LYB · 10-Q · 2026Q3 · Full report

Operating Expense Trends

LyondellBasell Industries N.V. · 2026-10-30 · Importance 18 · Surprise 14

SG&A expenses decreased $45 million, or 4%, in the first nine months of 2026 compared with the same 2025 period. LyondellBasell attributed the decrease to lower employee-related expenses resulting from its cash improvement plan. The filing reported third-quarter SG&A expense of $1,192 million and second-quarter expense of $1,237 million, a sequential decline of $45 million.

Key facts

• At December 31, 2025, three of the company's nine LIFO inventory pools, with a combined carrying value of $1.6 billion, were valued close to market; after market-price increases in the first nine months of 2026, none was at risk for lower-of-cost-or-market adjustments. source
• Cost of sales included $76 million of shutdown costs in the third quarter of 2026 and $117 million in the first nine months of 2025 related to the permanent closure of the European PO joint venture. source
• Cost of sales decreased $136 million, or 2%, in the third quarter of 2026 versus the second quarter, and $182 million, or 1%, in the first nine months of 2026 versus the first nine months of 2025. source
• During the second quarter of 2026, the company recognized employee-related costs associated with the planned closure of its polypropylene unit at the Brindisi site in Italy; the amount is not disclosed in the supplied text. source
• SG&A expenses decreased $45 million, or 4%, in the first nine months of 2026 versus the same 2025 period, reflecting lower employee-related expenses resulting from the cash improvement plan. source
• In March 2025, the company announced permanent closure of its European PO Joint Venture and recognized closure costs during 2025; in the three and nine months ended September 30, 2026, it also recognized costs associated with the closure, with the amounts not disclosed in the supplied text. source
• In 2025 and 2026, ethane made up approximately 70% to 80% of the raw materials used in the company's North American crackers. source
• In Europe, naphtha represented approximately 70% to 75% of the raw materials used for the company's ethylene production in 2025 and 2026. source