LyondellBasell Industries N : First Quarter 2026 Presentation Slides

Published: 2026-05-01 06:49:11 ET LYB

Published on 05/01/2026 at 06:49 am EDT

First Quarter 2026 Earnings

May 1, 2026

Safety performance

Steadfast commitment to leadership in safety in 2026

Sources: American Chemistry Council (ACC) and LyondellBasell.

Injuries per 200,000 hours worked 0.4

0.3

0.2

0.1

2010-2014 2015-2019 2020-2024 2025 March 2026 YTD

Middle East war creating structural shifts in economics

LYB is well-positioned to benefit from strengthened cost advantage

Ethylene Cash Cost1

$/ton

1,800

1,200

600

Higher crude prices increase costs for naphtha-based petchems

Crude oil discounts for China and India have largely disappeared

Security of supply questions for Asian and Middle East capacity

Higher risk premium for crude oil increases naphtha-based costs

Discounts on sanctioned crude oil unlikely to return

Direct damage to assets and prolonged logistical disruptions extend the duration of tight markets for petrochemicals

Some temporary shutdowns could become permanent

Idle capacity insufficient to fill supply gap

Downside risk to discretionary demand could materialize

U.S.

Ethane

China CTO

China MTO

Europe Naphtha

China Naphtha2

LYB USGC assets benefiting from low costs and export demand

CTO = Coal-to-Olefins; MTO = Methanol-to-Olefins

Source: Chemical Market Analysis and S&P Global; LYB internal analysis

LYB European assets quickly passing through higher feedstock

costs; increasing volumes to address lack of imports

Similar cost curve benefits for most LYB O&P and I&D products

Building a more resilient LYB independent of the cycle

Structurally lowering costs, strengthening cash generation and improving through-cycle earnings

Ceased refining operations

~3,000

~15%

Headcount reduction1

since year-end 2024

$1.3 B

Cash Improvement Plan

cumulative 2026 target2

$0.4 B

Incremental EBITDA from

ongoing growth projects3

$1.5 B

Value Enhancement

Program recurring annual EBITDA4 target by 2028

Divested EO&D business and closed Dutch PO JV

Continued APS portfolio transformation

Completing divestment of four European Assets

Diligent trade working capital management while capturing value

Streamlining the organization enhancing cost efficiencies

Disciplined capital spend while prioritizing safety and reliability

PO/TBA rate increases beyond benchmark

Hyperzone reliability improvements and acetyls upgrades

MoReTec-1 construction targeting 2027 start-up

Exceeded 2025 Value Enhancement Program (VEP) target

Relative to year-end 2024 employee headcount and reflects workforce reductions post-European asset divestiture.

Cumulative Cash Improvement Plan target reflects value delivered in 2025 and 2026. 2025 is evaluated relative to the 2025 internal plan and 2026 will be measured relative to 2025 actuals.

Incremental EBITDA by 2030. PO/TBA uplift calculated as the volume increase multiplied by the 2017-2019 average cash margins. Hyperzone and acetyls uplift calculated as the volume increase multiplied by the 2013-2022 average cash margins, MoReTec-1 uplift based on revised CLCS margin targets by 2030. Incremental to fossil-based EBITDA excluding development costs. Our ability to achieve our MoReTec-1 uplift is dependent on several key factors, many of which are outside of our control, including regulation, customer demand and investment.

Recurring annual EBITDA for the Value Enhancement Program is the year-end EBITDA run rate estimate based on 2017-2019 mid-cycle margins. Value unlocked as of December 2025 is based on a 2021 baseline, while incremental value unlocked starting in

First quarter 2026 highlights

Solid results with only modest initial benefits from global supply constraints

Net income

Diluted earnings per share

EBITDA

Cash and cash equivalents As of March 31, 2026

Net income ex. identified items

Diluted earnings per share ex. identified items

EBITDA

ex. identified items

Liquidity

As of March 31, 2026

Note: Identified items include adjustments for lower of cost or market ("LCM"), gain or loss on sale of business, asset write-downs in excess of $10 million in aggregate for the period, Cash Improvement Plan costs, site closure costs, European transaction costs and

Efficiently converting earnings into cash

Cash conversion benefited from reduced working capital and timing of tax payments

$2.6 B

111%

4.0x

$2.6 B

$7.3 B

Cash from operating activities

1Q26 last 12 months

Cash conversion

1Q26 last 12 months

Net debt to EBITDA ex. identified items March 31, 2026

Cash and cash equivalents

March 31, 2026

Available liquidity March 31, 2026

Cash conversion

111%

96%

98%

90%

95%

83%

2021 2022 2023 2024 2025 1Q26 LTM

Through-cycle target

Notes: Cash conversion equals net cash provided by operating activities divided by EBITDA excluding LCM, gain or loss on sale of business and asset write-downs in excess of $10 million in aggregate for the period. Net debt to EBITDA excluding identified items is

total debt minus cash and cash equivalents, restricted cash and short-term investments divided by EBITDA excluding identified items. 7

Rebalanced capital allocation supporting growth

Seasonal working capital build from very low levels while supporting flexibility to capture higher prices

USD, billions

1Q26

Beginning balance1

Cash from operating activities

Dividends CAPEX Other 1Q26

Ending balance1

$3.4

$2.6

Achieved 111% cash conversion2 over last 12 months

$2.6 B cash and cash equivalents as part of $7.3 B of available liquidity3

Substantially completed portfolio transformation with the

completion of the sale of four European assets in 2Q26

Prioritizing safe and reliable operations while preserving real options to unlock value as market conditions improve

Rebalanced capital allocation by reducing quarterly dividend

by 50%

Returned $224 MM in dividends to shareholders during 1Q26

Now expect both effective and cash tax rates to be 15-20%

Beginning and ending cash balances include cash and cash equivalents, restricted cash, and liquid investments.

Cash conversion equals cash provided by operating activities divided by EBITDA excluding LCM, gain or loss on sale of business and asset write-downs in excess of $10 million in aggregate for the period.

As of March 31, 2026. 8

1Q26 segment highlights

Improvements across the portfolio partially offset by reduced licensing activity in Technology

EBITDA variance by segment ex. identified items USD, millions

$163

$55 $19 $20

$568

$345

$(62)

$3 $615

$417

4Q25 O&P Americas O&P EAI I&D APS Technology Other 1Q26

Olefins & Polyolefins - Americas

Domestic and export margins benefiting from tight markets due to global supply constraints

EBITDA ex. identified items USD, millions

$428

$318

$327

$251

$164

$162

$313

$418

1Q25 2Q25 3Q25 4Q25 Volume Margin Other 1Q26

EBITDA EBITDA ex. identified items

Integrated PE margins increased on lower feedstock costs and higher domestic and export pricing

PE contract price increases of $0.05/lb and $0.10/lb in January and March, respectively

Industry inventories remained low in the quarter, despite higher industry

utilization, due to increased exports

Olefins and polyolefins margins and volumes expected to increase significantly on continuing global supply tightness

LYB April North America PE orders are 20% above pre-war average

LYB April North America PP export orders are 15% above pre-war average

PE price and PP spread increases in play for April and May

Our actions

Operated LYB olefins crackers at >95% rates in 1Q26 capturing favorable margins, supported by VEP projects executed during the last 3 years

Maximizing operating rates in 2Q26 to match demand

Polyolefins moving from oversupply to tight in 2026

LYB capturing upside from cost-advantaged assets

War-related constraints on supply are driving prices and margins up and

incentivizing increased production from stable regions

North American PE remains highly advantaged with low and stable costs providing flexibility to increase volumes to serve exports

North American PP pivoting to net export position with increased production to fill substantial gap in global supply

Self-help actions such as VEP & CIP, support margin expansion

Capacity impacts1

MM tons

LYB is well-positioned with ~90% of our PE capacity and ~70% of our PP 30

capacity within North America and Europe2, supported by successful portfolio rationalization 20

No evidence of demand destruction in non-durable markets while durable 10

markets remain tepid, similar to past four years

War-related effects expected to persist for many quarters

Ethylene PE PP

Majority of impacted assets concentrated in the Middle East and China

Estimates based on LYB internal analysis and public information as of April 28th, 2026. Impacted capacity includes confirmed and unconfirmed shutdowns and nameplate capacity of units with force majeures or operating at reduced rates due to feedstock constraints and/or war-related disruptions.

Capacities include LYB proportional share of JVs and with PP volumes including catalloy, post adjustment for European strategic assessment. 11

Olefins & Polyolefins - Europe, Asia & International

Higher volumes on less downtime and improved demand partially offset by higher naphtha costs

EBITDA ex. identified items USD, millions

$17

$(6)

$(35)

$(95)

$(61)

$(381)

$46 $48

Improved seasonal demand in the region

During March, higher naphtha costs and increased polymer pricing driven by volatility and uncertainty related to the war

Rapidly passing through higher raw material and energy costs to improve

polymer margins and maintain profitability

Portfolio transformation improving average margins following European asset sale

Targeting ~80% operating rates in 2Q26

Our actions

Completed an important milestone in our portfolio transformation with the completion of the sale of four European assets

1Q25 2Q25 3Q25 4Q25 Volume Margin Other 1Q26

EBITDA EBITDA ex. identified items

Intermediates & Derivatives

PO&D margins benefited from improved pricing partially offset by unplanned downtime

EBITDA ex. identified items USD, millions

$290

$303

$211

$205

$224

$94

$195

$286

1Q25 2Q25 3Q25 4Q25 Volume Margin Other 1Q26

Oxyfuels benefit from higher crude oil prices offset by weaker gas crack spreads

Improved seasonal demand in acetyls offset by unplanned downtime

Unplanned downtime at LYB Bayport, Texas PO/TBA asset had an estimated EBITDA impact of ~$40 MM

Meaningful improvement in oxyfuels margins on stronger gasoline crack spreads and lower natural gas costs due to the war

Improved acetyls volumes and margins following restart

Bayport PO/TBA expected to restart by the end of 2Q with an estimated EBITDA impact of ~$25 MM per week1

Targeting 75% operating rates in 2Q26

Our actions

Safely restarted La Porte acetyls assets in April

Mobilizing Bayport PO/TBA team for restart at the end Q2

EBITDA EBITDA ex. identified items

Note: Estimated EBITDA impact is based on estimated production multiplied by estimated margins.

Second quarter estimated impact based on a crude oil price forecast of ~$100/bbl.

Advanced Polymer Solutions

Increased volumes across most APS businesses on seasonal demand improvements

EBITDA ex. identified items

USD, millions

$46

$40

$47

$38

$17

$(746)

$32

$58

Seasonal demand improvement despite geopolitical uncertainty

Customer focus generating results with new business wins

Margin pressure from rising raw material costs following global supply disruptions

Demand softness expected across automotive and other end-markets

Increased raw material costs related to global supply disruptions

Passing through higher costs from raw materials, energy and logistics

Our actions

Proactively engaging customers on pricing while

serving critical customer needs amid volatility

Positioned to capture incremental market share

1Q25 2Q25 3Q25 4Q25 Volume Margin 1Q26 EBITDA EBITDA ex. identified items

Technology

Step down in licensing sales with modest improvement in catalyst margins

EBITDA ex. identified items

USD, millions

$52

$34

$15

$18

$33

$80

Reduced licensing revenue due to slower global polyolefin industry growth as expected

Improved catalyst margins from product mix

Higher catalyst sales from volumes being realized in 2Q following

supply chain disruptions during 1Q

Licensing revenue expected to increase

1Q25 2Q25 3Q25 4Q25 1Q26

EBITDA EBITDA ex. identified items

Near-term market outlook

Structural supply tightening and geopolitics driving momentum

North America

Demand improving seasonally

Polymer price increases accelerating due to global supply disruptions

Export economics remain favorable as

cost advantage widens

Europe

Demand improving seasonally

Improved operating rates as imports remain constrained by geopolitical disruptions

Tighter supply dynamics support improved pricing

Asia

Feedstock disruptions continue to limit supply

Operating rates to remain below normal levels

Potential for accelerated capacity rationalization

Packaging

Demand for essentials remains resilient (food and healthcare)

Pricing trends firming, supported by selective tightness and export dynamics

Building & Construction

Demand remains muted amid macro uncertainty

Lower interest rates not yet translating to construction activity recovery

Automotive

Muted seasonal demand improvements across North America and Europe

Global production is down y/y with

additional downside risk from war

Fuels

Geopolitical volatility driving price and margin upside

Feedstock advantage amplifies

crude-linked earnings sensitivity

Appendix

LYB financial sensitivities

Theoretical Impact on Earnings1

Operating Rates3

Nameplate capacity3

(MMton/yr)

North America $100/ton (4.5 cpp) integrated PE margin =

~$320MM

Europe

$100/ton integrated PE margin = ~$280MM

~70%

~2.1

Oxyfuels

$1/bbl crude oil =

~$20MM globally2

~85%

~5.2

~85% ~4.1

PP + Catalloy

North America

~75% ~1.9

Europe

~$440MM for NA and EU

~60%

~2.5

$100/ton PO spread =

~$160MM for NA and EU

~80%

~1.7

$100/ton PP - propylene spread =

Polyolefins impact calculated as average LYB volumes sold for 2021-2025 multiplied by the change in margin. Europe impact based on EAI volumes prior to European asset sale. PO impact based on improvement in PO incremental contract margin.

Oxyfuels (MTBE/ETBE) theoretical impact on earnings is calculated assuming normalized volumes and constant butane-to-crude ratio of 50%.

2025 operating rates and nameplate capacity 18

Information related to financial measures

This presentation makes reference to certain "non-GAAP" financial measures as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. We report our financial results in accordance with U.S. generally accepted accounting principles, but believe that certain non-GAAP financial measures provide useful supplemental information to investors. Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP. Our non-GAAP measures are as follows:

Cash conversion - Net cash provided by operating activities divided by EBITDA excluding LCM, gain or loss on sale of business and asset write-downs in excess of $10 million in aggregate for the period. This measure is commonly used by investors to evaluate liquidity. We believe cash conversion is an important financial metric as it helps the Company determine how efficiently it is converting its earnings into cash.

EBITDA - Net income (loss) plus interest expense, net, provision for (benefit from) income taxes, and depreciation and amortization. This measure provides useful supplemental information to investors regarding the underlying business trends and performance of our ongoing operations and is useful for period-over-period comparisons of such operations. EBITDA should not be considered an alternative to profit or operating profit for any period as an indicator of our performance, or as an alternative to operating cash flows as a measure of our liquidity.

Incremental EBITDA from ongoing growth projects - Incremental EBITDA from ongoing growth projects is the estimated EBITDA uplift from capacity expansions that we expect to achieve by 2030. It includes: PO/TBA uplift, calculated as the volume increase multiplied by the 2017-2019 average cash margins; Hyperzone and acetyls uplift, calculated as the volume increase multiplied by the 2013-2022 average cash margins; and MoReTec-1 uplift, based on revised CLCS margin targets by 2030, which is incremental to fossil-based EBITDA and excludes development costs. This measure cannot be reconciled to net income due to the inherent difficulty in quantifying certain amounts that are necessary for such reconciliation at the plant level, including adjustments that could be made for interest expense, net, provision for (benefit from) income taxes and depreciation & amortization, the amounts of which, based on historical experience, could be significant.

Net debt to EBITDA excluding identified items - Total debt minus cash and cash equivalents, restricted cash and short-term investments divided by EBITDA excluding identified items. This measure is commonly used by investors to evaluate liquidity. We believe that net debt to EBITDA excluding identified items provides useful information to management and other parties in evaluating changes to the Company's capital structure and credit quality.

Recurring annual EBITDA for the Value Enhancement Program (VEP) - Recurring annual EBITDA for the Value Enhancement Program is the year-end EBITDA run rate estimate based on 2017-2019 mid-cycle margins. Value unlocked as of December 2025 is based on a 2021 baseline, while incremental value unlocked starting in 2026 is based on a 2025 baseline. We believe recurring annual EBITDA is useful to investors because it represents a key measure used by management to assess progress towards our strategy of value creation.

Trade working capital - Trade working capital equals the sum of accounts receivable and inventory minus accounts payable. This measure is commonly used by investors to evaluate liquidity. We believe trade working capital is an important financial metric used to assess near term liquidity.

Trade working capital excluding the refining business - Trade working capital excluding the refining business equals trade working capital excluding accounts receivable, inventory and accounts payable for the refining business.

Information related to financial measures (continued)

We also present EBITDA, net income and diluted EPS exclusive of identified items. Identified items include adjustments for lower of cost or market ("LCM"), gain or loss on sale of business, asset writedowns in excess of $10 million in aggregate for the period, Cash Improvement Plan costs, site closure costs, European transaction costs and discontinued operations. Asset writedowns include impairments of goodwill, impairments of long-lived assets, a write-down of a related party loan receivable and a fourth quarter 2024 deferred tax valuation allowance for one of our Chinese joint ventures recognized in Income (loss) from equity investments. Our inventories are stated at the lower of cost or market. Cost is determined using the last-in, first-out ("LIFO") inventory valuation methodology, which means that the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs. Fluctuation in the prices of crude oil, natural gas and correlated products from period to period may result in the recognition of charges to adjust the value of inventory to the lower of cost or market in periods of falling prices and the reversal of those charges in subsequent interim periods, within the same fiscal year as the charge, as market prices recover. A gain or loss on sale of a business is calculated as the consideration received from the sale less its carrying value. We evaluate property, plant and equipment and definite-lived intangible assets whenever impairment indicators are present. If it is determined that an asset or asset group's undiscounted future cash flows will not be sufficient to recover the carrying amount, an impairment charge is recognized to write the asset down to its estimated fair value. Goodwill is tested for impairment annually in the fourth quarter or whenever events or changes in circumstances indicate that the fair value of a reporting unit with goodwill is below its carrying amount. If it is determined that the carrying value of the reporting unit including goodwill exceeds its fair value, an impairment charge is recognized. We assess our equity investments for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. If the decline in value is considered to be other-than-temporary, the investment is written down to its estimated fair value. Valuation allowances are provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. In June 2025, we announced plans to sell select olefins and polyolefins assets and the associated business in Europe, resulting in selling expenses, separation costs and employee-related charges (collectively referred to as "European transaction costs"). In April 2025, the Company announced the Cash Improvement Plan, focused on strengthening financial performance, which resulted in employee-related charges across all segments. In March 2025, we announced the permanent closure of our Dutch PO joint venture asset, resulting in shutdown-related charges in our I&D segment. Additionally, we recognized shutdown and employee-related charges related to sites in our APS and O&P EAI segments. In February 2025, we ceased business operations at our Houston refinery. Accordingly, our refining business, previously disclosed as the Refining segment, is reported as a discontinued operation.

These measures as presented herein, may not be comparable to similarly titled measures reported by other companies due to differences in the way the measures are calculated. Reconciliations for our non-GAAP measures can be found on our website at investors.lyondellbasell.com

Disclaimer

LyondellBasell Industries NV published this content on May 01, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 01, 2026 at 10:48 UTC.