A maker of the plastics that fill everyday life, LyondellBasell is one of the world's largest producers of polyethylene and polypropylene — the resins behind everything from food packaging and pipes to car parts and medical gear, sold under brands like Moplen, Alathon, and Purell. The company was born in 2007 when Basell Polyolefins, a joint venture of BASF and Shell, bought Lyondell Chemical Company, which itself traced back to a 1985 spinoff of Atlantic Richfield (ARCO). Its name is simply the two merged companies' names stitched together.
Q2 2026 operating income rose to $1,543M after a $734M European divestiture loss and Middle East supply constraints lifted margins.
Quarterly swung to $1,543M from a $239M loss in Q1. rose 19.8% to $9.2B and climbed 11.9 points to 22.2% as Middle East supply constraints lifted chemical margins, while a $734M loss on European asset sales weighed on the result. The company returned to quarterly profit, but its European exit and cash plan now define the trajectory.
Key takeaways
rose $1,304M sequentially to $1,543M, driven by up $856M on stronger margins and co-product pricing from tighter global supply caused by Middle East conflict.
rose 19.8% to $9.2B and 27.5% sequentially, with a 33% price increase from industry supply constraints partially offset by a 5% volume decline from the European divestiture.
rose 11.9 points to 22.2% and reached 16.8%, up 13.1 points from a year earlier.
Section summaries
Management's Discussion and Analysis
Q2 2026 operating income surged to $1,543M driven by industry supply constraints from the Middle East conflict, partially offset by a $734M loss on European asset divestiture.
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Consolidated rose 28% sequentially to $9,177M, driven by a 33% price increase from industry supply constraints, partially offset by a 5% volume decline from the European divestiture.
A $734M pre-tax loss was recognized on the sale of select European olefins and polyolefins assets, which also triggered a $329M reclassification of currency translation losses from .
was $559M, up 386.1% , with of $1.71 versus $0.38 in Q1 2026 and a $0.34 loss a year earlier.
was $752M in Q2, swinging from a $269M use in Q1, and H1 2026 was $483M; the company returned $448M to shareholders via a reduced quarterly .
What changed
The FY2025 10-K flagged and results after all was written off and European assets held for sale; Q2 2026 saw the select European asset sale completed at a $734M loss, settling the divestiture question.
The cumulative savings target of $1.3B carried from FY2025 was not updated this quarter; H1 2026 of $483M shows the plan still in progress against the prior year's negative H1.
trajectory flagged after a 53% 2025 drop was addressed: Q2 EBITDA rose $856M sequentially on Middle East-driven .
Q1 2026 flagged Technology after a 78% drop to $18M; this filing does not report segment EBITDA for Q2, so the milestone question is unresolved.
Risk factors were restated with no material change from the FY2025 annual report, meaning no new company-specific risk emerged this quarter.
What to watch
Q3 2026 at the guided 85% operating rate to see if Middle East-driven margin gains hold after the conflict volatility.
at the guided 70% rate to see if the European exit closes the gap to breakeven after the Q2 divestiture loss.
cumulative savings toward $1.3B as H2 2026 begins, specifically and fixed cost cuts.
Technology next quarter to see if licensing contracts resume milestone recognition after the Q1 drop.
increased $1,304M sequentially to $1,543M, with up $856M on stronger margins and co-product pricing due to tighter global supply.
A $734M pre-tax loss was recognized on the sale of select European olefins and polyolefins assets, which also triggered a $329M reclassification of currency translation losses from OCI.
was $483M for H1 2026; were $539M, and $448M was returned to shareholders via dividends, reflecting a reduced quarterly .
The company expects continued Middle East volatility, with Q3 operating rates at 85%, European at 70%, and at 85%, including a Bayport restart and Clinton downtime.
Quantitative and Qualitative Disclosures About Market Risk
Our exposure to market and regulatory risks is described in Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2025. Our exposure to such risks has not changed materially in the six months ended June 30, 2026. 45 Table of Contents
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Our exposure to market and regulatory risks is described in Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2025. Our exposure to such risks has not changed materially in the six months ended June 30, 2026.
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Table of Contents
Information regarding our litigation and legal proceedings can be found in Note 10 to the Consolidated Financial Statements, which is incorporated into this Item 1 by reference. Additional information about our environmental proceedings can be found in Part I, Item 3 of our Annu…
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Information regarding our litigation and legal proceedings can be found in Note 10 to the Consolidated Financial Statements, which is incorporated into this Item 1 by reference.
Additional information about our environmental proceedings can be found in Part I, Item 3 of our Annual Report on Form 10-K for the year ended December 31, 2025, which is incorporated into this Item 1 by reference.
There have been no material changes to the risk factors associated with our business previously disclosed in “Item 1A. Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2025.
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There have been no material changes to the risk factors associated with our business previously disclosed in “Item 1A. Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2025.