LyondellBasell Industries NV

Shell is exploring a potential sale of its U.S. chemicals business, with ExxonMobil, LyondellBasell and other large industry players reported to have submitted offers. The move comes alongside recent portfolio sales in renewables and gas projects as Shell refines its asset mix and places greater emphasis on liquefied natural gas operations. If Shell proceeds with a sale around the reported $8 billion level, it would be a clear step toward concentrating capital in LNG and gas focused projects. Analysts already flag pressure in chemicals margins, so exiting the U.S. business could reduce that drag but may also limit upside if conditions stabilise.

LyondellBasell Industries cut its quarterly dividend by roughly 50% to $0.69 per share, ending a 15-year streak of consecutive increases. The company reported $2.1 billion in adjusted EBITDA and $4.30 in adjusted EPS in Q2 2026, up sharply from $615 million and $0.49 in the first quarter. J.P. Morgan upgraded LYB from Neutral to Overweight and raised its price target from $75 to $80, citing improved cash generation and balance sheet. The firm estimates a free cash flow yield of roughly 12% to 14% and expects net debt to EBITDA to decline significantly in 2026. LYB remains committed to returning 70% of free cash flow to shareholders through the cycle, and its Cash Improvement Plan is expected to add $500 million in annual cash flow by the end of 2026.

Chevron shares rose 2.4% after reporting second-quarter 2026 adjusted earnings of $6.06 per share, surpassing the Zacks Consensus Estimate of $5.80 per share. ExxonMobil shares fell 1% after posting adjusted earnings of $3.52 per share, missing the estimate of $3.68 per share. TELUS shares plunged 11.2% after adjusted earnings of $0.12 per share lagged the estimate of $0.16 per share. LyondellBasell shares gained 2.7% after adjusted earnings of $4.30 per share outpaced the estimate of $3.56 per share.

LyondellBasell Industries N.V. reported second-quarter 2026 revenue of US$9,177 million and net income of US$558 million, with materially higher earnings per share compared to a year earlier. The margin improvement was helped by supply disruptions in Middle Eastern polyethylene capacity, allowing the company to benefit from tighter markets while continuing portfolio streamlining and cost-cutting efforts. The company also announced the divestiture of four European assets and progress toward closing the Brindisi site, using stronger margins to reshape its asset base toward lower-cost operations. However, the results highlight dependence on external supply shocks, with the biggest risk being that pricing strength fades if global petrochemical overcapacity reasserts itself.

LyondellBasell Industries is the better buy among chemical stocks for 2026, according to a Motley Fool analysis comparing it with Dow. Dow posted a fiscal 2025 net loss of $2.6 billion on revenue of $40 billion, while LyondellBasell reported a net loss of $743 million on revenue of $30.2 billion. LyondellBasell trades at a forward price-to-earnings ratio of 7.5 times versus Dow's 10.3 times, and both carry a price-to-sales ratio of 0.6 times. The analysis cites supply disruptions from the Iran conflict as a catalyst that could lift Dow's 2026 sales to $44.7 billion and LyondellBasell's to $34.5 billion, with projected net income of $1.8 billion and $3.25 billion respectively. LyondellBasell's cheaper valuation makes it the preferred choice for investors seeking materials exposure.

LyondellBasell has partnered with Mondelez International, Amcor, Taghleef Industries and other industry players to introduce an innovative flexible packaging solution for Marabou chocolate bars. The new packaging uses LYB's CirculenRevive polymers, made with 100% attributed recycled content through an ISCC PLUS-certified mass balance approach, enabling packaging with 75% recycled content. This move will help transform hard-to-recycle post-consumer mixed plastic waste into high-quality materials suitable for food packaging. LYB plans to supply future polymers for Marabou packaging from its MoReTec-1 catalytic chemical recycling plant, currently under construction in Wesseling, Germany, which is designed to process 50,000 metric tons of recycled feedstock annually. The project depends on collaboration across the packaging value chain, with LYB supplying the recycled polymers, Taghleef Industries manufacturing the base film, Amcor converting it into flexible packaging, and Mondelez bringing the final product to consumers. The new packaging also aligns with recycled-content requirements under the European Union's Packaging and Packaging Waste Regulation.

Zacks Investment Research added five stocks to its Zacks Rank Number 1 Strong Buy list on June 26th. ATI Inc. saw its current-year earnings consensus estimate rise 5.5% over the last 60 days. Harmonic Inc. saw a 14% increase, LyondellBasell Industries N.V. a 60.5% increase, Localiza Rent a Car a 13.3% increase, and HCI Group, Inc. a 7.1% increase.

Zacks Investment Research highlights three stocks with strong value characteristics and a Zacks Rank of 1, or Strong Buy, as of June 26. HCI Group, a property and casualty insurance, IT, and real estate company, trades at a price-to-earnings ratio of 9.68 versus the S&P 500's 22.61 and holds a Value Score of A, with its current-year earnings estimate up 7.1% over the past 60 days. Chemical company LyondellBasell Industries carries a P/E of 6.43 compared to its industry's 10.80 and a Value Score of A, while its earnings estimate has surged 60.5% in the same period. Brazilian car rental firm Localiza Rent a Car has a P/E of 8.94 against an industry average of 15.00 and a Value Score of B, with its estimate rising 13.3% over 60 days.

Wells Fargo upgraded LyondellBasell Industries to Overweight from Equal Weight and raised its price target to $98 from $80, citing the company's ability to benefit from higher polyethylene prices. The stock, which currently trades at $58.25, pays a quarterly dividend of $0.69 per share for a yield of about 6.86%. Polyethylene prices have risen by $0.30 a pound since the US-Iran war started, and Wells Fargo expects this to drive further upward earnings revisions as LyondellBasell maximizes exports. The company has historically exported 30% to 40% of its US Gulf Coast supply.