[10-Q] LyondellBasell Industries N.V. Quarterly Earnings Report
Filing Impact
Filing Sentiment
Form Type
10-Q
LyondellBasell Industries N.V. reported a third‑quarter 2025 net loss of $890 million, driven primarily by a $972 million goodwill impairment and additional impairments of $230 million. Sales were $7,727 million, down from $8,604 million a year ago, and operating results swung to a loss of $731 million from income of $865 million.
For the first nine months of 2025, net loss was $598 million versus income of $1,970 million in 2024, with cash from operations of $755 million. Cash and equivalents were $1,784 million at September 30, 2025. Discontinued operations (refining) posted a Q3 loss of $61 million, with a year‑to‑date LIFO benefit of $196 million.
The company exercised a put option to sell select European O&P assets and expects a $700–$900 million loss on closing, anticipated in the first half of 2026, including a $300 million cash contribution and a transfer of approximately $340 million in net working capital. Year‑to‑date related costs were $27 million, and non‑cash PP&E impairments were $43 million. Financing actions included issuing $500 million of 6.150% notes due 2035 and repaying $492 million notes due 2025. The amended $3,750 million revolver increased leverage ratio limits and restricts dividend increases and repurchases at higher leverage.
LyondellBasell Industries N.V. ha riportato una perdita netta nel terzo trimestre 2025 di $890 milioni, trainata principalmente da una $972 milioni di impairment dell'avviamento e da ulteriori impairment di $230 milioni. Le vendite sono state $7.727 milioni, in calo rispetto a $8.604 milioni di un anno fa, e i risultati operativi sono passati da utile di $865 milioni a una perdita di $731 milioni.
Nei primi nove mesi del 2025, la perdita netta è stata $598 milioni contro un utile di $1.970 milioni nel 2024, con uno flusso di cassa dalle operazioni di $755 milioni. Le disponibilità liquide e equivalenti erano $1.784 milioni al 30 settembre 2025. Le operazioni cessate (raffinazione) hanno riportato una perdita nel Q3 di $61 milioni, con un beneficio LIFO accumulato dall'inizio dell'anno di $196 milioni.
L'azienda ha esercitato un'opzione di vendita di determinati asset O&P europei e si prevede una perdita di $700–$900 milioni al closing, prevista nel primo semestre del 2026, includendo un contributo in contanti di $300 milioni e una trasferimento di circa $340 milioni in capitale circolante netto. I costi correlati accumulati da inizio anno sono stati $27 milioni, e gli impairment non monetari di PPE sono stati $43 milioni. Le operazioni di finanziamento hanno incluso l'emissione di $500 milioni di obbligazioni 6.150% scadenza 2035 e il rimborso di $492 milioni di obbligazioni in scadenza nel 2025. L'ampliamento dell'accordo revolving di $3.750 milioni ha aumentato i limiti del leverage e limita aumenti del dividendo e riacquisti a leverage più elevato.
LyondellBasell Industries N.V. reportó una pérdida neta del tercer trimestre de 2025 de $890 millones, impulsada principalmente por una $972 millones de deterioro de fondo de comercio y deterioros adicionales de $230 millones. Las ventas fueron de $7,727 millones, frente a $8,604 millones hace un año, y los resultados operativos pasaron de una ganancia de $865 millones a una pérdida de $731 millones.
Para los primeros nueve meses de 2025, la pérdida neta fue de $598 millones frente a ingresos de $1,970 millones en 2024, con flujo de efectivo de operaciones de $755 millones. El efectivo y equivalentes eran de $1,784 millones al 30 de septiembre de 2025. Las operaciones discontinuadas (refino) registraron una pérdida de Q3 de $61 millones, con un beneficio LIFO acumulado del año de $196 millones.
La compañía ejerció una opción de venta de ciertos activos europeos de O&P y se espera una pérdida de $700–$900 millones al cierre, prevista para el primer semestre de 2026, incluyendo una contribución en efectivo de $300 millones y una transferencia de aproximadamente $340 millones en capital de trabajo neto. Los costos relacionados acumulados hasta la fecha fueron $27 millones, y deterioros no en efectivo de PPE fueron $43 millones. Las acciones de financiación incluyeron la emisión de $500 millones de notas al 6.150% con vencimiento en 2035 y el reembolso de $492 millones de notas con vencimiento en 2025. La revolver ampliada de $3,750 millones aumentó los límites de la relación de apalancamiento y restringe aumentos de dividendos y recompras a un mayor apalancamiento.
LyondellBasell Industries N.V.는 2025년 3분기에 순손실 $890 백만을 보고했으며, 이는 주로 $972 백만의 영업권 손상 및 추가 손상 $230 백만에 의해 좌우되었습니다. 매출은 $7,727 백만으로 전년 동기 $8,604 백만 대비 감소했고, 영업실적은 $865 백만의 이익에서 $731 백만의 손실로 전환되었습니다.
2025년 상반기까지의 9개월간 순손실은 $598 백만이며 2024년의 이익 $1,970 백만에 비해 감소했고, 영업현금흐름은 $755 백만입니다. 현금 및 현금성자산은 2025년 9월 30일 기준 $1,784 백만이었습니다. 중단된 사업(정유)은 Q3에 $61 백만의 손실을 기록했고 연초부터 누적된 LIFO 이익은 $196 백만이었습니다.
회사는 유럽의 O&P 자산 일부를 매각하는 풋 옵션을 행사했고, 종가 시점에 $700–$900 백만의 손실이 예상되며 2026년 상반기에 종료될 예정이며 현금 기여 $300 백만 및 순운전자본 약 $340 백만의 이관이 포함됩니다. 연초 이후 관련 비용은 $27 백만, 비현금 PPE 손상은 $43 백만이었습니다. 금융 활동으로는 6.150%의 $500 백만 채권 발행(만기 2035년)과 2025년 만기 채권 $492 백만의 상환이 포함되었습니다. 개정된 $3,750 백만의 회전대출은 레버리지 비율 한도를 높이고 더 높은 레버리지 수준에서 배당 및 자사주 매입을 제한합니다.
LyondellBasell Industries N.V. a enregistré une perte nette au troisième trimestre 2025 de $890 millions, principalement due à une dépréciation du goodwill de $972 millions et à d'autres dépréciations de $230 millions. Les ventes ont été de $7 727 millions, en baisse par rapport à $8 604 millions il y a un an, et les résultats opérationnels sont passés d'un bénéfice de $865 millions à une perte de $731 millions.
Pour les neuf premiers mois de 2025, la perte nette s'élève à $598 millions contre un revenu de $1 970 millions en 2024, avec des flux de trésorerie opérationnels de $755 millions. La trésorerie et les équivalents s'élevaient à $1 784 millions au 30 septembre 2025. Les activités arrêtées (raffinage) ont enregistré une perte au T3 de $61 millions, avec un bénéfice LIFO cumulé de l'année de $196 millions.
L'entreprise a exercé une option de vente sur certains actifs européens d'O&P et prévoit une perte de $700–$900 millions lors de la clôture, attendue au premier semestre 2026, incluant une contribution en espèces de $300 millions et un transfert d'environ $340 millions de fonds de roulement net. Les coûts liés cumulés à ce jour s'élèvent à $27 millions, et des dépréciations d'actifs immobilisés non monétaires s'élèvent à $43 millions. Les actions de financement ont inclus l'émission de $500 millions d'obligations à taux 6,150 % arrivant à échéance en 2035 et le remboursement de $492 millions d'obligations arrivant à échéance en 2025. Le revolver modifié de $3 750 millions a augmenté les limites du ratio d'endettement et restreint les augmentations de dividendes et les rachats à un endettement plus élevé.
LyondellBasell Industries N.V. meldete im dritten Quartal 2025 einen Nettoverlust von $890 Millionen, hauptsächlich getrieben durch eine $972 Millionen goodwill-Abwertung und zusätzliche Abwertungen von $230 Millionen. Der Umsatz lag bei $7,727 Millionen, gegenüber $8,604 Millionen vor einem Jahr, und das operative Ergebnis wandelte sich von einem Gewinn von $865 Millionen zu einem Verlust von $731 Millionen.
Für die ersten neun Monate 2025 betrug der Nettoverlust $598 Millionen gegenüber einem Einkommen von $1.970 Millionen im Jahr 2024, mit operativem Cashflow von $755 Millionen. Liquide Mittel und Äquivalente betrugen am 30. September 2025 $1.784 Millionen. Beendete Aktivitäten (Raffinerie) wiesen im Q3 einen Verlust von $61 Millionen auf, mit einem year-to-date LIFO-Bonus von $196 Millionen.
Das Unternehmen nutzte eine Put-Option zum Verkauf ausgewählter europäischer O&P-Vermögenswerte und erwartet beim Closing einen Verlust von $700–$900 Millionen, der voraussichtlich im ersten Halbjahr 2026 erfolgt, einschließlich eines BAR-Anteils von $300 Millionen in bar und einer Überführung von ca. $340 Millionen in Netto-Umlaufvermögen. Year-to-date verbundene Kosten betrugen $27 Millionen, und nicht zahlungswirksame Wertminderungen von PPE betrugen $43 Millionen. Finanzierungshandlungen umfassten die Ausgabe von $500 Millionen an 6.150%-Anleihen fällig 2035 und die Rückzahlung von $492 Millionen Anleihen fällig 2025. Die geänderte revolvierende Kreditfazilität von $3.750 Millionen erhöhte die Verschuldungsgrenzen und schränkt Dividendensteigerungen sowie Rückkäufe bei höherer Verschuldung ein.
LyondellBasell Industries N.V. أبلغت عن صافي خسارة في الربع الثالث من 2025 قدرها $890 مليون, مدفوعة أساساً بـ $972 مليون انخفاض قيمة goodwill وعمليات انخفاض إضافية قدرها $230 مليون. المبيعات كانت $7,727 مليون, بانخفاض من $8,604 مليون قبل عام، وتحوّل نتائج التشغيل إلى خسارة قدرها $731 مليون من دخل قدره $865 مليون.
للشهور التسعة الأولى من 2025، صافي الخسارة كان $598 مليون مقابل دخل قدره $1,970 مليون في 2024، مع تدفق نقدي من العمليات قدره $755 مليون. النقد والنظائر النقدية كانت $1,784 مليون في 30 سبتمبر 2025. عمليات متوقفة (التكرير) سجلت خسارة بنحو Q3 قدرها $61 مليون، مع فائدة LIFO منذ بداية العام قدرها $196 مليون.
وظفت الشركة خيار بيع بعض أصول O&P الأوروبية وتتوقع خسارة قدرها $700–$900 مليون عند الإغلاق، من المتوقع أن يكون في النصف الأول من 2026، بما في ذلك مساهمة نقدية قدرها $300 مليون وتحويل حوالي $340 مليون من رأس المال العامل الصافي. التكاليف المرتبطة منذ بداية العام حتى الآن كانت $27 مليون، والانخفاضات غير النقدية في PPE بلغت $43 مليون. وشملت إجراءات التمويل إصدار $500 مليون من سندات بفائدة 6.150% تستحق في 2035 وإعادة سداد $492 مليون من سندات تستحق في 2025. رفع تسهيل التسهيل القائم بقيمة $3,750 مليون حدود نسبة الرفع المالي وزيادة القيود على زيادة الأرباح وإعادة شراء الأسهم عند وجود رفع مالي أعلى.
Positive
- None.
Negative
- $972M goodwill impairment and $230M other impairments drove a Q3 net loss of $890M
- Expected $700–$900M loss on sale of European O&P assets upon closing in H1 2026
- Revenue declined to $7,727M from $8,604M year over year; operating income turned to a loss
Insights
Large impairments drove a sharp loss; Europe asset sale adds more charges.
Q3 2025 results reflect a demand‑soft environment and portfolio actions. Revenue fell to
The company exercised a put option to divest selected European O&P assets, with an expected loss of
Liquidity remains available via an undrawn
LyondellBasell Industries N.V. ha riportato una perdita netta nel terzo trimestre 2025 di $890 milioni, trainata principalmente da una $972 milioni di impairment dell'avviamento e da ulteriori impairment di $230 milioni. Le vendite sono state $7.727 milioni, in calo rispetto a $8.604 milioni di un anno fa, e i risultati operativi sono passati da utile di $865 milioni a una perdita di $731 milioni.
Nei primi nove mesi del 2025, la perdita netta è stata $598 milioni contro un utile di $1.970 milioni nel 2024, con uno flusso di cassa dalle operazioni di $755 milioni. Le disponibilità liquide e equivalenti erano $1.784 milioni al 30 settembre 2025. Le operazioni cessate (raffinazione) hanno riportato una perdita nel Q3 di $61 milioni, con un beneficio LIFO accumulato dall'inizio dell'anno di $196 milioni.
L'azienda ha esercitato un'opzione di vendita di determinati asset O&P europei e si prevede una perdita di $700–$900 milioni al closing, prevista nel primo semestre del 2026, includendo un contributo in contanti di $300 milioni e una trasferimento di circa $340 milioni in capitale circolante netto. I costi correlati accumulati da inizio anno sono stati $27 milioni, e gli impairment non monetari di PPE sono stati $43 milioni. Le operazioni di finanziamento hanno incluso l'emissione di $500 milioni di obbligazioni 6.150% scadenza 2035 e il rimborso di $492 milioni di obbligazioni in scadenza nel 2025. L'ampliamento dell'accordo revolving di $3.750 milioni ha aumentato i limiti del leverage e limita aumenti del dividendo e riacquisti a leverage più elevato.
LyondellBasell Industries N.V. reportó una pérdida neta del tercer trimestre de 2025 de $890 millones, impulsada principalmente por una $972 millones de deterioro de fondo de comercio y deterioros adicionales de $230 millones. Las ventas fueron de $7,727 millones, frente a $8,604 millones hace un año, y los resultados operativos pasaron de una ganancia de $865 millones a una pérdida de $731 millones.
Para los primeros nueve meses de 2025, la pérdida neta fue de $598 millones frente a ingresos de $1,970 millones en 2024, con flujo de efectivo de operaciones de $755 millones. El efectivo y equivalentes eran de $1,784 millones al 30 de septiembre de 2025. Las operaciones discontinuadas (refino) registraron una pérdida de Q3 de $61 millones, con un beneficio LIFO acumulado del año de $196 millones.
La compañía ejerció una opción de venta de ciertos activos europeos de O&P y se espera una pérdida de $700–$900 millones al cierre, prevista para el primer semestre de 2026, incluyendo una contribución en efectivo de $300 millones y una transferencia de aproximadamente $340 millones en capital de trabajo neto. Los costos relacionados acumulados hasta la fecha fueron $27 millones, y deterioros no en efectivo de PPE fueron $43 millones. Las acciones de financiación incluyeron la emisión de $500 millones de notas al 6.150% con vencimiento en 2035 y el reembolso de $492 millones de notas con vencimiento en 2025. La revolver ampliada de $3,750 millones aumentó los límites de la relación de apalancamiento y restringe aumentos de dividendos y recompras a un mayor apalancamiento.
LyondellBasell Industries N.V.는 2025년 3분기에 순손실 $890 백만을 보고했으며, 이는 주로 $972 백만의 영업권 손상 및 추가 손상 $230 백만에 의해 좌우되었습니다. 매출은 $7,727 백만으로 전년 동기 $8,604 백만 대비 감소했고, 영업실적은 $865 백만의 이익에서 $731 백만의 손실로 전환되었습니다.
2025년 상반기까지의 9개월간 순손실은 $598 백만이며 2024년의 이익 $1,970 백만에 비해 감소했고, 영업현금흐름은 $755 백만입니다. 현금 및 현금성자산은 2025년 9월 30일 기준 $1,784 백만이었습니다. 중단된 사업(정유)은 Q3에 $61 백만의 손실을 기록했고 연초부터 누적된 LIFO 이익은 $196 백만이었습니다.
회사는 유럽의 O&P 자산 일부를 매각하는 풋 옵션을 행사했고, 종가 시점에 $700–$900 백만의 손실이 예상되며 2026년 상반기에 종료될 예정이며 현금 기여 $300 백만 및 순운전자본 약 $340 백만의 이관이 포함됩니다. 연초 이후 관련 비용은 $27 백만, 비현금 PPE 손상은 $43 백만이었습니다. 금융 활동으로는 6.150%의 $500 백만 채권 발행(만기 2035년)과 2025년 만기 채권 $492 백만의 상환이 포함되었습니다. 개정된 $3,750 백만의 회전대출은 레버리지 비율 한도를 높이고 더 높은 레버리지 수준에서 배당 및 자사주 매입을 제한합니다.
LyondellBasell Industries N.V. a enregistré une perte nette au troisième trimestre 2025 de $890 millions, principalement due à une dépréciation du goodwill de $972 millions et à d'autres dépréciations de $230 millions. Les ventes ont été de $7 727 millions, en baisse par rapport à $8 604 millions il y a un an, et les résultats opérationnels sont passés d'un bénéfice de $865 millions à une perte de $731 millions.
Pour les neuf premiers mois de 2025, la perte nette s'élève à $598 millions contre un revenu de $1 970 millions en 2024, avec des flux de trésorerie opérationnels de $755 millions. La trésorerie et les équivalents s'élevaient à $1 784 millions au 30 septembre 2025. Les activités arrêtées (raffinage) ont enregistré une perte au T3 de $61 millions, avec un bénéfice LIFO cumulé de l'année de $196 millions.
L'entreprise a exercé une option de vente sur certains actifs européens d'O&P et prévoit une perte de $700–$900 millions lors de la clôture, attendue au premier semestre 2026, incluant une contribution en espèces de $300 millions et un transfert d'environ $340 millions de fonds de roulement net. Les coûts liés cumulés à ce jour s'élèvent à $27 millions, et des dépréciations d'actifs immobilisés non monétaires s'élèvent à $43 millions. Les actions de financement ont inclus l'émission de $500 millions d'obligations à taux 6,150 % arrivant à échéance en 2035 et le remboursement de $492 millions d'obligations arrivant à échéance en 2025. Le revolver modifié de $3 750 millions a augmenté les limites du ratio d'endettement et restreint les augmentations de dividendes et les rachats à un endettement plus élevé.
LyondellBasell Industries N.V. meldete im dritten Quartal 2025 einen Nettoverlust von $890 Millionen, hauptsächlich getrieben durch eine $972 Millionen goodwill-Abwertung und zusätzliche Abwertungen von $230 Millionen. Der Umsatz lag bei $7,727 Millionen, gegenüber $8,604 Millionen vor einem Jahr, und das operative Ergebnis wandelte sich von einem Gewinn von $865 Millionen zu einem Verlust von $731 Millionen.
Für die ersten neun Monate 2025 betrug der Nettoverlust $598 Millionen gegenüber einem Einkommen von $1.970 Millionen im Jahr 2024, mit operativem Cashflow von $755 Millionen. Liquide Mittel und Äquivalente betrugen am 30. September 2025 $1.784 Millionen. Beendete Aktivitäten (Raffinerie) wiesen im Q3 einen Verlust von $61 Millionen auf, mit einem year-to-date LIFO-Bonus von $196 Millionen.
Das Unternehmen nutzte eine Put-Option zum Verkauf ausgewählter europäischer O&P-Vermögenswerte und erwartet beim Closing einen Verlust von $700–$900 Millionen, der voraussichtlich im ersten Halbjahr 2026 erfolgt, einschließlich eines BAR-Anteils von $300 Millionen in bar und einer Überführung von ca. $340 Millionen in Netto-Umlaufvermögen. Year-to-date verbundene Kosten betrugen $27 Millionen, und nicht zahlungswirksame Wertminderungen von PPE betrugen $43 Millionen. Finanzierungshandlungen umfassten die Ausgabe von $500 Millionen an 6.150%-Anleihen fällig 2035 und die Rückzahlung von $492 Millionen Anleihen fällig 2025. Die geänderte revolvierende Kreditfazilität von $3.750 Millionen erhöhte die Verschuldungsgrenzen und schränkt Dividendensteigerungen sowie Rückkäufe bei höherer Verschuldung ein.
LyondellBasell Industries N.V. أبلغت عن صافي خسارة في الربع الثالث من 2025 قدرها $890 مليون, مدفوعة أساساً بـ $972 مليون انخفاض قيمة goodwill وعمليات انخفاض إضافية قدرها $230 مليون. المبيعات كانت $7,727 مليون, بانخفاض من $8,604 مليون قبل عام، وتحوّل نتائج التشغيل إلى خسارة قدرها $731 مليون من دخل قدره $865 مليون.
للشهور التسعة الأولى من 2025، صافي الخسارة كان $598 مليون مقابل دخل قدره $1,970 مليون في 2024، مع تدفق نقدي من العمليات قدره $755 مليون. النقد والنظائر النقدية كانت $1,784 مليون في 30 سبتمبر 2025. عمليات متوقفة (التكرير) سجلت خسارة بنحو Q3 قدرها $61 مليون، مع فائدة LIFO منذ بداية العام قدرها $196 مليون.
وظفت الشركة خيار بيع بعض أصول O&P الأوروبية وتتوقع خسارة قدرها $700–$900 مليون عند الإغلاق، من المتوقع أن يكون في النصف الأول من 2026، بما في ذلك مساهمة نقدية قدرها $300 مليون وتحويل حوالي $340 مليون من رأس المال العامل الصافي. التكاليف المرتبطة منذ بداية العام حتى الآن كانت $27 مليون، والانخفاضات غير النقدية في PPE بلغت $43 مليون. وشملت إجراءات التمويل إصدار $500 مليون من سندات بفائدة 6.150% تستحق في 2035 وإعادة سداد $492 مليون من سندات تستحق في 2025. رفع تسهيل التسهيل القائم بقيمة $3,750 مليون حدود نسبة الرفع المالي وزيادة القيود على زيادة الأرباح وإعادة شراء الأسهم عند وجود رفع مالي أعلى.
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||
For the quarterly period ended September 30, 2025
or
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to
Commission file number: 001-34726
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||||||||||||||||||||
(Address of principal executive offices) (Zip code)
(Registrant’s telephone numbers, including area code)
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol | Name of Each Exchange On Which Registered | ||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| x | Accelerated filer | ☐ | |||||||||
| Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
| Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x
The registrant had 321,872,964 ordinary shares, €0.04 par value, outstanding at October 29, 2025 (excluding 18,549,534 treasury shares).
Table of Contents
LYONDELLBASELL INDUSTRIES N.V.
TABLE OF CONTENTS
| Page | |||||
Part I – Financial Information | 1 | ||||
Item 1. Consolidated Financial Statements (Unaudited) | 1 | ||||
Consolidated Statements of (Loss) Income | 1 | ||||
Consolidated Statements of Comprehensive (Loss) Income | 2 | ||||
Consolidated Balance Sheets | 3 | ||||
Consolidated Statements of Cash Flows | 5 | ||||
Consolidated Statements of Shareholders’ Equity | 7 | ||||
Notes to the Consolidated Financial Statements | 9 | ||||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 33 | ||||
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 49 | ||||
Item 4. Controls and Procedures | 50 | ||||
Part II – Other Information | 51 | ||||
Item 1. Legal Proceedings | 51 | ||||
Item 1A. Risk Factors | 51 | ||||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 51 | ||||
Item 4. Mine Safety Disclosures | 51 | ||||
Item 5. Other Information | 51 | ||||
Item 6. Exhibits | 52 | ||||
Signature | 53 | ||||
Table of Contents
PART I. FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED STATEMENTS OF (LOSS) INCOME
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| Millions of dollars, except earnings per share | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||
| Trade | $ | $ | $ | $ | |||||||||||||||||||
| Related parties | |||||||||||||||||||||||
| Operating costs and expenses: | |||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||
| Goodwill impairments | |||||||||||||||||||||||
| Other impairments | |||||||||||||||||||||||
| Selling, general and administrative expenses | |||||||||||||||||||||||
| Research and development expenses | |||||||||||||||||||||||
| Operating (loss) income | ( | ( | |||||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| (Loss) gain on sale of business | ( | ( | |||||||||||||||||||||
| Other (expense) income, net | ( | ||||||||||||||||||||||
| (Loss) income from continuing operations before equity investments and income taxes | ( | ( | |||||||||||||||||||||
| Loss from equity investments | ( | ( | ( | ||||||||||||||||||||
| (Loss) income from continuing operations before income taxes | ( | ( | |||||||||||||||||||||
| (Benefit from) provision for income taxes | ( | ||||||||||||||||||||||
| (Loss) income from continuing operations | ( | ( | |||||||||||||||||||||
| (Loss) income from discontinued operations, net of tax | ( | ( | ( | ||||||||||||||||||||
| Net (loss) income | ( | ( | |||||||||||||||||||||
| Dividends on redeemable non-controlling interests | ( | ( | ( | ( | |||||||||||||||||||
| Net (loss) income attributable to the Company shareholders | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| (Loss) earnings per share: | |||||||||||||||||||||||
| Net (loss) income attributable to the Company shareholders — | |||||||||||||||||||||||
| Basic | |||||||||||||||||||||||
| Continuing operations | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Discontinued operations | ( | ( | ( | ||||||||||||||||||||
| $ | ( | $ | $ | ( | $ | ||||||||||||||||||
| Diluted | |||||||||||||||||||||||
| Continuing operations | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Discontinued operations | ( | ( | ( | ||||||||||||||||||||
| $ | ( | $ | $ | ( | $ | ||||||||||||||||||
See Notes to the Consolidated Financial Statements.
1
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LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| Millions of dollars | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Net (loss) income | $ | ( | $ | $ | ( | $ | |||||||||||||||||
| Other comprehensive income, net of tax – | |||||||||||||||||||||||
| Financial derivatives | ( | ( | |||||||||||||||||||||
| Defined benefit pension and other postretirement benefit plans | ( | ||||||||||||||||||||||
| Foreign currency translations | |||||||||||||||||||||||
| Total other comprehensive income, net of tax | |||||||||||||||||||||||
| Comprehensive (loss) income | ( | ( | |||||||||||||||||||||
| Dividends on redeemable non-controlling interests | ( | ( | ( | ( | |||||||||||||||||||
| Comprehensive (loss) income attributable to the Company shareholders | $ | ( | $ | $ | ( | $ | |||||||||||||||||
See Notes to the Consolidated Financial Statements.
2
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LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED BALANCE SHEETS
| Millions of dollars | September 30, 2025 | December 31, 2024 | |||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Restricted cash | |||||||||||
| Accounts receivable: | |||||||||||
| Trade, net | |||||||||||
| Related parties | |||||||||||
| Inventories | |||||||||||
| Prepaid expenses and other current assets | |||||||||||
| Assets held for sale | |||||||||||
| Total current assets | |||||||||||
| Operating lease assets | |||||||||||
| Property, plant and equipment | |||||||||||
| Less: Accumulated depreciation | ( | ( | |||||||||
| Property, plant and equipment, net | |||||||||||
| Equity investments | |||||||||||
| Goodwill | |||||||||||
| Intangible assets, net | |||||||||||
| Other assets | |||||||||||
| Total assets | $ | $ | |||||||||
See Notes to the Consolidated Financial Statements.
3
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LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED BALANCE SHEETS
| Millions of dollars, except shares and par value data | September 30, 2025 | December 31, 2024 | |||||||||
| LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Current maturities of long-term debt | $ | $ | |||||||||
| Short-term debt | |||||||||||
| Accounts payable: | |||||||||||
| Trade | |||||||||||
| Related parties | |||||||||||
| Accrued and other current liabilities | |||||||||||
| Liabilities held for sale | |||||||||||
| Total current liabilities | |||||||||||
| Long-term debt | |||||||||||
| Operating lease liabilities | |||||||||||
| Other liabilities | |||||||||||
| Deferred income taxes | |||||||||||
| Commitments and contingencies | |||||||||||
| Redeemable non-controlling interests | |||||||||||
| Shareholders’ equity: | |||||||||||
Ordinary shares, € | |||||||||||
| Additional paid-in capital | |||||||||||
| Retained earnings | |||||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock, at cost, | ( | ( | |||||||||
| Total Company share of shareholders’ equity | |||||||||||
| Non-controlling interests | |||||||||||
| Total equity | |||||||||||
| Total liabilities, redeemable non-controlling interests and equity | $ | $ | |||||||||
See Notes to the Consolidated Financial Statements.
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LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Nine Months Ended September 30, | |||||||||||
| Millions of dollars | 2025 | 2024 | |||||||||
| Cash flows from operating activities: | |||||||||||
| Net (loss) income | $ | ( | $ | ||||||||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | |||||||||||
| Impairments | |||||||||||
| Amortization of debt-related costs | |||||||||||
| Share-based compensation | |||||||||||
| Equity investments— | |||||||||||
| Equity loss | |||||||||||
| Distributions of earnings, net of tax | |||||||||||
| Deferred income tax benefit | ( | ( | |||||||||
| Loss (gain) on sale of business | ( | ||||||||||
| Changes in assets and liabilities that provided (used) cash: | |||||||||||
| Accounts receivable | ( | ||||||||||
| Inventories | ( | ||||||||||
| Accounts payable | ( | ( | |||||||||
| Other, net | ( | ( | |||||||||
| Net cash provided by operating activities | |||||||||||
| Cash flows from investing activities: | |||||||||||
| Expenditures for property, plant and equipment | ( | ( | |||||||||
| Payment for acquisition of equity method investments | ( | ( | |||||||||
| Proceeds from sale of business | |||||||||||
| Proceeds from settlement of net investment hedges | |||||||||||
| Payments for settlement of net investment hedges | ( | ( | |||||||||
| Other, net | ( | ||||||||||
| Net cash used in investing activities | $ | ( | $ | ( | |||||||
See Notes to the Consolidated Financial Statements.
5
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LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED STATEMENTS OF CASH FLOWS
| Nine Months Ended September 30, | |||||||||||
| Millions of dollars | 2025 | 2024 | |||||||||
| Cash flows from financing activities: | |||||||||||
| Repurchases of Company ordinary shares | $ | ( | $ | ( | |||||||
| Dividends paid - common stock | ( | ( | |||||||||
| Issuance of long-term debt | |||||||||||
| Payments of debt issuance costs | ( | ( | |||||||||
| Repayment of long-term debt | ( | ||||||||||
| Proceeds from settlement of cash flow hedges | |||||||||||
| Payments for settlement of cash flow hedges | ( | ||||||||||
| Other, net | ( | ||||||||||
| Net cash used in financing activities | ( | ( | |||||||||
| Effect of exchange rate changes on cash | |||||||||||
| Decrease in cash and cash equivalents and restricted cash | ( | ( | |||||||||
| Cash and cash equivalents and restricted cash at beginning of period | |||||||||||
| Cash and cash equivalents and restricted cash at end of period | $ | $ | |||||||||
See Notes to the Consolidated Financial Statements.
6
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LYONDELLBASELL INDUSTRIES N.V.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
| Ordinary Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Company Share of Shareholders’ Equity | Non- Controlling Interests | ||||||||||||||||||||||||||||||||||||
| Millions of dollars | Issued | Treasury | |||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2025 | $ | $ | ( | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
| Net loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
| Share-based compensation | — | — | |||||||||||||||||||||||||||||||||||||||
Dividends - common stock ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
Dividends - redeemable non-controlling interests ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
| Distributions to non-controlling interests | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Balance, September 30, 2025 | $ | $ | ( | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
| Ordinary Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Company Share of Shareholders’ Equity | Non- Controlling Interests | ||||||||||||||||||||||||||||||||||||
| Millions of dollars | Issued | Treasury | |||||||||||||||||||||||||||||||||||||||
| Balance, June 30, 2024 | $ | $ | ( | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | ( | — | ||||||||||||||||||||||||||||||||||||||
Dividends - common stock ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
Dividends - redeemable non-controlling interests ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
| Repurchases of Company ordinary shares | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||
| Distributions to non-controlling interests | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Balance, September 30, 2024 | $ | $ | ( | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
7
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| Ordinary Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Company Share of Shareholders’ Equity | Non- Controlling Interests | ||||||||||||||||||||||||||||||||||||
| Millions of dollars | Issued | Treasury | |||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2024 | $ | $ | ( | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
| Net loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | ( | ( | — | |||||||||||||||||||||||||||||||||||||
Dividends - common stock ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
Dividends - redeemable non-controlling interests ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
| Repurchases of Company ordinary shares | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||
| Distributions to non-controlling interests | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Balance, September 30, 2025 | $ | $ | ( | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
| Ordinary Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Company Share of Shareholders’ Equity | Non- Controlling Interests | ||||||||||||||||||||||||||||||||||||
| Millions of dollars | Issued | Treasury | |||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2023 | $ | $ | ( | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||||||||
| Share-based compensation | — | ( | ( | — | |||||||||||||||||||||||||||||||||||||
Dividends - common stock ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
Dividends - redeemable non-controlling interests ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||
| Repurchases of Company ordinary shares | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||
| Distributions to non-controlling interests | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||
| Balance, September 30, 2024 | $ | $ | ( | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||
See Notes to the Consolidated Financial Statements.
8
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
TABLE OF CONTENTS
| Page | ||||||||
| 1. | Basis of Presentation | 10 | ||||||
| 2. | Accounting and Reporting Changes | 10 | ||||||
| 3. | Discontinued Operations | 11 | ||||||
| 4. | Assets Held for Sale | 11 | ||||||
| 5. | Revenues | 12 | ||||||
| 6. | Accounts Receivable | 13 | ||||||
| 7. | Inventories | 14 | ||||||
| 8. | Debt | 15 | ||||||
| 9. | Financial Instruments and Fair Value Measurements | 18 | ||||||
| 10. | Income Taxes | 21 | ||||||
| 11. | Commitments and Contingencies | 22 | ||||||
| 12. | Shareholders’ Equity and Redeemable Non-controlling Interests | 24 | ||||||
| 13. | Per Share Data | 26 | ||||||
| 14. | Segment and Related Information | 28 | ||||||
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
LyondellBasell Industries N.V. is a limited liability company (Naamloze Vennootschap) incorporated under Dutch law by deed of incorporation dated October 15, 2009. Unless otherwise indicated, the “Company,” “we,” “us,” “our” or similar words are used to refer to LyondellBasell Industries N.V. together with its consolidated subsidiaries (“LyondellBasell N.V.”). LyondellBasell N.V. is a worldwide manufacturer of chemicals and polymers, a producer of gasoline blending components and a developer and licensor of technologies for the production of polymers.
The accompanying unaudited Consolidated Financial Statements have been prepared from the books and records of LyondellBasell N.V. in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. Certain notes and other information have been condensed or omitted from the interim financial statements included in this report. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. In the opinion of management, all adjustments, including normal recurring adjustments, considered necessary for a fair statement have been included. These statements contain some amounts that are based upon management estimates and judgments. Future actual results could differ from such current estimates. The results for interim periods are not necessarily indicative of results for the entire year.
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. The related operating results of our refining business are reported as discontinued operations for all periods presented. Discontinued operations also include estimated costs associated with the disposition of the Berre refinery.
2. Accounting and Reporting Changes
Recently Adopted Guidance
There were no new standards or Accounting Standard Updates (“ASU”) adopted in the nine months ended September 30, 2025, that had a material impact on the Consolidated Financial Statements.
Accounting Guidance Issued But Not Adopted as of September 30, 2025
Accounting for Software Costs—In September 2025, the Financial Accounting Standards Board (“FASB”) issued ASU 2025-06, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This guidance amends certain aspects of the accounting for and disclosure of software costs, including when entities start capitalizing eligible costs. This guidance also supersedes existing guidance on website development costs. The guidance is effective for annual reporting periods beginning after December 15, 2027, and interim periods within those annual reporting periods. Early adoption is permitted. We are currently assessing the impact the adoption will have on our Consolidated Financial Statements.
Measurement of Credit Losses—In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This guidance allows entities to elect a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. The guidance is effective for annual reporting periods beginning after December 15, 2025, and interim periods within those annual reporting periods. Early adoption is permitted. The adoption of this guidance will not have a material impact on our Consolidated Financial Statements.
Expense Disaggregation Disclosures—In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income —Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This guidance requires incremental disclosures about specific expense categories, including but not limited to,
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
purchases of inventory, employee compensation, depreciation, amortization and selling expenses. The amendments are effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. While permitted, we do not plan to early adopt this guidance. The guidance may be applied either prospectively or retrospectively. The adoption of this ASU will not have a material impact on our Consolidated Financial Statements as the guidance relates only to disclosure.
Income Tax Disclosures—In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The guidance requires companies to disclose certain specific categories in the rate reconciliation and provide additional information for reconciling items that meet the quantitative threshold of 5% of the expected tax using the applicable statutory income tax rate. There is also a required disclosure to provide the net income taxes paid or received disaggregated by federal, state, and foreign taxes with jurisdictions to be separately disclosed if the jurisdiction is 5% or more of the total net income taxes paid or received. The guidance is effective for annual periods beginning after December 15, 2024. We will adopt the new guidance for our Income Tax Disclosures in the 2025 annual period. The adoption of this ASU will not have a material impact on our Consolidated Financial Statements as the guidance relates only to disclosure.
3. Discontinued Operations
The following table presents components of (Loss) income from discontinued operations, net of tax:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| Millions of dollars | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Sales and other operating revenues | $ | $ | $ | $ | |||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||
| Selling, general and administrative expenses | |||||||||||||||||||||||
| Operating (loss) income | ( | ( | ( | ||||||||||||||||||||
| Other (expense), net | ( | ( | ( | ( | |||||||||||||||||||
| (Benefit from) provision for income taxes | ( | ( | ( | ||||||||||||||||||||
| (Loss) income from discontinued operations, net of tax | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
4. Assets Held for Sale
In June 2025, we entered into an agreement for the sale of select olefins & polyolefins assets and the associated business in Europe. The sites to be sold were part of the previously announced European strategic assessment and are located in Berre l’Etang (France), Münchsmünster (Germany), Carrington (United Kingdom), and Tarragona (Spain). The sites identified for sale are within our Olefins & Polyolefins-Europe, Asia, International (“O&P-EAI”) segment. The agreement is a put option under which the purchaser committed to enter into an agreed form purchase agreement if we exercised our put option, after conclusion of certain works council consultation processes.
In October 2025, following the completion of the French works council consultation processes, we exercised our put option and entered into the sales and purchase agreement. This agreement contains customary representations, warranties and covenants by the parties, including post-closing covenants related to employee and other matters.
Closing of the proposed transaction is currently expected in the first half of 2026, subject to customary closing conditions, including satisfaction of regulatory conditions, completion of additional required employee representative and works council consultation processes, and completion of the carve-out and transfer of the relevant assets and liabilities to the business being sold. The assets and liabilities associated with the business to be sold are classified as held for sale in the Consolidated Balance Sheets as of September 30, 2025.
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
In connection with the sale, we expect to recognize a loss on sale of approximately $700 million to $900 million upon closing. The loss principally consists of the transfer of net working capital of approximately $340 million, a cash contribution of $300 million to the sold businesses prior to closing, a foreign currency translation adjustment of approximately $300 million to $400 million, and a net equity method investment of approximately $10 million, partially offset by the transfer of pension and other liabilities of $150 million to $250 million.
Other costs, including selling expenses, separation costs, and employee-related costs, totaling approximately $100 million to $150 million, are estimated to be incurred prior to closing. During the three and nine months ended September 30, 2025, we recognized $17 million and $27 million, respectively, of these costs which are included in Selling, general and administrative expenses on the Consolidated Statements of (Loss) Income.
During the three and nine months ended September 30, 2025, we recognized non-cash impairment charges of $11 million and $43 million, respectively, related to property, plant and equipment. The fair value of the disposal group was determined based on the expected consideration and other fair value indicators obtained through our marketing efforts and classified as Level 2 within the fair value hierarchy. The impairment charges are presented within Other impairments in the Consolidated Statements of (Loss) Income.
The following table summarizes the assets and liabilities held for sale in the Consolidated Balance Sheets:
| Millions of dollars | September 30, 2025 | ||||||||||||||||
| ASSETS | |||||||||||||||||
| Accounts receivable - Trade, net | $ | ||||||||||||||||
| Inventories | |||||||||||||||||
| Prepaid expenses and other current assets | |||||||||||||||||
| Operating lease assets | |||||||||||||||||
| Equity investments | |||||||||||||||||
| Total assets held for sale | $ | ||||||||||||||||
| LIABILITIES | |||||||||||||||||
| Accounts payable - Trade | $ | ||||||||||||||||
| Accrued and other current liabilities | |||||||||||||||||
| Operating lease liabilities | |||||||||||||||||
| Other liabilities | |||||||||||||||||
| Deferred income taxes | |||||||||||||||||
| Total liabilities held for sale | $ | ||||||||||||||||
5. Revenues
Contract Balances—Contract liabilities were $157 million and $117 million as of September 30, 2025 and December 31, 2024, respectively. Revenue recognized in each reporting period that was included in the contract liability balance at the beginning of the period was immaterial.
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Disaggregation of Revenues—The following table presents our revenues disaggregated by key products:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| Millions of dollars | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||
| Olefins and co-products | $ | $ | $ | $ | |||||||||||||||||||
| Polyethylene | |||||||||||||||||||||||
| Polypropylene | |||||||||||||||||||||||
| Propylene oxide and derivatives | |||||||||||||||||||||||
| Oxyfuels and related products | |||||||||||||||||||||||
| Intermediate chemicals | |||||||||||||||||||||||
| Compounding and solutions | |||||||||||||||||||||||
| Other | |||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||
The following table presents our revenues disaggregated by geography, based upon the location of the customer:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| Millions of dollars | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||
| United States | $ | $ | $ | $ | |||||||||||||||||||
| Germany | |||||||||||||||||||||||
| China | |||||||||||||||||||||||
| Mexico | |||||||||||||||||||||||
| Italy | |||||||||||||||||||||||
| Japan | |||||||||||||||||||||||
| France | |||||||||||||||||||||||
| Poland | |||||||||||||||||||||||
| The Netherlands | |||||||||||||||||||||||
| Other | |||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||
6. Accounts Receivable
Accounts receivable are reflected in the Consolidated Balance Sheets, net of allowance for credit losses of $3 million and $4 million as of September 30, 2025 and December 31, 2024, respectively.
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
7. Inventories
Inventories consisted of the following components:
| Millions of dollars | September 30, 2025 | December 31, 2024 | |||||||||
| Finished goods | $ | $ | |||||||||
| Work-in-process | |||||||||||
| Raw materials and supplies | |||||||||||
| Total inventories | $ | $ | |||||||||
During the first nine months of 2025, inventory liquidations associated with our exit from the refinery business generated a last-in, first-out (“LIFO”) benefit of $196 million, net of tax, or $0.60 per diluted share. This benefit is reflected in (Loss) income from discontinued operations, net of tax in the Consolidated Statements of (Loss) Income. See Note 3 for additional detail on discontinued operations. No material inventory liquidations were recognized during the three months ended September 30, 2025, or the three and nine months ended September 30, 2024.
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
8. Debt
Long-term loans, notes and other debt, net of unamortized discount, debt issuance cost and cumulative fair value hedging adjustments, consisted of the following:
| Millions of dollars | September 30, 2025 | December 31, 2024 | |||||||||
Senior Notes due 2055, $ | $ | $ | |||||||||
Guaranteed Notes due 2027, $ | |||||||||||
| Issued by LYB International Finance B.V.: | |||||||||||
Guaranteed Notes due 2043, $ | |||||||||||
Guaranteed Notes due 2044, $ | |||||||||||
| Issued by LYB International Finance II B.V.: | |||||||||||
Guaranteed Notes due 2026, € | |||||||||||
Guaranteed Notes due 2027, $ | |||||||||||
Guaranteed Notes due 2031, € | |||||||||||
| Issued by LYB International Finance III LLC: | |||||||||||
Guaranteed Notes due 2025, $ | |||||||||||
Guaranteed Notes due 2030, $ | |||||||||||
Guaranteed Notes due 2030, $ | |||||||||||
Guaranteed Notes due 2033, $ | |||||||||||
Guaranteed Notes due 2034, $ | |||||||||||
Guaranteed Notes due 2035, $ | |||||||||||
Guaranteed Notes due 2040, $ | |||||||||||
Guaranteed Notes due 2049, $ | |||||||||||
Guaranteed Notes due 2050, $ | |||||||||||
Guaranteed Notes due 2051, $ | |||||||||||
Guaranteed Notes due 2060, $ | |||||||||||
| Other | |||||||||||
| Total | |||||||||||
| Less current maturities | ( | ( | |||||||||
| Long-term debt | $ | $ | |||||||||
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Fair value hedging adjustments associated with the fair value hedge accounting of our fixed-for-floating interest rate swaps for the applicable periods are as follows:
| Gains (Losses) | Cumulative Fair Value Hedging Adjustments Included in Carrying Amount of Debt | |||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | September 30, | December 31, | |||||||||||||||||||||||||||||||||||
| Millions of dollars | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||||||||||
Guaranteed Notes due 2025, | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Guaranteed Notes due 2026, | ( | ( | ( | |||||||||||||||||||||||||||||||||||
Guaranteed Notes due 2027, | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Guaranteed Notes due 2030, | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||
Guaranteed Notes due 2030, | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Guaranteed Notes due 2031, | ( | ( | ||||||||||||||||||||||||||||||||||||
Guaranteed Notes due 2050, | ( | ( | ||||||||||||||||||||||||||||||||||||
Guaranteed Notes due 2051, | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
Guaranteed Notes due 2060, | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||
| Total | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Fair value adjustments are recognized in Interest expense in the Consolidated Statements of (Loss) Income.
Long-Term Debt
Senior Revolving Credit Facility—Our $3,750 million senior unsecured revolving credit facility (the “Senior Revolving Credit Facility”), which expires in July 2029, may be used for dollar and euro denominated borrowings. The facility also supports our commercial paper program, has a $200 million sub-limit for dollar and euro denominated letters of credit and a $1,000 million uncommitted accordion feature. Borrowings under the facility bear interest at either a base rate, secured overnight financing rate or EURIBOR rate, plus an applicable margin. Additional fees are incurred for the average daily unused commitments. As of September 30, 2025, we had no 3,750 million of unused availability under this facility.
In September 2025, we amended the Senior Revolving Credit Facility primarily to increase the Maximum Leverage Ratio (as defined in the Credit Agreement) through 2027 unless we elect to terminate such provisions sooner. The Maximum Leverage Ratio is as follows:
•4.25 to 1.00 for the fiscal quarters ending September 30, 2025 and December 31, 2025;
•4.50 to 1.00 for the fiscal quarters ending March 31, 2026 through June 30, 2027;
•4.25 to 1.00 for the fiscal quarter ending September 30, 2027;
•4.00 to 1.00 for the fiscal quarter ending December 31, 2027; and
•3.50 to 1.00 thereafter.
Included in the amendment are certain limitations, including restrictions on dividend increases, if our leverage ratio is greater than or equal to 4.00 to 1.00, and share repurchases except to offset dilution.
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Guaranteed Notes due 2035—In May 2025, LYB International Finance III, LLC (“LYB Finance III”), a wholly owned finance subsidiary of LyondellBasell Industries N.V., issued $500 million of 6.150 % guaranteed notes due 2035 (the “2035 Notes”) at a discounted price of 99.7 %. Net proceeds after deducting original issuance discounts, underwriting fees and offering expenses totaled $494 million. Net proceeds from the sale of the notes were used for general corporate purposes, including the repayment of our 2025 Notes.
These unsecured notes, which are fully and unconditionally guaranteed by LyondellBasell Industries N.V., rank equally in right of payment to all of LYB Finance III’s and LyondellBasell Industries N.V.’s existing and future senior unsecured indebtedness and will rank senior in right of payment to any future subordinated indebtedness that LYB Finance III or LyondellBasell Industries N.V. incurs. There are no significant restrictions that would impede LyondellBasell Industries N.V., as guarantor, from obtaining funds by dividend or loan from its subsidiaries. The indenture governing these notes contains limited covenants, including those restricting our ability, and the ability of our subsidiaries, to incur indebtedness secured by significant property or by capital stock of subsidiaries that own significant property, enter into certain sale and lease-back transactions with respect to any significant property or enter into consolidations, mergers or sales of all or substantially all of our assets.
The 2035 Notes may be redeemed at any time in whole, or from time to time in part, prior to the scheduled maturity date, at a redemption price equal to the greater of (i) the sum of the present values of the remaining scheduled payments of principal and interest (discounted at the treasury rate plus the applicable basis points) less interest accrued on the notes to be redeemed, and (ii) 100 % of the principal amount of the notes redeemed; plus, in either case, accrued and unpaid interest thereon to, but excluding, the redemption date.
The 2035 Notes may also be redeemed at any time, on or after the date that is three months prior to the scheduled maturity date of the notes at a redemption price equal to 100 % of the principal amount of the notes to be redeemed plus accrued and unpaid interest thereon to, but excluding, the redemption date. The notes are also redeemable upon certain tax events.
Guaranteed Notes due 2025—In October 2025, we repaid the outstanding principal on our 1.25 % guaranteed notes due 2025 of $492 million.
Short-Term Debt
U.S. Receivables Facility—Our U.S. Receivables Facility has a purchase limit of $900 million in addition to a $300 million uncommitted accordion feature. In May 2025, we extended the term of the facility to June 2026. This facility provides liquidity through the sale or contribution of trade receivables by certain of our U.S. subsidiaries to a wholly owned, bankruptcy-remote subsidiary on an ongoing basis and without recourse. We pay variable interest rates on our secured borrowings. Additional fees are incurred for the average daily unused commitments. This facility also provides for the issuance of letters of credit up to $200 million. As of September 30, 2025, we had no 900 million unused availability under this facility.
In September 2025, the modification to the Maximum Leverage Ratio for the Senior Revolving Credit Facility, discussed above, was incorporated into the U.S. Receivables Facility.
Commercial Paper Program—We have a commercial paper program under which we may issue up to $2,500 million of privately placed, unsecured, short-term promissory notes (“commercial paper”). As of September 30, 2025, we had no borrowings of outstanding commercial paper.
Precious Metal Financings—At both September 30, 2025 and December 31, 2024, we had $137 million and $119 million, respectively, of Short-term debt related to our precious metal financings.
Weighted Average Interest Rate—As of September 30, 2025 and December 31, 2024, our weighted average interest rates on outstanding Short-term debt were 1.3 % and 1.1 %, respectively.
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Additional Information
Debt Compliance—As of September 30, 2025, we are in compliance with our debt covenants.
9. Financial Instruments and Fair Value Measurements
We are exposed to market risks, such as changes in commodity pricing, interest rates and currency exchange rates. To manage the volatility related to these exposures, we selectively enter into derivative contracts pursuant to our risk management policies.
Financial Instruments Measured at Fair Value on a Recurring Basis—The following table summarizes financial instruments outstanding for the periods presented that are measured at fair value on a recurring basis:
| Fair Value | |||||||||||||||||||||||||||||
| Millions of dollars | September 30, 2025 | December 31, 2024 | Balance Sheet Classification | ||||||||||||||||||||||||||
| Assets– | |||||||||||||||||||||||||||||
| Derivatives designated as hedges: | |||||||||||||||||||||||||||||
| Commodities | $ | $ | Prepaid expenses and other current assets | ||||||||||||||||||||||||||
| Commodities | Other assets | ||||||||||||||||||||||||||||
| Foreign currency | Prepaid expenses and other current assets | ||||||||||||||||||||||||||||
| Foreign currency | Other assets | ||||||||||||||||||||||||||||
| Interest rates | Prepaid expenses and other current assets | ||||||||||||||||||||||||||||
| Derivatives not designated as hedges: | |||||||||||||||||||||||||||||
| Commodities | Prepaid expenses and other current assets | ||||||||||||||||||||||||||||
| Commodities | Other assets | ||||||||||||||||||||||||||||
| Foreign currency | Prepaid expenses and other current assets | ||||||||||||||||||||||||||||
| Total | $ | $ | |||||||||||||||||||||||||||
| Liabilities– | |||||||||||||||||||||||||||||
| Derivatives designated as hedges: | |||||||||||||||||||||||||||||
| Commodities | $ | $ | Accrued and other current liabilities | ||||||||||||||||||||||||||
| Commodities | Other liabilities | ||||||||||||||||||||||||||||
| Foreign currency | Accrued and other current liabilities | ||||||||||||||||||||||||||||
| Foreign currency | Other liabilities | ||||||||||||||||||||||||||||
| Interest rates | Accrued and other current liabilities | ||||||||||||||||||||||||||||
| Interest rates | Other liabilities | ||||||||||||||||||||||||||||
| Derivatives not designated as hedges: | |||||||||||||||||||||||||||||
| Commodities | Accrued and other current liabilities | ||||||||||||||||||||||||||||
| Foreign currency | Accrued and other current liabilities | ||||||||||||||||||||||||||||
| Total | $ | $ | |||||||||||||||||||||||||||
The financial instruments in the table above are classified as Level 2. We present the gross assets and liabilities of our derivative financial instruments on the Consolidated Balance Sheets.
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Financial Instruments Not Measured at Fair Value on a Recurring Basis—The following table presents the carrying value and estimated fair value of our short-term precious metal financings and Long-term debt:
| September 30, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Millions of dollars | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||
| Precious metal financings | $ | $ | $ | $ | |||||||||||||||||||
| Long-term debt | |||||||||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||||||||
The financial instruments in the table above are classified as Level 2. Our other financial instruments classified within Current assets and Current liabilities have a short maturity and their carrying value approximates fair value.
Derivative Instruments:
Commodity Prices—The following table presents the notional amounts of our outstanding commodity derivative instruments:
| Notional Amount | Unit of Measure | Maturity Date | |||||||||||||||||||||
| Millions of units | September 30, 2025 | December 31, 2024 | |||||||||||||||||||||
| Derivatives designated as hedges: | |||||||||||||||||||||||
| Natural gas | MMBtu | 2025 to 2028 | |||||||||||||||||||||
| Ethane | Bbls | 2025 to 2028 | |||||||||||||||||||||
| Power | MWhs | 2025 to 2028 | |||||||||||||||||||||
| Derivatives not designated as hedges: | |||||||||||||||||||||||
| Ethane | Bbls | 2025 to 2026 | |||||||||||||||||||||
| Other commodities | Bbls | 2025 to 2027 | |||||||||||||||||||||
Interest Rates—The following table presents the notional amounts of our outstanding interest rate derivative instruments:
| Notional Amount | |||||||||||||||||||||||||||||
| Millions of dollars | September 30, 2025 | December 31, 2024 | Maturity Date | ||||||||||||||||||||||||||
| Fair value hedges | $ | $ | 2025 to 2031 | ||||||||||||||||||||||||||
Foreign Currency Rates—The following table presents the notional amounts of our outstanding foreign currency derivative instruments:
| Notional Amount | |||||||||||||||||||||||
| Millions of dollars | September 30, 2025 | December 31, 2024 | Maturity Date | ||||||||||||||||||||
| Net investment hedges | $ | $ | 2025 to 2031 | ||||||||||||||||||||
| Cash flow hedges | 2027 | ||||||||||||||||||||||
| Not designated | 2025 to 2026 | ||||||||||||||||||||||
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Impact on Earnings and Other Comprehensive Income (Loss)—The following tables summarize the pre-tax effect of derivative instruments recorded in Accumulated other comprehensive income (“AOCI”), the gains (losses) reclassified from AOCI to earnings and additional gains (losses) recognized directly in earnings:
| Effects of Financial Instruments | |||||||||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||
| Balance Sheet | Income Statement | ||||||||||||||||||||||||||||||||||||||||
| Gain (Loss) Recognized in AOCI | Gain (Loss) Reclassified to Income from AOCI | Additional Gain (Loss) Recognized in Income | Income Statement | ||||||||||||||||||||||||||||||||||||||
| Millions of dollars | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | Classification | ||||||||||||||||||||||||||||||||||
| Derivatives designated as hedges: | |||||||||||||||||||||||||||||||||||||||||
| Commodities | $ | $ | $ | $ | $ | $ | Sales and other operating revenues | ||||||||||||||||||||||||||||||||||
| Commodities | ( | ( | Cost of sales | ||||||||||||||||||||||||||||||||||||||
| Foreign currency | ( | Interest expense | |||||||||||||||||||||||||||||||||||||||
| Interest rates | ( | Interest expense | |||||||||||||||||||||||||||||||||||||||
| Derivatives not designated as hedges: | |||||||||||||||||||||||||||||||||||||||||
| Commodities | ( | Cost of sales | |||||||||||||||||||||||||||||||||||||||
| Commodities | (Loss) income from discontinued operations, net of tax | ||||||||||||||||||||||||||||||||||||||||
| Foreign currency | ( | ( | Other (expense) income, net | ||||||||||||||||||||||||||||||||||||||
| Total | $ | ( | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
| Effects of Financial Instruments | |||||||||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||
| Balance Sheet | Income Statement | ||||||||||||||||||||||||||||||||||||||||
| Gain (Loss) Recognized in AOCI | Gain (Loss) Reclassified to Income from AOCI | Additional Gain (Loss) Recognized in Income | Income Statement | ||||||||||||||||||||||||||||||||||||||
| Millions of dollars | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | Classification | ||||||||||||||||||||||||||||||||||
| Derivatives designated as hedges: | |||||||||||||||||||||||||||||||||||||||||
| Commodities | $ | $ | ( | $ | $ | $ | $ | Sales and other operating revenues | |||||||||||||||||||||||||||||||||
| Commodities | ( | ( | Cost of sales | ||||||||||||||||||||||||||||||||||||||
| Foreign currency | ( | ( | ( | Interest expense | |||||||||||||||||||||||||||||||||||||
| Interest rates | ( | Interest expense | |||||||||||||||||||||||||||||||||||||||
| Derivatives not designated as hedges: | |||||||||||||||||||||||||||||||||||||||||
| Commodities | ( | Sales and other operating revenues | |||||||||||||||||||||||||||||||||||||||
| Commodities | ( | Cost of sales | |||||||||||||||||||||||||||||||||||||||
| Commodities | (Loss) income from discontinued operations, net of tax | ||||||||||||||||||||||||||||||||||||||||
| Foreign currency | ( | ( | Other (expense) income, net | ||||||||||||||||||||||||||||||||||||||
| Total | $ | ( | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||
As of September 30, 2025, on a pre-tax basis, $5 million is scheduled to be reclassified from AOCI as an increase to Interest expense over the next twelve months.
Other Financial Instruments:
Cash and Cash Equivalents—As of September 30, 2025 and December 31, 2024, we had marketable securities classified as Cash and cash equivalents of $703 million and $2,610 million, respectively.
10. Income Taxes
For interim tax reporting, we estimate an annual effective tax rate which is applied to the year-to-date ordinary income. Tax effects of significant, unusual, or infrequently occurring items are excluded from the estimated annual effective tax rate calculation and recognized in the interim period in which they occur. Our effective income tax rate fluctuates based on, among other factors, changes in pre-tax income in countries with varying statutory tax rates, changes in valuation allowances, changes in foreign exchange gains or losses, the amount of exempt income, changes in unrecognized tax benefits associated with uncertain tax positions and changes in tax laws.
As of each reporting date, we consider the weight of all evidence, both positive and negative, to determine if a valuation allowance is necessary for each jurisdiction’s net deferred tax assets. We place greater weight on historical evidence over future predictions of our ability to utilize net deferred tax assets. We consider future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences, and taxable income in prior carry-back year(s) if carry-back is permitted under applicable law, as well as available prudent and feasible tax planning strategies that would, if necessary, be implemented to ensure realization of the net deferred tax asset.
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Our exempt income primarily includes interest income, export incentives, and equity earnings of joint ventures. Interest income earned by certain of our subsidiaries through intercompany financings is taxed at rates substantially lower than the U.S. statutory rate. Export incentives relate to tax benefits derived from elections and structures available for U.S. exports. Equity earnings attributable to the earnings of our joint ventures, when paid through dividends to certain European subsidiaries, are exempt from all or portions of normal statutory income tax rates. We currently anticipate the favorable treatment for interest income, dividends, and export incentives to continue in the current year based on current law. The United Kingdom, as well as certain other jurisdictions in which we operate, enacted legislation implementing the Organization for Economic Cooperation and Development’s Pillar Two Model Rules effective as of January 1, 2024. This legislation did not have a material impact on the Consolidated Financial Statements, however, we continue to assess and monitor legislative changes.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted into law. OBBBA includes tax reform extending and modifying certain key Tax Cuts & Jobs Act provisions such as accelerated tax deductions for qualified property and domestic research expenditures, and modifications to the limitations on deductions for interest expense. The provisions of the OBBBA have different effective dates where some are effective in 2025 and others not until 2026. This legislation does not have a material impact on the Consolidated Financial Statements.
Our effective income tax rate for the third quarter of 2025 was 3.2 % compared to 19.4 % for the third quarter of 2024. The lower effective tax rate for the third quarter of 2025 was primarily due to the increased relative impact of our tax rate drivers, primarily exempt income, due to lower earnings that decreased our effective income tax rate by 33.9 percentage points. The lower effective income tax rate for the third quarter of 2025 was also driven by non-cash impairments recognized discretely in the third quarter, for which there is largely no tax benefit, which decreased our effective tax rate by 7.8 percentage points. These decreases to the effective income tax rate were partially offset by the establishment of a valuation allowance against deferred tax assets, for which no tax benefit can be recognized, in the United Kingdom that increased the effective tax rate by 28.0 percentage points.
Our effective income tax rate for the first nine months of 2025 was (13.6 )% compared to 20.4 % for the first nine months of 2024. The lower effective tax rate for the first nine months of 2025 was primarily due to non-cash impairments recognized discretely in the third quarter, for which there is largely no tax benefit, which decreased our effective tax rate by 36.7 percentage points. This decrease was coupled with the increased relative impact of our tax rate drivers, primarily exempt income, due to lower earnings that decreased our effective income tax rate by 21.9 percentage points. These decreases were partially offset by the establishment of a valuation allowance against deferred tax assets, for which no tax benefit can be recognized, in the United Kingdom and fluctuations in foreign exchange gains and losses recognized discretely in 2025, which increased the effective tax rate by 15.0 and 10.7 percentage points, respectively.
Our activities in the United Kingdom are limited to a small number of manufacturing sites that are included in our United Kingdom tax group headed by LyondellBasell N.V., a holding company tax resident in the United Kingdom. LyondellBasell N.V., as a holding company, does not generate taxable income independently and therefore is dependent on the receipt of intercompany dividends to generate taxable income to offset its costs incurred. Given recent macroeconomic trends we believe intercompany dividends to LyondellBasell N.V. may be constrained. As a result, we no longer believe it is more likely than not the existing United Kingdom deferred tax assets will be realized. We will continue to monitor the situation as business and economic conditions change. If market conditions improve in future periods, it is possible that part of the deferred tax assets may be realized.
11. Commitments and Contingencies
Commitments—We have various purchase commitments for materials, supplies and services incidental to the ordinary conduct of business, generally for quantities required for our businesses and at prevailing market prices. These commitments are designed to ensure sources of supply and are not expected to be in excess of normal requirements. Additionally, we have capital expenditure commitments, which we incur in our normal course of business.
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Financial Assurance Instruments—We have obtained letters of credit, performance and surety bonds and have issued financial and performance guarantees to support trade payables, potential liabilities and other obligations. Considering the frequency of claims made against the financial instruments we use to support our obligations, and the magnitude of those financial instruments in light of our current financial position, management does not expect that any claims against or draws on these instruments would have a material adverse effect on the Consolidated Financial Statements. We have not experienced any unmanageable difficulties in obtaining the required financial assurance instruments for our current operations.
Environmental Remediation—Accrued liabilities for future environmental remediation costs at current and former plant sites and other remediation sites totaled $166 million and $140 million as of September 30, 2025 and December 31, 2024, respectively. This includes $67 million which is included in liabilities held for sale as of September 30, 2025.
As of September 30, 2025, the accrued liabilities for individual sites range from less than $1 million to $55 million. The remediation expenditures are expected to occur over a number of years and are not concentrated in any single year. In our opinion, it is reasonably possible that losses in excess of the liabilities recorded may have been incurred. However, we cannot estimate any amount or range of such possible additional losses. New information about sites, new technology or future developments, such as involvement in investigations by regulatory agencies, could require us to reassess our potential exposure related to environmental matters.
Indemnification—We are parties to various indemnification arrangements, including arrangements entered into in connection with acquisitions, divestitures and the formation and dissolution of joint ventures. Pursuant to these arrangements, we provide indemnification to and/or receive indemnification from other parties in connection with liabilities that may arise in connection with the transactions and in connection with activities prior to completion of the transactions. These indemnification arrangements typically include provisions pertaining to third-party claims relating to environmental and tax matters and various types of litigation. As of September 30, 2025, we had not accrued any significant amounts for our indemnification obligations, and we are not aware of other circumstances that would likely lead to significant future indemnification obligations. We cannot determine with certainty the potential amount of future payments under the indemnification arrangements until events arise that would trigger a liability under the arrangements.
As part of our technology licensing contracts, we give indemnifications to our licensees for liabilities arising from possible patent infringement claims with respect to certain proprietary licensed technologies. Such indemnifications have a stated maximum amount and generally cover a period of 5 to 10 years.
Legal Proceedings—We are subject to various lawsuits and claims, including but not limited, to matters involving contract disputes, tort claims, and regulatory disputes alleging environmental damages, personal injury and/or property damage, some of which are covered by insurance. We vigorously defend ourselves and prosecute these matters as appropriate.
Our legal organization applies its knowledge, experience and professional judgment to the specific characteristics of our cases, employing a litigation management process to manage and monitor legal proceedings in which we are a party. Our process facilitates the early evaluation and quantification of potential exposures in individual cases. This process also enables us to track those cases that have been scheduled for trial, mediation or other resolution. We regularly assess the adequacy of legal accruals based on our professional judgment, experience and the information available regarding our cases.
Based on consideration of all relevant facts and circumstances, we do not believe the ultimate outcome of any currently pending lawsuit or claim against us will have a material adverse effect upon our operations, financial condition or Consolidated Financial Statements.
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
12. Shareholders’ Equity and Redeemable Non-controlling Interests
Shareholders’ Equity
Dividend Distributions—The following table summarizes the quarterly dividends paid in the period presented:
| Millions of dollars, except per share amounts | Dividend Per Ordinary Share | Aggregate Dividends Paid | Date of Record | ||||||||||||||
| March 2025 | $ | $ | March 10, 2025 | ||||||||||||||
| June 2025 | June 2, 2025 | ||||||||||||||||
| September 2025 | August 25, 2025 | ||||||||||||||||
| $ | $ | ||||||||||||||||
Share Repurchase Authorization—In May 2025, our shareholders approved a proposal to authorize us to repurchase up to 34.0 million ordinary shares, through November 23, 2026 (“2025 Share Repurchase Authorization”), which superseded any prior repurchase authorizations. The timing and amount of these repurchases, which are determined based on our evaluation of market conditions and other factors, may be executed from time to time through open market or privately negotiated transactions. In September 2025, we amended our Senior Revolving Credit Facility which now restricts share repurchases except to offset dilution. The repurchased shares, which are recorded at cost, are classified as Treasury stock and may be retired or used for general corporate purposes, including for various employee benefit and compensation plans.
The following table summarizes our share repurchase activity for the periods presented:
| Millions of dollars, except shares and per share amounts | Shares Repurchased | Average Purchase Price Per Share | Total Purchase Price, Including Commissions and Fees | |||||||||||||||||
| For the nine months ended September 30, 2025: | ||||||||||||||||||||
| 2024 Share Repurchase Authorization | $ | $ | ||||||||||||||||||
| For the nine months ended September 30, 2024: | ||||||||||||||||||||
| 2024 Share Repurchase Authorization | $ | $ | ||||||||||||||||||
Total cash paid for share repurchases for the nine months ended September 30, 2025 and 2024 was $201 million and $117 million, respectively.
Ordinary Shares—The changes in the outstanding amounts of ordinary shares are as follows:
| Nine Months Ended September 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Ordinary shares outstanding: | |||||||||||
| Beginning balance | |||||||||||
| Share-based compensation | |||||||||||
| Employee stock purchase plan | |||||||||||
| Purchase of ordinary shares | ( | ( | |||||||||
| Ending balance | |||||||||||
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Treasury Shares—The changes in the amounts of treasury shares held by the Company are as follows:
| Nine Months Ended September 30, | |||||||||||
| 2025 | 2024 | ||||||||||
| Ordinary shares held as treasury shares: | |||||||||||
| Beginning balance | |||||||||||
| Share-based compensation | ( | ( | |||||||||
| Employee stock purchase plan | ( | ( | |||||||||
| Purchase of ordinary shares | |||||||||||
| Ending balance | |||||||||||
Accumulated Other Comprehensive Loss—The components of, and after-tax changes in, Accumulated other comprehensive loss as of and for the nine months ended September 30, 2025 and 2024 are presented in the following tables.
Foreign Currency Translation Adjustments below include currency translation adjustments as well as gains (losses) on net investment hedges; the associated tax benefits or expenses are calculated separately for each component.
| Millions of dollars | Financial Derivatives | Defined Benefit Pension and Other Postretirement Benefit Plans | Foreign Currency Translation Adjustments | Total | |||||||||||||||||||||||||||||||
| Balance – December 31, 2024 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||
| Other comprehensive (loss) income before reclassifications | ( | ( | |||||||||||||||||||||||||||||||||
| Tax benefit before reclassifications | |||||||||||||||||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive loss | |||||||||||||||||||||||||||||||||||
| Tax expense | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Net other comprehensive (loss) income | ( | ( | |||||||||||||||||||||||||||||||||
| Balance – September 30, 2025 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||
| Millions of dollars | Financial Derivatives | Defined Benefit Pension and Other Postretirement Benefit Plans | Foreign Currency Translation Adjustments | Total | |||||||||||||||||||||||||||||||
| Balance – December 31, 2023 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||
| Other comprehensive (loss) income before reclassifications | ( | ||||||||||||||||||||||||||||||||||
| Tax benefit before reclassifications | |||||||||||||||||||||||||||||||||||
| Amounts reclassified from accumulated other comprehensive loss | |||||||||||||||||||||||||||||||||||
| Tax expense | ( | ( | ( | ||||||||||||||||||||||||||||||||
| Net other comprehensive income | |||||||||||||||||||||||||||||||||||
| Balance – September 30, 2024 | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The amounts reclassified out of each component of Accumulated other comprehensive loss are as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | Affected Line Item on the Consolidated Statements of Income | |||||||||||||||||||||||||||
| Millions of dollars | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||||||||
| Reclassification adjustments for: | |||||||||||||||||||||||||||||
| Financial derivatives: | |||||||||||||||||||||||||||||
| Commodities | $ | $ | $ | $ | Sales and other operating revenues | ||||||||||||||||||||||||
| Commodities | Cost of sales | ||||||||||||||||||||||||||||
| Foreign currency | ( | Interest expense | |||||||||||||||||||||||||||
| Interest rates | Interest expense | ||||||||||||||||||||||||||||
| Income tax expense | ( | ( | ( | ( | (Benefit from) provision for income taxes | ||||||||||||||||||||||||
| Financial derivatives, net of tax | |||||||||||||||||||||||||||||
| Amortization of defined pension items: | |||||||||||||||||||||||||||||
| Actuarial loss | Other income, net | ||||||||||||||||||||||||||||
| Prior service cost | Other income, net | ||||||||||||||||||||||||||||
| Curtailment gain | ( | (Loss) income from discontinued operations, net of tax | |||||||||||||||||||||||||||
| Income tax expense | ( | ( | ( | ( | (Benefit from) provision for income taxes | ||||||||||||||||||||||||
| Defined pension items, net of tax | |||||||||||||||||||||||||||||
| Total reclassifications, before tax | |||||||||||||||||||||||||||||
| Income tax expense | ( | ( | ( | ( | Provision for income taxes | ||||||||||||||||||||||||
| Total reclassifications, after tax | $ | $ | $ | $ | Amount included in net income | ||||||||||||||||||||||||
Redeemable Non-controlling Interests
Our redeemable non-controlling interests relate to shares of cumulative perpetual special stock (“redeemable non-controlling interest stock”) issued by a consolidated subsidiary. As of September 30, 2025 and December 31, 2024, we had 112,965 , and 113,053 shares of redeemable non-controlling interest stock outstanding, respectively. These shares may be redeemed at any time at the discretion of the holders.
In January, May, and August 2025, we paid cash dividends of $15.00 5
13. Per Share Data
Basic (loss) earnings per share is based upon the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share includes the effect of certain stock options and other equity-based compensation awards. Our unvested restricted stock units contain non-forfeitable rights to dividend equivalents and are considered participating securities. We compute basic and diluted (loss) earnings per share under the two-class method.
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
(Loss) earnings per share data is as follows:
| Three Months Ended September 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Millions of dollars | Continuing Operations | Discontinued Operations | Continuing Operations | Discontinued Operations | |||||||||||||||||||
| Net (loss) income | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
| Dividends on redeemable non-controlling interests | ( | ( | |||||||||||||||||||||
| Net income attributable to participating securities | ( | ( | |||||||||||||||||||||
| Net (loss) income attributable to ordinary shareholders – basic and diluted | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
| Millions of shares, except per share amounts | |||||||||||||||||||||||
| Basic weighted average common stock outstanding | |||||||||||||||||||||||
| Effect of dilutive securities | |||||||||||||||||||||||
| Diluted weighted average common stock outstanding | |||||||||||||||||||||||
| (Loss) earnings per share: | |||||||||||||||||||||||
| Basic | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
| Diluted | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
| Nine Months Ended September 30, | |||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||
| Millions of dollars | Continuing Operations | Discontinued Operations | Continuing Operations | Discontinued Operations | |||||||||||||||||||
| Net (loss) income | $ | ( | $ | $ | $ | ( | |||||||||||||||||
| Dividends on redeemable non-controlling interests | ( | ( | |||||||||||||||||||||
| Net income attributable to participating securities | ( | ( | |||||||||||||||||||||
| Net (loss) income attributable to ordinary shareholders – basic and diluted | $ | ( | $ | $ | $ | ( | |||||||||||||||||
| Millions of shares, except per share amounts | |||||||||||||||||||||||
| Basic weighted average common stock outstanding | |||||||||||||||||||||||
| Effect of dilutive securities | |||||||||||||||||||||||
| Diluted weighted average common stock outstanding | |||||||||||||||||||||||
| (Loss) earnings per share: | |||||||||||||||||||||||
| Basic | $ | ( | $ | $ | $ | ( | |||||||||||||||||
| Diluted | $ | ( | $ | $ | $ | ( | |||||||||||||||||
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
14. Segment and Related Information
Our operations are managed by senior executives who report to our Chief Executive Officer, the chief operating decision maker. Discrete financial information is available for each of the segments. The Chief Executive Officer uses EBITDA as the primary measure for reviewing the profitability of our segments and allocating resources to the segments. We define EBITDA as net (loss) income before interest, income taxes, and depreciation and amortization. Our chief operating decision maker does not receive information about total assets by reportable segment.
The activities of each of our segments from which they earn revenues and incur expenses are described below:
•Olefins and Polyolefins-Americas (“O&P-Americas”). Our O&P-Americas segment produces and markets olefins and co-products, polyethylene and polypropylene.
•Olefins and Polyolefins-Europe, Asia, International (“O&P-EAI”). Our O&P-EAI segment produces and markets olefins and co-products, polyethylene and polypropylene.
•Intermediates and Derivatives (“I&D”). Our I&D segment produces and markets propylene oxide and its derivatives; oxyfuels and related products; and intermediate chemicals such as styrene monomer and acetyls.
•Advanced Polymer Solutions (“APS”). Our APS segment produces and markets compounding and solutions, such as polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors and powders.
•Technology. Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
“Other” includes intersegment eliminations and items that are not directly related or allocated to business operations, such as foreign exchange gains or losses and components of pension and other postretirement benefit costs other than service costs. Sales between segments are made at prices approximating prevailing market prices.
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Summarized financial information concerning reportable segments is shown in the following tables for the periods presented:
| Three Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Millions of dollars | O&P– Americas | O&P– EAI | I&D | APS | Technology | Other | Total | ||||||||||||||||||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||||||||||||||||||||
| Customers | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Intersegment | ( | ||||||||||||||||||||||||||||||||||||||||
| ( | |||||||||||||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||
| Cost of sales | ( | ||||||||||||||||||||||||||||||||||||||||
| Impairments | |||||||||||||||||||||||||||||||||||||||||
| (Income) loss from equity investments | ( | ||||||||||||||||||||||||||||||||||||||||
| Loss on sale of business | |||||||||||||||||||||||||||||||||||||||||
| Other items | |||||||||||||||||||||||||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | |||||||||||||||||||||||||||||||||||||||||
| EBITDA | $ | $ | ( | $ | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||||
| Capital expenditures | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Three Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||
| Millions of dollars | O&P– Americas | O&P– EAI | I&D | APS | Technology | Other | Total | ||||||||||||||||||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||||||||||||||||||||
| Customers | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Intersegment | ( | ||||||||||||||||||||||||||||||||||||||||
| ( | |||||||||||||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||
| Cost of sales | ( | ||||||||||||||||||||||||||||||||||||||||
| Impairments | |||||||||||||||||||||||||||||||||||||||||
| (Income) loss from equity investments | ( | ||||||||||||||||||||||||||||||||||||||||
| Other items | |||||||||||||||||||||||||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | |||||||||||||||||||||||||||||||||||||||||
| EBITDA | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
| Capital expenditures | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
| Nine Months Ended September 30, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Millions of dollars | O&P- Americas | O&P- EAI | I&D | APS | Technology | Other | Total | ||||||||||||||||||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||||||||||||||||||||
| Customers | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Intersegment | ( | ||||||||||||||||||||||||||||||||||||||||
| ( | |||||||||||||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||
| Cost of sales | ( | ||||||||||||||||||||||||||||||||||||||||
| Impairments | |||||||||||||||||||||||||||||||||||||||||
| (Income) loss from equity investments | ( | ||||||||||||||||||||||||||||||||||||||||
| Loss on sale of business | |||||||||||||||||||||||||||||||||||||||||
| Other items | |||||||||||||||||||||||||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | |||||||||||||||||||||||||||||||||||||||||
| EBITDA | $ | $ | ( | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||
| Capital expenditures | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Nine Months Ended September 30, 2024 | |||||||||||||||||||||||||||||||||||||||||
| Millions of dollars | O&P– Americas | O&P– EAI | I&D | APS | Technology | Other | Total | ||||||||||||||||||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||||||||||||||||||||
| Customers | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
| Intersegment | ( | ||||||||||||||||||||||||||||||||||||||||
| ( | |||||||||||||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||
| Cost of sales | ( | ||||||||||||||||||||||||||||||||||||||||
| Impairments | |||||||||||||||||||||||||||||||||||||||||
| (Income) loss from equity investments | ( | ||||||||||||||||||||||||||||||||||||||||
| Gain on sale of business | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Other items | |||||||||||||||||||||||||||||||||||||||||
| Add: | |||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | |||||||||||||||||||||||||||||||||||||||||
| EBITDA | $ | $ | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||
| Capital expenditures | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||
Other items include Selling, general and administrative (“SG&A”) expenses, Research and development expenses, and Other (expense) income, net.
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
A reconciliation of EBITDA to (Loss) income from continuing operations before income taxes is shown in the following table for each of the periods presented. Indirect SG&A expense reallocation to continuing operations represents corporate SG&A expenses that were previously allocated to the refining segment:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| Millions of dollars | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| EBITDA: | |||||||||||||||||||||||
| Total segment EBITDA | $ | ( | $ | $ | $ | ||||||||||||||||||
| Other EBITDA | ( | ( | ( | ( | |||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Depreciation and amortization expense | ( | ( | ( | ( | |||||||||||||||||||
| Interest expense | ( | ( | ( | ( | |||||||||||||||||||
| Indirect SG&A expense reallocation to continuing operations | ( | ( | |||||||||||||||||||||
| Add: | |||||||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| (Loss) income from continuing operations before income taxes | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Impairments—In the third quarter of 2025, a prolonged downturn in, and outlook for, the European petrochemical and global automotive industries, particularly affecting our O&P-EAI and APS segments, combined with the sustained decline in our market capitalization, constituted a triggering event requiring a quantitative interim impairment test of goodwill and long-lived assets within these segments.
We used the income approach to determine the fair value of each asset group and reporting unit. This approach involves judgment, utilizing assumptions that are not readily observable, including projected operating results, economic conditions, expected cash flows, EBITDA growth rates, terminal values, and discount rates. These estimates are inherently subjective and classified as Level 3 within the fair value hierarchy. Based on this analysis, we recognized non-cash impairment charges totaling $1,182 million in the third quarter of 2025, which are presented in both Goodwill impairments and Other impairments on the Consolidated Statements of (Loss) Income.
In addition, during the third quarter of 2025, we recognized other impairment charges in our O&P-Americas and O&P-EAI segments of $9 million and $11 million, respectively, related to property, plant and equipment, which are presented in Other impairments on the Consolidated Statements of (Loss) Income.
Total impairment charges for the three and nine months ended September 30, 2025 consist of the following:
| Three Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||
| Millions of dollars | O&P– America | O&P– EAI | APS | Total | O&P– America | O&P– EAI | APS | Total | |||||||||||||||||||||||||||||||||||||||
| Impairments: | |||||||||||||||||||||||||||||||||||||||||||||||
| Property, plant and equipment | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
| Intangible assets | |||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
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LYONDELLBASELL INDUSTRIES N.V.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Closure of European PO Joint Venture—In March 2025, we announced our plans to permanently close the Propylene Oxide Styrene Monomer (POSM) production unit at the Maasvlakte site in the Netherlands. The Maasvlakte site is a joint venture between us and Covestro (our “European PO Joint Venture”). The joint venture was formed solely for the benefit of the partners and does not manufacture for any other parties. We report the cost of our product off-take as Inventory and the equity loss as Cost of sales in our Consolidated Financial Statements.
As of December 31, 2024, the book value of the European PO Joint Venture was immaterial largely due to asset impairments recognized during 2023. We will carry out a process to safely shut down and prepare for the demolition of the asset. We estimate our portion of the total shutdown costs will be approximately $215 million and will be incurred through 2027. We incurred shutdown costs of $117 million during the nine months ended September 30, 2025.
Disposition of Ethylene Oxide & Derivatives (“EO&D”) Business—In May 2024, we sold our U.S. Gulf Coast-based EO&D business along with the production facilities located in Bayport, TX. The EO&D business was included in our I&D segment. In connection with the sale, we received cash proceeds of $700 million and recognized a pre-tax gain of $293 million in the first nine months of 2024.
Acquisition of Joint Venture—In May 2024, we acquired a 35 % interest in Saudi Arabia-based National Petrochemical Industrial Company (“NATPET”) from Alujain Corporation for approximately $500 million. The joint venture has the capacity to produce 0.4 million tons of PP per year. We market the majority of the off-take through our global sales team. The joint venture is included in our O&P-EAI segment and accounted for using the equity method of accounting.
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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
This discussion should be read in conjunction with the information contained in the Consolidated Financial Statements, and the accompanying notes elsewhere in this report. Unless otherwise indicated, the “Company,” “we,” “us,” “our” or similar words are used to refer to LyondellBasell Industries N.V. together with its consolidated subsidiaries (“LyondellBasell N.V.”).
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. The related operating results of our refining business are reported as discontinued operations for all periods presented.
OVERVIEW
Results from continuing operations for the third quarter of 2025 decreased compared to the second quarter of 2025 primarily as a result of non-cash impairment charges recognized in the third quarter of 2025 for our Olefins and Polyolefins-Europe, Asia, International (“O&P-EAI”) and Advanced Polymer Solutions (“APS”) segments. In our Olefins and Polyolefins-Americas (“O&P-Americas”) segment improved profitability was supported by increased olefins margins and higher sales volumes following the successful completion of turnarounds at our facility in Channelview, Texas. Polyethylene spreads decreased as monomer costs rose. Our sales volumes improved on higher domestic demand for polyethylene given our North American market position, along with higher export flows to key global markets. Polypropylene demand remained weak. In our O&P-EAI segment, improved operations yielded higher monomer volumes while polymer prices were pressured by increased competition from imports. In our Intermediates and Derivatives (“I&D”) segment, oxyfuels results improved sequentially on increased octane blend premiums, lower butane raw material prices and modestly higher sales volumes partially offset by declining styrene margins as global supply normalized. In September, we started a two-month turnaround at our La Porte, Texas acetyls unit that will position the asset for improved productivity and reliability.
Results from continuing operations for the first nine months of 2025 decreased compared to the first nine months of 2024 primarily as a result of non-cash impairment charges recognized for our O&P-EAI and APS segments. In our O&P-Americas segment, olefins and polyethylene margins decreased on higher feedstock and energy costs and a weakened economic environment. In our I&D segment, oxyfuels and related products results declined due to lower crude oil prices and global oversupply. Results for our I&D segment were further impacted by the recognition of shutdown costs related to our European PO Joint Venture during the first quarter of 2025, and by a gain on sale of our U.S. Gulf Coast-based Ethylene Oxide & Derivatives (“EO&D”) business recognized during the second quarter of 2024. In our Technology segment, licensing results decreased as the planned pace of global polyolefin capacity additions moderate.
In October 2025, we entered into a sales and purchase agreement for the sale of select olefins & polyolefins assets and the associated business in Europe. Closing of the proposed transaction is currently expected in the first half of 2026. See Note 4 to our Consolidated Financial Statements for additional information.
During the first nine months of 2025 we generated $755 million of cash from operating activities primarily reflecting a net loss adjusted for non-cash items, timing of payment of Accounts payable and tax payments, including U.S. Federal corporate income tax payments deferred from 2024 into 2025 under Hurricane Beryl disaster relief. In connection with our overall capital allocation strategy, we invested $1,428 million in capital expenditures and returned $1,522 million to shareholders through dividend payments and share repurchases.
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Results of operations for the periods discussed are presented in the table below:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||||||||||||
| Millions of dollars | 2025 | 2025 | 2025 | 2024 | |||||||||||||||||||||||||
| Sales and other operating revenues | $ | 7,727 | $ | 7,658 | $ | 23,062 | $ | 25,586 | |||||||||||||||||||||
| Cost of sales | 6,821 | 6,871 | 20,820 | 21,747 | |||||||||||||||||||||||||
| Goodwill impairments | 972 | — | 972 | — | |||||||||||||||||||||||||
| Other impairments | 230 | 32 | 262 | 5 | |||||||||||||||||||||||||
| Selling, general and administrative expenses | 401 | 435 | 1,237 | 1,223 | |||||||||||||||||||||||||
| Research and development expenses | 34 | 35 | 103 | 96 | |||||||||||||||||||||||||
| Operating (loss) income | (731) | 285 | (332) | 2,515 | |||||||||||||||||||||||||
| Interest expense | (130) | (118) | (355) | (365) | |||||||||||||||||||||||||
| Interest income | 21 | 21 | 72 | 114 | |||||||||||||||||||||||||
| (Loss) gain on sale of business | (6) | — | (6) | 293 | |||||||||||||||||||||||||
| Other (expense) income, net | (2) | 29 | 48 | 28 | |||||||||||||||||||||||||
| (Loss) income from equity investments | (8) | 7 | — | (66) | |||||||||||||||||||||||||
| (Loss) income from continuing operations before income taxes | (856) | 224 | (573) | 2,519 | |||||||||||||||||||||||||
| (Benefit from) provision for income taxes | (27) | 69 | 78 | 514 | |||||||||||||||||||||||||
| (Loss) income from continuing operations | (829) | 155 | (651) | 2,005 | |||||||||||||||||||||||||
| (Loss) income from discontinued operations, net of tax | (61) | (40) | 53 | (35) | |||||||||||||||||||||||||
| Net (loss) income | (890) | 115 | (598) | 1,970 | |||||||||||||||||||||||||
| Other comprehensive income, net of tax – | |||||||||||||||||||||||||||||
| Financial derivatives | (4) | (35) | (10) | 62 | |||||||||||||||||||||||||
| Defined benefit pension and other postretirement benefit plans | 3 | 2 | (1) | 10 | |||||||||||||||||||||||||
| Foreign currency translations | 1 | 127 | 190 | 30 | |||||||||||||||||||||||||
| Total other comprehensive income, net of tax | — | 94 | 179 | 102 | |||||||||||||||||||||||||
| Comprehensive (loss) income | $ | (890) | $ | 209 | $ | (419) | $ | 2,072 | |||||||||||||||||||||
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RESULTS OF OPERATIONS
Revenues—Revenues increased by $69 million, or 1%, in the third quarter of 2025 compared to the second quarter of 2025. Higher sales volumes resulted in a 3% increase in revenue. Favorable foreign exchange impact resulted in a 2% increase in revenues. Lower average sales prices for many of our products resulted in a 4% decrease in revenues.
Revenues decreased by $2,524 million, or 10%, in the first nine months of 2025 compared to the first nine months of 2024. Lower average sales prices for many of our products resulted in a 7% decrease in revenues. Lower sales volumes driven by lower demand led to a 4% decrease in revenues. Favorable foreign exchange impact led to a 1% increase in revenues.
Cost of Sales—Cost of sales decreased by $50 million, or 1%, in the third quarter of 2025 compared to the second quarter of 2025 and by $927 million or 4% in the first nine months of 2025 compared to the first nine months of 2024 primarily due to lower feedstock and energy costs. Additionally, during the first quarter of 2025 we recognized $117 million in shutdown costs related to our plans to permanently close the European PO Joint Venture.
Impairments—During the second quarter of 2025, we recognized a non-cash impairment charge of $32 million related to property, plant and equipment associated with the European assets classified as held for sale within our O&P EAI segment.
During the third quarter of 2025, a prolonged downturn in, and outlook for, the European petrochemical and global automotive industries, particularly affecting our O&P-EAI and APS segments, combined with the sustained decline in our market capitalization, drove non-cash impairment charges totaling $1,202 million. Refer to Note 14 to our Consolidated Financial Statements for additional information.
Operating Income—Operating income decreased by $1,016 million, or 356%, in the third quarter of 2025 compared to the second quarter of 2025. Operating income in our APS, O&P-EAI and Technology segments decreased $775 million, $370 million and $18 million, respectively. These decreases were partially offset by increases in our O&P-Americas and I&D segments of $104 million and $43 million, respectively.
Operating income decreased by $2,847 million, or 113%, in the first nine months of 2025 compared to the first nine months of 2024. Operating income in our O&P-Americas, APS, O&P-EAI, I&D and Technology segments decreased by $998 million, $761 million, $531 million, $478 million, and $172 million, respectively.
Results for each of our business segments are discussed further in the “Segment Analysis” section below.
(Loss) Gain on Sale of Business—In the second quarter of 2024, we completed the sale of our EO&D business and associated production facilities located in Bayport, Texas and recognized a pre-tax gain of $293 million.
(Loss) income from Equity Investments—Results from equity investments decreased by $15 million, in the third quarter of 2025 compared to the second quarter of 2025 primarily driven by increased costs and lower volumes for Saudi Arabian joint ventures in our O&P EAI segment. Equity income improved by $66 million in the first nine months of 2025 compared to the first nine months of 2024 as the first nine months of 2024 included equity losses recognized by a Chinese joint venture in our O&P-EAI segment. Our Chinese joint venture was subsequently fully impaired during the fourth quarter of 2024.
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Income Taxes—Our effective income tax rate for the third quarter of 2025 was 3.2% compared to 30.8% for the second quarter of 2025. The lower effective tax rate for the third quarter of 2025 was due to the relative impact of our tax rate drivers, primarily exempt income, due to lower earnings that decreased our effective income tax rate by 31.4 percentage points, coupled with the discrete tax recognition in the second quarter of 2025 of foreign exchange gains and losses of 16.8 percentage points. To a lesser extent, the lower effective tax rate for the third quarter of 2025 was driven by non-cash impairments, for which there is largely no tax benefit, recognized discretely in the third quarter that decreased our effective income tax rate by 7.8 percentage points. These decreases were partially offset by the establishment of a valuation allowance against deferred tax assets, for which no tax benefit can be recognized, in the United Kingdom that increased the effective tax rate by 28.0 percentage points.
Our effective income tax rate for the first nine months of 2025 was (13.6)% compared to 20.4% for the first nine months of 2024. The lower effective tax rate for the first nine months of 2025 was primarily due to non-cash impairments recognized discretely in the third quarter, for which there is largely no tax benefit, which decreased our effective tax rate by 36.7 percentage points. This decrease was coupled with the increased relative impact of our tax rate drivers, primarily exempt income, due to lower earnings that decreased our effective income tax rate by 21.9 percentage points. These decreases were partially offset by the establishment of a valuation allowance against deferred tax assets, for which no tax benefit can be recognized, in the United Kingdom and fluctuations in foreign exchange gains and losses recognized discretely in 2025, which increased the effective tax rate by 15.0 and 10.7 percentage points, respectively.
(Loss) income from Discontinued Operations, Net of Tax—Loss (income) from discontinued operations decreased by $21 million in the third quarter of 2025 compared to the second quarter of 2025. During the third quarter of 2025, we recognized a $29 million loss from discontinued operations, net of tax, related to our Berre refinery primarily driven by the recognition of an environmental reserve.
(Loss) income from discontinued operations increased $88 million in the first nine months of 2025 compared to the first nine months of 2024 primarily the result of the recognition a last-in, first-out (“LIFO”) benefit of $196 million, net of tax, for the liquidation of low cost inventory in the first quarter of 2025. The remainder of the change was primarily driven by increased costs as we ceased business operations at our Houston refinery in February of 2025.
Comprehensive (Loss) Income—Comprehensive (loss) income decreased by $1,099 million in the third quarter of 2025 compared to the second quarter of 2025, primarily due to the decrease in Net (loss) income and net unfavorable impacts of unrealized changes in foreign currency translation adjustments. Comprehensive (loss) income decreased by $2,491 million in the first nine months of 2025 compared to the first nine months of 2024, primarily due to the decrease in Net (loss) income. The components of Other comprehensive (loss) income are discussed below.
Financial derivatives designated as cash flow hedges, primarily our commodity swaps, led to an increase in Comprehensive (loss) income of $31 million and a decrease of $72 million in the third quarter of 2025 compared to the second quarter of 2025 and in the first nine months of 2025 compared to the first nine months of 2024, respectively, reflecting commodity price volatility.
Foreign currency translations decreased Comprehensive (loss) income by $126 million in the third quarter of 2025 compared to the second quarter of 2025, primarily due to changes in foreign currency exchange rates between the U.S. dollar and euro relative to the prior quarter, partially offset by the effective portion of our net investment hedges. Foreign currency translation increased Comprehensive (loss) income by $160 million in the first nine months of 2025 compared to the first nine months of 2024, primarily due to the weakening of the U.S. dollar relative to the euro, partially offset by the effective portion of our net investment hedges.
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Segment Analysis
We use net (loss) income before interest, income taxes, and depreciation and amortization (“EBITDA”) as our measure of profitability for segment reporting purposes. This measure of segment operating results is used by our chief operating decision maker to assess the performance of and allocate resources to our operating segments. Intersegment eliminations and items that are not directly related or allocated to business operations, such as foreign exchange gains or losses and components of pension and other postretirement benefits other than service costs are included in “Other”. See the table below for a reconciliation of EBITDA to its nearest generally accepted accounting principles (“GAAP”) measure.
The following table presents the reconciliation of Net (loss) income to EBITDA for each of the periods presented:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||||||
| Millions of dollars | 2025 | 2025 | 2025 | 2024 | |||||||||||||||||||
| Net (loss) income | $ | (890) | $ | 115 | $ | (598) | $ | 1,970 | |||||||||||||||
| (Benefit from) provision for income taxes | (49) | 62 | 91 | 505 | |||||||||||||||||||
| Depreciation and amortization | 350 | 332 | 1,005 | 1,133 | |||||||||||||||||||
| Interest expense, net | 109 | 97 | 283 | 251 | |||||||||||||||||||
| EBITDA | $ | (480) | $ | 606 | $ | 781 | $ | 3,859 | |||||||||||||||
Our continuing operations are managed through five reportable segments: O&P-Americas, O&P-EAI, I&D, APS, and Technology. Revenues and other information by segment for the periods presented are reflected in the tables below:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||||||||||||
| Millions of dollars | 2025 | 2025 | 2025 | 2024 | |||||||||||||||||||||||||
| Sales and other operating revenues: | |||||||||||||||||||||||||||||
O&P-Americas segment | $ | 2,606 | $ | 2,377 | $ | 7,464 | $ | 8,779 | |||||||||||||||||||||
O&P-EAI segment | 2,587 | 2,704 | 7,891 | 8,396 | |||||||||||||||||||||||||
| I&D segment | 2,343 | 2,275 | 6,916 | 8,067 | |||||||||||||||||||||||||
| APS segment | 870 | 917 | 2,695 | 2,809 | |||||||||||||||||||||||||
| Technology segment | 115 | 137 | 372 | 497 | |||||||||||||||||||||||||
| Other, including intersegment eliminations | (794) | (752) | (2,276) | (2,962) | |||||||||||||||||||||||||
| Total | $ | 7,727 | $ | 7,658 | $ | 23,062 | $ | 25,586 | |||||||||||||||||||||
| Operating (loss) income: | |||||||||||||||||||||||||||||
O&P-Americas segment | $ | 246 | $ | 142 | $ | 473 | $ | 1,471 | |||||||||||||||||||||
O&P-EAI segment | (410) | (40) | (473) | 58 | |||||||||||||||||||||||||
| I&D segment | 194 | 151 | 336 | 814 | |||||||||||||||||||||||||
| APS segment | (765) | 10 | (738) | 23 | |||||||||||||||||||||||||
| Technology segment | 4 | 22 | 68 | 240 | |||||||||||||||||||||||||
| Other, including intersegment eliminations | — | — | 2 | (91) | |||||||||||||||||||||||||
| Total | $ | (731) | $ | 285 | $ | (332) | $ | 2,515 | |||||||||||||||||||||
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| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||||||||||||
| Millions of dollars | 2025 | 2025 | 2025 | 2024 | |||||||||||||||||||||||||
| Depreciation and amortization: | |||||||||||||||||||||||||||||
| O&P-Americas segment | $ | 165 | $ | 164 | $ | 484 | $ | 460 | |||||||||||||||||||||
| O&P-EAI segment | 42 | 38 | 119 | 162 | |||||||||||||||||||||||||
| I&D segment | 109 | 99 | 307 | 304 | |||||||||||||||||||||||||
| APS segment | 23 | 20 | 63 | 64 | |||||||||||||||||||||||||
| Technology segment | 11 | 11 | 32 | 31 | |||||||||||||||||||||||||
| Total | $ | 350 | $ | 332 | $ | 1,005 | $ | 1,021 | |||||||||||||||||||||
| (Loss) income from equity investments: | |||||||||||||||||||||||||||||
O&P-Americas segment | $ | 6 | $ | 4 | $ | 17 | $ | 12 | |||||||||||||||||||||
O&P-EAI segment | (14) | 3 | (17) | (65) | |||||||||||||||||||||||||
| I&D segment | — | — | — | (13) | |||||||||||||||||||||||||
| Total | $ | (8) | $ | 7 | $ | — | $ | (66) | |||||||||||||||||||||
| Impairments: | |||||||||||||||||||||||||||||
| O&P-Americas segment | $ | 9 | $ | — | $ | 9 | $ | — | |||||||||||||||||||||
| O&P-EAI segment | 411 | 32 | 443 | 3 | |||||||||||||||||||||||||
| I&D segment | — | — | — | 2 | |||||||||||||||||||||||||
| APS segment | 782 | — | 782 | — | |||||||||||||||||||||||||
| Total | $ | 1,202 | $ | 32 | $ | 1,234 | $ | 5 | |||||||||||||||||||||
| (Loss) gain on sale of business: | |||||||||||||||||||||||||||||
| I&D segment | $ | — | $ | — | $ | — | $ | 293 | |||||||||||||||||||||
| APS segment | (6) | — | (6) | — | |||||||||||||||||||||||||
| Total | $ | (6) | $ | — | $ | (6) | $ | 293 | |||||||||||||||||||||
| Other (expense) income, net: | |||||||||||||||||||||||||||||
O&P-Americas segment | $ | 1 | $ | 3 | $ | 8 | $ | 6 | |||||||||||||||||||||
O&P-EAI segment | 1 | 1 | 9 | 10 | |||||||||||||||||||||||||
| I&D segment | — | 36 | 40 | 25 | |||||||||||||||||||||||||
| APS segment | 2 | 2 | 13 | 7 | |||||||||||||||||||||||||
| Other, including intersegment eliminations | (6) | (13) | (22) | (20) | |||||||||||||||||||||||||
| Total | $ | (2) | $ | 29 | $ | 48 | $ | 28 | |||||||||||||||||||||
| EBITDA: | |||||||||||||||||||||||||||||
O&P-Americas segment | $ | 418 | $ | 313 | $ | 982 | $ | 1,949 | |||||||||||||||||||||
O&P-EAI segment | (381) | 2 | (362) | 165 | |||||||||||||||||||||||||
| I&D segment | 303 | 286 | 683 | 1,423 | |||||||||||||||||||||||||
| APS segment | (746) | 32 | (668) | 94 | |||||||||||||||||||||||||
| Technology segment | 15 | 33 | 100 | 271 | |||||||||||||||||||||||||
| Discontinued operations | (83) | (47) | 66 | 68 | |||||||||||||||||||||||||
| Other, including intersegment eliminations | (6) | (13) | (20) | (111) | |||||||||||||||||||||||||
| Total | $ | (480) | $ | 606 | $ | 781 | $ | 3,859 | |||||||||||||||||||||
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Olefins and Polyolefins-Americas Segment
Overview—EBITDA increased in the third quarter of 2025 compared to the second quarter of 2025 primarily due to higher olefins margins. EBITDA decreased in the first nine months of 2025 relative to the first nine months of 2024 as margins decreased for most businesses.
Ethylene Raw Materials—Ethylene and its co-products are produced from two major raw material groups:
•natural gas liquids (“NGLs”), principally ethane and propane, the prices of which are generally affected by natural gas prices; and
•crude oil-based liquids (“liquids” or “heavy liquids”), including naphtha, condensates and gas oils, the prices of which are generally related to crude oil prices.
We have flexibility to vary the raw material mix and process conditions in our U.S. olefins plants in order to maximize profitability as market prices fluctuate for both feedstocks and products. Although prices of crude-based liquids and natural gas liquids are generally related to crude oil and natural gas prices, during specific periods the relationships among these materials and benchmarks may vary significantly. In the third and second quarter of 2025, and the first nine months of 2025 and 2024, approximately 75% to 80% of the raw materials used in our North American crackers was ethane.
The following table sets forth selected financial information for the O&P-Americas segment including Income from equity investments, which is a component of EBITDA:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||||||
| Millions of dollars | 2025 | 2025 | 2025 | 2024 | |||||||||||||||||||
| Sales and other operating revenues | $ | 2,606 | $ | 2,377 | $ | 7,464 | $ | 8,779 | |||||||||||||||
| Income from equity investments | 6 | 4 | 17 | 12 | |||||||||||||||||||
| EBITDA | 418 | 313 | 982 | 1,949 | |||||||||||||||||||
Revenue—Revenues for our O&P-Americas segment increased by $229 million, or 10% in the third quarter of 2025 compared to the second quarter of 2025 and decreased by $1,315 million, or 15%, in the first nine months of 2025 compared to the first nine months of 2024.
Third quarter of 2025 versus second quarter of 2025—Higher volumes from improved operating rates resulted in a 13% increase in revenue. Lower average sales prices, driven by increased polyethylene market supply, led to a 3% decrease in revenue.
First nine months of 2025 versus first nine months of 2024—Lower volumes driven by planned and unplanned outages resulted in a 9% decrease in revenue. Lower average sales prices driven by a lower oil price environment and ample product supply resulted in a 6% decrease in revenue.
EBITDA—EBITDA increased by $105 million, or 34%, in the third quarter of 2025 compared to the second quarter of 2025 and decreased by $967 million, or 50%, in the first nine months of 2025 compared to the first nine months of 2024.
Third quarter of 2025 versus second quarter of 2025—Higher olefins results led to a 49% increase in EBITDA driven by improved margins primarily from lower cost of ethylene due to co-product contribution. Lower polymer results led to a 15% decrease in EBITDA driven by lower margins as sales prices did not keep up with higher monomer cost due to market conditions.
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First nine months of 2025 versus first nine months of 2024—Lower olefins results led to a 32% decrease in EBITDA driven by lower margins from a decrease in co-product contribution combined with higher energy costs. Lower polyethylene results led to a 16% decrease in EBITDA primarily driven by lower product margins attributed to unfavorable macroeconomic conditions.
Olefins and Polyolefins-Europe, Asia, International Segment
Overview—EBITDA decreased in the third quarter of 2025 compared to the second quarter of 2025 and in the first nine months of 2025 compared to the first nine months of 2024, primarily due to the recognition of a $400 million non-cash goodwill impairment charge in the third quarter of 2025. See Note 14 to our Consolidated Financial Statements for additional information.
Ethylene Raw Materials—In Europe, naphtha is the primary raw material for our ethylene production and represented approximately 60% to 70% of the raw materials used in the third and second quarter of 2025, and the first nine months of 2025 and 2024.
The following table sets forth selected financial information for the O&P-EAI segment including (Loss) income from equity investments, which is a component of EBITDA:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||||||
| Millions of dollars | 2025 | 2025 | 2025 | 2024 | |||||||||||||||||||
| Sales and other operating revenues | $ | 2,587 | $ | 2,704 | $ | 7,891 | $ | 8,396 | |||||||||||||||
| (Loss) income from equity investments | (14) | 3 | (17) | (65) | |||||||||||||||||||
| EBITDA | (381) | 2 | (362) | 165 | |||||||||||||||||||
Revenue—Revenues decreased by $117 million, or 4%, in the third quarter of 2025 compared to the second quarter of 2025 and by $505 million, or 6%, in the first nine months of 2025 compared to the first nine months of 2024.
Third quarter of 2025 versus second quarter of 2025—Lower volumes resulted in a revenue decrease of 4% primarily due to lower demand. Lower average sales prices primarily as a result of a decrease in the price of naphtha drove a 3% decrease in revenue. Favorable foreign exchange impacts resulted in a 3% increase in revenue.
First nine months of 2025 versus first nine months of 2024—Lower average sales prices primarily as a result of a decrease in the price of naphtha drove a 7% decrease in revenue. Lower volumes resulted in a decrease of 2% due to lower demand and unplanned downtime. Favorable foreign exchange impacts resulted in a 3% increase in revenues.
EBITDA—EBITDA decreased by $383 million in the third quarter of 2025 compared to the second quarter of 2025 and by $527 million in the first nine months of 2025 compared to the first nine months of 2024.
During the third quarter of 2025, we recognized a $400 million non-cash goodwill impairment charge related to a prolonged downturn in, and outlook for, the European petrochemical industry. See Note 14 to our Consolidated Financial Statements for additional information.
Third quarter of 2025 versus second quarter of 2025— Improved olefins results contributed to an increase in EBITDA equally driven by improved margins from lower feedstock costs and higher volumes with less unplanned downtime. This improvement was offset by lower polymer margins on lower average sales prices. The remaining change was primarily due to recognition of the non-cash goodwill impairment charge in the third quarter of 2025.
First nine months of 2025 versus first nine months of 2024—Lower polyethylene results led to a 58% decrease in EBITDA driven by lower margins reflecting the weakening economic environment. The remaining change was primarily due to the recognition of the non-cash goodwill impairment charge in the third quarter of 2025.
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Intermediates and Derivatives Segment
Overview—EBITDA increased in the third quarter of 2025 relative to the second quarter of 2025 as a result of higher margins from oxyfuel and related products, partially offset by a decrease in intermediate chemicals and propylene oxide and derivatives results.
EBITDA decreased in the first nine months of 2025 compared to the first nine months of 2024 as a result of lower oxyfuels and related products margins, shutdown costs related to our European PO Joint Venture recognized in the first quarter of 2025, and the absence of a gain on sale of our EO&D business recognized in the second quarter of 2024.
The following table sets forth selected financial information for the I&D segment including Loss from equity investments, which is a component of EBITDA:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||||||
| Millions of dollars | 2025 | 2025 | 2025 | 2024 | |||||||||||||||||||
| Sales and other operating revenues | $ | 2,343 | $ | 2,275 | $ | 6,916 | $ | 8,067 | |||||||||||||||
| Loss from equity investments | — | — | — | (13) | |||||||||||||||||||
| EBITDA | 303 | 286 | 683 | 1,423 | |||||||||||||||||||
Revenue—Revenues increased by $68 million, or 3%, in the third quarter of 2025 compared to the second quarter of 2025 and decreased by $1,151 million, or 14%, in the first nine months of 2025 compared to the first nine months of 2024.
Third quarter of 2025 versus second quarter of 2025—Higher average sales prices resulted in a 3% increase in revenue primarily due to high octane values in the U.S. Gulf Coast and Europe driven by tight supply. Sales volumes decreased due to unplanned outages resulting in a 1% decrease in revenue. Favorable foreign exchange impacts resulted in a 1% increase in revenue.
First nine months of 2025 versus first nine months of 2024—Lower average sales prices resulted in a 14% decrease in revenue driven primarily by oxyfuels and related products as a result of lower crude, gasoline crack spreads, and blend premiums. A decline in sales volumes due to the second quarter of 2024 sale of our EO&D business and associated production facilities located in Bayport, Texas resulted in a 1% decrease in revenue. Favorable foreign exchange impacts resulted in a 1% increase in revenue.
EBITDA—EBITDA increased by $17 million, or 6%, in the third quarter of 2025 compared to the second quarter of 2025 and decreased by $740 million, or 52%, in the first nine months of 2025 compared to the first nine months of 2024.
In May 2024, we sold our U.S. Gulf Coast-based EO&D business along with the production facilities located in Bayport, TX and recognized a pre-tax gain of $293 million during the second quarter of 2024.
In March 2025, we announced our plans to permanently close the European PO Joint Venture, resulting in the recognition of $117 million in shutdown costs during the first quarter of 2025.
Third quarter of 2025 versus second quarter of 2025—Oxyfuels and related products results led to a 39% increase in EBITDA primarily due to higher margins primarily driven by higher octane values. Intermediate chemicals results led to an EBITDA decrease of 26% due to margin compression resulting from global supply normalizing as well as the absence of a $36 million gain on sale of precious metals recognized during the second quarter of 2025. Propylene oxide and derivatives results led to a 6% decrease in EBITDA primarily from lower sales volumes due to unplanned outages.
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First nine months of 2025 versus first nine months of 2024—Oxyfuels and related products results led to a 22% decline in EBITDA largely due to weaker demand and global oversupply. The remaining change was primarily due to the recognition of a gain on sale of our EO&D business in 2024 and costs incurred related to the announced closure of our European PO Joint Venture in the first quarter of 2025.
Advanced Polymer Solutions Segment
Overview—EBITDA decreased in the third quarter of 2025 relative to the second quarter of 2025 and in the first nine months of 2025 relative to the first nine months of 2024, primarily due to the recognition of $782 million of non-cash impairment charges in the third quarter of 2025. See Note 14 to our Consolidated Financial Statements for additional information.
The following table sets forth selected financial information for the APS segment:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||||||
| Millions of dollars | 2025 | 2025 | 2025 | 2024 | |||||||||||||||||||
| Sales and other operating revenues | $ | 870 | $ | 917 | $ | 2,695 | $ | 2,809 | |||||||||||||||
| EBITDA | (746) | 32 | (668) | 94 | |||||||||||||||||||
Revenue—Revenues decreased by $47 million, or 5%, in the third quarter of 2025 compared to the second quarter of 2025 and by $114 million, or 4%, in the first nine months of 2025 compared to the first nine months of 2024.
Third quarter of 2025 versus second quarter of 2025—Sales volumes decreased resulting in a 5% decrease in revenue stemming from weaker automotive demand and challenging market conditions. Lower average sales prices resulted in a 2% decrease in revenue. Favorable foreign exchange impacts resulted in a revenue increase of 2%.
First nine months of 2025 versus first nine months of 2024—Sales volumes decreased resulting in a 4% decrease in revenue stemming from weaker automotive demand. Lower average sales prices resulted in a 1% decrease in revenue. Favorable foreign exchange impacts resulted in a revenue increase of 1%.
EBITDA—EBITDA decreased by $778 million in the third quarter of 2025 compared to the second quarter of 2025 and by $762 million or 811% in the first nine months of 2025 compared to the first nine months of 2024.
During the third quarter of 2025, we recognized $782 million of non-cash impairment charges related to a prolonged downturn in, and outlook for, the global automotive industry. See Note 14 to our Consolidated Financial Statements for additional information.
Third quarter of 2025 versus second quarter of 2025—Lower volumes primarily from lower seasonal demand and challenging market conditions resulted in a 41% decrease in EBITDA. Higher margins related to lower fixed costs resulted in a 59% increase in EBITDA. The remaining decrease was primarily due to the recognition of non-cash impairment charges recognized in the third quarter of 2025.
First nine months of 2025 versus first nine months of 2024—Improved margins related to lower fixed costs drove a 61% increase in EBITDA. This improvement in EBITDA was offset by non-cash impairment charges recognized in the third quarter of 2025.
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Technology Segment
Overview—EBITDA decreased in the third quarter of 2025 compared to the second quarter of 2025, and in the first nine months of 2025 compared to the first nine months of 2024, primarily due to lower licensing results as the planned pace of global polyolefin capacity additions moderate.
The following table sets forth selected financial information for the Technology segment:
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | ||||||||||||||||||||
| Millions of dollars | 2025 | 2025 | 2025 | 2024 | |||||||||||||||||||
| Sales and other operating revenues | $ | 115 | $ | 137 | $ | 372 | $ | 497 | |||||||||||||||
| EBITDA | 15 | 33 | 100 | 271 | |||||||||||||||||||
Revenue—Revenues decreased by $22 million, or 16%, in the third quarter of 2025 compared to the second quarter of 2025 and by $125 million, or 25%, in the first nine months of 2025 compared to the first nine months of 2024.
Third quarter of 2025 versus second quarter of 2025—Lower licensing revenues from fewer contracts reaching significant milestones drove a 10% decrease in revenues. Lower catalyst volumes resulted in an 11% decrease in revenues due to lower demand. Higher average catalyst sales price resulted in a 3% increase in revenues. Favorable foreign exchange impact resulted in a 2% increase in revenues.
First nine months of 2025 versus first nine months of 2024—Lower licensing revenues resulting from recognition of revenue on fewer contracts drove a 22% decrease in revenues. Lower catalyst volume resulted in a 5% decrease in revenues due to continued lower polymer end use demand. Favorable foreign exchange impact resulted in a 2% increase in revenues.
EBITDA—EBITDA decreased by $18 million, or 55%, in the third quarter of 2025 compared to the second quarter of 2025 and by $171 million, or 63%, in the first nine months of 2025 compared to the first nine months of 2024.
Third quarter of 2025 versus second quarter of 2025—Licensing results led to a 36% decrease in EBITDA as fewer contracts with lower average values reached significant milestones. Lower catalyst demand resulted in a 30% decrease in EBITDA. Higher catalyst margins due to lower costs resulted in a 6% increase in EBITDA. Favorable foreign exchange impact resulted in a 6% increase in EBITDA.
First nine months of 2025 versus first nine months of 2024—Licensing results led to a 41% decrease in EBITDA as fewer contracts with lower average values reached significant milestones. Lower catalyst margins resulted in an 18% decrease in EBITDA as a result of unfavorable product mix and higher operating cost from increased maintenance. Lower catalyst demand resulted in a 7% decrease of EBITDA. Favorable foreign exchange impact resulted in a 3% EBITDA increase.
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FINANCIAL CONDITION
The following table summarizes operating, investing and financing cash flow activities:
| Nine Months Ended September 30, | |||||||||||
| Millions of dollars | 2025 | 2024 | |||||||||
| Cash provided by (used in): | |||||||||||
| Operating activities | $ | 755 | $ | 1,904 | |||||||
| Investing activities | (1,373) | (1,306) | |||||||||
| Financing activities | (1,046) | (1,377) | |||||||||
Operating Activities—Cash provided by operating activities of $755 million in the first nine months of 2025 primarily reflected net loss adjusted for non-cash items, $385 million of tax payments which includes $235 million in U.S. Federal corporate income tax payments deferred from 2024 into 2025 under Hurricane Beryl disaster relief, and a $583 million change in Accounts payable which was driven by the timing of payments.
Cash provided by operating activities of $1,904 million in the first nine months of 2024 primarily reflected earnings adjusted for non-cash items and cash activities primarily related to Accounts receivable and Inventories. Increased Accounts receivable of $413 million was primarily driven by higher average sales prices in our O&P-Americas and O&P-EAI segments. The increase of $433 million in Inventories was primarily due to inventory build for planned outages within our O&P-Americas and O&P-EAI segments coupled with inventory rebuild from low year-end levels at our I&D segment.
Investing Activities—Capital expenditures in the first nine months of 2025 and 2024 totaled $1,428 million and $1,335 million, respectively, of which approximately 65% and 75%, respectively, support sustaining maintenance such as turnaround activities at several sites as well as other plant health, safety and environmental projects. The remaining expenditures support profit-generating growth projects.
In the first nine months of 2025, foreign currency contracts with an aggregate notional value of €750 million expired. Upon settlement of these foreign currency contracts, we paid €750 million ($877 million at the expiry spot rate) to our counterparties and received $843 million from our counterparties. Additionally, in March 2025 we received $59 million upon termination and cash settlement of our cross-currency interest rate swaps, designated as net investment hedges, maturing in 2025 and 2030.
In the second quarter of 2024 we sold our EO&D business for $700 million and invested approximately $500 million to acquire a 35% stake in the NATPET joint venture in Saudi Arabia.
In the first nine months of 2024, foreign currency contracts with an aggregate notional value of €400 million expired. Upon settlement of these foreign currency contracts, we paid €400 million ($445 million at the expiry spot rate) to our counterparties and received $463 million from our counterparties.
Financing Activities—We made dividend payments totaling $1,321 million and $1,283 million in the first nine months of 2025 and 2024, respectively. Additionally, we made payments of $201 million and $117 million to repurchase outstanding ordinary shares in the first nine months of 2025 and 2024, respectively.
In May 2025, we issued $500 million of 6.150% guaranteed notes due 2035. Net proceeds from the sale of the notes were used for general corporate purposes, including the repayment of $492 million of outstanding principal of our 2025 Notes in October 2025.
In February 2024, we issued $750 million of 5.5% guaranteed notes due 2034. In March 2024, we repaid the $775 million remaining of outstanding principal on our 5.75% senior notes due 2024.
For additional detail regarding these debt transactions see Note 8 to the Consolidated Financial Statements.
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In April 2024, foreign currency contracts with an aggregate notional value of €784 million expired. Upon settlement of these foreign currency contracts, which were designated as cash flow hedges, we paid €784 million ($835 million at the expiry spot rate) to our counterparties and received $849 million from our counterparties.
Liquidity and Capital Resources
Overview
We plan to fund our working capital, capital expenditures, debt service, dividends and other cash requirements with our current available liquidity and cash from operations, which could be affected by general economic, financial, competitive, legislative, regulatory, business and other factors, many of which are beyond our control.
Debt repayment, and the purchase of shares under our share repurchase authorization, may be funded from cash and cash equivalents, cash from short-term investments, cash from operating activities, proceeds from the issuance of debt, or a combination thereof.
As part of our overall capital allocation strategy, we plan to provide returns to shareholders in the form of dividends and share repurchases. Over the long-term, we are targeting shareholder returns of 70% of free cash flow, defined as net cash provided by operating activities less capital expenditures; however, our returns may vary in the event of significant or unforeseen changes in business circumstances, mergers or acquisitions, or the continuation of the current downturn. We intend to continue to declare and pay quarterly dividends, after giving consideration to our cash balances and expected results from operations. Our focus on funding our dividends is balanced with our commitment to maintain an investment grade balance sheet as part of our capital allocation strategy and there can be no assurance that any dividends or distributions will be declared or paid in the future.
Cash Improvement Plan
In April 2025, to address ongoing macroeconomic volatility, we announced a Cash Improvement Plan. The plan now targets a $600 million run-rate in annualized savings for 2025. The Cash Improvement Plan includes three initiatives: (1) deferral of $200 million in capital spending; (2) $200 million net reduction in Accounts receivable, Inventory and Accounts payable; and (3) fixed cost reductions of $200 million, excluding one-time implementation costs estimated to be less than $50 million. We will continue to prioritize capital spending on maintenance and certain growth projects. The net reduction in Accounts receivable, Inventory and Accounts payable and fixed cost reductions are relative to our internal 2025 plan. Fixed cost reductions may be achieved through contract changes, reductions in employees and employee-related expenses or other means. As of September 30, 2025, we have incurred $27 million in costs associated with the Cash Improvement Plan and are on track to achieve our targets.
Capital Budget
In 2025, we plan to invest approximately $1.7 billion in capital expenditures. Approximately $1.2 billion of the budget is planned for sustaining maintenance, with the remaining budget supporting profit-generating growth projects. While we continue to invest in MoReTec-1 as planned, we are delaying construction to expand our propylene production capacity at our Channelview Complex (Flex-2) and delaying other capital projects to preserve capital during the cycle downturn. In 2026, we plan on investing up to $1.2 billion in capital expenditures.
Proposed Sale of Certain European Assets
In 2025, we entered into an agreement for the sale of select European olefins & polyolefins assets and the associated business. The sites to be sold have been part of the previously announced European strategic assessment and are located in Berre l’Etang (France), Münchsmünster (Germany), Carrington (United Kingdom), and Tarragona (Spain). The sale is currently expected to close in the first half of 2026. In connection with the sale, we anticipate making a cash contribution of approximately $300 million to the disposal group prior to closing. See Note 4 to our Consolidated Financial Statements for additional information.
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Cash and Liquid Investments
As of September 30, 2025, we had Cash and cash equivalents totaling $1,784 million, which includes $487 million in jurisdictions outside of the U.S., which is largely held within the United Kingdom. There are currently no legal or economic restrictions that would materially impede our transfers of cash.
Credit Arrangements
As of September 30, 2025, we had total debt, including current maturities, of $11,856 million. Additionally, we had $211 million of outstanding letters of credit, bank guarantees and surety bonds issued under uncommitted credit facilities.
We had total unused availability under our credit facilities of $4,650 million as of September 30, 2025, which included the following:
•$3,750 million under our $3,750 million Senior Revolving Credit Facility. This facility supports our $2,500 million commercial paper program. Availability under this facility is net of outstanding borrowings, outstanding letters of credit provided under the facility and notes issued through our commercial paper program. As of September 30, 2025, we had no outstanding commercial paper and no borrowings or letters of credit outstanding under this facility; and
•$900 million under our $900 million U.S. Receivables Facility. Availability under this facility is subject to a borrowing base of eligible receivables, which is reduced by outstanding borrowings and letters of credit, if any. As of September 30, 2025, we had no borrowings or letters of credit outstanding under this facility. In May 2025, we extended the term of the facility to June 2026 in accordance with the terms of the agreement.
In September 2025, we amended the Senior Revolving Credit Facility primarily to increase the Maximum Leverage Ratio (as defined in the Credit Agreement) through 2027 unless we elect to terminate such provisions sooner. Included in the amendment are certain limitations, including restrictions on dividend increases, if our leverage ratio is greater than or equal to 4.00 to 1.00, and share repurchases except to offset dilution. Additionally, the modification to the Maximum Leverage Ratio was incorporated into the U.S. Receivables Facility. For additional detail see Note 8 to the Consolidated Financial Statements.
At any time and from time to time, we may repay or redeem our outstanding debt, including purchases of our outstanding bonds in the open market, through privately negotiated transactions or a combination thereof, in each case using cash and cash equivalents, cash from our short-term investments, cash from operating activities, proceeds from the issuance of debt or proceeds from asset divestitures. Any repayment or redemption of our debt will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. In connection with such repurchases or redemptions, we may incur cash and non-cash charges, which could be material in the period in which they are incurred.
Share Repurchases
In May 2025, our shareholders approved a proposal to authorize us to repurchase up to 34.0 million ordinary shares through November 23, 2026, which superseded any prior repurchase authorizations. Our share repurchase authorization does not have a stated dollar amount, and purchases may be made through open market purchases, private market transactions or other structured transactions. Repurchased shares could be retired or used for general corporate purposes, including for various employee benefit and compensation plans. The maximum number of shares that may yet be purchased is not necessarily an indication of the number of shares that will ultimately be purchased. In September 2025, we amended our Senior Revolving Credit Facility which now restricts share repurchases, except to offset dilution. During the first half of 2025, we purchased approximately 3.0 million shares under our share repurchase authorizations for $201 million.
As of October 29, 2025, we had approximately 34.0 million shares remaining under the current authorization. The timing and amounts of additional shares repurchased, if any, will be determined based on our evaluation of market conditions and other factors, including any additional authorizations approved by our shareholders. For additional information related to our share repurchase authorizations, see Note 12 to the Consolidated Financial Statements.
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CURRENT BUSINESS OUTLOOK
In the fourth quarter of 2025, year-end seasonality and lower operating rates are expected to impact results across most businesses. In North America, higher natural gas and feedstock costs are likely to pressure integrated polyolefins margins. In Europe, weak industrial and consumer demand is expected to persist. Global capacity rationalizations and anti-involution measures in China are supporting a more constructive mid-term outlook for the industry. Industry downtime supported oxyfuels margins during October, but seasonally higher costs for feedstocks and lower octane values are expected to pressure oxyfuels profitability for the remainder of the fourth quarter. In our APS segment, pricing pressure persists, but cost reduction initiatives are expected to offset some of the impact.
In November 2025, we will idle our larger cracker in Wesseling, Germany and one of the propylene oxide/styrene monomer units in Channelview, Texas. Each asset will be down for about 40 days. This downtime will allow for maintenance activities while aligning production with global demand and reducing working capital. We expect fourth quarter operating rates of 80% for our O&P-Americas assets, 60% for our European O&P-EAI assets and 75% for our I&D assets.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Impairments—We test goodwill for impairment annually in the fourth quarter, or more frequently when events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying amount.
In the third quarter of 2025, we performed a quantitative impairment assessment of the reporting units within our O&P-EAI and APS segments, resulting in the recognition of non-cash impairment charges of $1,182 million. Refer to Note 14 to our Consolidated Financial Statements.
The process of valuing each reporting unit is inherently subjective as valuation models require the application of significant estimates and the use of unobservable inputs including projected operating results, economic conditions, expected cash flows and discount rates and other assumptions based on a market participant perspective. The discount rates applied in our cash flow models reflect considerations such as prevailing market and economic conditions, the risk profile of the projected cash flows, and the return expectations of market participants. While we believe our fair value estimates are reasonable, actual results may differ from those projections.
The impairments recognized in our O&P-EAI and APS segments resulted in a full write-down of Goodwill for these segments, as well as Property, plant and equipment for the impacted asset groups. Intangible assets remaining within our APS segment after the recognition of impairment charges are immaterial. We believe that any reasonable variation, whether favorable or unfavorable, in a significant input would not have a material effect on Net (loss) income. In addition, due to the complexity and interdependence of the assumptions underlying the impairment analysis, it is not practicable to quantify the effect of individual assumptions on Net (loss) income.
ACCOUNTING AND REPORTING CHANGES
For a discussion of the potential impact of new accounting pronouncements on the Consolidated Financial Statements, see Note 2 to the Consolidated Financial Statements.
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CAUTIONARY STATEMENT FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
This report includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”). You can identify our forward-looking statements by the words “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “should,” “will,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” and similar expressions.
We based forward-looking statements on our current expectations, estimates and projections of our business and the industries in which we operate. We caution you that these statements are not guarantees of future performance. They involve assumptions about future events that, while made in good faith, may prove to be incorrect, and involve risks and uncertainties we cannot predict. Our actual outcomes and results may differ materially from what we have expressed or forecast in the forward-looking statements. Any differences could result from a variety of factors, including the following:
•the cost of raw materials represents a substantial portion of our operating expenses, and energy costs generally follow price trends of crude oil, natural gas liquids and/or natural gas; price volatility can significantly affect our results of operations and we may be unable to pass raw material and energy cost increases on to our customers due to the significant competition that we face, the commodity nature of our products and the time required to implement pricing changes;
•our operations in the United States (“U.S.”) have benefited from low-cost natural gas and natural gas liquids; decreased availability of these materials (for example, from their export or regulations impacting hydraulic fracturing in the U.S.) could reduce the current benefits we receive;
•if crude oil prices are low relative to U.S. natural gas prices, we could see less benefit from low-cost natural gas and natural gas liquids and it could have a negative effect on our results of operations;
•industry production capacities and operating rates may lead to periods of oversupply and low profitability and our future operating and financial results are dependent on the pace of global capacity rationalization;
•we may face unplanned operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failures, unscheduled downtime, supplier disruptions, labor shortages, strikes, work stoppages or other labor difficulties, transportation interruptions, spills and releases and other environmental incidents) at any of our facilities, which would negatively impact our operating results;
•changes in general economic, business, political and regulatory conditions in the countries or regions in which we operate could increase our costs through tariffs or otherwise, limit or disrupt trade, restrict our operations and reduce our operating results;
•our ability to execute our organic growth plans may be negatively affected by our ability to complete projects on time and on budget;
•the successful outcome of any planned sale of our assets, or our ability to acquire or dispose of product lines or businesses could disrupt our business and harm our financial condition;
•uncertainties associated with worldwide economies could create reductions in demand and pricing, as well as increased counterparty risks, which could reduce liquidity or cause financial losses resulting from counterparty default;
•the negative outcome of any legal, tax and environmental proceedings or changes in laws or regulations regarding legal, tax and environmental matters may increase our costs, reduce demand for our products, or otherwise limit our ability to achieve savings under current regulations;
•any loss or non-renewal of favorable tax treatment under tax agreements or tax treaties, or changes in tax laws, regulations or treaties, may substantially increase our tax liabilities;
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•we may be required to reduce production or idle certain facilities because of the cyclical and volatile nature of the supply-demand balance in the chemical and refining industries, which would negatively affect our operating results;
•we rely on continuing technological innovation, and an inability to protect our technology, or others’ technological developments could negatively impact our competitive position;
•we have significant international operations, and fluctuations in exchange rates, valuations of currencies and our possible inability to access cash from operations in certain jurisdictions on a tax-efficient basis, if at all, could negatively affect our liquidity and our results of operations;
•we are subject to the risks of doing business at a global level, including wars, terrorist activities, political and economic instability and disruptions and changes in governmental policies, which could cause increased expenses, decreased demand or prices for our products and/or disruptions in operations, all of which could reduce our operating results;
•if we are unable to achieve our emission reduction, circularity, or other sustainability targets, it could result in reputational harm, changing investor sentiment regarding investment in our stock or a negative impact on our access to and cost of capital;
•our ability to execute and achieve the expected results of our value enhancement program and cash improvement plan;
•our ability to maintain our investment-grade credit rating and execute our capital allocation strategy, including our ability to pay dividends;
•if we are unable to comply with the terms of our credit facilities, indebtedness and other financing arrangements, those obligations could be accelerated, which we may not be able to repay; and
•we may be unable to incur additional indebtedness or obtain financing on terms that we deem acceptable, including for refinancing of our current obligations; higher interest rates and costs of financing would increase our expenses.
Any of these factors, or a combination of these factors, could materially affect our future results of operations and the ultimate accuracy of the forward-looking statements. Our management cautions against putting undue reliance on forward-looking statements or projecting any future results based on such statements or present or prior earnings levels.
All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section and any other cautionary statements that may accompany such forward-looking statements. Except as otherwise required by applicable law, we disclaim any duty to update any forward-looking statements.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our exposure to market and regulatory risks is described in Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2024. Our exposure to such risks has not changed materially in the nine months ended September 30, 2025.
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Item 4. CONTROLS AND PROCEDURES
As of September 30, 2025, with the participation of our management, our Chief Executive Officer (principal executive officer) and our Chief Financial Officer (principal financial officer) carried out an evaluation, pursuant to Rule 13a-15(b) of the Securities Exchange Act of 1934, as amended (the “Act”), of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Act). Based upon that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were effective as of September 30, 2025.
There have been no changes in our internal controls over financial reporting, as defined in Rule 13a-15(f) of the Act, in the period covered by this report, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
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PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
Environmental Matters
From time to time, we and our joint ventures receive notices or inquiries from government entities regarding alleged violations of environmental laws and regulations pertaining to, among other things, the disposal, emission and storage of chemical and petroleum substances, including hazardous wastes. U.S. Securities and Exchange Commission rules require disclosure of certain environmental matters when a governmental authority is a party to the proceedings and the proceedings involve potential monetary sanctions that we reasonably believe could exceed $300,000. The matters below are disclosed solely pursuant to that requirement and we do not believe that any of these proceedings will have a material impact on the Company’s Consolidated Financial Statements.
In April 2025, the State of Texas filed suit against Equistar Chemicals, L.P., a subsidiary of LyondellBasell N.V., in Travis County District Court seeking civil penalties and injunctive relief for violations of the Texas Clean Air Act related to several alleged emission events between May 2018 and April 2021.
In May 2025, the Texas Commission on Environmental Quality issued a proposed Agreed Order to Equistar Chemicals, L.P., a subsidiary of LyondellBasell N.V., to resolve alleged air permitting exceedances at the La Porte Complex between 2020 and 2022.
Litigation and Other Matters
Information regarding our litigation and legal proceedings can be found in Note 11 to the Consolidated Financial Statements, which is incorporated into this Item 1 by reference.
Item 1A. RISK FACTORS
There have been no material changes to the risk factors associated with our business previously disclosed in “Item 1A. Risk Factors,” in our Annual Report on Form 10-K for the year ended December 31, 2024.
Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
On May 23, 2025, our shareholders approved a share repurchase authorization of up to 34,042,250 shares, through November 23, 2026, which superseded any prior repurchase authorizations. The maximum number of shares that may yet be purchased is not necessarily an indication of the number of shares that will ultimately be purchased.
Item 4. MINE SAFETY DISCLOSURES
Not applicable.
Item 5. OTHER INFORMATION
During the three months ended September 30, 2025, none of our Section 16 officers or directors adopted terminated
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Item 6. EXHIBITS
| Exhibit Number | Description | ||||||||||
| 10.1 | Amendment No. 1 to Third Amended and Restated Credit Agreement, dated September 10, 2025, among LyondellBasell Industries N.V. and LYB Americas Finance Company LLC, as Borrowers, the various institutions from time to time party thereto as Lenders and L/C Issuers, Citibank, N.A., as Administrative Agent, and Wells Fargo Bank, National Association, as Syndication Agent. (Incorporated by reference to Exhibit 10.1 to our Current Report on Form 8-K filed with the SEC on September 11, 2025) | ||||||||||
| 10.2*+ | LyondellBasell Industries N.V. U.S. Senior Management Deferral Plan (as Amended and Restated as of September 25, 2025) | ||||||||||
| 31.1* | Certification of Principal Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934 | ||||||||||
| 31.2* | Certification of Principal Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934 | ||||||||||
| 32** | Certifications pursuant to 18 U.S.C. Section 1350 | ||||||||||
| 101.INS* | XBRL Instance Document–The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document. | ||||||||||
| 101.SCH* | XBRL Schema Document | ||||||||||
| 101.CAL* | XBRL Calculation Linkbase Document | ||||||||||
| 101.DEF* | XBRL Definition Linkbase Document | ||||||||||
| 101.LAB* | XBRL Labels Linkbase Document | ||||||||||
| 101.PRE* | XBRL Presentation Linkbase Document | ||||||||||
| 104* | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | ||||||||||
+ Management contract or compensatory plan, contract or arrangement.
* Filed herewith
** Furnished herewith
52
Table of Contents
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| LYONDELLBASELL INDUSTRIES N.V. | ||||||||
| Date: | October 31, 2025 | /s/ Matthew D Hayes | ||||||
| Matthew D. Hayes | ||||||||
| Senior Vice President, | ||||||||
| Chief Accounting Officer | ||||||||
| (Principal Accounting Officer) | ||||||||
53
FAQ
What was LYB's Q3 2025 net (loss) income?
Q3 2025 net loss was $890 million, compared with net income of $573 million in Q3 2024.
How did LyondellBasell's revenue change in Q3 2025?
Sales were $7,727 million in Q3 2025, down from $8,604 million in Q3 2024.
What impairments did LYB record in Q3 2025?
The company recorded a $972 million goodwill impairment and $230 million of other impairments.
What is the expected impact of the European asset sale?
LYB expects a loss of approximately $700–$900 million at closing, anticipated in the first half of 2026.
What were liquidity and financing actions in 2025?
An undrawn $3,750 million revolver and $900 million receivables facility were available; LYB issued $500 million notes due 2035 and repaid $492 million notes due 2025.
How did discontinued operations affect results?
Discontinued operations posted a Q3 loss of $61 million, with a year‑to‑date LIFO benefit of $196 million from refinery inventory liquidations.
Were there changes to debt covenants?
Yes. The maximum leverage ratio was increased through 2027, with restrictions on dividend increases and share repurchases at higher leverage levels.
Lyondellbasell Industries N V
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