Financial Analysis

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. 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, we do not expect that any claims made against or draws on these financial 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, as well as other remediation sites, totaled $98 million as of June 30, 2026, and $178 million as of December 31, 2025, of which $74 million was classified as Liabilities he …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

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 June 30, 2026 December 31, 2025 Senior Notes due 2055, $1,000 million, 4.625% ($15 million of discount; $10 million of debt issuance cost) $ 975 $ 975 Guaranteed Notes due 2027, $300 million, 8.1% 300 300 Issued by LYB International Finance B.V.: Guaranteed Notes due 2043, $750 million, 5.25% ($17 million of discount; $6 million of debt issuance cost) 727 727 Guaranteed Notes due 2044, $1,000 million, 4.875% ($9 million of discount; $8 million of debt issuance cost) 983 983 Issued by LYB International Finance II B.V.: Guaranteed Notes due 2026, 500 million, 0.875% 569 585 Guaranteed Notes due 2027, $1,000 million, 3.5% ($1 million of discount) 589 590 Guaranteed Notes due 2031, 500 million, 1.625% ($3 million of discount; $2 million of debt issuance cost) 560 577 Issued by LYB International Finance III LLC: Guaranteed Notes due 2030, $500 million, 3.375% 144 142 Guaranteed Notes due 2030, $500 million, 2.25% ($2 million of discount; $2 million of debt issuance cost) 481 481 Guaranteed Notes due 2031, $500 million, 5.125% ($1 million of discount; $4 million of debt issuance cost) 495 495 Guaranteed Notes due 2033, $500 million, 5.625% ($4 million of debt issuance cost) 496 496 Guaranteed Notes due 2034, $750 million, 5.5% ($5 million of discount, $6 million of debt issuance cost) 739 739 Guara …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Disaggregation of Revenues The following table presents our revenues disaggregated by key products: Three Months Ended June 30, Six Months Ended June 30, Millions of dollars 2026 2025 2026 2025 Sales and other operating revenues: Olefins and co-products $ 1,392 $ 933 $ 2,578 $ 1,999 Polyethylene 2,245 1,882 3,926 3,660 Polypropylene 1,683 1,565 3,027 3,103 Propylene oxide and derivatives 647 556 1,165 1,144 Oxyfuels and related products 1,417 1,151 2,551 2,282 Intermediate chemicals 619 511 967 1,052 Compounding and solutions 1,006 913 1,879 1,817 Other 168 147 281 278 Total $ 9,177 $ 7,658 $ 16,374 $ 15,335 The following table presents our revenues disaggregated by geography, based upon the location of the customer: Three Months Ended June 30, Six Months Ended June 30, Millions of dollars 2026 2025 2026 2025 Sales and other operating revenues: United States $ 3,573 $ 2,654 $ 6,296 $ 5,509 Germany 748 557 1,336 1,173 Mexico 494 400 821 809 China 378 480 711 960 Italy 372 359 690 686 Japan 368 286 626 604 France 285 298 582 563 Poland 268 210 476 413 The Netherlands 201 228 399 394 Other 2,490 2,186 4,437 4,224 Total $ 9,177 $ 7,658 $ 16,374 $ 15,335 …

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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 nontaxable or nondeductible items, changes in unrecognized tax benefits associated with uncertain tax positions and changes in tax laws. Our effective income tax rate for the second quarter of 2026 was 29.2% compared to 30.8% for the second quarter of 2025. The lower effective income tax rate for the second quarter of 2026 was due to changes in earnings in countries with varying statutory tax rates coupled with an increase in exempt income that decreased the effective income tax rate by 8.5 percentage points and 5.7 percentage points, respectively. These decreases were partially offset by an increase in our effective income tax rate of 14.2 percentage points due to the impact of the divestiture of select European assets and the associated businesses, which is largely nondeductible for tax, recognized discretely in the second quarter of 2026. Our effective income tax rate for the first six months of 2026 was 24.8% comp …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently Adopted Guidance Measurement of Credit Losses In July 2025, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2025-05, Financial Instruments Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. We elected the practical expedient provided by this ASU for estimating expected credit losses on current accounts receivable and current contract assets arising 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. The adoption of this guidance at January 1, 2026 did not have a material impact on our Consolidated Financial Statements. Accounting Guidance Issued But Not Adopted as of June 30, 2026 Environmental Credits In May 2026, the FASB issued ASU 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818) . This ASU provides guidance for recognition, measurement, presentation, and disclosure requirements for all entities that generate, purchase, or receive environmental credits or have a regulatory compliance obligation that may be settled with environmental credits. The guidance is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods and must be applied using a retrospective approach. Early adoption is permitted. We have not yet completed ou …

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Revenues Contract Balances Contract liabilities were $102 million and $125 million as of June 30, 2026 and December 31, 2025, respectively. Revenue recognized in each reporting period that was included in the contract liability balance at the beginning of the period was immaterial. Disaggregation of Revenues The following table presents our revenues disaggregated by key products: Three Months Ended June 30, Six Months Ended June 30, Millions of dollars 2026 2025 2026 2025 Sales and other operating revenues: Olefins and co-products $ 1,392 $ 933 $ 2,578 $ 1,999 Polyethylene 2,245 1,882 3,926 3,660 Polypropylene 1,683 1,565 3,027 3,103 Propylene oxide and derivatives 647 556 1,165 1,144 Oxyfuels and related products 1,417 1,151 2,551 2,282 Intermediate chemicals 619 511 967 1,052 Compounding and solutions 1,006 913 1,879 1,817 Other 168 147 281 278 Total $ 9,177 $ 7,658 $ 16,374 $ 15,335 The following table presents our revenues disaggregated by geography, based upon the location of the customer: Three Months Ended June 30, Six Months Ended June 30, Millions of dollars 2026 2025 2026 2025 Sales and other operating revenues: United States $ 3,573 $ 2,654 $ 6,296 $ 5,509 Germany 748 557 1,336 1,173 Mexico 494 400 821 809 China 378 480 711 960 Italy 372 359 690 686 Japan 368 286 626 604 France 285 298 582 563 Poland 268 210 476 413 The Netherlands 201 228 399 394 Other 2,490 2,186 4,437 4,224 Total $ 9,177 $ 7,658 $ 16,374 $ 15,335 …

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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 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, and colors. Technology . Our Technology segment develops and licenses …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing