LyondellBasell Industries

LyondellBasell Industries (LYB) Q2 2026 Earnings

Reported Jul 31, 2026 at 6:31 AM ET · SEC Source

Q2 26 EPS

$4.30

BEAT +25.41%

Est. $3.43

Q2 26 Revenue

$9.18B

MISS 1.17%

Est. $9.29B

vs S&P Since Q2 26

-1.1%

TRAILING MARKET

LYB +2.8% vs S&P +3.8%

Market Reaction

Did LYB Beat Earnings? Q2 2026 Results

LyondellBasell Industries delivered a standout second quarter in 2026, posting adjusted diluted EPS of $4.30 against a consensus estimate of $3.43, a 25.41% beat that reflected a sharp reversal from the year-ago quarter's $0.62. The primary catalyst … Read more LyondellBasell Industries delivered a standout second quarter in 2026, posting adjusted diluted EPS of $4.30 against a consensus estimate of $3.43, a 25.41% beat that reflected a sharp reversal from the year-ago quarter's $0.62. The primary catalyst was geopolitical disruption in the Middle East, which tightened petrochemical supply chains and drove polymer margins, co-product pricing, and oxyfuels spreads sharply higher, lifting EBITDA excluding identified items to $2.13 billion, nearly triple Q2 2025's $715.00 million. The Americas olefins and polyolefins segment led the charge, generating $1.27 billion in segment EBITDA as North American crackers ran at approximately 95% capacity. Revenue of $9.18 billion came in slightly below the $9.29 billion consensus estimate, a 1.17% miss. GAAP net income of $559.00 million was weighed down by an $842.00 million after-tax charge, largely tied to a completed European asset divestiture. Management expects the Middle East supply disruption to extend into 2027, with Q3 North American O&P operating rates guided at approximately 85%.

Key Takeaways

  • Supply-constrained market conditions across all business segments driven by Middle East conflict
  • Expanding polymer margins and favorable co-product pricing in O&P-Americas
  • North American assets operated at approximately 90% utilization (ethylene crackers at ~95%)
  • Improved polymer spreads in O&P-EAI driven by supply chain disruptions and stronger joint venture contributions
  • Higher oxyfuels, methanol, and PO derivatives margins in I&D
  • Higher average sales prices in APS due to industry supply constraints
  • Higher catalyst demand and licensing milestone completions in Technology segment
  • Gain on sale of European emission credits of approximately $50 million

LYB Forward Guidance & Outlook

Middle East conditions remain fluid and are expected to continue as a source of volatility for energy and petrochemical value chains. The pace and timing at which conflict-impacted supply will return to the market remains uncertain, with the recovery period likely extending into 2027. While LYB does not anticipate material demand deterioration in key end markets, near-term price uncertainty could temporarily impact normal buying patterns. The Bayport PO/TBA restart should provide volume uplift in I&D, while planned Clinton facility downtime will impact polyolefins volumes in H2 2026. Q3 operating rate guidance: ~85% for North American O&P, ~70% for European O&P, and ~85% for I&D. Capital allocation priorities include scheduled note maturity repayment in September, maintaining the dividend, and disciplined deleveraging. The company remains on target to deliver $500 million in incremental cash through its Cash Improvement Plan by year-end 2026.

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LYB YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

“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.”

— Peter Vanacker, Q2 2026 Earnings Press Release