LyondellBasell Industries N.V. 2026 Q1 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2026. LyondellBasell Industries N.V. is a global manufacturer of chemicals and polymers. The reporting period reflects the company's transition following the cessation of its Houston refinery operations in February 2025, which are now reported as discontinued operations. The company is a large accelerated filer incorporated in the Netherlands.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 | Q4 2025 |
|---|---|---|---|
| Revenue | $7,197 million | $7,677 million | $7,091 million |
| Operating Income | $239 million | $114 million | ($88 million) |
| Net Income (Continuing Ops) | $139 million | $23 million | ($134 million) |
| Net Income (Total) | $125 million | $177 million | ($140 million) |
| Diluted EPS (Total) | $0.38 | $0.54 | ($0.43) |
| EBITDA (Total) | $568 million | $655 million | $345 million |
| Cash Flow from Operations | ($269 million) | ($579 million) | ($269 million) |
| Cash and Equivalents | $2,635 million | $1,870 million | $3,443 million |
| Total Debt | $12,921 million | $12,712 million | $12,712 million |
Material Changes vs. Prior Periods
- Revenue Decline YoY: Revenue decreased 6% year-over-year to $7.2 billion, driven by a 10% decrease in average sales prices and a 2% decrease in volumes, partially offset by favorable foreign exchange impacts.
- Profitability Improvement: Operating income surged 110% year-over-year to $239 million, primarily due to lower feedstock costs and improved margins in the Olefins & Polyolefins-Americas and Intermediates & Derivatives segments.
- Discontinued Operations: The refining business, reported as discontinued, generated a loss of $14 million in Q1 2026, compared to income of $154 million in Q1 2025. The prior year included a $196 million LIFO benefit from inventory liquidation.
- Asset Sale: On May 1, 2026, the company completed the sale of select European olefins and polyolefins assets. A pre-tax loss of approximately $700 million to $800 million is expected, including a $300 million cash contribution.
- Dividend Reduction: The quarterly dividend was reduced to $0.69 per share in Q1 2026, down from $1.34 in Q1 2025.
Outlook, Risks, and Management Commentary
- Q2 2026 Outlook: Management expects market conditions to improve in Q2 2026 due to tighter supply dynamics and favorable pricing trends resulting from Middle East disruptions. North American margins are anticipated to expand, while European margins should improve following the asset sale.
- Operational Rates: The company plans to maximize operating rates for O&P-Americas assets, raise European O&P-EAI rates to 80%, and maintain I&D segment rates at 75%.
- Capital Allocation: Share repurchases were suspended in Q1 2026 due to credit facility restrictions (except for dilution offset). Approximately 34.0 million shares remain under the current authorization. Capital expenditures were $269 million, with 65% allocated to sustaining maintenance.
- Risks: Key risks include raw material cost volatility (crude oil, natural gas), geopolitical instability affecting supply chains, unplanned operating interruptions, and the cyclical nature of the chemical industry. The company faces potential losses from the European asset sale and ongoing environmental remediation liabilities of $177 million.
Investor Verification Checklist
- European Asset Sale Impact: Verify the final accounting treatment and cash flow impact of the $700M-$800M pre-tax loss on the European divestiture.
- Liquidity Position: Confirm the sustainability of the dividend policy given the reduced payout and the cash contribution made for the asset sale.
- Feedstock Margins: Monitor the correlation between crude/natural gas prices and product spreads to validate the projected margin expansion in Q2.
- Debt Covenants: Review compliance with debt covenants, particularly given the recent share repurchase restrictions and the significant loss from discontinued operations.
- Working Capital Trends: Analyze the $797 million increase in accounts receivable and its impact on future cash flow from operations.