Sentences and paragraphs of LYB's Risk Factors and MD&A, 10-K 2026-02-20 against 10-K 2025-02-27.
Each links to the text at sec.gov.
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RewordedRisk Factors
Our ability to achieve this our goal depends on many factors, including the availability of collection and sortation infrastructure, evolving regulations on chemical recycling and recycled content, customer demand, our ability to grow our CLCS business, established in 2022, make investments in investments, develop and deploy new technologies, expand the global footprint of our recycling facilities and joint ventures, secure access to feedstock, and manufacture recycled and low carbon products at commercial scale.
Read it in 10-K 2026-02-20 at sec.gov ↗
RewordedRisk Factors
Our individual ambitions, future performance or policies may differ from the ambitions of those organizations or the individual ambitions of other participants in these various initiatives, campaigns, and other projects, and we may unilaterally change our own ambitions, aspirations and goals. goals in ways that no longer align with these organizations.
Read it in 10-K 2026-02-20 at sec.gov ↗
RewordedRisk Factors
Laws and regulations in this field continue to evolve and, while they are likely to be increasingly widespread and stringent, at this stage it is not possible to accurately estimate either a timetable for implementation or our future compliance costs relating to implementation.
Read it in 10-K 2026-02-20 at sec.gov ↗
RewordedRisk Factors
If we need external financing, our access to credit markets and pricing of our capital is dependent upon maintaining sufficient our credit ratings from credit rating agencies and the state of the capital markets generally.
Read it in 10-K 2026-02-20 at sec.gov ↗
Quiet changesRisk Factors
New capacity additions around the world may lead have led to periods of oversupply and lower profitability.
Read it in 10-K 2026-02-20 at sec.gov ↗
Quiet changesRisk Factors
Policy measures to address these concerns are being discussed or implemented by governments at all various levels.
Read it in 10-K 2026-02-20 at sec.gov ↗
AddedMD&A
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.
Read it in 10-K 2026-02-20 at sec.gov ↗
AddedMD&A
Discontinued operations also include costs associated with the closure and dismantlement of our Berre refinery.
Read it in 10-K 2026-02-20 at sec.gov ↗
AddedMD&A
In 2025, we agreed to sell certain European olefins and polyolefins assets and the associated business. The sale is expected to close in the second quarter of 2026. In connection with the sale, we expect to recognize a loss of approximately $700 million to $900 million upon closing, which includes a cash contribution of approximately $300 million to the sold businesses prior to closing.
Read it in 10-K 2026-02-20 at sec.gov ↗
AddedMD&A
Other Income (Expense), Net—Other income increased by $66 million, or 140%, in 2025 compared to 2024, primarily due to a $67 million gain recognized on the sale of excess European emissions credits during 2025. In 2024, other income increased by $105 million, or 181%, compared to 2023. Approximately $50 million of this increase was due to the net impact of foreign exchange transactions, while the remaining increase was primarily attributable to the sale of precious metals and the impact of legal settlements, each contributing approximately $25 million.
Read it in 10-K 2026-02-20 at sec.gov ↗
AddedMD&A
Income (Loss) from Discontinued Operations, Net of Tax—Income (loss) from discontinued operations, net of tax, increased by $122 million, or 163%, in 2025 compared to 2024. In 2025, we recognized a last-in, first-out (“LIFO”) benefit of $196 million, net of tax, resulting from the liquidation of low-cost inventory, and a gain on the sale of pipelines of approximately $24 million, net of tax. These benefits were partially offset by a decrease of $40 million in income from discontinued operations, net of tax, related to our Berre refinery, primarily due to the recognition of an environmental reserve in 2025. The remainder of the change was primarily driven by increased costs as we ceased business operations at our Houston refinery in February 2025.
Read it in 10-K 2026-02-20 at sec.gov ↗
AddedMD&A
Overview—Segment results were affected by impairment charges recognized in 2024 and 2025. Polymer margins weakened during 2025 as increased import competition created unfavorable market conditions.
Read it in 10-K 2026-02-20 at sec.gov ↗
AddedMD&A
Overview—Segment results were affected by impairment charges recognized in 2024 and 2025. EBITDA improved due to transformational programs included in our stepping up performance and culture strategy.
Read it in 10-K 2026-02-20 at sec.gov ↗
AddedMD&A
EBITDA—EBITDA decreased in 2025 by $705 million, compared to 2024. During 2025, we recognized $782 million of non-cash impairment charges related to a prolonged downturn in, and outlook for, the global automotive industry. During 2024, unfavorable market conditions resulted in the loss of customers in our APS specialty powders business unit, resulting in a non-cash impairment charge of $55 million related to property, plant and equipment. See Note 9 to our Consolidated Financial Statements for additional information related to our impairments. The remaining change was primarily related to margin improvements primarily as a result of lower fixed costs driven by our transformation programs including portfolio optimizations including actions taken as a part of our cash improvement plan.
Read it in 10-K 2026-02-20 at sec.gov ↗
AddedMD&A
EBITDA decreased in 2025 compared to 2024 due to lower licensing results and lower catalyst margins as the planned pace of global polyolefin capacity additions moderated from lower demand for polyolefin products.
Read it in 10-K 2026-02-20 at sec.gov ↗
AddedMD&A
Decreased Accounts receivable of $687 million was driven by lower average sales prices and volumes resulting from weak market conditions in our O&P-Americas, O&P-EAI, and I&D segments. Decreased Accounts payable of $768 million was primarily driven by lower production volumes from lower operating rates and decreased raw material costs in our O&P-EAI segment coupled with timing of payments. These changes also reflect our efforts to address ongoing macroeconomic volatility and strengthen financial results through our cash improvement plan. The decrease of $945 million in Inventories was primarily driven by our cash improvement plan actions.
Read it in 10-K 2026-02-20 at sec.gov ↗
AddedMD&A
In February 2026, we declared a quarterly dividend of $0.69 per share, representing a $0.68 per share reduction from our fourth quarter 2025 dividend. The dividend will be paid to shareholders on March 9, 2026, with an ex-dividend and record date of March 2, 2026.
Read it in 10-K 2026-02-20 at sec.gov ↗
AddedMD&A
In April 2025, to address ongoing macroeconomic volatility, we announced a cash improvement plan. The plan targeted a $600 million run-rate in annualized savings for 2025 relative to our 2025 internal plan. The cash improvement plan included three initiatives: (1) deferral of capital spending; (2) net reduction in Accounts receivable, Inventory and Accounts payable; and (3) fixed cost reductions. As of the end of 2025, the cash improvement plan achieved $800 million in annualized cash savings relative to our 2025 plan. For 2026, we expect to generate an additional $500 million of cash savings relative to 2025 actuals for a cumulative target of $1.3 billion. We will continue to prioritize capital spending on maintenance and certain
Read it in 10-K 2026-02-20 at sec.gov ↗
RemovedMD&A
Overview—EBITDA increased in 2024 compared to 2023, largely due to a decrease in non-cash impairment charges.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
EBITDA—EBITDA increased in 2024 by $216 million, or 133%, compared to 2023. During 2023, we recognized a non-cash goodwill impairment charge of $252 million after the effect of moving our Catalloy and polybutene-1 businesses from our APS segment and reintegrating them into our O&P-Americas and O&P-EAI segments. During 2024, we recognized a non-cash impairment charge of $55 million related to our specialty powders business. The change in impairment charges in 2024 relative to 2023 resulted in a 122% increase in EBITDA. Improved margins primarily driven by lower raw material cost and favorable mix resulted in a 16% increase in EBITDA.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
The following table sets forth selected financial information and heavy crude oil processing rates for the Refining segment and the U.S. refining market margins for the applicable periods. “Brent” is a light sweet crude oil and is one of the main benchmark prices for purchases of oil worldwide. “Maya” is a heavy sour crude oil grade produced in Mexico that is a relevant benchmark for heavy sour crude oils in the U.S. Gulf Coast market. References to industry benchmarks for refining market margins are to industry prices reported by Platts, a division of S&P Global.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
EBITDA increased in 2024 compared to 2023 primarily due to higher licensing results partially offset by lower catalyst demand.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
Cash provided by operating activities of $4,942 million in 2023 primarily reflected earnings adjusted for non-cash items and cash provided by the main components of working capital.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
In 2023, the main components of working capital provided $269 million of cash driven by a decrease in Accounts receivable and an increase in Accounts payable. The decrease in Accounts receivable was primarily due to lower revenues in our O&P-Americas, O&P-EAI and APS segments, primarily driven by lower average sales prices. The increase in Accounts payable was primarily driven by higher feedstock and energy costs in our O&P-Americas segment.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
In 2023, we made net repayments of $200 million through the issuance and repurchase of commercial paper instruments under our commercial paper program.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
In 2025 we remain watchful and prepared for the macroeconomic catalysts that will eventually drive restocking of supply chains, improve demand for durable goods and support a more broad-based economic recovery. One indicator of recovery is that North American domestic demand for polyolefins rebounded in 2024, after two years of declines. Increased driving and summertime gasoline specifications should lead to typical seasonal improvements in oxyfuels margins. We expect a gradual recovery in oxyfuel margins over the summer months, with strong octane premiums and the relatively low cost of butane raw materials supportive of long-term oxyfuels fundamentals. Tariff and trade uncertainties are potential headwinds. Our refining operations will cease in the first quarter of 2025, a strategic milestone paving the way for continued growth in circular and low-carbon feedstocks and products. We are aligning our first quarter operating rates with global demand and expect to operate our O&P-Americas, O&P-EAI and I&D assets at approximately 80%, 75% and 80%, respectively.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
During 2022, we introduced our VEP, which expands capacity through low-cost debottlenecks and improved reliability, reduces costs and emissions by saving energy and increases margins through improvements in procurement, logistics and customer service. We estimate Net income and recurring annual EBITDA benefits for the VEP based on 2017 through 2019 mid-cycle margins and modest inflation relative to a 2021 baseline year. We believe recurring annual EBITDA is useful to investors because it represents a key measure used by management to assess progress towards our strategy of value creation.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
At the end of 2024, we estimated VEP benefits to have a year-end annual run rate of approximately $610 million of Net income which, after adding back income taxes and depreciation and amortization of $155 million and $35 million, respectively, results in approximately $800 million of recurring annual EBITDA. We incurred one-time costs of approximately $200 million per year in 2023 and 2024 related to our Value Enhancement Program.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
We anticipate that our VEP will achieve a 2025 year-end annual run rate of approximately $760 million of Net income, which, after adding back income taxes and depreciation and amortization of approximately $190 million and $50 million, respectively, results in approximately $1,000 million of recurring annual EBITDA. We estimate incurring one-time costs of $200 million in 2025 related to our Value Enhancement Program.
Read it in 10-K 2025-02-27 at sec.gov ↗
RemovedMD&A
Management applies those accounting policies that it believes best reflect the underlying business and economic events, consistent with accounting principles generally accepted in the U.S., see Note 2 to the Consolidated Financial Statements. Inherent in such policies are certain key assumptions and estimates made by management and updated periodically based on its latest assessment of the current and projected business and general economic environment.
Read it in 10-K 2025-02-27 at sec.gov ↗
RewordedMD&A
Year Ended December 31, Millions of dollars 2025 2024 2023 Sales and other operating revenues $ 40,302 30,153 $ 41,107 33,394 $ 33,336 Cost of sales 35,738 35,849 Impairments 27,576 28,750 28,435 Goodwill impairments 972 — 252 Other impairments 279 949 518 255 Selling, general and administrative expenses 1,663 1,557 1,610 1,642 1,539 Research and development expenses 136 135 130 Operating income 1,817 3,053 (loss) (420) 1,918 2,725 Interest expense (487) (481) (477) Interest income 97 150 129 Gain (loss) on sale of business (6) 284 — Other income (expense), net 50 113 47 (58) Loss from equity investments (12) (217) (20) Income (loss) from continuing operations before income taxes 1,603 2,627 (715) 1,701 2,299 Provision for income taxes 240 501 70 259 433 Income (loss) from continuing operations 1,363 2,126 (785) 1,442 1,866 Income (loss) from discontinued operations, net of tax 4 (5) 47 (75) 255 Net income (loss) (738) 1,367 2,121 Other comprehensive income (loss), net of tax – tax— Financial derivatives (22) 115 (80) Defined benefit pension and other postretirement benefit plans 45 (2) (97) Foreign currency translations 199 (169) 73 Total other comprehensive income (loss), net of tax 222 (56) (104) Comprehensive income (loss) $ (516) $ 1,311 $ 2,017
Read it in 10-K 2026-02-20 at sec.gov ↗
RewordedMD&A
Barring any significant or unforeseen business challenges, mergers or acquisitions, over 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. 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.
Read it in 10-K 2026-02-20 at sec.gov ↗
RewordedMD&A
Results from continuing operations for 2024 2025 decreased when compared to 2023 2024, primarily as impairments a result of non-cash impairment charges recognized in 2024 primarily 2025 in our Olefins and Polyolefins-Europe, Asia, International (“O&P-EAI”) segment were partially offset by impairment charges recognized in 2023 in our and Advanced Polymer Solutions (“APS”) and Intermediates & Derivatives (“I&D”) segments.
Read it in 10-K 2026-02-20 at sec.gov ↗
RewordedMD&A
Year Ended December 31, Millions of dollars 2025 2024 2023 Net income (loss) $ (738) $ 1,367 $ 2,121 (Income) loss from discontinued operations, net of tax (4) 5 Income from continuing operations 1,363 2,126 Provision for income taxes 84 240 501 Depreciation and amortization 1,390 1,522 1,534 Interest expense, net 390 331 348 EBITDA $ 3,456 1,126 $ 4,509 3,460
Read it in 10-K 2026-02-20 at sec.gov ↗
RewordedMD&A
Operating Activities—Cash provided by operating activities of $3,819 $2,262 million in 2024 2025 primarily reflected earnings net loss adjusted for non-cash items and cash used by the main components items, $393 million of working capital–Accounts receivable, Inventories and Accounts payable. tax payments which includes $235 million in U.S.
Read it in 10-K 2026-02-20 at sec.gov ↗
RewordedMD&A
Lower oxyfuels and related products margins resulted in a 24% decrease in EBITDA driven by lower gasoline cracks in the US and Europe and lower oxyfuel prices crude pricing from softer global demand as compared to the prior year drove a 43% decrease in EBITDA. year.
Read it in 10-K 2026-02-20 at sec.gov ↗
RewordedMD&A
O&P-Americas segment $ 1,144 $ 2,445 $ 2,303 O&P-EAI segment (457) (991) (9) I&D segment 878 1,664 1,679 APS segment (651) 54 (162) Refining segment (60) 379 Technology segment 180 379 375 Discontinued operations 61 56 Other, including intersegment eliminations (35) (56) (29) (147) Total $ 3,456 1,126 $ 4,509 3,460
Read it in 10-K 2026-02-20 at sec.gov ↗
RewordedMD&A
The decline was driven primarily by an $848 million decrease in EBITDA was our O&P‑EAI segment, largely driven by reflecting an $837 million non-cash non‑cash impairment of property, plant and equipment related to our European assets included in our European strategic review.
Read it in 10-K 2026-02-20 at sec.gov ↗
RewordedMD&A
O&P-Americas segment $ 9,801 $ 11,533 $ 11,280 O&P-EAI segment 10,227 10,867 10,479 I&D segment 9,069 10,424 11,086 APS segment 3,472 3,634 3,698 Refining segment 8,559 9,714 Technology segment 549 671 663 Other, including intersegment eliminations (5,386) (5,813) (2,965) (3,735) Total $ 40,302 30,153 $ 41,107 33,394 Operating income (loss):
Read it in 10-K 2026-02-20 at sec.gov ↗
RewordedMD&A
O&P-Americas segment $ 441 $ 1,805 $ 1,665 O&P-EAI segment (684) (1,008) (160) I&D segment 428 951 1,262 APS segment (743) (48) (261) Refining segment (213) 221 Technology segment 137 338 334 Other, including intersegment eliminations (8) (8) 1 (120) Total $ 1,817 (420) $ 3,053 1,918
Read it in 10-K 2026-02-20 at sec.gov ↗
RewordedMD&A
A decrease in costs incurred related to our planned exit from the refining refinery business in 2024 compared to 2023 resulted in a 25% increase 61% benefit in EBITDA. Income (loss) from discontinued operations, net of tax.
Read it in 10-K 2026-02-20 at sec.gov ↗
RewordedMD&A
O&P-Americas segment $ 14 $ 8 $ 2 O&P-EAI segment 76 14 (1) I&D segment 38 41 (13) APS segment 15 12 2 Refining segment 3 — Technology segment — (1) — Other, including intersegment eliminations (30) (27) (48) Total $ 50 113 $ (58) 47 EBITDA:
Read it in 10-K 2026-02-20 at sec.gov ↗
Quiet changesMD&A
Management believes We believe the following accounting policies and estimates, and the judgments and uncertainties affecting them, are critical in understanding our reported operating results and financial condition.
Read it in 10-K 2026-02-20 at sec.gov ↗
