LyondellBasell Posts Q3 Earnings Miss on Revenue While Selling Houston Refinery Site to Valero for $320.5 Million

LyondellBasell Industries reported third-quarter 2026 net income of $758 million, with adjusted diluted earnings per share of $2.54, falling just short of the consensus estimate of $2.57 to $2.58. Revenue came in at $8.50 billion, well below Wall Street's expectation of roughly $8.87 to $8.91 billion. Adjusted EBITDA of $1.51 billion edged past the $1.46 billion estimate, offering a partial offset to the top-line shortfall.

Q3 results were weighed down by $70 million in identified items, net of tax, equal to $0.22 per share, driven primarily by closure costs for LyondellBasell's European propylene oxide joint venture. On the positive side, management cited strength in its oxyfuels business and materially higher Intermediates and Derivatives profitability as benefits of its diversified portfolio. The Clinton facility turnaround was completed on time and under budget.

Operating cash flow reached $1.7 billion in the quarter, with capital expenditures of $303 million and dividend payments of $224 million. Cash and equivalents rose approximately $600 million to $3.2 billion, even after a planned euro 500 million debt repayment. For Q4, LyondellBasell guided North American Olefins and Polyolefins operating rates at 85%, European O&P at 60%, and Intermediates and Derivatives at 75%.

Separately, Valero Energy announced it has agreed to acquire the former LyondellBasell Houston refinery site, held through LYB Houston Hub Holdings LLC, for $320.5 million subject to closing adjustments, with closing contingent on customary conditions. The dual announcements sent LYB shares down 2.62% in regular trading on October 30.