LyondellBasell Industries N.V. (NYSE:LYB) shares edged lower Friday after the chemical giant's third-quarter 2026 earnings and revenue missed Wall Street expectations. That overshadowed a sharp profit rebound, robust cash flow and a $320.5 million deal to sell its former Houston refinery site.

Earnings Snapshot

LyondellBasell reported adjusted earnings of $2.54 per share, missing analysts' consensus estimate of $2.57. Adjusted earnings increased from $1.01 per share a year earlier.

Revenue rose 10% year over year to $8.499 billion from $7.727 billion, missing Wall Street's estimate of $8.874 billion. Revenue declined 7% sequentially from $9.177 billion.

GAAP net income reached $758 million, or $2.32 per diluted share, reversing a year-earlier loss of $890 million, or $2.77 per share.

Adjusted net income climbed to $828 million from $330 million a year earlier.

The company recorded $70 million in identified items after tax, equivalent to 22 cents per diluted share, including closure costs for a European propylene oxide joint venture.

EBITDA reached $1.42 billion, compared with a loss of $480 million a year earlier. Adjusted EBITDA surged 81% year over year to $1.512 billion from $835 million.

Oxyfuels Strength Offsets Polymer Weakness

The Intermediates and Derivatives segment delivered significantly higher profitability, supported by stronger oxyfuels margins, global supply disruptions and favorable gasoline blending economics.

The Channelview propylene oxide facility operated at approximately 110% utilization, while the Bayport facility ran at full capacity following its June restart.

Meanwhile, profitability in the Olefins and Polyolefins (O&P) – Americas segment declined sequentially because of lower polymer and olefin prices.

However, industry integrated polyethylene margins ended the quarter approximately 50% above 2025 levels, supported by improving polyethylene prices in September.

The company completed its planned Clinton turnaround on time and under budget.

In Europe, Asia and International, lower polymer prices pressured margins, while volumes declined sequentially following the May sale of certain European assets.

CEO Peter Vanacker said the company delivered strong earnings and cash conversion through disciplined execution, supported by its global, cost-advantaged portfolio.

Cash Flow and Liquidity Strengthen

LyondellBasell generated $1.7 billion in operating cash flow during the quarter, including a release of working capital.

Capital expenditures totaled $303 million, while shareholder returns through dividends reached $224 million.

Cash increased approximately $600 million during the quarter, even as the company repaid a €500 million debt maturity in September.

LyondellBasell ended the quarter with $3.2 billion in cash and cash equivalents and $7.7 billion in available liquidity.

Fourth-Quarter Outlook

LyondellBasell expects normal seasonal demand patterns and continued supply uncertainty in the fourth quarter.

The company projects operating rates of 85% for North American O&P assets, 60% for European O&P assets and 75% for Intermediates and Derivatives assets.

Management also expects a seasonal release of working capital and plans maintenance at a North American polypropylene facility.

The company warned that conditions in the Middle East remain uncertain and that a return to pre-conflict conditions could take longer than anticipated.

LyondellBasell continues to prioritize cost reductions under its Cash Improvement Plan, disciplined debt reduction, dividend payments and selective investments to support long-term growth.

LyondellBasell to Sell Houston Refinery Site for $320.5 Million

Separately, LyondellBasell announced Friday that it agreed to sell its former Houston refinery site and related assets to Valero Energy Corp. (NYSE:VLO) subsidiary Valero Refining-Texas for $320.5 million.

Valero will assume responsibility for ongoing site operations, environmental liabilities, pension costs and employee obligations.

The transaction, expected to close in the fourth quarter of 2026, supports LyondellBasell's portfolio transformation strategy and provides continued employment for the site's workforce.