Sasha Jovanovic
4 min read
LyondellBasell came into this Q3 2026 report with a stock that had already been rebuilding confidence over the past month; then the latest numbers lit a fresh spark. The share price jumped 5% to US$68.64 on the first full trading day after earnings, as investors reacted to a quarter anchored by US$2.38 in basic earnings per share and US$8.5b in revenue.
For a chemicals producer often viewed through the lens of heavy cyclicality and balance sheet worries, the story today is about profit quality and cash power rather than just another swing in commodity pricing.
Love LyondellBasell’s cash generating earnings profile but concerned about the usual cyclicality that comes with heavy chemicals exposure? Take a look at our list of solid balance sheet and fundamentals stocks (24 results).
Q3 2026 Earnings Summary
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Revenue (Q3 2026 vs. Q3 2025): US$8,499m vs. US$7,727m (up about 10%)
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Net Income, Excluding Extra Items (Q3 2026 vs. Q3 2025): US$769m profit vs. US$832m loss (a very large swing back into profit)
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Basic EPS (Q3 2026 vs. Q3 2025): US$2.38 per share vs. a loss of US$2.58 per share (a very large turnaround in per share earnings)
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Reported EBITDA Margin (Q3 2026, company wide): approximately 18%, with Olefins & Polyolefins Americas at approximately 20% and Intermediates & Derivatives at approximately 27%
Prefer clear charts over staring at line after line of earnings figures and margin tables? See LyondellBasell Industries’ full visual breakdown, including how its valuation lines up with the latest results, in the company report for LyondellBasell Industries.
LyondellBasell: Cash Engine Backs The Bullish Pitch
The optimistic story around LyondellBasell hinges on execution, not slogans. At its centre is a claim that the company can turn cost work and asset upgrades into sturdier through cycle earnings and free cash.
“The main factor that has to go right is that LyondellBasell sustains its cash improvement and cost reduction program, including workforce and fixed cost cuts, while successfully ramping higher return, cost-advantaged and circular assets to offset weaker licensing and ongoing reliability issues in parts of Intermediates & Derivatives.”
Q3 results give that thesis concrete milestones. Free cash flow of about US$1.4b nearly matched reported EBITDA, cash rose to US$3.2b, and management repaid a EUR 500m note while pushing ahead with the US$500m cash improvement plan and value enhancement program. Record Intermediates & Derivatives EBITDA, together with the Houston refinery sale agreement and MoReTec 1 progress, all point to portfolio reshaping that is already contributing to the cash story the bull case depends on.
