LyondellBasell Industries (LYB) Bank of America 2026 Global Agriculture and Materials Conference summary

Financial performance and capital allocation

• Achieved $2.3 billion in cash from operations and $2.5 billion EBITDA (excluding identified items) in 2025, with a 95% cash conversion rate despite a net loss of $0.7 billion.

• Maintained strong cash conversion through the cycle, with available liquidity of $8.1 billion and net debt to EBITDA (ex. identified items) at 3.7x by year-end 2025.

• Issued $1.5 billion in debt to pre-finance maturities through 2027, resulting in no further maturities until 2030.

• Reduced dividend by 50% to $0.69 per share, enhancing financial flexibility while maintaining an attractive yield of 4.9%.

• Committed to returning 70% of free cash flow to shareholders over the cycle through dividends and share repurchases.

Market outlook and industry trends

• Polyethylene inventories are below 2025 averages, supporting price increases; seasonal demand improvement expected in North America and Europe.

• Global rationalization of capacity continues, with 23 million metric tons of closures announced since 2020, especially in Asia and Europe.

• Market conditions are stabilizing with tightening inventories, capacity rationalization, and increased manufacturing activity supporting a constructive outlook.

• North American polyolefins see good demand and price increases, while Europe faces import pressure and Asia contends with new capacity but shows optimism for rationalization.

• Durable and non-durable goods demand remains stable, with U.S. manufacturing expanding for the first time in a year.

Operational discipline and portfolio management

• Maintains disciplined operating rates, prioritizing cash generation and value over volume, adjusting production to match demand.

• Portfolio optimization includes asset sales, refinery shutdowns, and European divestitures; remaining monetization opportunities are limited.

• APS business turnaround underway, with significant site closures, margin improvements, and a goal to reach $500 million EBITDA.

• Cost structure improvements include workforce reductions and transition to shared service centers; further cost optimization expected.

• Ceased operations at the Houston refinery in February 2025, with the segment now reported as discontinued operations.