LyondellBasell Industries (LYB) Q1 2026 earnings summary

Executive summary

• First quarter 2026 results improved sequentially and year-over-year, with net income of $125 million ($163 million excluding identified items) and EBITDA of $568 million ($615 million excluding identified items), driven by higher margins, operational discipline, and portfolio transformation, including the sale of four European assets.

• Portfolio transformation advanced with the sale of four European assets and cessation of refining operations, enhancing future footprint and resilience.

• Cost-advantaged production, operational excellence, and value-enhancing initiatives supported performance amid global supply disruptions from the Middle East conflict.

• Maintained a strong safety record, with injury rates in the top decile of the industry.

• Continued focus on reducing fixed costs, disciplined capital spending, and proactive working capital management to support cash improvement.

Financial highlights

• Q1 2026 EBITDA was $568 million ($615 million excluding identified items), with net income of $125 million ($163 million excluding identified items), and diluted EPS of $0.38 ($0.49 excluding identified items).

• Sales and operating revenues were $7.2 billion, down 6% year-over-year but up 1% sequentially.

• Cash and cash equivalents at quarter-end were $2.6 billion, with total liquidity of $7.3 billion.

• EBITDA-to-cash conversion over the past 12 months was 111%, exceeding the 80% long-term target.

• $269 million invested in capital projects and $224 million returned to shareholders via dividends.

Outlook and guidance

• Expect significant sequential improvement in Q2 2026, with higher prices and operating rates, especially in North America and Europe, due to ongoing global supply tightness and Middle East disruptions.

• Announced substantial price increases for polyethylene and polypropylene in April and May, with strong order books.

• European asset sale expected to improve average margins and reduce costs, with increased polymer spreads offsetting lower volumes.

• Updated 2026 tax guidance: effective and cash tax rates now expected to be 15-20%.

• Ongoing geopolitical uncertainty may continue to drive supply dislocation and price volatility; company positioned to benefit from steeper global cost curve.