•Net income (loss): $(738) million, $563 million excluding identified items1

•Diluted earnings (loss) per share: $(2.34) per share; $1.70 per share excluding identified items

•EBITDA: $1.1 billion, $2.5 billion excluding identified items

•Generated $2.3 billion of cash from operating activities with 95% cash conversion2

•Continued to navigate the cycle amid challenging market conditions by prioritizing operational excellence and achieving record safety performance while preserving strong liquidity

•Cash Improvement Plan outperformed $600 million goal for 2025 by $200 million; targeting an additional $500 million for a total of $1.3 billion by year-end 2026

•Divestment of four European assets on track for completion in the second quarter of 2026

LyondellBasell Industries (NYSE: LYB) today announced results for the fourth quarter and full year 2025. Comparisons with the prior quarter, fourth quarter 2024 and full year 2024 are available in the following table:

Excluding Identified Items1

Net income (loss) excluding identified items						$(79)			$330			$255			$563			$2,038
Diluted earnings (loss) per share excluding identified items						(0.26)			1.01			0.77			1.70			6.22
(Gain) loss on sale of business, pre-tax						—			6			9			6			(284)
Asset write-downs, pre-tax						17			1,202			1,065			1,251			1,065
Cash Improvement Plan costs, pre-tax						5			7			—			32			—
Site closure costs, pre-tax						36			—			—			153			—
European transaction costs, pre-tax						9			17			—			36			—
(Income) loss from discontinued operations, pre-tax						5			83			50			(61)			94
EBITDA excluding identified items						417			835			687			2,543			4,185

(1) See “Information Related to Financial Measures” for a discussion of the company’s use of non-GAAP financial measures and Tables 2-7 for reconciliations or calculations of these financial measures. “Identified items” include adjustments for lower of cost or market ("LCM"), gain or loss on sale of business, asset write-downs in excess of $10 million in aggregate for the period, Cash Improvement Plan costs, site closure costs, European transaction costs and discontinued operations.

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

“During 2025 LyondellBasell continued to navigate the cycle while maintaining focus on our long-term strategy. Despite challenging markets, our Cash Improvement Plan achieved $800 million in 2025, well-above our $600 million target relative to our 2025 plan. With this momentum, we are increasing our cumulative target from $1.1 billion to $1.3 billion by the end of 2026 and expect to generate an additional $500 million of cash relative to 2025 actuals," said Peter Vanacker, LYB Chief Executive Officer, "Diligent work by our team allowed the company to close the year with $3.4 billion of cash and cash equivalents. We made significant progress in optimizing the LYB business portfolio and our ongoing commitment to operational excellence was reflected in record safety performance. These actions have positioned LyondellBasell to capture significant value once markets recover.”

The company reported a net loss for the fourth quarter 2025 of $140 million, or $0.45 per diluted share. During the quarter, the company recognized identified items of $61 million, net of tax. These items, which impacted earnings by $0.19 per diluted share, included non-cash asset write-downs, costs incurred for transactions, the Cash Improvement Plan and discontinued operations. Fourth quarter 2025 EBITDA was $345 million, or $417 million excluding identified items.

Fourth quarter margins declined across most businesses due to higher costs for NGL feedstocks and natural gas, increased maintenance activities and seasonally lower demand that restrained product prices. North American integrated polyethylene margins compressed due to higher feedstock costs. Polyethylene volumes declined due to maintenance and lower seasonal demand. In Europe, volumes and margins were also impacted by maintenance activities and seasonally lower demand. Oxyfuel margins fell, but outperformed typical fourth quarter seasonality due to industry outages earlier in the quarter.

Full year 2025 net loss was $738 million, or $2.34 per diluted share. During the year, the company recognized identified items of $1,301 million, net of tax. These items, which impacted full year earnings by $4.04 per diluted share, included non-cash asset write-downs, costs incurred for transactions, the Cash Improvement Plan and discontinued operations. Full year 2025 EBITDA was $1.1 billion, or $2.5 billion excluding identified items.

In 2025, LYB generated $2.3 billion cash from operating activities, reinvested $1.9 billion in the business through capital expenditures, and returned $2.0 billion to shareholders through dividends and share repurchases. The company's capital allocation strategy is built on the foundation of an investment-grade balance sheet. At the end of 2025, LYB had $8.1 billion of available liquidity, including $3.4 billion of cash and cash equivalents.

Throughout 2025, petrochemical markets faced significant headwinds from global trade disruptions, falling oil prices and capacity additions which outpaced global demand growth. In North America, polyethylene chain margins fell due to trade issues, higher feedstock costs and a well-supplied market. In Europe, polymer margins declined throughout 2025 due to competition from imports, partially offset by lower feedstock costs. In oxyfuels, new octane capacity pressured margins through most of the summer driving season. Margins for oxyfuels improved later in the year with increased industry downtime. The Advanced Polymer Solutions segment delivered meaningful gains through margin improvement, portfolio optimization, and increased business win rates.

“During an exceptionally challenging environment, we focused on safety, operational excellence and cash conversion to advance progress on our long-term goals. We moved forward on the three pillars of our strategy and made material progress toward optimizing our business portfolio. At the same time, we took actions to preserve value by shifting the timing of certain elements of our strategy, including limiting our investments in circularity and sustainability to markets with proven and resilient demand" said Vanacker.

The company plans to invest $1.2 billion in capital expenditures for 2026 with a focus on maintaining safe and reliable operations while continuing construction of MoReTec-1. When market conditions improve, LYB has an attractive pipeline of projects to grow long-term value. These projects include growing its low-cost propylene capacity with Flex-2, increasing chemical recycling capacity with MoReTec-2 in Houston and expanding cost-advantaged Middle East production. In addition, the benefits from completed projects in the Value Enhancement Program are expected to grow once sector margins recover.

Entering the first quarter, the company is managing continued volatility in feedstock and energy prices. In North America, tight year-end inventories, reduced supply due to winter storm Fern and stronger seasonal demand are supportive for polyethylene price increase initiatives in the market. In Europe, typical seasonal trends should lead to improved demand as the quarter unfolds. Oxyfuel profitability is expected to normalize following a volatile 2025 with typical seasonal margin improvements toward the end of the first quarter. LYB is aligning first quarter operating rates with global demand and plans to operate Olefins & Polyolefins Americas assets at approximately 85%, Olefins & Polyolefins EAI assets at approximately 75%, and Intermediates & Derivatives assets at approximately 85%.

LYB has increased the target for the Cash Improvement Plan from $1.1 billion to $1.3 billion by the end of 2026. An investment-grade balance sheet remains foundational to the company's capital allocation strategy. LYB will continue to prioritize investments in safety and reliability while evaluating cash returns to shareholders and growth investments in the context of cash generation.

LYB will host a conference call January 30 at 11 a.m. EST. Participants on the call will include Chief Executive Officer Peter Vanacker, Executive Vice President and Chief Financial Officer Agustin Izquierdo, Executive Vice President of Global Olefins and Polyolefins Kim Foley, Executive Vice President of Intermediates and Derivatives Aaron Ledet, Executive Vice President of Advanced Polymer Solutions Torkel Rhenman and Head of Investor Relations David Kinney. For event access, the toll-free dial-in number is 1-877-407-8029, international dial-in number is 201-689-8029 or click the CallMe link. The slides and webcast that accompany the call will be available at investors.lyondellbasell.com/earnings. A replay of the call will be available from 1:00 p.m. EST January 30 until March 2. The replay toll-free dial-in numbers are 1-877-660-6853 and 201-612-7415. The access ID for each is 13746215.

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

The statements in this release relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management of LyondellBasell which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. When used in this release, the words “believe,” “could,” “intend,” “may,” “should,” “will,” “expect,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Actual results could differ materially based on factors including, but not limited to, market conditions, including the prolonged industry downturn, the business cyclicality of the chemical and polymers industries; industry production capacities, operating rates, and the pace of global capacity rationalizations; the availability, cost and price volatility of raw materials and utilities, particularly the cost of oil, natural gas, and associated natural gas liquids; competitive product and pricing pressures; the supply/demand balances for our and our joint ventures’ products; the impacts of tariffs and trade disruptions; our ability to maintain our investment-grade credit balance sheet and execute our capital allocation strategy, including our ability to pay dividends; our ability to comply with debt covenants and repay our debt; labor conditions; our ability to attract and retain key personnel; operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, supplier disruptions, labor shortages, strikes, work stoppages or other labor difficulties, transportation interruptions, spills and releases and other environmental risks); our ability to manage costs; future financial and operating results; our ability to complete capital projects on time and on budget and successfully operate the asset; our ability to align our assets and grow and upgrade our core, including completing the sale of certain European assets; our ability to successfully implement initiatives identified pursuant to our Value Enhancement Program and generate anticipated earnings; our ability to reduce our fixed costs, working capital and capital expenditures and increase cash flow; legal and environmental proceedings; tax rulings and related consequences or proceedings; technological developments, and our ability to develop new products and process technologies; our ability to meet our sustainability goals, including the ability to operate safely, increase production of recycled and renewable-based polymers, and reduce our emissions and achieve net zero emissions by the time set in our goals; our ability to procure energy from renewable sources; our ability to build a profitable Circular & Low Carbon Solutions business; our ability to improve the business performance of our Advanced Polymers Solutions segment and its ability to secure new customers; potential governmental regulatory actions; political unrest and terrorist acts; and risks and uncertainties posed by international operations, including foreign currency fluctuations.

Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the “Risk Factors” section of our Form 10-K for the year ended December 31, 2024, which can be found at www.LyondellBasell.com on the Investors page and on the Securities and Exchange Commission’s website at www.sec.gov. There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Forward-looking statements speak only as of the date they were made and are based on the estimates and opinions of management of LyondellBasell at the time the statements are made. LyondellBasell does not assume any obligation to update forward-looking statements should circumstances or management’s estimates or opinions change, except as required by law.

This release makes reference to certain non-GAAP financial measures as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended.

We report our financial results in accordance with U.S. generally accepted accounting principles, but believe that certain non-GAAP financial measures, such as EBITDA, and EBITDA, net income and diluted EPS exclusive of identified items provide useful supplemental information to investors regarding the underlying business trends and performance of the company's ongoing operations and are useful for period-over-period comparisons of such operations. Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP.

We calculate EBITDA as net income (loss) plus interest expense (net), provision for (benefit from) income taxes, and depreciation and amortization. EBITDA should not be considered an alternative to profit or operating profit for any period as an indicator of our performance, or as an alternative to operating cash flows as a measure of our liquidity. We also present EBITDA, net income and diluted EPS exclusive of identified items. Identified items include adjustments for lower of cost or market (“LCM”), gain or loss on sale of business, asset write-downs in excess of $10 million in aggregate for the period, Cash Improvement Plan costs, site closure costs, European transaction costs and discontinued operations. Asset write-downs include impairments of goodwill, impairments of long-lived assets, a write-down of a related party loan receivable and a fourth quarter 2024 deferred tax valuation allowance for one of our Chinese joint ventures recognized in Income (loss) from equity investments. Our inventories are stated at the lower of cost or market. Cost is determined using the last-in, first-out (“LIFO”) inventory valuation methodology, which means that the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs. Fluctuation in the prices of crude oil, natural gas and correlated products from period to period may result in the recognition of charges to adjust the value of inventory to the lower of cost or market in periods of falling prices and the reversal of those charges in subsequent interim periods, within the same fiscal year as the charge, as market prices recover. A gain or loss on sale of a business is calculated as the consideration received from the sale less its carrying value. We evaluate property, plant and equipment and definite-lived intangible assets whenever impairment indicators are present. If it is determined that an asset or asset group’s undiscounted future cash flows will not be sufficient to recover the carrying amount, an impairment charge is recognized to write the asset down to its estimated fair value.

Goodwill is tested for impairment annually in the fourth quarter or whenever events or changes in circumstances indicate that the fair value of a reporting unit with goodwill is below its carrying amount. If it is determined that the carrying value of the reporting unit including goodwill exceeds its fair value, an impairment charge is recognized. We assess our equity investments for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. If the decline in value is considered to be other than temporary the investment is written down to its estimated fair value. Valuation allowances are provided against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. In June 2025, we announced plans to sell select olefins and polyolefins assets and the associated business in Europe, resulting in selling expenses, separation costs and employee-related charges (collectively referred to as "European transaction costs"). In April 2025, the company announced the Cash Improvement Plan, focused on strengthening financial performance, which resulted in employee-related charges across all segments. In March 2025, we announced the permanent closure of our Dutch PO joint venture asset, resulting in the recognition of shutdown-related charges in our I&D segment. Additionally, in December 2025, we recognized shutdown and employee-related charges related to sites in our APS and O&P-EAI segments. In February 2025, we ceased business operations at our Houston refinery. Accordingly, our refining business, previously disclosed as the Refining segment, is reported as a discontinued operation.

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

These non-GAAP financial measures as presented herein, may not be comparable to similarly titled measures reported by other companies due to differences in the way the measures are calculated. In addition, we include calculations for certain other financial measures to facilitate understanding. This release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change.

LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.

Additional operating and financial information may be found on our website at investors.lyondellbasell.com.

###

Source: LyondellBasell Industries

Investor Contact: David Kinney +1 713-309-7141

Media Contact: Nick Facchin +1 713-309-4791

(a) In 2024, we sold our U.S. Gulf Coast-based Ethylene Oxide and Derivatives ("EO&D") business, resulting in the recognition of a gain, including fourth quarter post close adjustments, in our Intermediates & Derivatives ("I&D") segment. In September 2025, we sold our U.S. specialty powders business, resulting in the recognition of a loss in our Advanced Polymer Solutions ("APS") segment.

(b) Includes asset write-downs in excess of $10 million in aggregate for the period. For the year ended December 31, 2024, we recognized non-cash asset write-downs of $1,065 million, which included a non-cash impairment charge of $837 million related to European assets under strategic review in our Olefins & Polyolefins – Europe, Asia, International ("O&P-EAI") segment, non-cash impairment charges and the recognition of a deferred tax valuation allowance of $52 million and $121 million, respectively, related to a Chinese equity investment in our O&P-EAI segment, and a non-cash impairment charge of $55 million related to our specialty powders business in our APS segment. For the year ended December 31, 2025, we recognized non-cash asset write-downs of $1,251 million, which included non-cash goodwill impairment charges of $400 million in our O&P-EAI segment and $572 million in our APS segment, non-cash impairment charges of $111 million for intangible assets and $99 million for property, plant and equipment in our APS segment, and non-cash impairment charges of $56 million for property, plant and equipment related to the European assets classified as held for sale within our O&P-EAI segment.

(c) In April 2025, the company announced the Cash Improvement Plan, focused on strengthening financial performance, which resulted in employee-related charges across all segments.

(d) In March 2025, we announced the permanent closure of our Dutch PO joint venture asset, resulting in shutdown-related charges of $126 million in our I&D segment. Additionally, in December 2025, we recognized shutdown and employee-related charges of $20 million and $7 million related to sites in our APS and O&P-EAI segments, respectively.

(e) In June 2025, we announced plans to sell select olefins and polyolefins assets and the associated business in Europe, resulting in selling expenses, separation costs and employee-related charges in our O&P-EAI segment.

(f) 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.

(a) Includes asset write-downs in excess of $10 million in aggregate for the period.

Table 4 - Reconciliation of Net Cash Provided by Operating Activities to EBITDA Including and Excluding LCM, Gain or Loss on Sale of Business and Asset Write-Downs
												Year Ended
Millions of U.S. dollars												December 31, 2025
Net cash provided by operating activities												$	2,262
Adjustments:
Depreciation and amortization												(1,390)
Impairments												(1,251)
Amortization of debt-related costs												(11)
Share-based compensation												(91)
Equity loss, net of distributions of earnings												(104)
Deferred income tax benefit												156
Loss on sale of business												(6)
Gain on sale of assets												112
Changes in assets and liabilities that (provided) used cash:
Accounts receivable												(687)
Inventories												(945)
Accounts payable												768
Other, net												449
Net loss												(738)
Provision for income taxes												84
Depreciation and amortization												1,390
Interest expense, net												390
EBITDA												1,126
add: LCM charges												—
less: Loss on sale of business(a)												6
add: Asset write-downs(b)												1,251
EBITDA excluding LCM, gain or loss on sale of business and asset write-downs												$	2,383

(a) In September 2025, we sold our U.S. specialty powders business, resulting in the recognition of a loss in our APS segment.

(b) Includes asset write-downs in excess of $10 million in aggregate for the period.

Table 5 - Calculation of Cash Conversion
												Year Ended
Millions of U.S. dollars												December 31, 2025
Net cash provided by operating activities												$	2,262
divided by:
EBITDA excluding LCM, gain or loss on sale of business and asset write-downs(a)												$	2,383
Cash conversion												95		%

(a) See Table 4 for a reconciliation of net cash provided by operating activities to EBITDA including and excluding LCM, gain or loss on sale of business and asset write-downs in excess of $10 million in aggregate for the period.

LyondellBasell (LYB) manages operations through five operating segments: 1) Olefins and Polyolefins-Americas; 2) Olefins and Polyolefins-Europe, Asia and International; 3) Intermediates and Derivatives; 4) Advanced Polymer Solutions; and 5) Technology.

This information should be read in conjunction with our Earnings Release for the period ended December 31, 2025, including the forward-looking statements and information related to financial measures.

Olefins & Polyolefins-Americas (O&P-Americas) - Our O&P-Americas segment produces and markets olefins & co-products, polyethylene and polypropylene.

(a) See “Information Related to Financial Measures” for a discussion of the company’s use of non-GAAP financial measures and Table 6 for reconciliations of these financial measures. “Identified items” include adjustments for lower of cost or market (“LCM”), gain or loss on sale of business, asset write-downs in excess of $10 million in aggregate for the period, Cash Improvement Plan costs, site closure costs, European transaction costs and discontinued operations.

Three months ended December 31, 2025 versus three months ended September 30, 2025 - EBITDA decreased $256 million, or $264 million excluding identified items versus the third quarter 2025. Fourth quarter 2025 results decreased by approximately $35 million, reflecting the combined impact of last-in, first out (LIFO) inventory valuation and annual compensation accrual changes relative to the third quarter 2025. Compared to the prior period, olefins results decreased by approximately $170 million largely due to lower margins in the fourth quarter due to higher feedstock and energy costs coupled with lower ethylene and propylene prices. The company's ethylene crackers operated at 90% of capacity with the raw materials being approximately 75% ethane and 25% other natural gas liquids. Combined polyolefins results decreased approximately $65 million from lower volumes driven by reliability constraints and pressured domestic demand coupled with lower margins due to decreased spreads.

Three months ended December 31, 2025 versus three months ended December 31, 2024 - EBITDA decreased $334 million, or $332 million excluding identified items versus the fourth quarter 2024. Olefins results decreased approximately $250 million primarily driven by lower margins. Ethylene margins decreased due to higher feedstock and energy costs coupled with lower ethylene and propylene prices. Combined polyolefin results decreased approximately $100 million due to lower polyolefins margins and volumes, driven by lower product pricing amid challenging macroeconomic conditions coupled with decreased demand on oversupply.

Full year ended December 31, 2025 versus full year ended December 31, 2024 - EBITDA decreased $1,301 million, or $1,284 million excluding identified items versus 2024. Compared to the prior period, olefins results decreased approximately $880 million due to decreased margins. Ethylene margins decreased driven by higher energy costs and lower co-product contributions partially offset by higher volumes due to increased sales. Combined polyolefins results decreased approximately $430 million due to lower polyolefins margins due to margin compression from challenged macroeconomic conditions.

Olefins & Polyolefins-Europe, Asia, International (O&P-EAI) - Our O&P-EAI segment produces and markets olefins & co-products, polyethylene and polypropylene.

Three months ended December 31, 2025 versus three months ended September 30, 2025 - EBITDA increased $286 million versus the third quarter 2025, or decreased $109 million excluding identified items, which includes $411 million of non-cash asset write-downs in the third of quarter 2025. Fourth quarter 2025 results increased approximately $5 million reflecting the combined impact of LIFO inventory valuation and annual compensation accrual changes relative to the third quarter 2025. Proceeds from the sale of European emissions credits benefitted pre-tax quarterly results by approximately $67 million. Compared to the prior period, olefins results decreased approximately $95 million primarily due to lower ethylene volumes driven by weaker downstream demand and year-end inventory control. As a result of the downtime, the company's ethylene crackers operated at approximately 65%. Approximately 25% of the raw materials were derived from non-naphtha feedstocks. Combined polyolefins results decreased about $55 million driven by lower margins on weak pricing and lower volumes from low seasonal demand.

Three months ended December 31, 2025 versus three months ended December 31, 2024 - EBITDA increased $1,061 million versus the fourth quarter 2024, or $85 million excluding identified items, which includes the impact of asset write-downs of $1,010 million in the fourth quarter 2024. Proceeds from the sale of European emissions credits benefitted pre-tax quarterly results by approximately $67 million. Compared to the prior period, olefins results increased about $70 million due to higher cracker margins driven by lower feedstock costs and higher volumes on the absence of the Wesseling turnaround in 2025. Combined polyolefins results decreased approximately $50 million due to lower margins on lower spreads. Joint venture equity income increased approximately $115 million compared to the prior period, primarily due to the absence of asset write-downs at a Chinese joint venture in 2025.

Full year ended December 31, 2025 versus full year ended December 31, 2024 - EBITDA increased $534 million versus 2024, or $31 million excluding identified items, which includes the impact of non-cash asset write-downs of $1,010 million in 2024 and $460 million in 2025. Proceeds from the sale of European emissions credits benefitted pre-tax quarterly results by approximately $67 million. Compared to the prior period, olefins results increased approximately $60 million driven primarily by higher margins. Ethylene margins increased driven by lower feedstock costs partially offset by lower volumes from operational constraints. Combined polyolefins results decreased approximately $160 million driven primarily by lower margins. Polyolefins margins decreased due to lower spread from unfavorable pricing and weaker demand coupled with higher variable costs. Joint venture equity income increased approximately $165 million compared to the prior period, primarily due to the absence of asset write-downs at a Chinese joint venture in 2025.

Intermediates & Derivatives (I&D) - Our I&D segment produces and markets propylene oxide & derivatives, oxyfuels & related products and intermediate chemicals, such as styrene monomer and acetyls.

Three months ended December 31, 2025 versus three months ended September 30, 2025 - EBITDA decreased $108 million, or $98 million excluding identified items versus the third quarter 2025. Fourth quarter 2025 results decreased approximately $40 million reflecting the combined impact of LIFO inventory valuation and annual compensation accrual changes relative to the third quarter 2025. Compared to the prior period, Propylene Oxide & Derivatives results increased approximately $10 million due to higher sales volumes. Intermediate Chemicals results decreased approximately $40 million due to lower methanol margins from higher natural gas costs. Oxyfuels & Related Products results decreased approximately $20 million with lower oxyfuels margins due to lower gas cracks in the U.S. and crude prices coupled with lower seasonal demand.

Three months ended December 31, 2025 versus three months ended December 31, 2024 - EBITDA decreased $46 million, or $45 million excluding identified items versus the fourth quarter 2024. Fourth quarter 2025 results decreased approximately $25 million reflecting the combined impact of LIFO inventory valuation and annual compensation accrual changes relative to the prior period. Compared to the prior period, Propylene Oxide & Derivatives results increased approximately $10 million on higher margins from lower variable costs and higher volumes from stronger merchant volumes given industry downtime. Intermediate Chemicals results decreased about $80 million due to lower margins from lower methanol pricing and higher natural gas costs coupled with lower volumes from the La Porte turnaround. Oxyfuels & Related Products results increased approximately $70 million driven by higher margins and volumes from increased demand in Latin America and West Africa.

Full year ended December 31, 2025 versus full year ended December 31, 2024 - EBITDA decreased $786 million versus 2024, or $371 million excluding identified items, which includes the impact of site closure costs of $126 million in 2025 and a gain on sale of our Ethylene Oxide and Derivatives business of $284 million in 2024. Full year 2025 results decreased approximately $25 million reflecting the combined impact of LIFO inventory valuation and annual compensation accrual changes relative to the prior period. Compared to the prior period, Propylene Oxide & Derivatives results decreased approximately $30 million due to higher energy costs. Intermediate Chemicals results decreased approximately $65 million primarily due to lower volumes and margins from downtime at Channelview and La Porte, partially offset by higher margins in styrene. Oxyfuels & Related Products decreased approximately $245 million as margins declined significantly due to lower crude pricing and blend premiums from softer global demand and oversupply, partially offset by higher sales in North America.

Advanced Polymer Solutions (APS) - Our APS segment produces and markets compounding & solutions, such as polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors and powders.

Three months ended December 31, 2025 versus three months ended September 30, 2025 - EBITDA increased $763 million versus the third quarter 2025, or decreased $9 million excluding identified items, which includes the impact of $782 million of non-cash asset write-downs in the third quarter 2025. Compared to the prior period, EBITDA excluding identified items decreased due to lower volumes from lower seasonal demand and challenging market environment. Fourth quarter 2025 results benefited approximately $15 million reflecting the combined impact of LIFO inventory valuation and annual compensation accrual changes relative to the third quarter 2025.

Three months ended December 31, 2025 versus three months ended December 31, 2024 - EBITDA increased $57 million versus the fourth quarter 2024, or $23 million excluding identified items, which includes the impact of the $55 million impairment related to the specialty powders business in the fourth quarter of 2024 and $21 million related to other identified items in the fourth quarter of 2025. Compared to the fourth quarter 2024, EBITDA excluding identified items increased on higher margins driven by favorable product mixes and lower variable costs, combined with lower manufacturing costs. Fourth quarter 2025 results benefited from approximately $10 million of annual compensation accrual changes but were not affected by LIFO inventory valuation changes relative to the prior period.

Full year ended December 31, 2025 versus full year ended December 31, 2024 - EBITDA decreased $705 million versus 2024, or increased $62 million excluding identified items, which includes the impact of $782 million of non-cash asset write-downs and $40 million related to other identified items in 2025 and the $55 million impairment related to the specialty powders business in 2024. Compared to the prior period, margins improved due to lower manufacturing costs driven by transformation programs.

Full year 2025 results benefited from approximately $15 million of annual compensation accrual changes but were not affected by LIFO inventory valuation changes relative to the prior period.

Technology - Our Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.

Three months ended December 31, 2025 versus three months ended September 30, 2025 - EBITDA increased $65 million versus the third quarter 2025. Compared to the prior period, licensing revenue increased as a higher number of contracts attained revenue milestones and catalyst volumes increased with increased sales in Asia.

Three months ended December 31, 2025 versus three months ended December 31, 2024 - EBITDA decreased $28 million versus the fourth quarter 2024. Compared to the prior period, licensing revenue decreased as a lower number of contracts attained revenue milestones and catalyst margins decreased from unfavorable product mix and lower production. Fourth quarter 2025 results decreased approximately $5 million reflecting the combined impact of LIFO inventory valuation and annual compensation accrual changes relative to the prior period.

Full year ended December 31, 2025 versus full year ended December 31, 2024 - EBITDA decreased $199 million versus 2024. Compared to the prior period, licensing revenue decreased as a lower number of contracts attained revenue milestones, catalyst margins decreased from unfavorable product mix and catalyst volumes decreased in a continued weak polymers end-use environment.

Capital expenditures, including sustaining maintenance and profit-generating growth projects, were $450 million during the fourth quarter 2025 and $1.9 billion for the full year 2025. At year end, our cash and liquid investment balance was $3.4 billion, which includes cash and cash equivalents, restricted cash and short-term investments. There were 322 million common shares outstanding as of December 31, 2025. The company paid dividends of $1.8 billion during 2025.

We make reference to certain non-GAAP financial measures as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended.

We report our financial results in accordance with U.S. generally accepted accounting principles, but believe that certain non-GAAP financial measures, such as EBITDA exclusive of identified items provide useful supplemental information to investors regarding the underlying business trends and performance of the company's ongoing operations and are useful for period-over-period comparisons of such operations. Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP.

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

Table 6 - Reconciliation of EBITDA to EBITDA Excluding Identified Items by Segment
			Three Months Ended																		Year Ended
Millions of U.S. dollars			December 31, 2025						September 30, 2025						December 31, 2024						December 31, 2025						December 31, 2024
EBITDA:
Olefins & Polyolefins - Americas			$	162					$	418					$	496					$	1,144					$	2,445
Olefins & Polyolefins - EAI			(95)						(381)						(1,156)						(457)						(991)
Intermediates & Derivatives			195						303						241						878						1,664
Advanced Polymer Solutions			17						(746)						(40)						(651)						54
Technology			80						15						108						180						379
Other, including intersegment eliminations			(9)						(6)						(36)						(29)						(147)
Discontinued operations			(5)						(83)						(12)						61						56
EBITDA			$	345					$	(480)					$	(399)					$	1,126					$	3,460
Identified items:
less: (Gain) loss on sale of business:
Intermediates & Derivatives			$	—					$	—					$	9					$	—					$	(284)
Advanced Polymer Solutions			—						6						—						6						—
add: Asset write-downs(a):
Olefins & Polyolefins - Americas			—						9						—						9						—
Olefins & Polyolefins - EAI			17						411						1,010						460						1,010
Advanced Polymer Solutions			—						782						55						782						55
add: Cash Improvement Plan costs:
Olefins & Polyolefins - Americas			2						1						—						8						—
Olefins & Polyolefins - EAI			1						1						—						4						—
Intermediates & Derivatives			1						—						—						5						—
Advanced Polymer Solutions			1						5						—						14						—
Technology			—						—						—						1						—
add: Site closure costs:
Olefins & Polyolefins - EAI			7						—						—						7						—
Intermediates & Derivatives			9						—						—						126						—
Advanced Polymer Solutions			20						—						—						20						—
add: European transaction costs:
Olefins & Polyolefins - EAI			9						17						—						36						—
less: Discontinued operations			5						83						12						(61)						(56)
Total Identified items:			$	72					$	1,315					$	1,086					$	1,417					$	725
EBITDA excluding Identified items:
Olefins & Polyolefins - Americas			$	164					$	428					$	496					$	1,161					$	2,445
Olefins & Polyolefins - EAI			(61)						48						(146)						50						19
Intermediates & Derivatives			205						303						250						1,009						1,380
Advanced Polymer Solutions			38						47						15						171						109
Technology			80						15						108						181						379
Other, including intersegment eliminations			(9)						(6)						(36)						(29)						(147)
EBITDA excluding Identified items			$	417					$	835					$	687					$	2,543					$	4,185

(a) Includes asset write-downs in excess of $10 million in aggregate for the period.