LyondellBasell Industries N.V. Q3 2026 Earnings Recap

LyondellBasell shares rose 5.0% after earnings, with investors responding to $1.4 billion in free cash flow and record EBITDA in Intermediates and Derivatives, which helped offset weaker polymer margins. The outlook remains uncertain: management said market normalization is likely to take quarters, not months.

Key Takeaways

• The company generated $1.4 billion in free cash flow, equal to 100% of EBITDA, and increased cash by $600 million after repaying a €500 million bond.
• EBITDA margins were 18%; management attributed the quarter’s cash generation and results partly to its value enhancement and cash improvement plans.
• Polymer margins weakened sequentially as customers slowed purchases after earlier restocking; stronger demand, supply concerns and higher feedstock costs lifted prices from September.
• Higher oxyfuel margins and the Bayport PO/TBA restart offset weaker polymer margins, producing record EBITDA in Intermediates and Derivatives.
• LYB agreed to sell the former Houston refinery site and associated assets to Valero for $320.5 million in cash, subject to closing conditions; the company said the sale should improve annual cash flow by about $50 million to $100 million.