Three months ended June 30, 2026
Filed Jul 31, 2026Segment EBITDA improved sequentially across all five operating segments, while O&P-EAI reported a loss on the disposition of select European olefins and polyolefins assets and associated businesses.
Sequential underlying EBITDA excluding identified items increased in every operating segment, led by O&P-Americas, but reported O&P-EAI EBITDA was negative due to a loss on sale of business.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| O&P-Americas operating incomeGAAP | $1,003 million | – | – |
| O&P-Americas EBITDAnon-GAAP | $1,183 million | increased by $856 million | – |
| O&P-Americas asset write-downsother | $74 million | – | – |
| O&P-Americas Cash Improvement Plan costsother | $10 million | – | – |
| O&P-Americas EBITDA excluding identified itemsnon-GAAP | $1,267 million | increased by $940 million | – |
| O&P-EAI operating income (loss)GAAP | $158 million | – | – |
| O&P-EAI EBITDAnon-GAAP | $(432) million | decreased by $397 million | – |
| O&P-EAI loss on sale of businessother | $734 million | – | – |
| O&P-EAI asset write-downsother | — | – | – |
| O&P-EAI Cash Improvement Plan costsother | $8 million | – | – |
| O&P-EAI site closure costsother | $32 million | – | – |
| O&P-EAI European transaction costs, net of transition service agreement incomeother | $(11) million | – | – |
| O&P-EAI EBITDA excluding identified itemsnon-GAAP | $331 million | increased by $337 million | – |
| I&D operating incomeGAAP | $268 million | – | – |
| I&D EBITDAnon-GAAP | $377 million | increased by $153 million | – |
| I&D Cash Improvement Plan costsother | $9 million | – | – |
| I&D site closure costsother | — | – | – |
| I&D EBITDA excluding identified itemsnon-GAAP | $386 million | increased by $162 million | – |
| APS operating incomeGAAP | $57 million | – | – |
| APS EBITDAnon-GAAP | $77 million | increased by $19 million | – |
| APS Cash Improvement Plan costsother | $3 million | – | – |
| APS site closure costsother | $(2) million | – | – |
| APS EBITDA excluding identified itemsnon-GAAP | $78 million | increased by $20 million | – |
| Technology operating incomeGAAP | $63 million | – | – |
| Technology EBITDAnon-GAAP | $73 million | increased by $55 million | – |
| Technology Cash Improvement Plan costsother | $1 million | – | – |
| Technology EBITDA excluding identified itemsnon-GAAP | $74 million | increased by $56 million | – |
| O&P-Americas operating income, six months ended June 30, 2026GAAP | $1,145 million | – | – |
| O&P-Americas EBITDA, six months ended June 30, 2026non-GAAP | $1,510 million | – | increased $946 million |
| O&P-Americas EBITDA excluding identified items, six months ended June 30, 2026non-GAAP | $1,594 million | – | increased $1,025 million |
| O&P-EAI operating income (loss), six months ended June 30, 2026GAAP | $90 million | – | – |
| O&P-EAI EBITDA, six months ended June 30, 2026non-GAAP | $(467) million | – | decreased $486 million |
| O&P-EAI EBITDA excluding identified items, six months ended June 30, 2026non-GAAP | $325 million | – | increased $262 million |
| I&D operating income, six months ended June 30, 2026GAAP | $386 million | – | – |
| I&D EBITDA, six months ended June 30, 2026non-GAAP | $601 million | – | increased $221 million |
| I&D EBITDA excluding identified items, six months ended June 30, 2026non-GAAP | $610 million | – | increased $109 million |
| APS operating income, six months ended June 30, 2026GAAP | $95 million | – | – |
| APS EBITDA, six months ended June 30, 2026non-GAAP | $135 million | – | increased $57 million |
| APS EBITDA excluding identified items, six months ended June 30, 2026non-GAAP | $136 million | – | increased $50 million |
| Technology operating income, six months ended June 30, 2026GAAP | $70 million | – | – |
| Technology EBITDA, six months ended June 30, 2026non-GAAP | $91 million | – | increased $6 million |
| Technology EBITDA excluding identified items, six months ended June 30, 2026non-GAAP | $92 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Olefins & Polyolefins-AmericasStronger margins across all businesses as prices increased due to industry supply constraints as a result of the conflict in the Middle East. Olefins results increased approximately $520 million and combined polyolefins results increased approximately $415 million versus the first quarter of 2026. | Not reported | – | – |
| Olefins & Polyolefins-Europe, Asia, InternationalStronger margins across all businesses due to industry supply constraints increased EBITDA excluding identified items. The period included $734 million related to the loss on the disposition of select European olefins and polyolefins assets and associated businesses, and a gain on the sale of European emission credits of approximately $50 million. | Not reported | – | – |
| Intermediates & DerivativesIntermediate chemicals and oxyfuels and related products results drove an increase of approximately $105 million and $65 million, respectively, driven by higher margins from improved prices as a result of tight market supply. | Not reported | – | – |
| Advanced Polymer SolutionsHigher margins were driven by higher average sales prices due to industry supply constraints resulting from the conflict in the Middle East. | Not reported | – | – |
| TechnologyHigher demand for catalysts accounted for approximately half of the increase in EBITDA, while the remaining increase was driven by higher licensing results as a greater number of higher-value contracts reached significant milestones. | Not reported | – | – |
Capital returns
- The company paid dividends of $224 million during the second quarter 2026.
- The company did not repurchase shares during the second quarter 2026.
What drove it
- Industry supply constraints associated with the conflict in the Middle East supported higher prices and margins in O&P-Americas and APS.
- O&P-Americas ethylene crackers operated at approximately 95% of capacity, with raw materials approximately 70% ethane and 30% other natural gas liquids.
- O&P-EAI ethylene crackers operated at approximately 85% of capacity, with about 25% of raw materials derived from non-naphtha feedstocks.
- O&P-EAI equity income increased by approximately $55 million reflecting improved margins.
- I&D benefited from higher demand coupled with supply constraints in propylene oxide and derivatives, and from higher crude and gasoline crack spreads in oxyfuels and related products.
Concerns
- O&P-EAI reported EBITDA of $(432) million, including a $734 million loss on sale of business.
- Intermediate chemicals decreased approximately $35 million in the first six months of 2026 as volumes decreased due to unplanned downtime.
- APS first-half results were partially offset by lower volumes driven by weaker demand.
- O&P-EAI's first-half reported EBITDA decreased $486 million despite higher EBITDA excluding identified items.
What to watch
- Whether industry supply constraints and pricing continue to support margins across olefins, polyolefins and APS.
- O&P-EAI performance following the disposition of select European olefins and polyolefins assets and associated businesses.
- Intermediate chemicals volumes following unplanned downtime.
- Catalyst demand and the timing of higher-value licensing-contract milestones in Technology.
- Any resumption of share repurchases after no repurchases during the second quarter 2026.
Balance sheet and cash flow
- Capital expenditures, including sustaining maintenance and profit-generating growth projects, were $270 million during the second quarter 2026.
- At the end of the quarter, cash and liquid investment balances were $2.6 billion, which includes cash and cash equivalents, restricted cash and short-term investments.
- There were 323 million common shares outstanding as of June 30, 2026.
Analysis
The filing shows a broad sequential improvement in underlying segment profitability during the second quarter of 2026. EBITDA excluding identified items increased in all five operating segments. O&P-Americas was the principal contributor, with EBITDA excluding identified items of $1,267 million, up $940 million versus the first quarter of 2026. The company attributed the improvement to stronger margins across all businesses as prices rose amid industry supply constraints resulting from the conflict in the Middle East.
Reported O&P-EAI results were materially distorted by the disposition of select European olefins and polyolefins assets and associated businesses. The segment reported EBITDA of $(432) million and EBITDA excluding identified items of $331 million. The filing identifies a $734 million loss on sale of business, while underlying performance improved on stronger margins, increased equity income and a gain on the sale of European emission credits of approximately $50 million.
I&D, APS and Technology also improved from the first quarter. I&D EBITDA excluding identified items increased by $162 million, supported by improved prices, tight market supply and stronger oxyfuels economics. APS benefited from higher average sales prices, although its first-half comparison was partly offset by lower volumes driven by weaker demand. Technology's sequential increase reflected higher catalyst demand and licensing contracts reaching significant milestones.
Capital allocation in the quarter consisted of $270 million of capital expenditures and $224 million of dividends, with no share repurchases. Cash and liquid investment balances were $2.6 billion at quarter-end. The filing does not provide consolidated financial statements, total revenue, consolidated earnings, EPS, cash-flow results, debt or forward guidance, so the read is limited to the reported segment discussion and capital-spending information.
The main figures for investors to monitor are the durability of supply-driven margin gains, the post-disposition earnings profile of O&P-EAI, and volume trends in businesses where demand or operational downtime constrained results. The reported segment data show improved underlying profitability, but the O&P-EAI disposition loss creates a sharp difference between reported and adjusted performance.
Not in the filing
stated, not guessed- Consolidated total revenue
- Revenue for each operating segment
- Consolidated gross profit and gross margin
- Consolidated operating income
- Consolidated net income
- GAAP earnings per share
- Non-GAAP earnings per share
- Consolidated operating cash flow
- Free cash flow
- Debt balances
- Tax rate
- Forward revenue guidance
- Forward gross-margin guidance
- Forward operating-expense guidance
- Forward tax-rate guidance
- Prior-period outlook or guidance comparison
- Named executive quotes
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.