LyondellBasell Industries (LYB) Q2 2026 earnings summary

Executive summary

• Achieved exceptional second quarter 2026 results, with net income of $559 million ($1.71 per share) and $1.4 billion ($4.30 per share) excluding identified items, driven by tight markets and strong commercial execution supporting robust margins.

• EBITDA reached $1.3 billion, or $2.1 billion excluding identified items, reflecting strong operational performance and margin expansion.

• Portfolio transformation advanced with the divestiture of European assets, focusing on higher-value, less commoditized applications and improving cost structure.

• Maintained outstanding safety performance year-to-date, reflecting a strong commitment to safe operations.

• Continued progress on the Cash Improvement Plan, delivering fixed-cost reductions and lower capital expenditures.

Financial highlights

• Sales and operating revenues for Q2 2026 were $9.2 billion, up from $7.2 billion in the prior quarter and $7.7 billion in Q2 2025.

• EBITDA excluding identified items was $2.1 billion, up from $615 million in the prior quarter and $715 million in Q2 2025.

• Liquidity totaled $7.1 billion at quarter-end, including $2.6 billion in cash and equivalents.

• Cash from operating activities was $3.0 billion over the last 12 months, with 80% cash conversion.

• Capital expenditures for the quarter were $270 million; dividends paid totaled $224 million.

Outlook and guidance

• Near-term market outlook expects strong but softening demand in North America and Europe, with Asia remaining weak but stable.

• Market volatility expected to persist due to Middle East instability, impacting energy and petrochemical value chains.

• Planned maintenance in 3Q26 expected to impact EBITDA, particularly in O&P Americas and I&D segments; Bayport PO/TBA restart to boost Intermediates & Derivatives volumes.

• Sustaining CAPEX expected to decrease post-Europe asset divestiture; total 2026 CAPEX guidance is ~$1.2 billion.

• Effective tax rate projected at 15–20%.