LyondellBasell Q2 Results Lifted by Polyolefin Margins

LyondellBasell’s second-quarter performance improved sharply as tighter supplies, stronger polyolefin margins and high North American operating rates supported earnings. The improvement was partly obscured by substantial one-off charges connected with the company’s European restructuring.

For the three months ended June 30, 2026, LyondellBasell reported revenue of $9.18 billion. This compares with $7.20 billion in the first quarter of 2026 and $7.66 billion in the second quarter of 2025.

Net income reached $559 million, or $1.71 per diluted share, up from $115 million a year earlier. Reported EBITDA rose to $1.25 billion from $606 million in the comparable period of 2025.

Excluding identified items, however, EBITDA was considerably higher at $2.13 billion. The difference illustrates how portfolio changes and restructuring costs affected the reported result despite a stronger underlying operating quarter. 

North American polyolefins lead the recovery

Olefins and Polyolefins – Americas supplied the largest contribution to the improvement. Segment revenue reached approximately $3.52 billion, while EBITDA rose to about $1.18 billion.

LyondellBasell attributed the performance to expanding polymer margins and favorable co-product pricing during a period of constrained global supply. The company increased utilization of its advantaged North American assets to approximately 90% to respond to market conditions and customer demand.

The combination of better spreads and higher production rates allowed the group to capture opportunities created by supply-chain disruptions. These conditions may not be permanent, but they demonstrate the earnings leverage available when LyondellBasell can run its North American plants at high utilization.

Supply disruption also supports international operations

The Olefins and Polyolefins – Europe, Asia and International business benefited from improved polymer spreads and stronger contributions from joint ventures.

Reported segment EBITDA was negative by $432 million because it included the financial effects of the European asset divestment. Excluding identified items, segment EBITDA was positive at $331 million, providing a clearer indication of the underlying operating contribution.

The contrast between the two figures is important. It shows that the reported loss was primarily associated with portfolio restructuring rather than a comparable deterioration in the segment’s day-to-day performance.  LyondellBasell Q2 results

European divestment produces a substantial charge

LyondellBasell completed the sale of selected European olefins and polyolefins assets in May. The transaction covered operations in France, Germany, Spain and the United Kingdom and generated a pre-tax loss of $734 million.

The sale forms part of a broader plan to reduce the group’s exposure to higher-cost European production and concentrate its portfolio around assets with more competitive feedstock and operating positions.

The quarter also included $31 million in employee-related charges associated with the planned closure of the polypropylene facility in Brindisi, Italy.

Separately, LyondellBasell recorded a $74 million non-cash impairment related to a plastic-waste sorting facility in Houston. These items should not be confused with recurring operating expenses, although they remain relevant when assessing the total cost of the group’s restructuring decisions.

Cash generation and liquidity remain solid

LyondellBasell generated $752 million in cash from operating activities during the quarter. Capital expenditure amounted to $270 million, while $224 million was returned to shareholders through dividends.

Working capital absorbed cash as higher prices and increased operating rates raised funding requirements. The completed European divestment also included a $310 million cash contribution during the quarter.

At June 30, the company held approximately $2.63 billion in cash and cash equivalents. Total available liquidity was about $7.09 billion.

Management expects its Cash Improvement Plan to generate $500 million of incremental cash by the end of 2026, primarily through fixed-cost reductions and lower capital expenditure.

Third-quarter utilization expected to ease

For the third quarter, LyondellBasell expects operating rates of approximately 85% for its North American olefins and polyolefins assets, 70% for European O&P operations and 85% for Intermediates and Derivatives.

These forecasts imply a moderation from the roughly 90% utilization achieved in North America during the second quarter. Planned maintenance and the uncertain recovery of conflict-affected global supply could influence both production volumes and product prices.

Management also expects the restart of the Bayport propylene oxide and tertiary butyl alcohol facility to support Intermediates and Derivatives volumes. Planned downtime at Clinton, however, is expected to reduce polyolefin production during the second half of the year.

What the results mean for LyondellBasell

The quarter shows a clear improvement in LyondellBasell’s underlying earnings capacity, led by its North American polyolefin operations. Stronger margins, favorable co-product prices and responsive production helped the company benefit from a tighter market.

At the same time, the results highlight the cost of reshaping its European portfolio. The $734 million divestment loss and other exceptional charges reduced reported earnings but are tied mainly to decisions intended to create a more competitive asset base.

The next test will be whether margin improvements can continue as utilization normalizes and disrupted global production gradually returns. Investors will also be watching cash generation, debt reduction and delivery of the Cash Improvement Plan.

Figures were checked against LyondellBasell’s July 31 earnings announcement filed with the US Securities and Exchange Commission. Following the release, LyondellBasell shares gained 2.71% on July 31, although a single trading session does not establish a lasting market trend, according to MarketWatch.

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