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LYB Q3 Earnings Miss on Weak Polymer Prices Despite Oxyfuels Gains
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Key Takeaways
LYB's Q3 adjusted EPS surged 151.5% to $2.54 but missed estimates by 7%, while revenues climbed 10%.
Strong oxyfuels margins boosted LyondellBasell's I&D operating income to $614 million from $194 million.
LYB generated $1.72 billion in operating cash flow and ended September with $7.69 billion in liquidity.
LyondellBasell Industries N.V. (LYB - Free Report) reported third-quarter 2026 net income of $758 million, or $2.32 per share, against a loss of $890 million, or $2.77 per share, in the year-ago quarter.
Barring one-time items, adjusted earnings were $2.54 per share, up 151.5% year over year, but missed the Zacks Consensus Estimate of $2.73 by 7%.
Revenues rose 10% to $8.5 billion, beating the consensus estimate of $8.47 billion by 0.3%. Strong oxyfuels margins and approximately 110% utilization at the Channelview PO/TBA facility supported results, while weaker polymer pricing pressured profitability.
LyondellBasell Industries N.V. Price, Consensus and EPS Surprise
The Olefins & Polyolefins — Americas segment generated revenues of $3.18 billion, up around 22% year over year from $2.61 billion. The figure beat the consensus estimate of $3.01 billion. Operating income increased to $469 million from $246 million in the prior-year quarter. Results benefited from stronger year-over-year polymer margins, although lower polymer and olefin product prices pressured sequential profitability. The company completed the planned Clinton turnaround on time and under budget.
Olefins & Polyolefins — Europe, Asia and International revenues declined around 15.9% year over year to $2.18 billion from $2.59 billion. The figure surpassed the consensus estimate of $1.9 billion. The segment recorded an operating loss of $47 million compared with a loss of $410 million in the year-ago quarter. Lower polymer prices pressured margins, while volumes declined sequentially following the divestiture of select European assets in May 2026.
In the Intermediates and Derivatives (I&D) segment, sales were $2.98 billion, up roughly 27.3% year over year from $2.34 billion, lagging the consensus estimate of $3.08 billion. Operating income surged to $614 million from $194 million a year earlier. Results benefited from significantly stronger oxyfuels margins, supported by global supply disruptions, favorable gasoline blending economics and higher octane values. Increased utilization at the Channelview PO/TBA facility, full operating rates at Bayport PO/TBA and improved acetyls reliability at La Porte also supported performance.
The Advanced Polymer Solutions segment's revenues were $935 million, increasing around 7.5% year over year from $870 million and topping the consensus estimate of $917 million. Operating income reached $13 million against an operating loss of $765 million in the prior-year quarter, which included significant impairment charges. Adjusted EBITDA edged down to $45 million from $47 million a year ago.
The Technology segment's revenues were $114 million, declining around 0.9% year over year from $115 million and beating the consensus estimate of $113 million. Operating income increased to $18 million from $4 million in the prior-year quarter, while adjusted EBITDA rose to $29 million from $15 million.
LYB's Cash Position
Cash provided by operating activities totaled $1.72 billion, up from $983 million in the prior-year period. Capital expenditures were $303 million, while dividends returned $224 million to shareholders.
The company ended September with $3.23 billion in cash and cash equivalents, compared with $2.63 billion at June-end. Total available liquidity stood at $7.69 billion. LyondellBasell also repaid a €500 million note maturity during September.
LyondellBasell's Fourth-Quarter Outlook
LyondellBasell expects normal seasonal demand patterns in the fourth quarter amid continued uncertainty surrounding Middle East supply conditions. Management anticipates operating rates of 85% for North American O&P assets, 60% for European O&P assets and 75% for I&D assets.
A planned maintenance project at a North American polypropylene facility is expected to influence operating rates. The company also anticipates a seasonal working capital release during the quarter.
Management remains focused on commercial flexibility, disciplined cost management and executing its Cash Improvement Plan. Capital allocation priorities include maintaining reliable operations, reducing debt, sustaining dividends and pursuing selective investments that support long-term shareholder value.
LYB’s Price Performance
Shares of LYB have gained 40.9% in the past year compared with the industry’s 9.1% rise.
Image Source: Zacks Investment Research
LYB’s Zacks Rank & Key Picks
LYB currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Avient Corporation (AVNT - Free Report) .
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RSshares have gained 55.7% over the past year.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 75%.
The Zacks Consensus Estimate for AVNT’s 2026 earnings is pegged at $3.2 per share, indicating a year-over-year rise of 13.48%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%.
View the Zacks #1 Rank List
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LYB Q3 Earnings Miss on Weak Polymer Prices Despite Oxyfuels Gains
Key Takeaways
LyondellBasell Industries N.V. (LYB - Free Report) reported third-quarter 2026 net income of $758 million, or $2.32 per share, against a loss of $890 million, or $2.77 per share, in the year-ago quarter.
Barring one-time items, adjusted earnings were $2.54 per share, up 151.5% year over year, but missed the Zacks Consensus Estimate of $2.73 by 7%.
Revenues rose 10% to $8.5 billion, beating the consensus estimate of $8.47 billion by 0.3%. Strong oxyfuels margins and approximately 110% utilization at the Channelview PO/TBA facility supported results, while weaker polymer pricing pressured profitability.
LyondellBasell Industries N.V. Price, Consensus and EPS Surprise
LyondellBasell Industries N.V. price-consensus-eps-surprise-chart | LyondellBasell Industries N.V. Quote
LYB's Segment Highlights
The Olefins & Polyolefins — Americas segment generated revenues of $3.18 billion, up around 22% year over year from $2.61 billion. The figure beat the consensus estimate of $3.01 billion. Operating income increased to $469 million from $246 million in the prior-year quarter. Results benefited from stronger year-over-year polymer margins, although lower polymer and olefin product prices pressured sequential profitability. The company completed the planned Clinton turnaround on time and under budget.
Olefins & Polyolefins — Europe, Asia and International revenues declined around 15.9% year over year to $2.18 billion from $2.59 billion. The figure surpassed the consensus estimate of $1.9 billion. The segment recorded an operating loss of $47 million compared with a loss of $410 million in the year-ago quarter. Lower polymer prices pressured margins, while volumes declined sequentially following the divestiture of select European assets in May 2026.
In the Intermediates and Derivatives (I&D) segment, sales were $2.98 billion, up roughly 27.3% year over year from $2.34 billion, lagging the consensus estimate of $3.08 billion. Operating income surged to $614 million from $194 million a year earlier. Results benefited from significantly stronger oxyfuels margins, supported by global supply disruptions, favorable gasoline blending economics and higher octane values. Increased utilization at the Channelview PO/TBA facility, full operating rates at Bayport PO/TBA and improved acetyls reliability at La Porte also supported performance.
The Advanced Polymer Solutions segment's revenues were $935 million, increasing around 7.5% year over year from $870 million and topping the consensus estimate of $917 million. Operating income reached $13 million against an operating loss of $765 million in the prior-year quarter, which included significant impairment charges. Adjusted EBITDA edged down to $45 million from $47 million a year ago.
The Technology segment's revenues were $114 million, declining around 0.9% year over year from $115 million and beating the consensus estimate of $113 million. Operating income increased to $18 million from $4 million in the prior-year quarter, while adjusted EBITDA rose to $29 million from $15 million.
LYB's Cash Position
Cash provided by operating activities totaled $1.72 billion, up from $983 million in the prior-year period. Capital expenditures were $303 million, while dividends returned $224 million to shareholders.
The company ended September with $3.23 billion in cash and cash equivalents, compared with $2.63 billion at June-end. Total available liquidity stood at $7.69 billion. LyondellBasell also repaid a €500 million note maturity during September.
LyondellBasell's Fourth-Quarter Outlook
LyondellBasell expects normal seasonal demand patterns in the fourth quarter amid continued uncertainty surrounding Middle East supply conditions. Management anticipates operating rates of 85% for North American O&P assets, 60% for European O&P assets and 75% for I&D assets.
A planned maintenance project at a North American polypropylene facility is expected to influence operating rates. The company also anticipates a seasonal working capital release during the quarter.
Management remains focused on commercial flexibility, disciplined cost management and executing its Cash Improvement Plan. Capital allocation priorities include maintaining reliable operations, reducing debt, sustaining dividends and pursuing selective investments that support long-term shareholder value.
LYB’s Price Performance
Shares of LYB have gained 40.9% in the past year compared with the industry’s 9.1% rise.
Image Source: Zacks Investment Research
LYB’s Zacks Rank & Key Picks
LYB currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Avient Corporation (AVNT - Free Report) .
RS currently sports a Zacks Rank #1 (Strong Buy), while ASM and AVNT carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RSshares have gained 55.7% over the past year.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 75%.
The Zacks Consensus Estimate for AVNT’s 2026 earnings is pegged at $3.2 per share, indicating a year-over-year rise of 13.48%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%.