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LYB Q1 Earnings Beat Estimates, Sales Miss on Volume Pressures
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Key Takeaways
LYB reported Q1 2026 adjusted EPS of 49 cents, beating estimates despite lower net income and sales.
LyondellBasell saw sales decline 6.3% YoY, hurt by weak volumes and lower licensing activities.
LYB expects supply tightening and disruptions to support pricing, demand and operating rates going forward.
LyondellBasell Industries N.V. (LYB - Free Report) recorded first-quarter 2026 net income of $125 million or 38 cents per share, down from $177 million or 54 cents per share reported in the year-ago quarter.
Barring one-time items, LYB posted adjusted earnings of 49 cents per share, up around 48.5% from the year-ago quarter’s earnings of 33 cents. It beat the Zacks Consensus Estimate of earnings of 31 cents.
The company’s net sales in the reported quarter were $7,197 million, which missed the Zacks Consensus Estimate of $7,515.5 million. Net sales fell around 6.3% from $7,677 million in the prior-year quarter.
LYB saw solid first-quarter results, supported by improvements across its portfolio and only modest initial benefits from global supply constraints. However, lower year-over-year sales reflected weakness across most segments, including lower volumes in certain businesses, reduced licensing activity in Technology and pressure from higher raw material costs. The company benefited from tighter polyolefin markets, improved seasonal demand and stronger domestic and export pricing in parts of its portfolio.
LyondellBasell Industries N.V. Price, Consensus and EPS Surprise
The Olefins & Polyolefins — Americas segment’s revenues declined around 1.8% year over year to $2,437 million. The figure missed the consensus estimate of $2,570 million. The segment benefited from stronger integrated polyethylene margins on lower feedstock costs and higher domestic and export pricing, along with tight markets due to global supply constraints. LYB also operated its olefins crackers at more than 95% rates in the quarter.
Olefins & Polyolefins — Europe, Asia and International segment revenues declined 3.8% year over year to $2,501 million. The figure surpassed the consensus estimate of $2,262 million. The segment saw higher volumes on less downtime and improved demand, partly offset by higher naphtha costs. Polymer pricing increased in March due to volatility and uncertainty related to the war.
In the Intermediates and Derivatives (I&D) segment, sales were $2,060 million, down roughly 10.4% year over year, missing the consensus estimate of $2,295 million. The decline was partly due to lower volumes and unplanned downtime. PO&D margins benefited from improved pricing, partly offset by unplanned downtime at the Bayport, Texas PO/TBA asset, which had an estimated EBITDA impact of around $40 million.
The Advanced Polymer Solutions segment’s revenues were $876 million, declining around 3.5% year over year and missing the consensus estimate of $919 million. The segment benefited from seasonal demand improvement and new business wins, but faced margin pressure from rising raw material costs following global supply disruptions.
The Technology segment’s revenues were $106 million, marking a decline of roughly 11.7% year over year and missing the consensus estimate of $108 million. The decline was due to reduced licensing revenue, reflecting slower global polyolefin industry growth, partly offset by improved catalyst margins from product mix.
LYB’s Financials
LYB had $2.64 billion in cash and cash equivalents as of March 31, 2026, with total available liquidity of $7.3 billion. The company generated $2.6 billion in cash from operating activities over the last 12 months and achieved 111% cash conversion.
The company spent $269 million on capital expenditures in the first quarter. It returned $224 million to shareholders through dividends during the quarter and rebalanced its capital allocation by reducing its quarterly dividend by 50%.
LYB’s Outlook
LyondellBasell expects structural supply tightening and geopolitical disruptions to support pricing, export demand and operating rates. North America should benefit from improving seasonal demand, accelerating polymer price increases and favorable export economics, while Europe is expected to see better operating rates and tighter supply due to constrained imports. In I&D, LYB expects improved oxyfuels margins and plans to restart the Bayport PO/TBA asset by the end of the second quarter. The company is also focused on passing through higher raw material, energy and logistics costs, while continuing its portfolio transformation and cost actions, including its $1.3 billion cumulative Cash Improvement Plan target for 2026.
LYB’s Price Performance
Shares of LYB have gained 27.8% in a year compared with a 16.7% rise in the industry.
Image Source: Zacks Investment Research
LYB’s Zacks Rank & Other Key Picks
LYB currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks worth a look in the basic materials space include CF Industries Holdings, Inc. (CF - Free Report) , Aris Mining Corporation (ARIS - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
CF Industries is slated to report first-quarter 2026 results on May 6. The Zacks Consensus Estimate for earnings is pegged at $2.35 per share, indicating 27.03% year-over-year growth. CF sports a Zacks Rank #1 (Strong Buy) at present.
Aris Mining is slated to report quarterly results on May 6. The Zacks Consensus Estimate for earnings is pegged at 67 cents per share. ARIS has a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hawkins is scheduled to report fiscal fourth-quarter results on May 13. The Zacks Consensus Estimate for HWKN’s fourth-quarter earnings is pegged at 77 cents per share. HWKN currently has a Zacks Rank #2.
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LYB Q1 Earnings Beat Estimates, Sales Miss on Volume Pressures
Key Takeaways
LyondellBasell Industries N.V. (LYB - Free Report) recorded first-quarter 2026 net income of $125 million or 38 cents per share, down from $177 million or 54 cents per share reported in the year-ago quarter.
Barring one-time items, LYB posted adjusted earnings of 49 cents per share, up around 48.5% from the year-ago quarter’s earnings of 33 cents. It beat the Zacks Consensus Estimate of earnings of 31 cents.
The company’s net sales in the reported quarter were $7,197 million, which missed the Zacks Consensus Estimate of $7,515.5 million. Net sales fell around 6.3% from $7,677 million in the prior-year quarter.
LYB saw solid first-quarter results, supported by improvements across its portfolio and only modest initial benefits from global supply constraints. However, lower year-over-year sales reflected weakness across most segments, including lower volumes in certain businesses, reduced licensing activity in Technology and pressure from higher raw material costs. The company benefited from tighter polyolefin markets, improved seasonal demand and stronger domestic and export pricing in parts of its portfolio.
LyondellBasell Industries N.V. Price, Consensus and EPS Surprise
LyondellBasell Industries N.V. price-consensus-eps-surprise-chart | LyondellBasell Industries N.V. Quote
LyondellBasell’s Segment Highlights
The Olefins & Polyolefins — Americas segment’s revenues declined around 1.8% year over year to $2,437 million. The figure missed the consensus estimate of $2,570 million. The segment benefited from stronger integrated polyethylene margins on lower feedstock costs and higher domestic and export pricing, along with tight markets due to global supply constraints. LYB also operated its olefins crackers at more than 95% rates in the quarter.
Olefins & Polyolefins — Europe, Asia and International segment revenues declined 3.8% year over year to $2,501 million. The figure surpassed the consensus estimate of $2,262 million. The segment saw higher volumes on less downtime and improved demand, partly offset by higher naphtha costs. Polymer pricing increased in March due to volatility and uncertainty related to the war.
In the Intermediates and Derivatives (I&D) segment, sales were $2,060 million, down roughly 10.4% year over year, missing the consensus estimate of $2,295 million. The decline was partly due to lower volumes and unplanned downtime. PO&D margins benefited from improved pricing, partly offset by unplanned downtime at the Bayport, Texas PO/TBA asset, which had an estimated EBITDA impact of around $40 million.
The Advanced Polymer Solutions segment’s revenues were $876 million, declining around 3.5% year over year and missing the consensus estimate of $919 million. The segment benefited from seasonal demand improvement and new business wins, but faced margin pressure from rising raw material costs following global supply disruptions.
The Technology segment’s revenues were $106 million, marking a decline of roughly 11.7% year over year and missing the consensus estimate of $108 million. The decline was due to reduced licensing revenue, reflecting slower global polyolefin industry growth, partly offset by improved catalyst margins from product mix.
LYB’s Financials
LYB had $2.64 billion in cash and cash equivalents as of March 31, 2026, with total available liquidity of $7.3 billion. The company generated $2.6 billion in cash from operating activities over the last 12 months and achieved 111% cash conversion.
The company spent $269 million on capital expenditures in the first quarter. It returned $224 million to shareholders through dividends during the quarter and rebalanced its capital allocation by reducing its quarterly dividend by 50%.
LYB’s Outlook
LyondellBasell expects structural supply tightening and geopolitical disruptions to support pricing, export demand and operating rates. North America should benefit from improving seasonal demand, accelerating polymer price increases and favorable export economics, while Europe is expected to see better operating rates and tighter supply due to constrained imports. In I&D, LYB expects improved oxyfuels margins and plans to restart the Bayport PO/TBA asset by the end of the second quarter. The company is also focused on passing through higher raw material, energy and logistics costs, while continuing its portfolio transformation and cost actions, including its $1.3 billion cumulative Cash Improvement Plan target for 2026.
LYB’s Price Performance
Shares of LYB have gained 27.8% in a year compared with a 16.7% rise in the industry.
LYB’s Zacks Rank & Other Key Picks
LYB currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks worth a look in the basic materials space include CF Industries Holdings, Inc. (CF - Free Report) , Aris Mining Corporation (ARIS - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
CF Industries is slated to report first-quarter 2026 results on May 6. The Zacks Consensus Estimate for earnings is pegged at $2.35 per share, indicating 27.03% year-over-year growth. CF sports a Zacks Rank #1 (Strong Buy) at present.
Aris Mining is slated to report quarterly results on May 6. The Zacks Consensus Estimate for earnings is pegged at 67 cents per share. ARIS has a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hawkins is scheduled to report fiscal fourth-quarter results on May 13. The Zacks Consensus Estimate for HWKN’s fourth-quarter earnings is pegged at 77 cents per share. HWKN currently has a Zacks Rank #2.