Yahoo Finance

Net revenues of $1,811 million in the first quarter decreased 3%.

The decrease in revenues for the quarter was driven by Polymer Solutions, due to lower prices and the impact from operational disruption at one of our key suppliers, and Building & Infrastructure, due to weakness in parts of Continental Europe and Mexico, partly offset by strength in Brazil and the U.K. and contribution from the new manufacturing plant in Indonesia. Fluor & Energy Materials and Precision Agriculture both delivered growth in revenues from the prior year quarter.

Cost of goods sold of $1,417 million for the quarter decreased 1% compared to the same quarter of the prior year.

The decrease in cost of goods sold for the quarter was primarily driven by the benefits from cost savings initiatives and operational efficiencies, partly offset by impact of a raw material supply disruption.

Selling, general and administrative expenses of $353 million for the quarter increased 8% compared to the same quarter of last year. As a percentage of sales, SG&A increased 198 basis points to 19.5%.

The increase in selling, general and administrative expenses for the quarter was primarily due to the unfavorable impact of legal and restructuring costs. Excluding depreciation and legal and restructuring costs, SG&A decreased by $16 million.

EBITDA of $198 million for the quarter decreased 21%, while EBITDA margin decreased 261 basis points to 11.0%. Adjusted EBITDA was $260 million in the quarter, representing an increase of 3%. Adjusted EBITDA margin was 14.4% in the quarter.

The decrease in EBITDA and EBITDA margin was due to non-operating costs described before and lower revenues in Polymer Solutions and Building & Infrastructure.

Financial costs of $76 million for the quarter decreased by approximately $63 million year-over-year.

The decrease in financial costs for the quarter was mainly driven by a shift from an FX loss in the prior year to a slight benefit in the current year. In addition, results included a benefit in derivative financial instruments.

An income tax benefit of $5 million was recognized for the quarter compared to an income tax expense of $15 million in the same quarter in the prior year. The effective tax rate for the quarter was 13.3%.

The effective tax rate for the quarter was primarily driven by our earnings mix and inflation adjustments on deferred tax assets offset by additional valuation allowances recognized in various regions. Excluding the impact of these discrete factors, the effective tax rate was 3.2%.

Net loss to majority shareholders of $54 million in the quarter improved by $20 million compared to the prior year. The improvement was driven by lower financial costs and taxes, partially offset by the decrease in operating income.

Operating cash outflow was a use of $22 million in the quarter improved by $28 million, while free cash flow of negative $155 million improved by $46 million.

The improvements were mainly due to effective working capital management, positive currency fluctuations and lower capital expenditures, partially offset by lower EBITDA.

Net debt of $3,826 million included total debt of $4,686 million, less cash and cash equivalents of $860 million. The Company’s net debt-to-EBITDA increased from 3.30x to 3.67x compared to year end 2024. The increase in the net debt-to-EBITDA ratio during the first quarter was driven by a decrease in cash of $149 million, an increase in total debt of $60 million and a decrease in the last 12-months EBITDA of approximately $55 million. Net debt-to-EBITDA at the end of the first quarter using adjusted EBITDA to better reflect underlying earnings increased from 3.04x to 3.23x.

Q1 2025 Revenues by Region
(All metrics are compared to Q1 2024 unless otherwise noted)

Q1 2025 Financial Performance by Business Group
(All metrics are compared to Q1 2024 unless otherwise noted)

Polymer Solutions (Vestolit and Alphagary), 32.1% of Revenues
Orbia’s Polymer Solutions business group (commercial brands Vestolit and Alphagary) focuses on general purpose and specialty PVC resins (polyvinyl chloride), PVC and zero-halogen specialty compounds with a wide variety of applications in everyday products for everyday life, from pipes and cables to household appliances and medical devices. The business group supplies Orbia’s downstream businesses and a global customer base

Revenues of $600 million decreased 9%. EBITDA of $57 million decreased 34% and EBITDA margin decreased 359 basis points to 9.5%. Excluding the impact related to a raw material supply disruption, adjusted EBITDA was $70 million, representing a decrease of 19%. Adjusted EBITDA margin was 11.7% for the quarter.

The decrease in revenues for the quarter was largely driven by a persistent weak pricing environment and the operational disruption at one of the Company’s key raw material suppliers.

First quarter EBITDA decreased year-over-year, driven by lower revenue and higher input costs, partly offset by benefits from cost reduction initiatives.

Building & Infrastructure (Wavin), 31.4% of Revenues
Orbia’s Building & Infrastructure business group (commercial brand Wavin) is redefining today’s pipes and fittings industry by creating solutions that last longer and perform better, all with less installation labor required. The business group benefits from supply chain integration with the Polymer Solutions business group, a customer base spanning three continents, and investments in sustainable, resilient technologies for water and indoor climate management.

Revenues of $586 million decreased 6%. EBITDA of $37 million decreased 43% and EBITDA margin decreased 415 basis points to 6.3%. Excluding one-time restructuring costs, adjusted EBITDA was $64 million, representing a decrease of 2%. Adjusted EBITDA margin was 10.9% for the quarter.

The decrease in revenues for the quarter was driven by weakness in parts of Continental Europe and Mexico, partly offset by strength in Brazil and the U.K. and contribution from the new manufacturing plant in Indonesia.

First quarter EBITDA decreased year-over-year, driven by restructuring costs and lower revenue, partially offset by operational costs savings.

Precision Agriculture (Netafim), 14.5% of Revenues
Orbia’s Precision Agriculture business group’s (commercial brand Netafim) leading-edge irrigation systems, services and digital farming technologies enable stakeholders to achieve significantly higher and better-quality yields while using less water, fertilizer and other inputs. By helping farmers worldwide grow more with less, the business group is contributing to feeding the planet efficiently and sustainably.

Revenues of $271 million increased 6%. EBITDA of $33 million increased 16% and EBITDA margin increased 110 basis points to 12.3%. Excluding one-time restructuring costs, adjusted EBITDA was $37 million, representing an increase of $8 million, or 28%. Adjusted EBITDA margin was 13.6% for the quarter.

The increase in revenues for the quarter was primarily driven by Brazil and Peru, partially offset by declines in Mexico and Northern Europe.

First quarter EBITDA increased year-over-year, driven by higher revenues and cost saving efforts.

Fluor & Energy Materials (Koura), 11.6% of Revenues
Orbia’s Fluor & Energy Materials business group (commercial brand Koura) provides fluorine and downstream products that support modern, efficient living. The business group owns and operates the world’s largest fluorspar mine and produces intermediates, refrigerants and propellants used in automotive, infrastructure, semiconductor, health, medicine, climate control, food cold chain, energy storage, computing and telecommunications applications.

Revenues of $216 million increased 14%. EBITDA of $64 million increased 18% and EBITDA margin increased 93 basis points to 29.5%.

The increase in revenues for the quarter was primarily driven by higher refrigerant volumes and stable prices across the upstream minerals portfolio.

First quarter EBITDA increased year-over-year driven by higher revenue and a reduction in fixed costs, partly offset by higher raw materials costs.

Connectivity Solutions (Dura-Line), 10.4% of Revenues
Orbia’s Connectivity Solutions business group (commercial brand Dura-Line) produces more than 500 million meters of essential and innovative connectivity infrastructure per year to bring a world’s worth of information everywhere. The business group produces telecommunications conduit, cable-in-conduit and other HDPE products and solutions that create physical pathways for fiber and other network technologies connecting cities, homes and people.

Revenues of $194 million decreased 1%. EBITDA of $26 million increased 12% and EBITDA margin increased 167 basis points to 13.6%.

The slight decrease in revenues for the quarter was driven by lower prices, partially offset by higher volumes.

First quarter EBITDA increased year-over-year primarily due to higher volume, favorable input costs and cost savings, partially offset by lower prices.

Balance Sheet, Liquidity and Capital Allocation

Orbia’s net debt-to-EBITDA ratio increased from 2.96x to 3.67x year-over-year primarily driven by a reduction of $200 million in the last 12-months EBITDA and an increase of $148 million in net debt. The Company had cash on hand of $860 million at the end of the quarter compared to $1,050 million during the prior year quarter. During the quarter Orbia increased its borrowings by approximately $59 million due to the normal seasonality of its operations. Adjusted net debt-to-EBITDA for the quarter, was 3.23x as compared to 3.04x at the end of 2024.

On April 11, 2025, Orbia issued long-term notes (certificados bursátiles) in the Mexican debt market, for approximately $300 million. The proceeds of the notes will be used to refinance the previous ORBIA 22L issuance and to repay other debt obligations in Mexico.

Working capital increased by $169 million during the quarter compared to an increase of $193 million in the prior-year quarter. These are seasonal increases that follow the operational trends of the Company’s businesses, and which are liquidated in the later part of the year. Capital expenditures of $105 million during the quarter decreased 20% year-over-year, including ongoing maintenance spending and investments to support the Company’s targeted growth initiatives.

2025 Outlook

In light of the current business environment, the Company anticipates that 2025 adjusted EBITDA will be approximately $1,100 - 1,200 million. Considering market conditions, capital expenditures for 2025 will be actively managed to approximately $400 million or less, with a primary focus on investments to ensure safety and operational integrity, completing growth projects under execution that are close to revenue and being extremely selective on any new growth investments.

Excluding the discrete items stated in the tax section above as well as foreign exchange rate changes in Mexico, the Company estimates an effective tax rate of 27% to 31%³ in 2025.

For each of Orbia’s businesses the Company is assuming the following:

• Polymer Solutions: Challenging market dynamics, driven by excess supply and lower export prices out of China and the U.S. are expected to continue. This is somewhat mitigated by the fact that the Company’s primary markets are in Europe and Latin America where market dynamics are more favorable. In this environment, Orbia remains focused on capturing the benefits of footprint optimization efforts, while maintaining strict discipline around fixed costs, working capital, and capital investments. These actions are aimed at improving both profitability and cash generation.

• Building & Infrastructure: The business expects stable to improving fundamental performance despite challenging market conditions in parts of Europe and Mexico, driven by focus on cost optimization efforts and incremental profitability from new product launches and geographic expansions.

• Precision Agriculture: Market conditions are expected to remain stable. The Company anticipates growth through deeper penetration in extensive crops, mainly in Brazil, India and the U.S. The business will also continue focusing on growth initiatives from its new digital farming platform and new products, while delivering operational efficiencies.

• Fluor & Energy Materials: The business expects markets in the fluorine value chain to remain solid, with consistent demand and prices. Tight cost-control measures will continue to support margins, and growth investments will be focused on low carbon refrigerants, medical propellants and battery materials.

• Connectivity Solutions: Volumes are expected to grow through the year as network investment activity returns to more normalized levels. Profitability growth will be driven by increased demand, as well as benefits from cost reductions and higher utilization of manufacturing facilities.

³ Excluding the impact of inflation and foreign exchange rate changes in Mexico.

Conference Call Details

Orbia will host a conference call to discuss first quarter 2025 results on April 25, 2025, at 9:00 AM Central Time (CT; Mexico City)/11:00 AM Eastern Time (ET; New York). To access the call, please dial 001-855-817-7630 (Mexico), 1-888-339-0721 (United States) or 1-412-317-5247 (International).

Participants may pre-register for the conference call here.

The live webcast can be accessed here.

A recording of the webcast will be posted several hours after the call is completed on Orbia’s website.

For all company news, please visit www.orbia.com/this-is-orbia/newsroom.

Consolidated Income Statement

Consolidated Balance Sheet

Cash Flow Statement

Notes and Definitions

The results contained in this release have been prepared in accordance with International Financial Reporting Standards ("NIIF" or "IFRS") with U.S. Dollars as the reporting currency. Figures are presented in millions, unless specified otherwise.

Figures and percentages have been rounded and may not add up.

About Orbia

Orbia Advance Corporation, S.A.B. de C.V. (BMV: ORBIA*) is a company driven by a shared purpose: to advance life around the world. Orbia operates in the Polymer Solutions (Vestolit and Alphagary), Building & Infrastructure (Wavin), Precision Agriculture (Netafim), Connectivity Solutions (Dura-Line) and Fluor & Energy Materials (Koura) sectors. The five Orbia business groups have a collective focus on expanding access to health and well-being, reinventing the future of cities and homes, ensuring food, water and sanitation security, connecting communities to information and enabling the energy transition with basic and advanced materials, specialty products and innovative solutions. Orbia has a global team of over 23,000 employees, commercial activities in more than 100 countries and operations in over 50, with global headquarters in Boston, Mexico City, Amsterdam and Tel Aviv. The company generated $7,506 million in revenue in 2024. To learn more, visit: orbia.com

Prospective Information

In addition to historical information, this press release contains "forward-looking" statements that reflect management's expectations for the future. The words "anticipate," "believe," "expect," "hope," "have the intention of," "might," "plan," "should" and similar expressions generally indicate comments on expectations. The forward-looking statements included in this press release are subject to a number of material risks and uncertainties, and our results may be materially different from current expectations due to factors, which include, but are not limited to, global and local changes in politics, economic factors, business, competition, market and regulatory factors, cyclical trends in relevant sectors as well as other factors affecting our operations, markets, products, services and prices that are highlighted under the title "Risk Factors" in the annual report submitted by Orbia to the Mexican National Banking and Securities Commission (CNBV) and available on our website at Investor Relations | Orbia. The forward-looking statements included herein represent Orbia’s views as of the date of this press release. Orbia undertakes no obligation to revise or update publicly any forward-looking statement for any reason unless required by law."

Orbia has implemented a Code of Ethics that helps define our obligations to and relationships with our employees, clients, suppliers, and others. Orbia’s Code of Ethics is available for consultation at the following link: http://www.Orbia.com/Codigo_de_etica.html. Additionally, according to the terms contained in the Mexican Securities Exchange Act No 42, the Orbia Audit Committee has established a "hotline" system permitting any person who is aware of a failure to adhere to applicable operational and accounting records guidelines, internal controls or the Code of Ethics, whether by the Company itself or any of its controlled subsidiaries, to file a complaint (including anonymously). This system is operated by an independent third-party service provider. The system may be accessed via telephone in Mexico, via internet at www.ethics.orbia.com or via email at ethics@orbia.com. Orbia’s Audit Committee has oversight responsibility for ensuring that all such complaints are appropriately investigated and resolved.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250422298407/en/

Contacts

Investor Relations
Diego Echave
VP, Investor Relations
T: +1 619-742-6439
diego.echave@orbia.com

Media
Kacy Karlen
Chief Communications Officer
T: +1 865 410 3001
kacy.karlen@orbia.com