Key Highlights

  • EBITDA was USD 1.5 billion with an 18% margin, and Earnings were USD 2.54 per diluted share excluding identified items.
  • GAAP Net Income was USD 756 million, versus a loss of USD 892 million in the year-ago quarter.
  • Cash rose about USD 600 million to USD 3.2 billion after a EUR 500 million bond repayment.
  • LyondellBasell agreed to sell the former Houston refinery site to Valero for USD 320.5 million in cash.

A Swing to Profit

LyondellBasell Industries N.V. (NYSE:LYB) reported third-quarter 2026 net income attributable to shareholders of USD 756 million, compared with a loss of USD 892 million a year earlier. Earnings excluding identified items were USD 2.54 per diluted share, and EBITDA was USD 1.5 billion. Nine-month net income was USD 1,437 million against a loss of USD 603 million.

Chief executive Peter Vanacker said petrochemical and energy markets continue to be affected by the Middle East conflict through production, feedstock availability, logistics and freight flows, and that the company stayed focused on safe operations, commercial agility and its value enhancement and cash improvement programs.

Segment Mix Offsets Polymer Weakness

Polyolefin margins fluctuated through the quarter. Customers who restocked early in the conflict slowed purchases over the summer, weighing on pricing, before demand, Supply concerns and higher feedstock costs lifted prices from September. Management said a return to a post-conflict normal does not occur in a linear fashion.

Weaker polymer margins were largely offset by higher oxyfuel margins and the restart of Bayport PO/TBA operations, which produced record EBITDA in the Intermediates and Derivatives segment. Management said strong octane values are supporting margins in oxyfuels, and that building and construction represent only about 5% of end market exposure.

Cash Generation and Portfolio Moves

Free Cash Flow was USD 1.4 billion in the quarter. Cash increased by about USD 600 million to USD 3.2 billion, and Liquidity rose to USD 7.7 billion, even after the EUR 500 million bond repayment. The year-to-date total recordable incident rate was 0.12, among the best in the sector.

The agreement with Valero for the site of the former Houston refinery carries a transaction value of USD 320.5 million, all cash and payable at closing, with closing targeted by the end of 2026 subject to regulatory approvals and customary conditions. Valero assumes site operations, environmental liabilities and pension costs. Management said the sale improves annual cash flow by about USD 50 million to USD 100 million and simplifies the portfolio. The company continues to advance its MoReTec-1 investment.

Indicators for the Coming Quarters

Management said any eventual market normalization would take quarters rather than months, and attributed current earnings power to a portfolio balanced across consumables, durables and gasoline-related demand. Infrastructure and Data Center Investment are supporting Demand for pipe, conduit and wire and cable applications, while housing and automotive markets remain muted. Items to watch include polyolefin margins after the summer destocking, the closing of the Houston site sale and the durability of octane-driven margins. Management said the sale proceeds support Balance Sheet strength and financial flexibility, increasing optionality over time.