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Conflict Profits: Why These 2 Chemical Stocks Are Suddenly SoaringLyondellBasell Industries NYSE: LYB said second-quarter earnings and margins improved sharply as disruptions tied to the Middle East conflict tightened petrochemical supply, altered trade flows and supported pricing across several of its businesses.

Chief Executive Officer Peter Vanacker said the company generated EBITDA of $2.1 billion and earnings of $4.30 per diluted share during the quarter. EBITDA more than tripled sequentially, while the company posted a 23% EBITDA margin. Vanacker said the results demonstrated the effects of LyondellBasell’s value-enhancement program and cash-improvement actions when market conditions are favorable.

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Is LyondellBasell’s Nearly 10% Dividend Safe, or a Warning Sign for Investors?“The scale and duration of the supply loss is unprecedented, and we believe that recovery time will be measured in quarters, not months,” Vanacker said of the market disruption. He said approximately 6 million tons of polyethylene capacity, or about 20% to 25% of Middle East supply, sustained damage and is not expected to restart until at least 2027.

Supply disruptions reshape trade flows The company said the conflict affected production, feedstock availability, logistics and trade flows across petrochemical markets. Higher Asian freight rates effectively closed arbitrage routes from Asia to Europe and Central America, increasing demand for U.S. and European material, according to management.

3 High-Yield Dividend Stocks That Could Rally Near 52-Week LowsVanacker also highlighted an unexpected shift in China, where producers reduced imports and increased exports to Southeast Asia despite lower operating rates. Chinese polyethylene inventories declined about 30% from pre-conflict levels, he said, while local operating rates remained in the mid-70% range.

LyondellBasell expects China may need to increase imports to replenish those inventories. Management said it has not seen broad demand destruction in key end markets, with packaging demand remaining stable and healthcare and infrastructure applications continuing to grow. Housing and automotive demand remained subdued, though the company characterized those conditions as continuing rather than new headwinds.

Kim Foley, executive vice president of Olefins and Polyolefins and Trading, said the company announced a $0.10-per-pound polyethylene price increase for August amid continuing volatility. Foley said export prices and volumes increased in July, while China was no longer exporting at the pace seen in the second quarter.

Americas segment drives earnings growth LyondellBasell’s Olefins and Polyolefins Americas segment generated EBITDA of $1.3 billion, roughly four times the level recorded in the same quarter a year earlier. Integrated polyethylene margins expanded after a $0.30-per-pound increase in April contract pricing, which Foley described as the largest increase on record. June contract prices settled $0.15 per pound lower.

North American polyethylene domestic sales volumes rose approximately 3.5% and reached their highest quarterly level since the first quarter of 2022. Polypropylene demand also increased, aided by lower imports. Segment operating rates were about 90%, while crackers ran at approximately 95%.

For the third quarter, the company expects O&P Americas operating rates of approximately 85% of nameplate capacity. The lower rate reflects planned maintenance at Clinton and Lake Charles. The Clinton turnaround began in July and is expected to last about 70 days, while the Lake Charles outage is scheduled to begin in the second half of the third quarter and continue into the fourth quarter.

The Europe, Asia and International olefins and polyolefins segment reported EBITDA of $331 million, up $337 million sequentially and its strongest quarterly result since 2021. Results included an approximately $50 million gain from the sale of European emissions credits. The segment operated at approximately 75% utilization during the quarter, with crackers at about 85% utilization.

Management expects the segment to operate at about 70% utilization in the third quarter as it aligns output with seasonal demand. Foley said prolonged low water levels on the Rhine could further affect operations.

Bayport outage limited intermediates results The Intermediates and Derivatives segment generated EBITDA of $386 million, supported by stronger margins in several businesses. However, unplanned downtime at the company’s Bayport PO/TBA asset in Houston reduced second-quarter EBITDA by an estimated $250 million, according to Aaron Ledet, executive vice president of Intermediates and Derivatives and Enterprise Services.

Ledet said the Bayport facility was safely restarted and ramped to full rates in June. The company expects improved oxyfuels and propylene oxide derivatives volumes in the third quarter, targeting segment operating rates of about 85%.

The company said oxyfuels benefited from seasonal demand and near-record gasoline crack spreads. Ledet said approximately 40% of Russian refining capacity has been idled amid refinery disruptions associated with the Ukraine war, tightening refined-product supply. He also said 20% of global methanol capacity is supplied from the Middle East, including significant Iranian capacity that largely serves China.

Advanced Polymer Solutions posted second-quarter EBITDA of $78 million. Executive Vice President Torkel Rhenman said margins improved through pricing actions and cost optimization, while automotive demand remained stable. The segment’s first-half EBITDA rose more than 50% from the prior-year period, he said.

Portfolio actions and cash plan continue LyondellBasell completed the divestiture of four European olefins and polyolefins assets in May and intends to close its Brindisi site by the end of 2026. Vanacker said the remaining European portfolio is centered on more advantaged operations, including crackers and integrated polyolefins assets in Wesseling, Germany, as well as PO/TBA sites in Botlek and Fos.

The company said construction of its MoReTec-1 recycling facility in Wesseling remains on schedule for startup near the end of 2027. Vanacker said most of the facility’s expected capacity has already been pre-sold through agreements with brand owners. LyondellBasell has delayed its planned MoReTec-2 project in the U.S., citing less-advanced regulation and its cash-improvement plan.

Chief Financial Officer Agustín Izquierdo said the company generated $752 million in operating cash flow during the quarter, invested $270 million in capital expenditures and returned $224 million to shareholders through dividends. Cash totaled $2.6 billion at quarter-end, while available liquidity was $7.1 billion.

LyondellBasell maintained its 2026 capital-expenditure plan of $1.2 billion. The company expects sustaining capital expenditures to decline by about $100 million following the European asset divestitures. Management said it remains on track to deliver $500 million of incremental cash flow by the end of 2026 through lower fixed costs and capital spending. Headcount has been reduced by approximately 3,400 employees, or 17% of the workforce, since the beginning of last year. Izquierdo said the company’s capital-allocation priorities remain focused on maintaining an investment-grade balance sheet, funding safe and reliable operations, paying dividends and pursuing growth investments selectively. He said the company would consider mergers and acquisitions opportunistically, but that its current priority is rebuilding the balance sheet and improving credit metrics.

About LyondellBasell Industries (NYSE:LYB)LyondellBasell Industries N.V. NYSE: LYB is a global chemical company headquartered in Houston, Texas, that specializes in the production of polyolefins and advanced polymers. Through its extensive portfolio, the company supplies raw materials for a wide range of end markets, including packaging, automotive, construction, electronics and consumer goods. By combining proprietary process technologies with expertise in catalysts, LyondellBasell aims to deliver value-added solutions that enhance product performance and sustainability.

The company's integrated operations encompass the manufacture of olefins and polyolefins, advanced polymer products, chemical intermediates and refining activities.

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Key Takeaways LyondellBasell reports second-quarter 2026 results before the opening bell on July 31. LYB sees North America and Europe benefiting from stronger demand, exports and higher operating rates. LyondellBasell targets $500M incremental cash flow in 2026 through cost and portfolio initiatives. LyondellBasell Industries N.V. (LYB - Free Report) is set to release second-quarter 2026 results before the opening bell on Friday. 

LyondellBasell missed the Zacks Consensus Estimate for earnings in two of the trailing four quarters, and beat it twice, with the average negative earnings surprise being 47.2%.

The company is expected to have faced headwinds from higher feedstock costs amid improved seasonal demand in the second quarter.

LYB's shares are up 4.4% in the past year compared with the Zacks Chemicals Diversified industry’s 1.7% rise.

Image Source: Zacks Investment Research

Let’s see how things are shaping up for this announcement. 

What Our Model Unveils for LYB Our proven model doesn’t predict an earnings beat for LYB this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here. 

Earnings ESP: Earnings ESP for LYB is -5.07%. The Zacks Consensus Estimate for the second quarter is currently pegged at $3.56 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: LYB currently carries a Zacks Rank #3. 

What Do LYB’s Revenue Estimates Say ?The Zacks Consensus Estimate for second-quarter consolidated revenues for LYB is currently pegged at $8,900.6 million, implying a year-over-year increase of 16.2%. 

For the Olefins and Polyolefins – Americas division, the consensus estimate is $3,456 million, suggesting a year-over-year rise of 26.5%. The same for the Olefins and Polyolefins – Europe, Asia & International division is pegged at $3,243 million, implying a 24.7% increase from last year’s tally. 

For LYB’s Advanced Polymer Solutions (APS) segment, the Zacks Consensus Estimate for second-quarter revenues is $973 million, suggesting a 5.1% rise year over year. 

The consensus estimate for the Intermediaries and Derivatives segment’s revenues is pinned at $2,606 million, suggesting a 12.2% rise from the year-ago reported figure. 

The same for the Technology segment's revenues is pegged at $163 million, indicating a 12.4% fall from a year ago. 

Factors at Play for LYB LyondellBasell is expected to have benefited from a stronger operating environment in the second quarter, supported by tightening global petrochemical supply, improving pricing and higher operating rates. Ongoing geopolitical tensions in the Middle East have disrupted energy and petrochemical supply chains, reducing production and exports from key regions. Management expects these supply disruptions to persist for several quarters, creating structurally tighter supply-demand balances across polyethylene, polypropylene and other petrochemical products. This environment is expected to have driven stronger export demand, higher product prices and improved margins. 

North America is expected to have been LYB's strongest growth driver in the second quarter, supported by improving seasonal demand, higher polyethylene and polypropylene prices, and robust export demand. Tight global supply is expected to have kept the company's North American assets running at around 90% of nameplate capacity, boosting volumes and margins.  

Europe is expected to have seen improved demand, stronger polymer margins and an operating rate of around 80%, supported by lower imports from the Middle East and China. The recent sale of four European assets might have further strengthened LYB's portfolio and improved profitability. 

The Intermediates & Derivatives segment is expected to have benefited from stronger seasonal demand, improved oxyfuels margins and the restart of the Bayport PO/TBA facility by the end of the second quarter. The Bayport outage reduced first-quarter EBITDA by around $40 million and is estimated to have negatively impacted earnings by roughly $25 million per week while the asset remained offline, making its restart a key catalyst for second-quarter profitability. 

The APS segment is expected to have faced mixed conditions. While automotive and other durable goods markets remain soft, the company is actively passing through higher raw material, energy and logistics costs to customers. Although contractual pricing mechanisms may temporarily delay margin recovery, customer demand has remained relatively resilient in packaging and other essential end markets, supporting the company's long-term transformation strategy. 

LYB continues to execute initiatives aimed at strengthening profitability and cash generation. The company remains focused on its portfolio transformation, disciplined capital allocation and cost-reduction efforts under its Cash Improvement Plan. Management is targeting $500 million of incremental cash flow in 2026, bringing cumulative improvements since 2025 to $1.3 billion. Lower fixed costs, improved working capital management and ongoing productivity initiatives are expected to have further supported earnings in the June quarter despite higher raw material and logistics costs.  

LyondellBasell Industries N.V. Price and EPS SurpriseBasic Materials Stocks That Warrant a LookHere are some companies in the basic materials space you may want to consider, as our model shows they have the right combination of elements to post an earnings beat this quarter: 

The Chemours Company (CC - Free Report) , scheduled to release earnings on Aug. 4, has an Earnings ESP of +27.17% and carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here. 

The consensus estimate for CC’s second-quarter earnings is currently pegged at 43 cents per share. 

Avient Corporation (AVNT - Free Report) , scheduled to release earnings on Aug. 6, has an Earnings ESP of +0.87% and carries a Zacks Rank #2 at present. 

The consensus mark for AVNT’s second-quarter earnings is currently pegged at 89 cents per share. 

Ternium S.A. (TX - Free Report) , slated to release earnings on Aug. 4, has an Earnings ESP of +21.4%. 

The Zacks Consensus Estimate for TX's second-quarter earnings is currently pegged at $1.29 per share. TX currently carries a Zacks Rank #1.

ROTTERDAM, Netherlands, July 07, 2026 (GLOBE NEWSWIRE) -- Global chemical leader LyondellBasell (NYSE: LYB) today announced an innovative flexible packaging solution for Marabou chocolate bars, developed in collaboration with Mondelez International, Amcor, Taghleef Industries and other key industry players. Using LYB CirculenRevive polymers with 100% attributed recycled content via an ISCC PLUS-certified mass balance approach, Mondelez is now able to offer packaging sourced from 75% recycled content, helping transform hard-to-recycle post-consumer mixed plastic waste into high-quality materials for food packaging.

“Our collaboration with Mondelez illustrates our shared vision for the future and highlights our ability to provide innovative, high-quality circular solutions tailored to demanding specifications,” said Yvonne van der Laan, executive vice president, Sustainable Solutions and Technology Business, LYB. “We’re committed to making circular and low carbon solutions work for businesses while creating solutions for everyday sustainable living.”

Scaling circular polymers through the LYB integrated ecosystem

As LYB continues to expand its circular solutions, the company plans to supply future polymers for Marabou packaging through MoReTec-1, its first commercial-scale catalytic chemical recycling plant under construction in Wesseling, Germany. Once operational, MoReTec-1 will strengthen access to circular feedstock within the LYB integrated ecosystem, which connects advanced sorting and recycling infrastructure with the company’s existing crackers and polymerization assets.

“This collaboration demonstrates how LYB can connect chemical recycling innovation with the scale and reach of our existing production network,” said LYB CEO Peter Vanacker. “As we advance MoReTec-1, we expect the facility to support future polymer supply for Marabou packaging and strengthen our ability to convert hard-to-recycle plastic waste into circular feedstocks for our existing assets. This integrated approach positions LYB to deliver value while advancing our circular and low carbon strategy.”

Once operational, the MoReTec-1 facility is designed to produce 50,000 metric tons of feedstock annually for use in existing LYB production units, enabling the production of recycled polymers. Source One Plastics, an LYB joint venture located in Eicklingen, Germany, processes mixed plastic waste into feedstock suitable for chemical recycling, supporting future supply to MoReTec-1. LYB currently sources recycled feedstock for CirculenRevive polymer production from third-party pyrolysis oil producers.

Collaborating across the packaging value chain

Solutions like the Marabou chocolate bar packaging depend on collaboration across the value chain to help advance a more circular economy for plastics. LYB supplies the circular polymers, Taghleef Industries develops the base film and Amcor converts the material into the final flexible packaging solution for Mondelez.

“Looking ahead, our ambition is to increase the use of recycled plastic in our packaging materials, and we’re proud to collaborate with multiple value chain players, including LYB and other industry leaders, on this journey,” said Packaging Sustainability Manager at Mondelez International, Richard Akkermans. “For consumers, the message is simple: plastic packaging can be recycled and allocated back into new food packaging. This initiative shows what becomes possible when brand owners, recyclers, packaging material producers and converters work together to turn circular ambition into commercial reality.”

Meeting brand-owner demand for circular packaging solutions

The collaboration reflects growing demand from brand owners for high-performance circular polymers that can support recycled-content goals while delivering the quality required for flexible food packaging.

The new packaging supports progress toward European recycling ambitions and readiness for anticipated recycled-content requirements under the European Union Packaging and Packaging Waste Regulation (PPWR). Chemical recycling can help address flexible packaging waste, which has historically proven challenging to recycle into materials suitable for food packaging.

How CirculenRevive supports solutions

CirculenRevive polymers are created by converting hard-to-recycle mixed plastic waste, including flexible packaging, into feedstock for polymer production through a chemical recycling process. LYB uses these feedstocks in existing production processes, displacing fossil-based feedstocks, and attributes them to end products through an ISCC PLUS-certified mass balance approach.

The resulting polymers offer a drop-in, virgin-quality solution that allows brand owners to incorporate recycled content while maintaining performance and compliance with regulatory requirements.

To learn more about the LYB full portfolio of circular and low carbon solutions, visit www.lyb.com/circulen.

About LyondellBasell

We are LyondellBasell (NYSE: LYB) ― a leader in the global chemical industry creating solutions for everyday sustainable living. Through advanced technology and focused investments, we are enabling a circular and low carbon economy. Across all we do, we aim to unlock value for our customers, investors and society. As one of the world's largest producers of polymers and a leader in polyolefin technologies, we develop, manufacture and market high-quality and innovative products for applications ranging from sustainable transportation and food safety to clean water and quality healthcare. For more information, please visit www.lyondellbasell.com or follow @LyondellBasell on LinkedIn.

Circulen is a trademark owned or used by the LyondellBasell family of companies.

FORWARD-LOOKING STATEMENTS
The statements in this release relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management of LyondellBasell which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual results could differ materially based on factors including, but not limited to, market conditions, including the prolonged industry downturn, the business cyclicality of the chemical and polymers industries; the availability, cost and price volatility of raw materials and utilities, particularly the cost of oil, natural gas, and associated natural gas liquids; the supply/demand balances for our and our joint ventures’ products; customer and consumer demand for circular products, and regulatory support for such demand; industry production capacities, operating rates, and the pace of global capacity rationalizations; our ability to successfully construct and operate MoReTec-1; technological developments, and our ability to develop new products and process technologies; our ability to meet our sustainability goals, including the ability to operate safely, increase production of recycled and renewable-based polymers to meet our targets and forecasts; our ability to build a profitable Circular & Low Carbon Solutions business. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the “Risk Factors” section of our Form 10-K for the year ended December 31, 2025, which can be found at www.LyondellBasell.com on the Investors page and on the Securities and Exchange Commission’s website at www.sec.gov. There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Forward-looking statements speak only as of the date they were made and are based on the estimates and opinions of management of LyondellBasell at the time the statements are made. LyondellBasell does not assume any obligation to update forward-looking statements should circumstances or management’s estimates or opinions change, except as required by law.

About Mondelez International

Mondelez International is a global leader in snack foods, committed to sustainable practices and innovation across its diverse portfolio of iconic brands, including Marabou.

About Marabou

Marabou is a renowned brand known for its high-quality confectionery products. This collaboration represents a significant step toward a more sustainable future by integrating environmentally responsible packaging solutions.

MEDIA CONTACT:
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Photos accompanying this announcement are available at:
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https://www.globenewswire.com/NewsRoom/AttachmentNg/14a329d6-fdfd-4b16-b54d-661ea955be8e

Marabou Chocolate Bar Packaging Using LYB CirculenRevive polymers with 100% attributed recycled content via an ISCC PLUS-certified m... Collaborating across the value chain Solutions like the Marabou chocolate bar packaging depend on collaboration across the value chain to...