The quarter beat the market's earnings bar. Adjusted EPS was $4.30 versus published consensus around $3.5, while revenue of $9.177 billion was slightly below the approximately $9.25 billion expectation.
| Metric | Q2 2026 | Q1 2026 | Q2 2025 | Market comparison |
|---|---|---|---|---|
| Revenue | $9.177B (Table 1 — Earnings Summary) | $7.197B | $7.658B | ~ $9.25B consensus |
| Adjusted EPS | $4.30 (Table 3 — EPS reconciliation) | $0.49 | $0.62 | ~ $3.5 consensus |
| EBITDA excluding identified items | $2.127B (Table 2 — EBITDA reconciliation) | $615M | $715M | — |
| Operating cash flow | $752M (Press release — Cash Flow) | — | — | — |
The earnings beat was operational, not just accounting-driven. Excluding identified items, EBITDA jumped to $2.127 billion from $615 million in the first quarter, led by a $940 million improvement in O&P-Americas and a $162 million increase in Intermediates & Derivatives (Segment results — O&P-Americas; Segment results — I&D). The main driver was wider polymer and chemical margins as supply disruptions tightened markets.
The headline GAAP result is distorted by the European asset sale. LyondellBasell recorded a $734 million pre-tax loss on the divestiture, plus $74 million of asset write-downs, leaving reported EPS at only $1.71 versus $4.30 excluding identified items (Table 2 — Net income reconciliation; Table 3 — EPS reconciliation). The divestiture itself was already announced and completed in May, so its completion is confirmation rather than a fresh surprise.
The quality of the upside is cyclical and partly exposed to reversal. North American O&P operated at roughly 90% utilization, while management expects third-quarter rates of 85% in North American O&P, 70% in European O&P and 85% in Intermediates & Derivatives (Press release — Operating outlook). Management also flagged continued uncertainty over when conflict-related supply returns, making the unusually strong spreads less clearly structural.
The net read is a genuine beat, with balance-sheet execution still important. Liquidity was $7.090 billion, operating cash flow was $752 million, and the company remains on target for $500 million of incremental cash from its improvement plan by year-end (Table 4 — Liquidity; Press release — Cash Flow and Cash Improvement Plan). The scheduled debt maturity repayment in September is the next concrete test of that deleveraging plan.
Read the original 8-K on SEC EDGAR ↗