LyondellBasell misses Q3 revenue estimates, profit trails forecast

LyondellBasell (LYB) said on Oct. 30 that third-quarter revenue missed estimates, reaching $8.50 billion against the $8.96 billion consensus estimate compiled by Finnhub.

Shares rose 1.0% in regular trading as of 9:36 a.m. ET, from a regular-session close of $65.37.

Adjusted earnings per share of $2.54 were below the $2.59 consensus estimate compiled by Finnhub.

The company reported net income of $758 million, or $2.32 per diluted share, compared with a loss of $890 million a year earlier.

Net income excluding identified items was $828 million. Those items affected third-quarter earnings by 22 cents per diluted share and included closure costs for a European propylene oxide joint venture.

Here's how the company did:

• Revenue: $8.50 billion vs. $8.96 billion expected, according to Finnhub, and up from $7.73 billion a year earlier
• Adjusted EPS: $2.54 vs. $2.59 expected, according to Finnhub, and up from $1.01 a year earlier
• Diluted EPS: $2.32, against a loss of $2.77 a year earlier
• EBITDA, or earnings before interest, taxes, depreciation and amortization: $1.42 billion, or $1.51 billion excluding identified items

Segment results

Intermediates and Derivatives, the segment that makes propylene oxide, oxyfuels and acetyls, raised EBITDA by $343 million from the second quarter, to $720 million.

The company said oxyfuels results led the gain, driven by stronger gasoline crack spreads and the restart of the Bayport PO/TBA site after a second-quarter outage.

Olefins and Polyolefins-Americas EBITDA fell by $542 million from the second quarter, to $641 million. The company attributed the decline to lower margins from softening prices and market conditions.

Olefins and Polyolefins-Europe, Asia, International EBITDA was $26 million, up $458 million from the second quarter. That comparison includes a $734 million loss on the sale of select European assets booked in the second quarter.

Advanced Polymer Solutions EBITDA was $37 million, down $40 million from the second quarter on lower volumes driven by weaker automotive demand.

Cash and capital returns

Cash increased by approximately $600 million during the quarter, including the planned €500 million debt repayment in September.

The company generated $1.7 billion in cash from operating activities, including a release of working capital.

Capital expenditures were $303 million, and the company spent $224 million on dividends and repurchased no shares.

It held $3.2 billion in cash and cash equivalents and $7.7 billion in total liquidity at quarter end.

Net income has risen in each of the last three quarters, from a loss of $890 million in the third quarter of 2025 to a profit of $559 million in the second quarter of 2026, according to its SEC filings.

Fourth-quarter outlook

The company expects fourth-quarter operating rates of 85% for North American olefins and polyolefins (O&P) assets, 60% for European O&P assets and 75% for Intermediates and Derivatives assets.

The company cited a planned maintenance project at a North American polypropylene asset. It expects normal seasonal demand patterns along with ongoing supply uncertainty.

The fourth quarter is expected to deliver a seasonal release of working capital.

CEO Peter Vanacker said, “In an evolving macroeconomic environment, we delivered another quarter of strong earnings and robust cash conversion through disciplined execution underscored by the strength of our global, cost-advantaged portfolio.”

Houston refinery sale

In a separate disclosure, LyondellBasell said it agreed on Oct. 29 to sell Houston Refining, L.P., to a subsidiary of Valero Energy Corporation for $320.5 million, according to a regulatory filing.

Houston Refining owns the former Houston refinery site and related assets. The company shut refining operations at the site in February 2025.

The sale is expected to close in the fourth quarter of 2026, subject to regulatory and other customary closing conditions.