Orbia Announces Second Quarter 2026 Financial Results

About this update from Orbia Advance Corp. Sab De Cv

MEXICO CITY, July 22, 2026 --( BUSINESS WIRE )--Orbia Advance Corporation, S.A.B. de C.V. (BMV: ORBIA*) ("the Company" or "Orbia") today released unaudited results for the second quarter of 2026. Orbia delivered revenues of $2.4 billion and EBITDA of $467 million for the quarter. These results reflect the Company's resilience, supported by its strategic positioning and disciplined operational and financial management, amid an evolving global economic and geopolitical landscape. Q2 2026 Financial Highlights (All metrics are compared to Q2 2025 unless otherwise noted) "Orbia's second-quarter results reflect the continued benefits of the Company's multi-year focus on strategic commercial execution, cost optimization, capital allocation discipline, and cash generation. Our agility in responding to shifting market dynamics arising from recent geopolitical events, capturing higher prices in Polymer Solutions and increasing margins supported by our largely advantaged cost position, while swiftly offsetting higher input costs across our downstream businesses, underscores the strength of our operating platform," said Sameer Bharadwaj, CEO of Orbia. Bharadwaj continued, "The strong contributions from Fluor & Energy Materials and Connectivity Solutions reflect robust fundamentals in the fluorine chain, as well as growing demand in Connectivity Solutions for telecom, AI data center and power grid infrastructure. Taken together, these results demonstrate that Orbia is well positioned to capitalize on improving market conditions, drive profitability, strengthen the balance sheet and de-lever." Q2 2026 Consolidated Financial Information 1 (All metrics are compared to Q2 2025 unless otherwise noted) Net revenues of $2,352 million in the second quarter increased 20%. Revenues increased in the second quarter, with growth coming from all business groups. Cost of goods sold of $1,698 million for the quarter increased 11% compared to the same quarter of the prior year. The increase in cost of goods sold was driven by higher volumes, primarily in Polymer Solutions and Connectivity Solutions, as well as higher raw material costs. Unfavorable currency fluctuations also contributed to the increase of conversion costs, partly offset by cost-saving initiatives and operational efficiencies. Selling, general and administrative expenses of $350 million for the quarter increased 19% compared to the same quarter of last year. As a percentage of sales, SG&A decreased 12 basis points to 14.9%. Selling, general and administrative expenses for the quarter increased due to unfavorable currency fluctuations, and higher personnel-related costs and professional services costs. EBITDA of $467 million for the quarter increased 56%, while EBITDA margin increased 463 basis points to 19.9%. The increase in EBITDA was driven primarily by higher resin prices in Polymer Solutions, proactive commercial actions and favorable product mix in Building & Infrastructure, recovery and strength in key markets in Precision Agriculture, commercial strength in Fluor & Energy Materials and strong demand in Connectivity Solutions. Financial costs of $145 million for the quarter increased by $49 million year-over-year. The increase in financial costs was mainly driven by a higher FX loss in the current quarter compared to the same quarter in the prior year, primarily caused by the appreciation of the Euro. An income tax expense of $117 million was recognized for the quarter compared to $143 million in the same quarter in the prior year. The effective tax rate for the quarter was 73.0%, primarily driven by the appreciation of the Mexican Peso relative to the U.S. Dollar, inflation-related adjustments, and changes in valuation allowances. Excluding the impact of these discrete factors, the effective tax rate for the quarter would have been approximately 30%, reflecting the geographic mix of earnings. Net income to majority shareholders of $15 million in the quarter improved compared to a net loss of $126 million in the same quarter in the prior year. The increase was driven by higher operating income and lower income tax expense, partly offset by higher financial costs. Operating cash flow of $62 million in the quarter improved by $15 million, while free cash flow of negative $73 million improved by $9 million. The results were mainly due to higher EBITDA, partially offset by a higher cash outflow from the seasonal build-up in working capital, which was amplified by higher selling prices and raw material costs resulting from the Middle East conflict. The improvement in free cash flow was driven by higher operating cash flow. Net debt of $4,094 million included total debt of $4,994 million, less cash and cash equivalents of $900 million. The Company's net debt-to-EBITDA ratio decreased from 3.64x to 3.28x compared to the previous quarter. This was primarily driven by an increase in the last 12-months EBITDA of approximately $168 million, partly offset by an increase in net debt of $157 million to fund the seasonal build-up of working capital. Net debt-to-EBITDA at the end of the second quarter using EBITDA adjusted2 for non-operating items to better reflect underlying earnings, was 3.24x, a decrease from 3.55x. Q2 2026 Revenues by Region (All metrics are compared to Q2 2025 unless otherwise noted) Q2 2026 Financial Performance by Business Group (All metrics are compared to Q2 2025 unless otherwise noted) Polymer Solutions (Vestolit and Alphagary), 31.3% 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 $773 million increased 25%. EBITDA of $144 million increased 82% and EBITDA margin increased 580 basis points to 18.6%. The increase in revenues for the quarter was primarily driven by higher resin prices due to market dynamics related to the Middle East conflict, favorable pricing conditions in certain strategic markets and higher derivatives volumes compared to the prior year, which had been affected by operational disruptions. Second quarter EBITDA increased year-over-year, driven primarily by elevated resin prices and the resulting margin expansion, supported by Orbia's significant production exposure to relatively low-cost U.S. Gulf Coast ethane feedstock and natural gas. These gains were partially offset by higher input and energy costs in Europe, and adverse currency fluctuations. Building & Infrastructure (Wavin), 29.3% 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 $725 million increased 15%. EBITDA of $113 million increased 79% and EBITDA margin increased 557 basis points to 15.7%. The increase in revenues for the quarter was driven by proactive commercial actions implemented early in the period to offset higher input costs stemming from the Middle East conflict, higher volumes in Latin America, and favorable currency fluctuations. This was partly offset by the absence of revenue from non-core assets divested during 2025. Second-quarter EBITDA increased year-over-year, driven by margin expansion from proactive commercial actions and a favorable mix, supported by growing adoption of recently launched value-added solutions. EBITDA also benefited from a timing lag between price increases and rising input costs, as the business drew on raw materials procured ahead of the Middle East conflict, together with the continued impact of cost-reduction initiatives. Fluor & Energy Materials, 13.3% of Revenues Orbia's Fluor & Energy Materials business group 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 $329 million increased 33%. EBITDA of $114 million increased 58% and EBITDA margin increased 554 basis points to 34.7%. The increase in revenues for the quarter was driven by commercial strength across all major product categories, particularly refrigerants, and favorable product life cycle dynamics in part of the medical propellant product portfolio. This was partially offset by lower volumes in minerals and chemical intermediates. Second quarter EBITDA increased year-over-year, driven by commercial strength across the portfolio and a continued favorable product mix, partially offset by higher sulphur and logistics costs and adverse currency fluctuations. Precision Agriculture (Netafim), 13.2% 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 $325 million increased 13%. EBITDA of $47 million increased 19% and EBITDA margin increased 72 basis points to 14.5%. The increase in revenues for the quarter was mainly driven by the U.S., Turkey, Peru, and Australia, as well as higher project revenues in Middle East and Africa, partially offset by lower volumes in India. Revenues also benefited from proactive pricing actions to offset raw material cost increases stemming from the Middle East conflict across global operations. Second quarter EBITDA increased year-over-year, driven by growth in the countries mentioned above and pricing discipline, partially offset by adverse currency fluctuations. Connectivity Solutions (Dura-Line), 12.9% of Revenues Orbia's Connectivity Solutions business group (Dura-Line) delivers innovative conduit solutions and accessories that enable telecommunications networks, AI data center infrastructure, and power grid modernization, supporting the connectivity and energy systems underpinning growing digital demand. End markets include fiber-to-the-premises, long-haul and wireless networks, AI campus data and power connectivity, interconnect solutions, and grid infrastructure. Revenues of $319 million increased 30%. EBITDA of $54 million increased 33% and EBITDA margin increased 39 basis points to 16.9%. The increase in revenues for the quarter was driven by higher volumes amid strong demand across the U.S. telecommunications, data center buildout, and the modernization of the U.S. electric power grid. The business executed disciplined pricing to offset higher raw material costs stemming from the Middle East conflict. Second quarter EBITDA increased year-over-year, driven primarily by higher volumes, a favorable product mix shift towards value-added solutions for data center markets and cost-reduction initiatives. Balance Sheet, Liquidity and Capital Allocation Orbia's net debt-to-EBITDA ratio decreased from 3.98x to 3.28x year-over-year, primarily driven by an increase of $240 million in the last 12-months EBITDA, partly offset by an increase of $78 million in net debt, mainly driven by the appreciation of the Mexican Peso against the U.S. Dollar. Excluding this currency fluctuation, net debt decreased by $15 million. The Company had cash on hand of $900 million at the end of the quarter compared to $859 million during the prior year quarter. Adjusted net debt-to-EBITDA3 for the quarter decreased to 3.24x from 3.51x in the prior year period and 3.40x at year end 2025. Working capital increased by $185 million during the quarter compares to an increase of $111 million in the prior-year quarter. This seasonal increase aligns with historical operational trends and typically reverses during the latter half of the year. The increase in the current period is due to elevated business activity as well as higher sales prices and input costs resulting from the Middle East conflict. Capital expenditures of $100 million during the quarter increased by $3 million over the prior-year quarter and included ongoing maintenance spending and investments to support the Company's targeted growth initiatives. 2026 Outlook Based on strong second quarter results and fluid market dynamics for the second half of the year, Orbia now expects full-year 2026 EBITDA of at least $1,200 million. The Company recognizes that the favorable effects observed in the second quarter may not be sustained at the same level during the second half of 2026 and remains watchful regarding demand trends in the latter part of the year and will manage operations accordingly. The Company expects 2026 capital expenditures of approximately $400 million, with a focus on maintenance and asset integrity, and selective strategic growth projects, primarily in the Fluor & Energy Materials business group. Excluding discrete items that do not reflect ongoing operational results, such as foreign exchange rate changes and inflation adjustments, as well as other non-recurring items, the Company anticipates an effective tax rate of 27% to 32%4 in 2026. For each of Orbia's businesses the Company is assuming the following: Conference Call Details Orbia will host a conference call to discuss second quarter 2026 results on July 23, 2026, 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 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 22,000 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 $7,619 million in revenue in 2025. 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 [email protected] . 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/20260722656679/en/ Contacts Investor Relations Diego Echave Vice President, Investor Relations [email protected] Media Kacy Karlen Chief Communications Officer [email protected]

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