LYBHIGH SIGNALFINANCIAL10-K

LyondellBasell experienced a dramatic operational deterioration with operating income swinging from $1.8B profit to $420M loss while debt increased 34% and equity declined 19%.

The company faces severe operational headwinds with the massive operating income reversal indicating fundamental business challenges beyond normal cyclical pressures. The simultaneous increase in debt burden and decline in equity suggests management is borrowing to maintain operations during this downturn, raising concerns about financial flexibility and potential covenant issues.

Comparing 2026-02-20 vs 2025-02-27View on EDGAR →
FINANCIAL ANALYSIS

LyondellBasell's financial performance deteriorated significantly across most metrics, with the most alarming change being the $2.2B swing in operating income from positive $1.8B to negative $420M despite gross profit actually improving 37.5%. Revenue declined 25% while debt increased 34% and stockholders' equity fell 19%, indicating the company is borrowing to support operations during a challenging period. The combination of negative operating income, reduced cash generation (operating cash flow down 41%), and increased leverage creates a concerning financial profile that suggests fundamental business stress rather than typical cyclical weakness.

FINANCIAL STATEMENT CHANGES
Operating Income
P&L
-123.1%
$1.8B→-$420.0M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Interest Expense
P&L
+66.2%
$287.0M→$477.0M

Interest expense surged 66.2% — significant debt increase or rising rates materially impacting earnings.

Operating Cash Flow
Cash Flow
-40.8%
$3.8B→$2.3B

Operating cash flow fell 40.8% — earnings quality concerns; investigate working capital changes and non-cash items.

Gross Profit
P&L
+37.5%
$891.0M→$1.2B

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Total Debt
Balance Sheet
+34.2%
$4.3B→$5.8B

Debt increased 34.2% — substantial leverage increase; assess whether deployed for growth or covering losses.

Net Income
P&L
-27.6%
$4.7B→$3.4B

Net income declined 27.6% — review whether driven by operations, interest costs, or non-recurring items.

Accounts Receivable
Balance Sheet
-25.7%
$4.6B→$3.4B

Receivables declined — improved collection efficiency or conservative revenue recognition.

Revenue
P&L
-25.2%
$40.3B→$30.2B

Revenue softened 25.2% — monitor whether this is cyclical or structural.

Inventory
Balance Sheet
-24.2%
$4.7B→$3.5B

Inventory reduced 24.2% — lean inventory management or demand outpacing supply.

Stockholders Equity
Balance Sheet
-19.1%
$12.5B→$10.1B

Equity decreased 19.1% — buybacks or losses reducing book value, monitor solvency ratios.

LANGUAGE CHANGES
NEW — 2026-02-20
PRIOR — 2025-02-27
ADDED
The registrant had 322,169,978 ordinary shares outstanding at February 18, 2026 (excluding 18,252,520 treasury shares).
We also develop and license chemical and polyolefin process technologies, and manufacture and sell polyolefin catalysts.
Our CLCS business is a part of our Olefins and Polyolefins-Americas and Olefins and Polyolefins-Europe, Asia, International segments.
Our strategy is supported by an experienced leadership team, an optimized organizational structure and an ownership mindset; our advantaged cost position and global scale; our robust Value Enhancement Program; our strong cash generation; and a capital allocation approach grounded in an investment grade balance sheet.
SEGMENTS We manage our operations through five operating segments.
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REMOVED
The registrant had 323,446,166 ordinary shares outstanding at February 25, 2025 (excluding 16,976,332 treasury shares).
Table of Conten ts Page Cautionary statement for the purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 2 PART I Items 1.
Our refining business consists of our Houston refinery, which processes crude oil into refined products such as gasoline and distillates.
We also develop and license chemical and polyolefin process technologies and manufacture and sell polyolefin catalysts.
In March 2023, we introduced our new strategy to deliver sustainable solutions and profitable long-term growth.
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