Three of Seventeen Replaced What They Wore Out
Seventeen US chemical filers have now closed their first half. Fourteen spent less capital than they charged in depreciation, the median came in at 74 cents on the dollar, and the only three above the line make fertilizer. Here is what a supplier running at 30 cents is telling you about its next turnaround.
Seventeen US chemical companies have now closed their books on the first half of 2026. Fourteen of them spent less on plants than they charged against the plants they already own.
That ratio, capital expenditures over depreciation and amortization, is the crudest available measure of whether a producer is replacing itself.
Below 100% the book asset base shrinks. Hold it there long enough and the physical one follows.
The median across the seventeen landed at 74% (chart below). The set aggregated to 94 cents per depreciated dollar in the first half of 2025 and to 75 cents this one.
Take the three fertilizer producers out and the rest of the industry spent 67 cents.
Thirteen of the seventeen fell year on year, and the big falls are the ones worth reading.
LyondellBasell went from 156% to 78%. Tronox from 133% to 74%. Eastman from 117% to 77%.
All three were building a year ago.
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