LyondellBasell returns to profitability in Q1 as pricing rally gains steam

LyondellBasell (NYSE:LYB) reported a return to profitability for the first quarter of 2026, posting net income of $125 million, or $0.38 per diluted share.

Excluding identified items, the company’s adjusted earnings reached $163 million ($0.49 per share), a significant sequential improvement over the previous quarter’s adjusted loss of $0.26 per share.

First-quarter EBITDA stood at $568 million, or $615 million on an adjusted basis.

The results reflect a stabilizing global market as the industry emerges from one of its longest downturns.

Management noted that performance was bolstered by a pricing rally in polyethylene and polypropylene, largely driven by supply constraints in the Middle East and rising energy costs for international competitors.

These tailwinds helped offset a challenging comparison to the prior-year period and the impact of the company's "recalibrated" dividend policy, which was halved earlier this year to $0.69 per share to preserve capital.

Strategically, the quarter was marked by the completion of a major phase in the company’s European strategic assessment.

On May 1, 2026, LYB finalized the sale of four European sites—including facilities in France, Germany, the UK, and Spain—to AEQUITA.

This divestiture is part of a broader "Value Enhancement Program" (VEP) that targets $1.5 billion in recurring EBITDA improvements by focusing on higher-return, low-cost assets.

Despite using $269 million in cash from operations during the quarter, LyondellBasell maintained a robust liquidity position with $2.6 billion in cash on hand and $7.3 billion in total available liquidity.

This financial cushion is intended to support the company’s transition toward circular and low-carbon solutions while navigating a capital-intensive year of turnarounds and maintenance.