk petrochemical markets, impacting operations, feedstock availability, logistics and trade flows. The scale and duration of the supply loss is unprecedented, and we believe that recovery time will be measured in quarters, not months. Once this rate does open and stays open, we will see some improvement in supply. However, we estimate approximately 6 million tons of polyethylene capacity or around 20% to 25% of Middle East supply sustained damage from the conflict and will not restart until at least 2027. Additionally, we expect delays to some plant capacity growth projects. The conflict has resulted in a shift in buying behavior amid elevated pricing and volatility. We saw a large increase in Asian freight rates, which essentially closed the arbitrage from Asia to Europe and Central America. -- increasing demand for U.S. and European material. In China, we saw an unusual shift in trade flows. Despite lower operating rates, Chinese producers reduced imports and increased exports, primarily to Southeast Asia to take advantage of higher export prices and the supply shortfall in that region. As a result, we have seen Chinese polyethylene inventories declined by roughly 30% versus pre-conflict levels as local operating rates remain in the mid-70% range. The market expects that China may soon have to increase imports again to replenish inventories that have been drawn down. We provide support for prices. With inventory buffer still limited across the industry markets remain vulnerable to additional volatility should we see further setbacks in the Middle East or other supply disruptions emerge. We expect inventories to gradually rebuild as supply chains normalize and purchasing patterns return to more typical levels, though pricing is likely to remain above pre-conflict levels. Importantly, we continue to see relatively resilient underlying demand. We have not observed broad demand destruction across key end markets with packaging remaining stable and continuing to represent the majority of our polyethylene demand. Health care and infrastructure applications show the growth supported by areas such as pipe, wire and cable and data center-related investments. Housing and automotive demand remain at subdued levels, but are not a new headwind. We expect consumption to return to its pre-conflict trajectory over the next year. As a result, we believe gradual normalization will be driven primarily by supply recovery and inventory rebuilding rather than a meaningful change in underlying pre-conflict demands. Now let's turn to Slide 5. Portfolio transformation is a key enabler of our strategy and is helping reshape LYB into a more advantaged and focused company. We have taken deliberate steps to improve portfolio quality and better position the company for long-term value creation. We completed the divestiture of 4 O&P assets in May, and intend to close our Brindisi side by the end of 2026. Importantly, we remain confident in the strength of our remaining European footprints. In O&P, we continue to make 2 crackers with integrated polyolefin at our Wesseling site in Germany with a Portugal increasingly focused on higher value, less commoditized applications. Construction of our Maritech 1 facility at Wesseling is also progressing well and will benefit from direct integration with the crackers, supporting our circular and low-carbon solution strategy. In I&D, we retained our 2 PO/TBA sites in Botlek and FOS, which produce propylene oxide derivatives and oxyfuels from a first quartile global cost position. Our catalyst production facilities and innovation centers in Ferrara and Frankfurt continue to support our technology leadership and differentiated product portfolio. Overall, our remaining European asset base is well positioned and closely aligned with our long-term strategy. These assets are critical to both our grow and upgrade to core strategy, and our ambition to build a profitable circular and low-carbon solutions business. At our Capital Markets Day in 2023, we laid out criteria for an LYB core business. That included leading position, growing end markets, attractive returns above the cost of capital, access to advantaged feedstocks and a strategic focus on circular and low-carbon solutions. We continue to shape the portfolio with that framework in mind. Over the last 3 years, we have executed a series of significant portfolio actions, including seizing refining operations, the divestiture of our EO&D business, acquisition of a 35% stake in NATPET, Saudi Arabia, with the purpose of expanding capacity shutdown of our Maasvlakte POSM sites, exiting the Australian polyolefins assets, the sale of 4 European O&P assets, the planned closure of Brindisi as well as the asset footprint and product portfolio transformation in APS. We now have a greater concentration of our portfolio connected to cost advantaged feedstock, including 80% of our global ethylene capacity. This will enable us to achieve higher average margins through the cycle has already demonstrated during the second quarter and to focus capital on the areas where we see the greatest opportunity to create long-term value. Let's now turn to Slide 6 as we discuss our financial performance. During the second quarter, earnings were $4.30 per diluted share with EBITDA of $2.1 billion which more than tripled sequentially, driven by a significant improvement in margins during the quarter. Cash and liquidity remained robust with balances of $2.6 billion and $7.1 billion, respectively, at quarter end. I will now hand over to Agustin to discuss our financial performance in more detail. Agustin Izquierdo: Thank you, Peter, and good morning, everyone. Let me begin with Slide 7 as we outline our cash generation. Over the past 12 months, LyondellBasell converted EBITDA into cash at a rate of 80% and which aligns with our long-term target. This performance reflects our disciplined approach to optimizing working capital while capturing favorable market opportunities. As a result, higher prices and operating rates drove an intentional build of working capital in the second quarter. As Peter mentioned, in the second quarter, our cash balance was $2.6 billion, and our available liquidity remains robust at $7.1 billion. Now let's turn to Slide 8 and review the details of our second quarter capital allocation. During the quarter, we generated $752 million of cash from operating activities. This performance reflects our continued focus on strengthening financial flexibility to capture higher prices while improving cash generation through the quarter. Capital allocation remained balanced as we funded $270 million of capital investments and returned $224 million to shareholders through dividends in the second quarter. Despite the highly dynamic market environment, our capital allocation priorities remain unchanged. We are committed to our investment-grade balance sheet as the foundation of our disciplined capital allocation framework. We continue to maintain our 2026 CapEx plan of $1.2 billion and expect sustaining CapEx to decrease by approximately $100 million following the divestiture of 4 European assets. While we have many attractive growth opportunities across the portfolio, we will remain disciplined in how and when we deploy capital by prioritizing high return low-cost investments that strengthen our competitive position while preserving the flexibility to advance larger growth projects once we see sustained improvement in market conditions. We continue to make progress on our cash improvement plan and are on target to achieve $500 million of incremental cash flow by the end of 2026. driven primarily by fixed cost reductions and lower capital expenditures. We have reduced headcount by approximately 3,400 employees or 17% of the workforce since the beginning of last year driven by portfolio changes and streamlining of our organization. These actions are enhancing financial flexibility while positioning LYB to create value across the cycle. Look ahead, our near-term focus continues to be investing in safe and reliable operations, executing our cash improvement plan and maintaining our investment-grade balance sheet. Now let's turn to Slide 9, and I'll provide a brief overview of our segment results. During the second quarter, our business portfolio generated $2.1 billion of EBITDA. We delivered strong profitability across all segments, reflecting stronger margins and continued focus on operational execution. With that, I will turn the call over to Kim. Kimberly Foley: Thank you, Agustin. Let's turn to Slide 10 to discuss the performance of the Olefins and Polyolefins Americas segment. During the second quarter, O&P-America EBITDA was $1.3 billion, approximately 4x higher than the same quarter last year. In polyethylene, integrated margins expanded substantially. This was primarily a result of a $0.30 per pound increase in polyethylene contract prices in April. The largest increase on record driven by the global supply disruptions from the conflict in the Middle East. June contract prices settled $0.15 per pound lower, but for the year, polyethylene pricing remained shorter than 2025. Integrated polyethylene margins further benefited from higher coproduct pricing. North America demand for polyethylene remained strong in the quarter, with domestic sales volumes up approximately 3.5% and marking the highest domestic sales quarter since the first quarter 2022. Polypropylene demand also grew for the quarter, helped by a reduction in imports with the spreads to propylene increasing by $0.07 per pound beginning in April. Our second quarter operating rates for the segment was approximately 90% with our crackers operating at approximately 95% during the quarter. This strong reliability and operating performance allowed us to maximize production and capture favorable market conditions. The investments and operating improvements delivered through our value enhancement program over the last 3 years continue to support higher productivity, improved reliability and strong asset performance across the portfolio. Looking into the third quarter, we anticipate resilient demand in segments such as packaging, health care and infrastructure. We are closely monitoring developments in the Middle East and the potential impact to polyolefins pricing from crude oil and supply chain disruptions. As a result of these dynamic market conditions and limited global inventory buffer, we have announced a $0.10 per pound price increase for polyethylene in August. We plan to operate our assets in line with market demand and conduct planned maintenance activities at our Clinton and Lake Charles facilities. The outage at Clinton began its turnaround in July and is expected to last approximately 70 days while the Lake Charles outage will begin in the second half of the third quarter and extend into the fourth quarter. As a result, the third quarter operating rates across the segment are projected to be approximately 85% of nameplate capacity. With that, let's turn to Slide 11 as we review the results of the Olefins and Polyolefins Europe, Asia and International segment. During the second quarter, the segment generated EBITDA of $331 million, a $337 million increase over the first quarter. These results also reflect a gain on the sale of the European emissions credits of approximately $50 million. It is the strongest quarterly result of the segment since 2021. Additions improved significantly during the quarter as supply chain disruptions stemming from the conflict in the Middle East reduced product availability and supported both Olefins and polymer margin expansion. We capture the improved margins, we increased operating rates to approximately 75% for the quarter, with our olefins crackers operating at approximately 85% utilization. Our Middle East joint ventures continued to operate safely through the period, but at times were limited by feedstock impacting operating rates. As Peter previously mentioned, we completed the divestiture of 4 European assets during the quarter, marking an important milestone in our portfolio transformation. These actions further strengthen the competitiveness of our portfolio, while improving our resilience through the cycle. Looking ahead into the third quarter, demand is expected to soften due to the typical summer seasonality. While geopolitical uncertainty may continue to contribute to market volatility, we remain focused on disciplined commercial and operational execution. Additionally, we continue to monitor the Rhine water levels in the region as they remain low and are proactively managing operating rates as needed. We continue to adapt production plans and minimize disruptions to our customers. As we align production with market demand we expect to operate the segment at approximately 70% utilization during the third quarter. Though prolonged low Rhine water levels could further impact operating rates. With a more focused and competitive asset base, we are better positioned to navigate market volatility while capturing value. And with that, I will turn the call over to Aaron. Aaron Ledet: Thank you, Kim. Please turn to Slide 12 as we look at the Intermediates & Derivatives segment. During the second quarter, segment EBITDA sequentially increased to $386 million, driven by stronger margins across several businesses supported by improving market conditions despite unplanned downtime at our Bayport PO/TBA asset in Houston. Global supply tightness from the conflict in the Middle East drove margin expansion in most of our businesses. Oxyfuels further benefited from strong seasonal demand and near record level refinery gasoline crack spreads. Methanol gained from lower Gulf Coast natural gas prices in the quarter. These favorable conditions were partially offset by unplanned downtime at our Bayport PO/TBA asset. The outage had an estimated EBITDA impact of approximately $250 million during the quarter. As a result, overall I&D operating rates were impacted and ran at approximately 65% utilization. I'm pleased to report that our team safely restarted the Bayport asset and ramped to full rates in June. The successful restart reflects the dedication of our operation and maintenance teams and positions us to capture improved market opportunities moving forward. Looking ahead to the third quarter, we expect Oxyfuels and PO&D volumes to improve following the restart of the Bayport asset. Oxyfuels margins should benefit from seasonal demand strength and ongoing elevated crack spreads. In PO&D, we continue to see soft but stable demand for durables, while our market share gains and margin improvements from industry rationalizations should continue to support future earnings. Across the segment, we are targeting approximately 85% operating rates during the third quarter as we align production with market demand while maximizing the value of our integrated portfolio. On Slide 13, I'd like to spend a moment on our Oxyfuels business and why we continue to view it as a differentiated advantage within the portfolio. Oxyfuels are a clean burn high octane gasoline blend stock. They are used to increase the octane level in gasoline and to help meet increasing fuel quality standards in global markets. Our proprietary PO/TBA technology allows us to produce oxyfuels, including MTBE and ETBE produced with bioethanol as well as a range of high-value C4 chemical products. Unlike traditional gasoline components produced from crude oil, oxyfuels are manufactured using butane and methanol, creating a structural feedstock advantage, particularly in the United States, we make roughly 75% of our oxyfuels. This positioning is further enhanced by our integrated production of methanol derived from low-cost natural gas. There are 4 primary drivers of oxyfuel profitability. Butane and methanol feed costs relative to crude oil, gasoline crack spreads and octane values or blend premiums. Together, these factors determine the economics of supplying oxyfuels into the gasoline pool. During the second quarter, market conditions were exceptionally favorable as higher crude oil prices supported attractive feedstock differentials. As we have previously disclosed, a $1 per barrel change in crude oil has approximately $20 million of annualized earnings impact to Oxyfuels with butane to Brent spread being the primary driver. Adding to that rule of thumb, gasoline crack spreads are near record levels as the conflict in the Middle East and refinery disruptions stemming from the Ukraine war, which have idled approximately 40% of Russian refining capacity have tightened global supplies of refined products. The chart on the right highlights how each of the key profitability drivers improved materially from February to the second quarter levels, creating 1 of the strongest oxyfuel margin environments we have seen in recent years. Importantly, with Bayport PO/TBA back in operation, we are able to capture the full benefits of our integrated value chain. With that, I will turn the call over to Torkel. Torkel Rhenman: Thank you, Aaron. Please turn to Slide 14 as we review results for the Advanced Polymer Solutions segment. Second quarter EBITDA was $78 million. APS margins improved through disciplined pricing actions and cost optimization. Automotive demand remained stable despite geopolitical uncertainty, while our customer focus continued to generate tangible results through new business wins across the portfolio. Looking ahead, we expect seasonal demand to moderate across automotive and other end markets, including the typical third quarter downtown at automotive OEMs. We also expect higher raw material costs related to global supply disruptions to persist. Nonetheless, we remain focused on disciplined pricing execution and cost management to mitigate these impacts where possible. Despite these near-term market dynamics, we continue to transform APS into a more customer-centric and resilient business. Our focus on customer centricity, cost optimization and portfolio improvement continues to strengthen our earnings profile. With these changes, we have seen EBITDA for the first half of 2026 increased by over 50% compared to the same period last year. We remain confident that the actions we are taking will continue to improve competitiveness, profitability and transform the APS business over the long term. With that, I will return the call to Peter. Peter Z. Vanacker: Thank you, Torkel. Please turn to Slide 15, and I will discuss the results for the Technology segment. Second quarter EBITDA of $74 million was relatively in line with our prior guidance. Profitability improved over the quarter driven by licensing revenue milestones and improved catalyst demand. Revenue increased as a greater number of higher-value contracts reached significant milestones, while catalyst sales benefited from strong demand during the quarter. Looking ahead, we expect catalyst demand to normalize following the high number of shipments during the first half of the year. In addition, new licensing opportunities or almost nonexistent amid substantially slower global polyolefins capacity growth towards the end of this decade. As a result, we estimate that third quarter technology EBITDA will moderate from second quarter levels while remaining more in line with typical run rate results. Let me share our views on our key regional and product markets on Slide 16. The conflict in the Middle East will continue to shape the near-term outlook for our products. As we mentioned earlier, the scale and duration of this supply disruption is unprecedented. Inventories have been depleted particularly in China, which is the global buffer in the case we have further setbacks in the Middle East or other unforeseen supply disruptions, such as weather events. We're best positioned in North America with our cost-advantaged assets and where we saw sequential improvement in demand in both polyethylene and polypropylene in the second quarter. We anticipate demand to remain resilient into the third quarter. While we did see prices come off to April peak, we're still well above pre-conflict levels. Both Europe and Asia are entering a typically weaker seasonal demand periods. Additionally, in naphtha prices could pressure margins in those regions. From an end markets perspective, we see a differentiated demand environment. Packaging and other consumable applications remain resilient, supported by food, health care and stable everyday consumer demand. Infrastructure-related demand also remains a bright spot, while building and construction is stable but subdued as any housing recovery remains late. Automotive is softer, reflecting affordability and broader macroeconomic pressures. On fuels, we are experiencing a consistently strong U.S. driving season despite higher gasoline prices. We expect gasoline cracks to remain elevated through the summer while crude price fluctuates with the conflict in the Middle East. The overall takeaway is that constrained global operating rates, lean buffers, further risk of setbacks in the Middle East and resilient consumable demand should support elevated margins. through the third quarter with any eventual market recovery taking quarters, not months to resolve. As we conclude today's call, I would like to acknowledge that throughout the second quarter, our team continued to make smart decisions to successfully navigate a rapidly changing environment. and ensure that we continue to serve our customers. We remain heavily focused on delivering lasting value for all our stakeholders. Now with that, we're pleased to take your questions. Operator: Our first question comes from the line of David Begleiter with Deutsche Bank. David Begleiter: Peter, on polyethylene, the consultants are calling for a $0.10 decline in July. I suspect you disagree with that forecast and maybe you can tell us why you dispute that forecast. Peter Z. Vanacker: David, good question, of course, on me to start the call with. As I mentioned in the prepared remarks, the backdrop remains, of course, exceptionally dynamic -- we look forward to a peaceful resolution to the conflict, but the timing of that remains, of course, difficult to predict. Let me point out that clearly, normalization isn't a straight line. As you know, we've seen the conflict cool down, it back up again a few times over the past months, and prices have reacted in response. The last few weeks we've seen increasing prices for crude oil, feedstocks, polymers as the conflict seems to be ongoing. And the traffic through the Strait of Hormuz is still far below pre-conflict levels. with the conflict spreading to other areas such as also the Red Sea. So let me point out, as you know, that our global cost advantage asset base and the commercial expertise, as was demonstrated in our second quarter results, enable us to generate attractive margins in a range of different scenarios. Now to your specific question around the pricing outlook, let me hand over to Kim. Kimberly Foley: Thank you, Peter. I think as it relates to July, as you know how this works, the consultants puts out their forecast and they do create a sentiment. Peter's comments, we've seen a lot of movement in the month of July. We've seen export pricing increase. We've seen export volumes increase, not only in the U.S., we've seen it all around the world. So I think as we think about the outlook and this potential escalation or reescalation we see higher crude, we see higher demand. We do not see China exporting, which is what they had done in the second quarter. Typically, they have stronger demand or seasonal demand in the third quarter we see them important I think the other thing that you have to think about from a global supply perspective are things that could constrain global supply -- you've got a Rhine water level in Europe now, and you are still in hurricane season in the U.S. Gulf Coast. So I hear them, but I also think there's a lot of factors that say that there's the potential for price settlement to be flat and potentially move up throughout the quarter. Operator: Our next question is from the line of Vincent Andrews with Morgan Stanley. Vincent Andrews: Wondering if you could talk a little bit about the feedstock mix. It looked like both in the U.S. and in EMEA AI, there was some flexibility on the feedstock mix to capture what I believe were attractive co-product values. So if you could maybe talk about that and what you think is going to happen in the third quarter to date and where the best coproduct opportunities are, that would be great. Peter Z. Vanacker: Yes. Thank you, Vincent, for your question. Before I hand over to Kim to talk about more specifics. You know that we have flexible crackers. And of course, we have also done all our work in terms of the consolidation in Europe. So Europe is mainly focused now on our Wesseling operations in O&P, but we continue to optimize our feedstock mix based upon the flexibility that we have in our crackers. Now with that, Kim. Kimberly Foley: Yes. I'll just make -- add a little bit more color. Particularly in Channelview and investing where they were naphtha crackers and we've added some flexibility to them. As you have a rising crude environment, you have the increase in your carbon value, whether that's propylene, butadiene or other fuel components. So that's where you're seeing the co-product credits and the rising crude environment. Operator: Next question is from the line of Patrick Cunningham with Citi. Patrick Cunningham: I wanted to dig into a little bit more on supply disruption. I think the ability for China to sell out of inventory and some of the buyer behavior were bigger factors than we had previously anticipated. And now we're starting to see some reescalation strengthen the export markets. Do you expect any higher prices could potentially be met with higher operating rates in China in relatively short order? Or do you see additional constraints on crude and feedstock inventory and their ability to produce. I guess what I'm driving at is, is there a risk that there may be additional production, demand destruction and perhaps they don't have to import as much in the second half? Peter Z. Vanacker: Yes. Thank you, Patrick. Good question, of course, around China. I mean if you would ask the question differently, I mean, what surprised us the most during the second quarter. It is definitely, I mean, China because China did not just endure the conflict, it actually did structurally adapt in ways that surprised, I mean, even the most conservative forecasters, external consultants players in the entry because what they were effectively doing is decoupling the chemical production from Middle Eastern oil volatility -- just starting inventory in China of crude, refined energy products and petrochemicals were likely higher than what everybody would have anticipated before the conflict. -- the China -- the CTO production, so coal to olefins increased more than everybody anticipated despite the fact that CTO technology is the upper end of the cash cost curve. But coal costs were, of course, unaffected by the conflict and it offset some reduction in naphtha crackers. Everybody on the call knows that China is traditionally a net importer of polyethylene. But it has shown in the second quarter a greater-than-expected ability to increase exports and reduce its apparent, I mean consumption we believe that, that is temporary, then everybody would have anticipated. But also, just like Kim already said, -- it led to 3 consecutive months of China inventory drawdowns and materially lower inventories versus the pre-conflict levels. So yes, the market adapted faster than the physical system recovered. We do believe that, that cannot be something that is going to continue. Kim pointed it out. I mean, China, and we see already indications of that is coming back, I meant to the market. That means they start importing again. We didn't see a lot of the exports coming out of China in the second quarter in the global value chain, but it was mainly geared I mean, to Southeast Asia which could have a side effect, and you see some indications of that as well already, especially in South Korea. It increases, I mean, the pressure on naphtha-based production to actually accelerate the consolidation. Kim, anything you want to add? Kimberly Foley: No, I think you covered it. I think that's good. Operator: Our next question is from the line of Jeff Zekauskas with JPMorgan. Jeffrey Zekauskas: Can you update us on the status of Mauritech. It is the initial facility complete? Or do you expect it to be complete this year and selling product? And can you update us on your acetyl assets in the United States? How are they functioning in acetic acid and VAM? Peter Z. Vanacker: Thank you, Jeff. Good question. Let me cover the first 1 on MoReTec 1. And Aaron will cover your specific assets question. So MoReTec 1continue to be progressing as planned, and that is the investments in Wesseling. Start-up is expected towards the end of 2027. And has set as scheduled as planned, we're progressing quite well. The commercial team has done a fantastic job. So quite a big part of that capacity. Actually, the vast majority of that capacity is already being presold through agreements with brand owners. The regulation, as you know, is advancing very positively in Europe as well. So with plastic and plastic waste regulation as well as a mass balancing regulation the so-called SUPD, -- so we're very confident about our strategy because new markets are being created. The value that we are able to capture is actually higher than what we have anticipated and communicated in March 2023 in our Capital Markets Day. When I shift gears, I mean to the United States, with MoReTec 2 investments, as you know, in the context of the cash improvement plan, but even more so because we saw that regulation was not as advanced as in Europe. -- we have delayed the project to build the second MoReTec 2 units. Aaron on acetyls.. Aaron Ledet: Yes. Thanks, Peter. And thanks for the question, Jeff. On acetyls, we continue to experience reliability issues in our syngas unit which is affecting our -- both of our acid production and our VAM production at our La Porte site. Remember this, though, as part of our acetyls business, methanol is included and at La Porte, we are running beyond benchmark rates right now in our methanol business, which, as I mentioned in some of my planned remarks, benefited us tremendously in the second quarter as we saw pricing peak in April. And while prices have come off their peak levels in methanol, they still remain elevated certainly from the beginning of this year. As we look ahead to the third quarter, we do hope to get both acid and VAM back to full rates and the teams are working diligently to do so. Peter Z. Vanacker: So let me then also summarize this. If you look at our excellent results that we had in the second quarter, and I will keep on repeating, I mean, a 23% EBITDA margin, which fantastic work that our teams have done. But we didn't have the full benefits out of our production units, investments. And we didn't, of course, have the benefits in PO/TBA because everybody knows that we had this fire incident in Bayport, which had a drastic impact on our second quarter results. So it shows also the potential that we have in our business portfolio after all the work that we have done on portfolio rationalization, value enhancement program and cash improvement plan because Q2 was except in terms of EBITDA, but it was not perfect. Operator: The next question is from the line of Josh Spector with UBS. Joshua Spector: I just wanted to follow up on the Americas Olefins margin improvement specifically. I think looks at the spreads movements, we thought EBITDA up, call it, like $600 million-ish, plus or minus. You did a few hundred million better than that. I'm just wondering if you could help decompose that between what you'd attribute that to in terms of cost savings versus co-products and trying to think about what's structural in there versus temporary? Peter Z. Vanacker: Well, Josh, there was definitely, I mean, an element, and you can see a bit of that in the SG&A. You saw clearly that our SG&A is coming down -- and these are the results that are coming out of our cash improvement plan. Let me maybe also take the chance, I mean, to point out that with the latest phase in streamlining our organization, we are talking about a 30 -- so 30% of reduction in management, not just in the executive committee, but in the entire management structure. And that was possible because we have done this portfolio changes. We have delegated authority deeper in the organization based upon our value enhancement program. So that entire streamlining, we've done quite a lot of training during the last 3 years in executive development programs. So that actually -- that delegation of authority would that our management knows what it actually means and how to take up more responsibility and work together along the value chains work together inside of the company along processes -- so that part, I mean, you only see a part of that in SG&A because, of course, another big part is actually in our total fixed costs. Kimberly Foley: Yes. And Peter, I would just reiterate. Our volumes were up, ethylene price was up, propylene price was up, ethane was down, natural gas was down. It was a very perfect alignment. Peter Z. Vanacker: And actually 36% EBITDA margin in O&P Americas, excluding identified items, Fantastic work in. Operator: The next question is from the line of Kevin McCarthy with Vertical Research Partners. Kevin McCarthy: I appreciate the detail you offered on Slide 4 regarding polyethylene asset damage and other constraints due to the Middle East conflict. Welcome any comments that you have on other pieces of the portfolio, whether it's the propylene chain or other assets that have been dislocated by the conflict. Perhaps tough to quantify off the cup, but certainly would welcome how you're thinking about that at this juncture. Kimberly Foley: Excellent question. This is Kim. I'll try to give you a quick answer on that one. As we think of the polypropylene markets, we think of the LPG that comes out of the Middle East that goes to Asia, I'll just say Asia generically, whether that's China or North or Southeast Asia. And what we saw at the beginning, I think you'll remember in last quarter, we were probably even more bullish about the amount of capacity impacted but what we have seen is we have seen the U.S. imports or exports of LPGs into the region temper that impact. So we've seen operating rates in North and Southeast Asia, excluding China, at about 50% versus we probably thought a quarter ago that it would be more like 0 or $25 million. So there is an impact there. And the longer the Strait stays closed, the U.S. can only partially close that gap. I hope that answers your question. Peter Z. Vanacker: Let me add, I mean, on polypropylene as well. Here, what 1 needs to take into consideration is, again, also that portfolio management that we have undertaken because especially, I mean, in Europe, with the sale that we concluded successfully in the second quarter. That means that also here, not just in polyethylene, but also in polypropylene, we have moved up let's say, or moved down actually in the cash cost curve. So our portfolio in polypropylene is more in the low-cost delivered area. In addition to that, of course, we have our NATPET joint venture in Yanbu, which has, during the conflict, very steady, very high performance, continued to run and continues to run as we speak. We continue to work on the expansion of that project. So we remain committed because we do believe that helps us in either further advancing our lowest cost delivered portfolio in polypropylene. But let me also ask Aaron, I mean to add some color in his business units. Aaron Ledet: Yes. From an I&D perspective, I'd maybe point to 2 specific areas. Methanol being the first, you heard my commentary just with the pricing peaking really in the second quarter. 20% of global methanol capacity is served out of the Middle East with 50% of that volume coming from Iran. So obviously, that is a significant impact. And while there's plenty of disruption, we don't know exactly how long it's going to take to get that capacity back online. Most of that Iranian capacity goes into China for a variety of different products, methanol to olefins or even MTBE. So we've seen that disruption. I also mentioned in my planned remarks, with Ukraine targeting Russian refining capacity, over 40% of Russian refining capacity is now off-line and we're not seeing exports of distillate out of Russia. They're the largest exporter of diesel today. And so that's impacting refinery rates and runs globally. And we pointed it out on Slide #4, we do not see that demand is getting weaker. So packaging demand continues to remain strong. Certain areas, health care, infrastructure data centers, very strong demand. And the areas where we have weak demand, it hasn't actually weakened even further. So here, I'm talking about housing and automotive, for example. Operator: The next question is from the line of Frank Mitsch with Fermium Research. Frank Mitsch: Aaron, I wanted to come back to the $250 million negative impact in 2Q from the Bayport outage. I'm assuming that's at the elevated oxyfuel margins that were in the second quarter. So I'm just trying to figure out couple of things in terms of a jumping off point as we start thinking about the third quarter in I&D. I mean if you just add that $250 million to the -- what you reported, you're around $630-ish million of EBITDA in the third quarter. Now obviously, there's movement in pricing, et cetera, although it sounded like you might be a little bit more optimistic on the side. So how should we be thinking about, a, the jumping off point for the third quarter and some of the puts and takes relative to the second in I&D? Aaron Ledet: Sure. Thanks, Frank, and I appreciate the question. Maybe a couple of things just to start. As Bayport PO/TBA was down, we ramped up Channelview POSM rates to help satisfy some of the PO demand that we were -- that was being displaced as a result of the outage. Keep in mind that POSM is a second quartile asset on the cost curve. So we displaced a first asset with a second quartile asset. So as Bayport has come back online, we reduced the rates of our POSM unit, and we are now running Bayport PO/TBA full. So that -- the TBA margins are far greater than the styrene margins. We'll see that impact in the third quarter. You can't just simply take the $250 million and add it to the second quarter for a variety of different reasons. It's tough to predict where Crude oil prices are going to go for the balance of this quarter where gas cracks are going to go for the balance of this quarter. We will, however, see improved volumes, specifically in the derivative chain from PO perspective, as well as with MTBE. Peter Z. Vanacker: And I would like to add on that, Frank, as well, a fantastic work. You remember, I mean, when we invested in Channelview in this holy grail of PO/TBA facilities, our so-called MKU units. That ran at 112% Aaron. Aaron Ledet: Yes, in Channelview, we were able to push rates. So I've mentioned in the past, we've demonstrated 108% of benchmark rates in Channelview. We've actually tested those rates and demonstrated that we can run now 112%. So that's CapEx-free capacity creep. Operator: Our next question is from the line of Matthew DeYoe with Bank of America. Matthew DeYoe: I have two. One, why does you only take operating rates to 90% in 2Q? Why not more -- and as you ramp down from 2Q to 3Q, what's the headwind to EBITDA just from operating rates? And then I could the comments on China that has burned through like 30% of its inventories. Can you give us an idea how you got to this number and your confidence in it. But candidly, I kind of would have thought it would have been more than 30%, but also, you probably can't functionally go to 0 either. So just some framework is helpful. Kimberly Foley: Okay. This is Kim. So let's start with the 30% Chinese operating rate first. or inventory pool, sorry. The inventory we get that is published is from the 2 biggest SOEs in the region and we get that inventory every 2 weeks in arrears. So when we captured that snapshot, it was about a week ago, and it was a draw of about 30%. And remember, that's coming off the high that they had coming out of Chinese New Year's. As it relates to operating rates, are you asking me about second quarter or third quarter? Could you clarify and you're talking about, correct, the Americas? Matthew DeYoe: Maybe it's hard to run the whole fleet flat out. But you just talked about Channelview running above 100, et cetera. So why weren't the rates better in the second quarter? And -- or why didn't you run them better? And as you move from 2Q, 3Q, there's a planned rate reduction. I'm just kind of wondering what the headwind is incrementally from 2Q to 3Q, just given lower operating rates. Kimberly Foley: Yes, right. So the quarter-on-quarter sequential decrease is the Clinton turnaround, which is a 70-day outage, which would include an olefins unit and a cracker, which as you heard from ourselves and from our competitors, that some of the increase in inventory in the second quarter in the U.S. system was just that. We were building inventory to support our customers' needs during these third quarter turnarounds. Peter Z. Vanacker: Crackers ran, I mean, in Q2 at full capacity. So in open, so we were running at 95%, if I remember well, of cracker capacity. Kimberly Foley: Cracker capacity, yes. Peter Z. Vanacker: So the 90% is not the cracker capacity. Kimberly Foley: Yes. Correct. Operator: Last question is from the line of John Roberts with Mizuho. John Ezekiel Roberts: I believe one of your large competitors in Europe on their call talked about all the increased industry M&A and their interest in bolt-on acquisitions. As your balance sheet improves here, is that something Lyondell might be interested in as well? Peter Z. Vanacker: John, thank you. Good question. That allows me also to lead to Agustin so that Agustin can talk about our capital allocation strategy. Agustin Izquierdo: Sure, John. Thank you very much for your question. Yes, really, our capital allocation strategy remains unchanged. Investment grade continues to be paramount and then we'll obviously focus on maintenance CapEx to run safely and reliable our dividends as well continues to be an important piece of it, then any growth CapEx. And at the end, we would look very opportunistically, there's anything on the M&A front. But priority for now is to rebuild the balance sheet, improve our credit metrics and fortify -- so I said our position as we go here through the cycle, we've had a nice deleveraging for this quarter, and we'll keep strengthening our balance sheet as we go through the year. Remember, we navigated very well, I mean, through this down cycle, net by having $3.4 billion in cash, yes, on the bank -- so you can take that number as what we are actually aspiring building up again. Operator: Thank you. I'll now turn it back to Mr. Vanacker for closing comments. Peter Z. Vanacker: Thank you again for all your thoughts for questions. The events over the past months have transformed the global landscape with the economic and logistical impact of this conflict persisting many quarters beyond the eventual end of the disruption. While volatility and uncertainty remain part of the current environment, our focus continues to be on the actions we can control. through disciplined capital allocation, active portfolio management and relentless focus on operational excellence, we're building a strong and more resilient LYB. Our LYB team demonstrated this impressively by delivering 23% EBITDA margin during the quarter clearly shows that the margin potential of the renewed LYB portfolio and lean organization set up, all our actions through our portfolio measures or a value enhancement program and our cash improvement plan results in a stronger operating leverage. You can be confident will remain focused on our strategic priorities and long-term value creation in this dynamic environment. We thank you for your questions, your interest, continued support of our company hope that you have a great and safe weekend. Stay well. Thank you. Operator: Ladies and gentlemen, you may now disconnect at this time. Thank you for your participation. Before you buy stock in LyondellBasell Industries, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and LyondellBasell Industries wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $386,727!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,232,139!* Now, it’s worth noting Stock Advisor’s total average return is 906% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 3, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. LyondellBasell (LYB) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

LyondellBasell Industries N.V. LYB used its second-quarter 2026 earnings call to emphasize that Middle East supply disruptions have reshaped petrochemical trade flows and could support margins beyond the near term. Management also framed the quarter as evidence that portfolio pruning, cost reductions and advantaged North American assets can produce stronger operating leverage when conditions improve. Chief executive officer Peter Vanacker said the Middle East disruption was unprecedented and that recovery would take quarters, not months. The company estimates about 6 million tons of polyethylene capacity, or 20% to 25% of regional supply, sustained damage and will not restart before 2027. Vanacker said inventories remain lean, leaving markets exposed to further disruptions. He also said demand stayed resilient, with packaging stable and health care and infrastructure applications showing steady growth. Adjusted earnings of $4.30 per share topped the Zacks Consensus Estimate of $3.56. Revenues of $9.18 billion exceeded the $8.9 billion estimate. Adjusted EBITDA reached $2.1 billion, with a 23% margin. LyondellBasell Industries N.V. price-consensus-eps-surprise-chart | LyondellBasell Industries N.V. Quote Executive vice president of Olefins and Polyolefins and Trading Kimberly Foley said O&P Americas EBITDA reached $1.3 billion as polyethylene pricing, co-product values and operating performance aligned favorably. North American polyethylene domestic sales volumes rose about 3.5%, the best quarterly level since the first quarter of 2022. The segment ran at about 90% utilization, while crackers operated near 95%. Foley said LYB expects resilient third-quarter demand in packaging, health care and infrastructure. The company also announced a 10-cent-per-pound polyethylene price increase for August amid continued volatility and limited inventory buffers. Management expects third-quarter operating rates of about 85% in North American O&P, 70% in European O&P and 85% in Intermediates and Derivatives. Foley tied the North American reduction to planned maintenance at Clinton and Lake Charles. In Europe, she cited summer seasonality and low Rhine water levels. Executive vice president of Intermediates and Derivatives and Enterprise Services Aaron Ledet said the Bayport PO/TBA restart should improve I&D volumes. The second-quarter outage reduced EBITDA by about $250 million, but management cautioned against simply adding that amount back because crude prices and gasoline cracks remain variable. Vanacker highlighted the completed divestiture of four European O&P assets and the planned Brindisi closure as central to improving portfolio quality. He said roughly 80% of global ethylene capacity is now connected to advantaged feedstocks. The remaining European footprint is centered on integrated assets and higher-value applications. Chief financial officer Agustin Izquierdo said LYB remains on track to generate $500 million of incremental cash flow by year-end 2026 through fixed-cost reductions and lower capital spending. The company has reduced headcount by about 3,400 employees, or 17%, since the start of 2025. A Deutsche Bank analyst challenged the outlook for July polyethylene pricing. Foley said export prices and volumes had strengthened, China was returning to imports and supply risks remained elevated, supporting flat or higher settlements through the quarter. A Citi analyst asked whether China could raise production quickly enough to reduce import needs. Vanacker said China adapted faster than expected through coal-to-olefins output and inventory drawdowns, but he did not view that pattern as sustainable. A UBS analyst asked how much of Americas margin expansion was structural. Vanacker pointed to lower SG&A and fixed costs, while Foley cited stronger volumes, higher olefins pricing and lower ethane and natural gas costs. Izquierdo said investment-grade credit metrics, maintenance spending and the dividend remain the first capital allocation priorities. Growth spending will stay selective, and M&A will be considered only opportunistically. Management emphasized portfolio quality and cost progress while maintaining caution on pricing volatility, maintenance downtime and the pace of supply normalization. LYB carries a Zacks Rank #3 (Hold). It has a Value, Growth and VGM Score of A each, indicating favorable characteristics across those styles, while the Momentum Score of D points to weaker near-term price-trend support. The combination is mixed rather than the strongest Zacks setup, which the education framework associates with Zacks Rank #1 (Strong Buy) or #2 (Buy) stocks paired with A or B Style Scores. The Zacks Rank can change as analysts revise estimates after the reported results. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

LyondellBasell Industries N.V. recently reported past second-quarter 2026 results, with revenue rising to US$9,177 million and net income to US$558 million, alongside materially higher earnings per share versus a year earlier. The company’s margin improvement was helped by supply disruptions in Middle Eastern polyethylene capacity, allowing LyondellBasell to benefit from tighter markets while it continued portfolio streamlining and cost-cutting efforts. We’ll now examine how this sharp earnings rebound, supported by tighter petrochemical supply, affects LyondellBasell’s existing investment narrative. This technology could replace computers: discover 26 stocks that are working to make quantum computing a reality. To own LyondellBasell, you generally need to believe that a cyclical, commodity-heavy chemicals business can still generate solid cash flows through disciplined cost control and portfolio pruning. The Q2 2026 earnings rebound, helped by tighter polyethylene supply, clearly supports the near term margin recovery story, but it also highlights how dependent results are on external supply shocks. The biggest current risk remains that this pricing strength fades if global petrochemical overcapacity reasserts itself. Among recent announcements, the company’s decision to divest four European assets and progress toward closing the Brindisi site stands out in light of the Q2 results. The stronger margins give LyondellBasell more room to keep reshaping its asset base toward lower cost operations, which ties directly into the key catalyst of improving structural profitability rather than relying on temporary supply disruptions. How successfully that shift offsets future cycles could be crucial for long term shareholders. Yet even with today’s stronger earnings, investors should be aware that LyondellBasell’s exposure to a potentially prolonged oversupply cycle in global chemicals could... Read the full narrative on LyondellBasell Industries (it's free!) LyondellBasell Industries’ narrative projects $31.2 billion revenue and $1.8 billion earnings by 2029. Uncover how LyondellBasell Industries' forecasts yield a $75.82 fair value, a 22% upside to its current price. Before this earnings surprise, the most pessimistic analysts were assuming roughly flat revenue around US$29.6 billion and only about US$1.9 billion of earnings by 2029, which contrasts sharply with the current tight supply driven margin strength and shows how widely views can differ, so it is worth looking at several perspectives to see whether this quarter nudges your own expectations closer to or further from that bearish path. Explore 7 other fair value estimates on LyondellBasell Industries - why the stock might be worth over 2x more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your LyondellBasell Industries research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. Our free LyondellBasell Industries research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate LyondellBasell Industries' overall financial health at a glance. Early movers are already taking notice. See the stocks they're targeting before they've flown the coop: AI is about to change healthcare. These 41 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. We've uncovered the 9 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LYB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

LyondellBasell Industries N.V. LYB reported second-quarter 2026 net income of $559 million, or $1.71 per share, up sharply from $115 million or 34 cents per share reported in the year-ago quarter. Barring one-time items, LyondellBasell posted adjusted earnings of $4.30 per share, up from the year-ago quarter’s earnings of 62 cents. The figure beat the Zacks Consensus Estimate of $3.56. The company’s net sales in the reported quarter were $9.18 billion, up from $7.66 billion in the year-ago quarter. The figure also surpassed the Zacks Consensus Estimate of $8.9 billion by 3.1%. LyondellBasell benefited from improved market conditions during the quarter, as global supply disruptions supported margin expansion across its businesses. Higher operating rates, disciplined commercial execution and stronger polymer spreads drove results, while portfolio optimization through the divestiture of select European assets and continued progress under the Cash Improvement Plan strengthened its cost position. LyondellBasell Industries N.V. price-consensus-eps-surprise-chart | LyondellBasell Industries N.V. Quote The Olefins & Polyolefins — Americas segment generated revenues of $3.52 billion, up around 18.7% year over year. The figure beat the consensus estimate of $3.46 billion. Results improved on expanding polymer margins, favorable co-product pricing from tighter global supply and approximately 90% operating rates at the company's North American assets. Olefins & Polyolefins — Europe, Asia and International revenues increased around 17.4% year over year to $2.96 billion. The figure missed the consensus estimate of $3.24 billion. The segment benefited from improved polymer spreads driven by supply-chain disruptions and stronger joint venture contributions. In the Intermediates and Derivatives (I&D) segment, sales were $2.75 billion, up roughly 14.8% year over year, exceeding the consensus estimate of $2.61 billion. Earnings improved on stronger oxyfuels, methanol and PO derivatives margins, partly offset by the unplanned Bayport PO/TBA outage. The Bayport facility was restarted in June and exited the quarter at full operating rates. The Advanced Polymer Solutions segment’s revenues were $1.01 billion, increasing around 8.6% year over year and topping the consensus estimate of $973 million. The Technology segment’s revenues were $167 million, surging around 40.3% year over year and beating the consensus estimate of $163 million. LyondellBasell ended the quarter with $2.63 billion in cash and cash equivalents and total available liquidity of $7.1 billion. During the quarter, it generated $752 million in cash from operating activities, spent $270 million on capital expenditures and returned $224 million to shareholders through dividends. LyondellBasell expects geopolitical tensions in the Middle East to keep energy and petrochemical markets volatile, with uncertainty surrounding the timing of supply normalization potentially extending into 2027. The company anticipates volume gains from the restart of the Bayport PO/TBA facility, although planned maintenance at the Clinton facility will weigh on polyolefins volumes in the second half. Management remains focused on commercial agility, disciplined capital allocation and executing its Cash Improvement Plan while strengthening the balance sheet through continued deleveraging. LYB's shares are up 13.1% in the past year compared with the Zacks Chemicals Diversified industry’s 8.1% rise. Image Source: Zacks Investment Research LYB currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Basic Materials space are The Chemours Company CC, Neo Performance Materials Inc. NOPMF and Lundin Mining Corporation LUNMF. Chemours is scheduled to report second-quarter results on Aug. 4. The Zacks Consensus Estimate for CC’s second-quarter earnings is pegged at 43 cents per share. It carries a Zacks Rank #2 (Buy) at present. NOPMF is slated to report second-quarter results on Aug. 11. The Zacks Consensus Estimate for earnings is pegged at 5 cents per share. NOPMF has a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Lundin Mining is scheduled to report second-quarter results on Aug. 5. The Zacks Consensus Estimate for LUNMF’s second-quarter earnings is pegged at 34 cents per share. It currently carries a Zacks Rank #2. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report The Chemours Company (CC) : Free Stock Analysis Report Lundin Mining Corp. (LUNMF) : Free Stock Analysis Report Neo Performance Materials Inc. (NOPMF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Earnings per Diluted Share: $4.30 in the second quarter. EBITDA: $2.1 billion, more than tripled sequentially. EBITDA Margin: 23%. Cash Balance: $2.6 billion at quarter end. Available Liquidity: $7.1 billion at quarter end. Cash from Operating Activities: $752 million in the second quarter. Capital Investments: $270 million funded in the second quarter. Dividends Returned to Shareholders: $224 million in the second quarter. Olefins & Polyolefins (O&P) Americas EBITDA: $1.3 billion, approximately 4x higher than the same quarter last year. O&P Europe, Asia, and International EBITDA: $331 million, a $337 million increase over the first quarter. Intermediates & Derivatives (I&D) EBITDA: $386 million, increased sequentially. Advanced Polymer Solutions (APS) EBITDA: $78 million in the second quarter. Technology Segment EBITDA: $74 million in the second quarter. Warning! GuruFocus has detected 7 Warning Signs with LYB. Is LYB fairly valued? Test your thesis with our free DCF calculator. Release Date: July 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. LyondellBasell Industries NV (NYSE:LYB) delivered an impressive 23% EBITDA margin in Q2 2026, with EBITDA of $2.1 billion, more than tripling sequentially. The company completed the divestiture of four European assets and plans to close its Brindisi site, reshaping its portfolio toward more advantaged assets and improving cost position. Strong operational performance in O&P Americas, with EBITDA of $1.3 billion (4x higher year-over-year), driven by record polyethylene price increases and high operating rates (crackers at ~95%). The Bayport PO/TBA asset successfully restarted in June, positioning the company to capture improved market opportunities and full integrated value chain benefits in Q3. The company's cash improvement plan is on track to achieve $500 million in incremental cash flow by end of 2026, with headcount reduced by 17% and SG&A costs declining. Resilient demand across key end markets (packaging, health care, infrastructure) and strong oxyfuel margins due to elevated gasoline crack spreads and feedstock advantages. Portfolio transformation has increased concentration on cost-advantaged feedstocks, with 80% of global ethylene capacity now connected to advantaged feedstocks, supporting higher through-cycle margins. The Middle East conflict has caused unprecedented supply disruptions, with ~6 million tons of polyethylene capacity damaged and not expected to restart until at least 2027, creating ongoing market volatility. Unplanned downtime at the Bayport PO/TBA asset had an estimated EBITDA impact of approximately $250 million in Q2, reducing overall I&D operating rates to ~65%. Third-quarter operating rates are projected to decline to ~85% in O&P Americas due to planned maintenance at Clinton and Lake Charles facilities, and to ~70% in O&P Europe/Asia due to seasonality and low Rhine water levels. The company faces ongoing challenges from low Rhine water levels in Europe, which could further impact operating rates and logistics. Technology segment EBITDA is expected to moderate in Q3 due to normalized catalyst demand and almost nonexistent new licensing opportunities amid slower global polyolefins capacity growth. Demand in housing and automotive remains subdued, and APS faces higher raw material costs and typical seasonal downturns in automotive OEMs. The company is prioritizing balance sheet rebuilding over M&A, with a focus on maintaining investment-grade credit metrics, which may limit near-term growth opportunities. Q: On polyethylene, consultants are calling for a $0.10 decline in July. Do you dispute that forecast, and why? A: Peter Vanacker (CEO) noted that normalization is not a straight line, with the conflict in the Middle East continuing to cause volatility and prices reacting to the ongoing situation. Kimberly Foley (EVP, Global Olefins & Polyolefins) added that July has seen increased export pricing and volumes globally, higher crude prices, and a lack of Chinese exports. She highlighted potential supply constraints from low Rhine water levels and hurricane season, suggesting price settlements could be flat or move up. Q: Can you update us on the status of MoReTec 1 and your acetyl assets in the United States? A: Peter Vanacker (CEO) stated that MoReTec 1 in Wesseling is progressing as planned with start-up expected towards the end of 2027, and the vast majority of its capacity is already presold. He noted that the value captured is higher than initially anticipated. Aaron Ledet (EVP, Intermediates and Derivatives) explained that the acetyls business is experiencing reliability issues in the syngas unit affecting acid and VAM production at La Porte, but the methanol business is running beyond benchmark rates, benefiting from elevated prices. Q: Can you help decompose the Americas Olefins margin improvement between cost savings, co-products, and what is structural versus temporary? A: Peter Vanacker (CEO) attributed the improvement to the cash improvement plan, noting a 30% reduction in management structure. Kimberly Foley (EVP, Global Olefins & Polyolefins) highlighted a "perfect alignment" of factors: volumes were up, ethylene and propylene prices were up, while ethane and natural gas costs were down, resulting in a 36% EBITDA margin for the segment. Q: What is the impact of the Middle East conflict on other parts of the portfolio, such as the propylene chain? A: Kimberly Foley (EVP, Global Olefins & Polyolefins) explained that while LPG exports from the Middle East to Asia have been impacted, US exports have tempered the effect, with operating rates in North and Southeast Asia at about 50%. Peter Vanacker (CEO) added that the portfolio rationalization has moved LYB's polypropylene assets down the cost curve, and the NATPET JV in Saudi Arabia has performed steadily. Aaron Ledet (EVP, I&D) noted that 20% of global methanol capacity is in the Middle East, with significant disruption impacting supply. Q: Regarding the $250 million negative impact from the Bayport outage, how should we think about the jumping-off point for Q3 in I&D? A: Aaron Ledet (EVP, Intermediates and Derivatives) explained that you cannot simply add the $250 million back, as the company had ramped up its second-quartile POSM unit to compensate. With Bayport back online, they are running the higher-margin PO/TBA unit at full rates and reducing POSM rates. He noted improved volumes in the derivative chain but cautioned that predicting crude oil prices and gas cracks for the quarter is difficult. Q: Why did you only take operating rates to 90% in Q2, and what is the headwind from lower operating rates in Q3? A: Kimberly Foley (EVP, Global Olefins & Polyolefins) clarified that crackers ran at approximately 95% capacity in Q2, and the 90% segment rate reflects the overall asset base. The sequential decrease to 85% in Q3 is primarily due to planned maintenance turnarounds at the Clinton (70-day outage) and Lake Charles facilities. She noted that inventory was built in Q2 to support customers during these turnarounds. Q: With the balance sheet improving, is LyondellBasell interested in bolt-on acquisitions? A: Agustin Izquierdo (CFO) stated that the capital allocation strategy remains unchanged, with investment grade being paramount. Priorities include maintenance CapEx, dividends, and growth CapEx. He noted that M&A would be considered opportunistically, but the current priority is to rebuild the balance sheet and improve credit metrics, aiming to build cash back up to the $3.4 billion level held previously. Q: Do you expect higher prices to be met with higher operating rates in China, and is there a risk of demand destruction? A: Peter Vanacker (CEO) explained that China surprised the market by decoupling chemical production from Middle Eastern oil volatility, using high inventories and increasing coal-to-olefins production. He noted that China's ability to increase exports and reduce apparent consumption is temporary, as inventories have been drawn down by roughly 30%. He sees indications that China is returning to the market as an importer, which could increase pressure on naphtha-based producers to consolidate. Q: Can you provide details on the feedstock mix flexibility and co-product opportunities? A: Kimberly Foley (EVP, Global Olefins & Polyolefins) explained that in a rising crude environment, co-product credits from propylene, butadiene, and other fuel components increase. The company has added flexibility to its naphtha crackers at Channelview and is optimizing feedstock mix to capture these attractive co-product values. Q: How did you arrive at the 30% inventory drawdown figure for China, and what is your confidence in it? A: Kimberly Foley (EVP, Global Olefins & Polyolefins) stated that the inventory data is published by the two largest SOEs in the region and is received every two weeks in arrears. The snapshot, taken about a week prior, showed a draw of about 30% from the high coming out of Chinese New Year. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a 23% EBITDA margin in Q2, demonstrating strong operating leverage from the value enhancement program and cash improvement plan during favorable market conditions. Global petrochemical market disruptions from the Middle East conflict significantly improved earnings by impacting feedstock availability, logistics, and trade flows. The scale of supply loss is unprecedented, with approximately 20% to 25% of Middle East polyethylene capacity estimated to be damaged and unlikely to restart until at least 2027. China's unexpected increase in exports and reduction in imports during Q2. led to a 30% decline in local polyethylene inventories, suggesting a near-term need for import replenishment. Portfolio transformation reached a milestone with the divestiture of four European assets, focusing the footprint on high-value, integrated, and cost-advantaged sites. Management attributes performance to a more focused portfolio where 80% of global ethylene capacity is now connected to cost-advantaged feedstocks. Underlying demand remains resilient in packaging, healthcare, and infrastructure, while housing and automotive sectors remain stable but subdued. Market normalization is expected to be a long process extending beyond 2024, with recovery timelines measured in quarters rather than months. Third quarter operating rates are projected at 85% for O&P Americas and 70% for O&P Europe, reflecting planned maintenance and seasonal demand softening. Management expects pricing to remain above pre-conflict levels due to limited global inventory buffers and the risk of further Middle East setbacks. The cash improvement plan is on track to deliver $500 million in incremental annual cash flow by the end of 2026, primarily through fixed cost and CapEx reductions. Guidance for the Technology segment assumes a moderation in Q3 EBITDA as catalyst demand normalizes and new licensing opportunities remain scarce. Unplanned downtime at the Bayport PO/TBA asset resulted in an estimated $250 million EBITDA headwind during the second quarter. Headcount has been reduced by approximately 3,400 employees (17% of the workforce) since early 2023 due to portfolio streamlining and organizational changes. The divestiture of European assets is expected to decrease sustaining CapEx by approximately $100 million annually. Low water levels on the Rhine River present a potential risk to European operating rates in the third quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management disputes consultant forecasts of a $0.10 decline in July, citing rising export pricing, higher crude costs, and low global inventories. The company announced a $0.10 per pound price increase for polyethylene in August to capture dynamic market conditions. China's ability to decouple from Middle Eastern oil volatility via coal-to-olefins (CTO) and inventory drawdowns surprised the industry in Q2. Management believes the inventory drawdown is unsustainable and expects China to return to the market as a net importer shortly. The Bayport asset successfully returned to full rates in June, allowing the company to capture high seasonal gasoline crack spreads. Profitability is driven by the butane-to-Brent spread, with a $1 per barrel change in crude oil impacting annualized earnings by $20 million. Priorities remain maintaining an investment-grade balance sheet, funding dividends, and rebuilding cash reserves to a target of $3.4 billion. Management indicated they will look at M&A only opportunistically after fortifying the balance sheet.

For the quarter ended June 2026, LyondellBasell (LYB) reported revenue of $9.18 billion, up 19.8% over the same period last year. EPS came in at $4.30, compared to $0.62 in the year-ago quarter. The reported revenue represents a surprise of +3.11% over the Zacks Consensus Estimate of $8.9 billion. With the consensus EPS estimate being $3.56, the EPS surprise was +20.79%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how LyondellBasell performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- Advanced Polymer Solutions: $1.01 billion versus the three-analyst average estimate of $972.66 million. The reported number represents a year-over-year change of +10.1%. Revenues- Olefins and Polyolefins- Americas: $3.52 billion versus the three-analyst average estimate of $3.46 billion. The reported number represents a year-over-year change of +48.1%. Revenues- Other/Eliminations: $-1.22 billion versus the three-analyst average estimate of $-713.44 million. The reported number represents a year-over-year change of +62.6%. Revenues- Intermediates & Derivatives: $2.75 billion compared to the $2.61 billion average estimate based on three analysts. The reported number represents a change of +20.8% year over year. Revenues- Technology: $167 million versus the three-analyst average estimate of $162.69 million. The reported number represents a year-over-year change of +21.9%. Revenues- Olefins and Polyolefins- Europe, Asia, International: $2.96 billion compared to the $3.24 billion average estimate based on three analysts. The reported number represents a change of +9.3% year over year. EBITDA- Olefins & Polyolefins- Americas: $1.18 billion compared to the $1.21 billion average estimate based on three analysts. EBITDA- Olefins & Polyolefins- Europe, Asia, International: $-432 million compared to the $214.09 million average estimate based on three analysts. EBITDA- Advanced Polymer Solutions: $77 million versus $46 million estimated by three analysts on average. EBITDA- Technology: $73 million versus the three-analyst average estimate of $72.66 million. EBITDA- Intermediates & Derivatives: $377 million compared to the $339.89 million average estimate based on three analysts. View all Key Company Metrics for LyondellBasell here>>> Shares of LyondellBasell have returned +13.3% over the past month versus the Zacks S&P 500 composite's -0.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LyondellBasell Industries N.V. (LYB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Net income: $0.6 billion, $1.4 billion excluding identified items1 Diluted earnings per share: $1.71 per share; $4.30 per share excluding identified items EBITDA: $1.3 billion, $2.1 billion excluding identified items Strengthened the portfolio through the divestiture of select European assets, structurally improving the cost position and aligning the company's European footprint to its strategy Continued to deliver meaningful fixed-cost reductions and lower capital expenditures through the Cash Improvement Plan Capitalized on improved market conditions through disciplined commercial execution HOUSTON and LONDON, July 31, 2026 (GLOBE NEWSWIRE) -- LyondellBasell Industries (NYSE: LYB) (the "company") today announced results for the second quarter 2026. Comparisons with the prior quarter and second quarter 2025 are available in the following table: Table 1 - Earnings Summary Excluding Identified Items1 (1) See “Information Related to Financial Measures” for a discussion of the company’s use of non-GAAP financial measures and Tables 2-4 for reconciliations or calculations of these financial measures. “Identified items” include adjustments for lower of cost or market ("LCM"), gain or loss on sale of business, asset write-downs in excess of $10 million in aggregate for the period, Cash Improvement Plan costs, site closure costs, European transaction costs, net of transition service agreement income, and discontinued operations. “In a dynamic macroeconomic environment, we delivered exceptional results through deliberate commercial actions, the strength of our advantaged portfolio and improved market conditions supporting margin expansion,” said Peter Vanacker, LYB chief executive officer. “We responded quickly to the global supply disruption by increasing operating rates to serve our customers, demonstrating the flexibility and resilience of our global asset base and supply chain. We also took decisive actions with the divestment of select European assets and continued progress on our Cash Improvement Plan. These actions are repositioning LYB with a structurally lower cost base providing improved margins and enhanced cash generation. We continue to prioritize safety, reliability, cost discipline and capital allocation to deliver sustainable value for our shareholders.” SECOND QUARTER 2026 RESULTSThe company reported net income for the second quarter 2026 of $559 million, or $1.71 per diluted share. During the quarter, the company recognized $842 million of identified items, net of tax. These items, which impacted second quarter earnings by $2.59 per diluted share, included the loss on sale from the divestiture of select European assets and a write down related to an Olefins & Polyolefins (O&P) – Americas joint venture. Second quarter 2026 EBITDA was $1.3 billion, or $2.1 billion excluding identified items. In the second quarter, geopolitical instability resulted in dynamic and supply-constrained market conditions across all business segments. In the O&P – Americas segment, results substantially improved relative to the prior quarter on expanding polymer margins and favorable co-product pricing due to tighter global market supply. The company operated its advantaged North American assets at approximately 90% utilization capitalizing on favorable market conditions. O&P – Europe, Asia and International also benefited from improved polymer spreads driven by supply chain disruptions and stronger joint venture contributions. Intermediates and Derivatives (I&D) delivered higher earnings driven by improving oxyfuels, methanol and PO derivatives margins partially offset by the Bayport PO/TBA unplanned outage during the quarter. Bayport was successfully restarted in June, exiting the quarter at full operating rates and positioning the business for improved volume performance in the second half of the year. LYB generated $752 million in cash from operating activities during the second quarter. Working capital was a use of cash during the quarter given higher prices and increased operating rates to capture favorable market opportunities caused by global supply disruptions. The second quarter included a $310 million cash contribution in connection with the completion of the European asset divestiture, as expected. Capital allocation was balanced between capital expenditures of $270 million and $224 million of shareholder returns through dividends. At the end of the quarter, LYB held $2.6 billion in cash and cash equivalents and $7.1 billion in available liquidity. STRATEGY HIGHLIGHTSLYB reached an important milestone in its portfolio transformation with the completion of the divestiture of four European assets during the second quarter. This demonstrates the company's continued progress to Grow and Upgrade the Core as part of its three-pillar strategy. The company is now better positioned with increased resilience and greater flexibility to navigate the cycle and capture market upside by increasing the proportion of its assets connected to advantaged feedstocks. LYB remains focused on strengthening its balance sheet through disciplined and balanced capital allocation and strong cash generation. The company is on target to deliver $500 million incremental cash through its Cash Improvement Plan by the end of 2026, driven primarily by fixed-cost reductions and lower capital expenditures. OUTLOOKAs shown in recent weeks, conditions in the Middle East remain fluid, and we expect this to continue to be a source of volatility for energy and petrochemical value chains. The pace, timing and magnitude at which conflict-impacted supply will return to the market remains uncertain with the recovery period likely extending into 2027. While we do not anticipate material demand deterioration in our key end markets, uncertainty on the near-term price outlook could temporarily impact normal buying patterns. The restart of Bayport PO/TBA should provide volume uplift in the I&D segment, while planned downtime at the Clinton facility will impact polyolefins volumes in the second half of the year. To align with global demand and the company's planned maintenance, LYB expects third quarter operating rates of 85% for North American O&P assets, 70% for European O&P assets and 85% for I&D assets. LYB remains focused on commercial and operational agility in this dynamic market while continuing to execute the Cash Improvement Plan. The company's capital allocation priorities remain unchanged: safely operate and maintain assets, strengthen the balance sheet though disciplined deleveraging including the scheduled note maturity repayment in September, maintain an attractive dividend and invest selectively in opportunities that enhance long-term shareholder value. CONFERENCE CALLLYB will host a conference call July 31 at 11 a.m. ET. Participants on the call will include Chief Executive Officer Peter Vanacker, Executive Vice President and Chief Financial Officer Agustin Izquierdo, Executive Vice President of Global Olefins and Polyolefins Kim Foley, Executive Vice President of Intermediates and Derivatives Aaron Ledet, Executive Vice President of Advanced Polymer Solutions Torkel Rhenman and Head of Investor Relations David Dennison. For event access, the toll-free dial-in number is 1-877-407-8029, international dial-in number is 201-689-8029 or click the CallMe link. The slides and webcast that accompany the call will be available at investors.lyondellbasell.com/earnings. A replay of the call will be available from 1:00 p.m. ET July 31 until August 31, 2026. The replay toll-free dial-in numbers are 1-877-407-8029 and 201-689-8029. The access ID for each is 13746218. ABOUT LYONDELLBASELLWe are LyondellBasell (NYSE: LYB) – a leader in the global chemical industry creating solutions for everyday sustainable living. Through advanced technology and focused investments, we are enabling a circular and low carbon economy. Across all we do, we aim to unlock value for our customers, investors and society. As one of the world's largest producers of polymers and a leader in polyolefin technologies, we develop, manufacture and market high-quality and innovative products for applications ranging from sustainable transportation and food safety to clean water and quality healthcare. For more information, please visit www.LyondellBasell.com or follow @LyondellBasell on LinkedIn. FORWARD-LOOKING STATEMENTSThe statements in this release relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management of LyondellBasell which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. When used in this release, the words “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Actual results could differ materially based on factors including, but not limited to, market conditions, including the prolonged industry downturn, the business cyclicality of the chemical and polymers industries; the availability, cost and price volatility of raw materials and utilities, particularly the cost of oil, natural gas, and associated natural gas liquids; our ability to successfully implement initiatives identified pursuant to our Value Enhancement Program and generate anticipated earnings; competitive product and pricing pressures; labor conditions; our ability to attract and retain key personnel; operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, supplier disruptions, labor shortages, strikes, work stoppages or other labor difficulties, transportation interruptions, spills and releases and other environmental risks); the supply/demand balances for our and our joint ventures’ products; industry production capacities, operating rates, and the pace of global capacity rationalizations; the impacts and scope of the global supply disruption resulting from the conflict in Ukraine and the Middle East; our ability to manage costs; future financial and operating results; our ability to complete capital projects on time and on budget and successfully operate the asset; our ability to align our assets and grow and upgrade our core; our ability to reduce our fixed costs and increase cash flow; legal and environmental proceedings; tax rulings and related consequences or proceedings; the impacts of tariffs and trade disruptions; technological developments, and our ability to develop new products and process technologies; our ability to meet our sustainability goals, including the ability to operate safely, increase production of recycled and renewable-based polymers to meet our targets and forecasts, and reduce our emissions and achieve net zero emissions by the time set in our goals; our ability to procure energy from renewable sources; our ability to build a profitable Circular & Low Carbon Solutions business; our ability to improve the business performance of our Advanced Polymers Solutions segment and its ability to secure new customers; potential governmental regulatory actions; political unrest and terrorist acts; risks and uncertainties posed by international operations, including foreign currency fluctuations; our ability to maintain our investment-grade credit rating and execute our capital allocation strategy, including our ability to pay dividends; and our ability to comply with debt covenants and to repay our debt. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the “Risk Factors” section of our Form 10-K for the year ended December 31, 2025, which can be found at www.LyondellBasell.com on the Investors page and on the Securities and Exchange Commission’s website at www.sec.gov. There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Forward-looking statements speak only as of the date they were made and are based on the estimates and opinions of management of LyondellBasell at the time the statements are made. LyondellBasell does not assume any obligation to update forward-looking statements should circumstances or management’s estimates or opinions change, except as required by law. INFORMATION RELATED TO FINANCIAL MEASURESThis release makes reference to certain non-GAAP financial measures as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We report our financial results in accordance with U.S. generally accepted accounting principles ("GAAP"), but believe that certain non-GAAP financial measures, such as EBITDA, and EBITDA, net income and diluted EPS exclusive of identified items provide useful supplemental information to investors regarding the underlying business trends and performance of the company's ongoing operations and are useful for period-over-period comparisons of such operations. Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP. We calculate EBITDA as net income (loss) plus interest expense, net, provision for (benefit from) income taxes, and depreciation and amortization. EBITDA should not be considered an alternative to profit or operating profit for any period as an indicator of our performance, or as an alternative to operating cash flows as a measure of our liquidity. We also present EBITDA, net income and diluted EPS exclusive of identified items. Identified items include adjustments for lower of cost or market (“LCM”), gain or loss on sale of business, asset write-downs in excess of $10 million in aggregate for the period, Cash Improvement Plan costs, site closure costs, European transaction costs, net of transition service agreement income, and discontinued operations. Asset write-downs include impairments of goodwill and impairments of long-lived assets. Our inventories are stated at the lower of cost or market. Cost is determined using the last-in, first-out (“LIFO”) inventory valuation methodology, which means that the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs. Fluctuation in the prices of crude oil, natural gas and correlated products from period to period may result in the recognition of charges to adjust the value of inventory to the lower of cost or market in periods of falling prices and the reversal of those charges in subsequent interim periods, within the same fiscal year as the charge, as market prices recover. A gain or loss on sale of a business is calculated as the consideration received from the sale less its carrying value. We evaluate property, plant and equipment and definite-lived intangible assets whenever impairment indicators are present. If it is determined that an asset or asset group’s undiscounted future cash flows will not be sufficient to recover the carrying amount, an impairment charge is recognized to write the asset down to its estimated fair value. Goodwill is tested for impairment annually in the fourth quarter or whenever events or changes in circumstances indicate that the fair value of a reporting unit with goodwill is below its carrying amount. If it is determined that the carrying value of the reporting unit including goodwill exceeds its fair value, an impairment charge is recognized. We assess our equity investments for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. If the decline in value is considered to be other than temporary the investment is written down to its estimated fair value. Valuation allowances are provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. In June 2025, we announced the divestiture of select olefins and polyolefins assets and the associated businesses in Europe, in May 2026 we completed the divestiture. In connection with the divestiture we recognized selling expenses, separation costs and employee-related charges (collectively referred to as "European transaction costs"), income from the transition service agreement and loss on sale of business. In April 2025, the company announced the Cash Improvement Plan, focused on strengthening financial performance, which resulted in employee-related charges across all segments. In March 2025, we announced the permanent closure of our Dutch PO joint venture asset, resulting in the recognition of shutdown-related charges in our Intermediates & Derivatives ("I&D") segment. Additionally, we recognized shutdown and employee-related charges related to sites in our Advanced Polymer Solutions ("APS") and Olefins & Polyolefins – Europe, Asia, International ("O&P-EAI") segments. In February 2025, we ceased business operations at our Houston refinery. Accordingly, our refining business, previously disclosed as the Refining segment, is reported as a discontinued operation. These non-GAAP financial measures as presented herein, may not be comparable to similarly titled measures reported by other companies due to differences in the way the measures are calculated. In addition, we include calculations for certain other financial measures to facilitate understanding. This release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law. Additional operating and financial information may be found on our website at investors.lyondellbasell.com. Source: LyondellBasell Industries Investor Contact: David Dennison +1 713-309-4987Media Contact: Barrie Lee +1 713-309-7575 (a) In May 2026, we disposed of select European O&P assets and the associated businesses, resulting in the recognition of a loss in our O&P-EAI segment.(b) Includes asset write-downs in excess of $10 million in aggregate for the period. For the six months ended June 30, 2026, we recognized non-cash asset write-downs of $89 million, including a $74 million impairment charge recognized in the second quarter related to a plastic waste sorting facility in Houston, Texas, within our Olefins & Polyolefins – Americas segment and $15 million related to property, plant and equipment ("PP&E") in the O&P-EAI segment. For the six months ended June 30, 2025, we recognized non-cash impairments charges of $32 million, related to PP&E associated with the European assets classified as held for sale within our O&P EAI segment.(c) In April 2025, the company announced the Cash Improvement Plan, focused on strengthening financial performance, which resulted in employee-related charges across all segments.(d) For the six months ended June 30, 2026, we recognized site closure costs of $34 million, including $31 million of employee-related charges associated with the planned closure of our polypropylene asset in Brindisi, Italy, within our O&P-EAI segment. In March 2025, we announced the permanent closure of our Dutch PO joint venture asset, which resulted in shutdown-related charges of $117 million for the six months ended June 30, 2025, within our I&D segment. (e) In June 2025, we announced plans to sell select European olefins and polyolefins assets and the associated businesses, resulting in selling expenses, separation costs and employee-related charges in our O&P-EAI segment. Transition service agreement income was $8 million, for the three and six months ended June 30, 2026. (a) Includes asset write-downs in excess of $10 million in aggregate for the period.