Revenues
Contract Balances—Contract liabilities were $125 million and $117 million as of December 31, 2025 and 2024, 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—We participate globally across the petrochemical value chain and are an industry leader in many of our product lines. Our chemicals businesses consist primarily of large processing plants that convert large volumes of liquid and gaseous hydrocarbon feedstocks into plastic resins and other chemicals. Our chemical products tend to be basic building blocks for other chemicals and plastics. Our plastic products are used in large volumes as well as smaller specialty applications.
Revenues disaggregated by key products are summarized below:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| Millions of dollars | 2025 | | 2024 | | 2023 |
| Sales and other operating revenues: | | | | | |
| Olefins and co-products | $ | 4,184 | | | $ | 5,061 | | | $ | 4,874 | |
| Polyethylene | 7,203 | | | 7,583 | | | 7,587 | |
| Polypropylene | 5,849 | | | 6,287 | | | 5,642 | |
| Propylene oxide and derivatives | 2,150 | | | 2,357 | | | 2,287 | |
| Oxyfuels and related products | 4,828 | | | 5,074 | | | 5,650 | |
| Intermediate chemicals | 1,886 | | | 2,693 | | | 2,896 | |
| Compounding and solutions | 3,457 | | | 3,616 | | | 3,686 | |
| Other | 596 | | | 723 | | | 714 | |
| Total | $ | 30,153 | | | $ | 33,394 | | | $ | 33,336 | |
The following table presents our revenues disaggregated by geography, based upon the location of the customer:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| Millions of dollars | 2025 | | 2024 | | 2023 |
| Sales and other operating revenues: | | | | | |
| United States | $ | 11,059 | | | $ | 12,587 | | | $ | 12,386 | |
| Germany | 2,202 | | | 2,410 | | | 2,547 | |
| China | 1,782 | | | 2,375 | | | 2,164 | |
| Mexico | 1,557 | | | 1,729 | | | 1,500 | |
| Italy | 1,321 | | | 1,418 | | | 1,365 | |
| Japan | 1,261 | | | 1,338 | | | 1,749 | |
| France | 1,161 | | | 1,069 | | | 1,091 | |
| Poland | 790 | | | 923 | | | 905 | |
| The Netherlands | 731 | | | 724 | | | 805 | |
| Other | 8,289 | | | 8,821 | | | 8,824 | |
| Total | $ | 30,153 | | | $ | 33,394 | | | $ | 33,336 | |
Transaction Price Allocated to the Remaining Performance Obligations—Our contracts with customers are commodity supply arrangements that settle based on market prices at future delivery dates; therefore, transaction prices are entirely variable. Transaction prices are known at the time revenue is recognized, as they are generally determined by the commodity price index at a specific date, at month-end or at the month average once products are shipped to our customers. Future estimates of transaction prices for disclosure purposes are substantially constrained, as they are highly susceptible to factors outside our control, including volatility in commodity markets, industry production capacities and operating rates, planned and unplanned industry operating interruptions, foreign exchange rates and worldwide geopolitical trends. We have elected the practical expedient to not disclose unsatisfied performance obligations with an original contract duration of one year or less.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.