MEXICO CITY--(BUSINESS WIRE)--Feb. 24, 2026-- Orbia Advance Corporation, S.A.B. de C.V. (BMV: ORBIA*) (“the Company” or “Orbia”) today released unaudited results for the fourth quarter and full year of 2025.

Orbia delivered reported EBITDA of $227 million for the fourth quarter of 2025 and $1,020 million for the full year 2025. Adjusted EBITDA¹ was $236 million for the fourth quarter and $1,110 million for the full year. Operating cash flow was $349 million and $645 million for the fourth quarter and full year, respectively, with EBITDA conversion rates of 154% and 63%. These results highlight the Company’s resilience in weak market conditions and its disciplined operational and financial management.

Q4 2025 Financial Highlights

(All metrics are compared to Q4 2024 unless otherwise noted)

• Net revenues of $1,875 million increased by 5%, driven by higher revenues in Connectivity Solutions, Fluor & Energy Materials, Building & Infrastructure and Precision Agriculture, partially offset by lower revenues in Polymer Solutions.
• EBITDA of $227 million increased 2%, primarily driven by Fluor & Energy Materials, Building & Infrastructure and Connectivity Solutions, partially offset by Polymer Solutions. Adjusted EBITDA was $236 million, a decrease of 14% compared to the same period of the prior year.
• Operating Cash Flow of $349 million increased by $67 million. The increase was mainly due to efficient working capital management and the absence of last year’s adverse currency impacts, partially offset by net interest paid and higher taxes.

Full-Year 2025 Financial Highlights

(All metrics are compared to FY 2024 unless otherwise noted)

• Net revenues of $7,619 million increased 2%, driven by higher revenue in Fluor & Energy Materials, Connectivity Solutions and Precision Agriculture, partially offset by Polymer Solutions and Building & Infrastructure.
• EBITDA of $1,020 million decreased 7%, driven by Polymer Solutions and Building & Infrastructure, partially offset by Fluor & Energy Materials, Connectivity Solutions and Precision Agriculture. Full-year Adjusted EBITDA was $1,110 million, a decrease of 7% compared to prior year Adjusted EBITDA.
• Operating Cash Flow of $645 million increased by $126 million. The increase was mainly due to the absence of last year’s adverse currency impacts and a lower cash impact from accruals, partially offset by lower EBITDA and working capital inflows, higher taxes and net interest paid.

“Global market conditions across Orbia’s business groups were mixed, but remained generally challenging in 2025, particularly across construction and infrastructure related activities and regionally in much of Europe and Mexico. We did, however, see favorable trends emerge during the year in our Fluor & Energy Materials, Connectivity Solutions and Precision Agriculture businesses,” said Sameer Bharadwaj, CEO of Orbia.

Bharadwaj continued, "In this environment, we remain relentlessly focused on exercising strong financial discipline. We continue to strengthen our leading market positions and to drive results through strong commercial and operational execution, with a focus on both earnings and cash generation. Our cost optimization programs are on track and making important contributions, as is our initiative to generate cash from non-core asset sales. We continue to look for more opportunities to simplify our business, further strengthen our balance sheet and drive cash generation to support our long-term strategic objectives. As we begin 2026, we expect market dynamics to remain challenging in some businesses with continued improvements in others.”

Q4 and Full-Year 2025 Consolidated Financial Information ²

(All metrics are compared to Q4 and FY 2024 unless otherwise noted)

Net revenues of $1,875 million in the fourth quarter increased by 5%. For the full year 2025, net revenues of $7,619 million increased by 2%.

Revenue increased in both the fourth quarter and the full year, with growth coming from all business groups except Polymer Solutions. The increase was led primarily by higher volumes in Connectivity Solutions and better product mix in Fluor & Energy Materials.

Cost of goods sold of $1,509 million for the quarter increased 8% compared to the same quarter of the prior year. For the full year, cost of goods sold of $5,993 million increased 4% compared to last year.

The increase in cost of goods sold for the quarter was driven primarily by higher input costs across all business groups, partly offset by cost savings initiatives. The increase in cost of goods sold for the full year was mainly due to Fluor & Energy Materials, Connectivity Solutions and Precision Agriculture, as a result of higher input cost and volumes, partially offset by Polymer Solutions and Building & Infrastructure cost saving initiatives.

Selling, general and administrative expenses of $305 million for the quarter decreased 13% compared to the same quarter of last year. As a percentage of sales, SG&A decreased 332 basis points to 16.3%. For the full year, selling, general and administrative expenses of $1,256 million decreased 4% compared to last year. As a percentage of sales, SG&A decreased 96 basis points to 16.5% for the full year.

The decrease in selling, general and administrative expenses for both the quarter and the full year was primarily due to the absence of certain one-time costs from the prior year and the continued benefits from the execution of cost efficiency projects across the Company. The decrease in selling, general and administrative expenses excluding one-time costs, in both the fourth quarter and the full year, was 8% and 2%, respectively.

EBITDA of $227 million for the quarter increased 2%, while EBITDA margin decreased 38 basis points to 12.1%. For the full year, EBITDA of $1,020 million decreased 7%, while EBITDA margin decreased 124 basis points to 13.4%. Adjusted EBITDA was $236 million in the quarter and $1,110 million for the full year, representing decreases of 14% and 7%, respectively. Adjusted EBITDA margin was 12.6% in the quarter and 14.6% for the full year.

The increase in EBITDA for the quarter was due to higher volumes and lower one-time costs in Fluor & Energy Materials and in Building & Infrastructure. This was partially offset by a decrease in Polymer Solutions. The decrease in EBITDA for the full year was primarily due to lower volumes and prices in Polymer Solutions, and one-time costs for Building & Infrastructure. This was partially offset by the absence of prior year one-time costs in Fluor & Energy Materials and higher revenues in Connectivity Solutions and Precision Agriculture.

Financial costs of $109 million for the quarter increased by $19 million year-over-year. For the full year, financial costs of $373 million increased by $30 million from $343 million last year.

For both the quarter and the full year, the increase in financial costs was driven by higher interest expense as a result of the debt refinancing activities in the second quarter and the appreciation of the Mexican Peso against the U.S. Dollar.

An Income tax expense of $85 million was recognized for the quarter compared to an income tax benefit of $1 million in the same quarter in the prior year. For the full year, an income tax expense of $291 million was recognized compared to an income tax benefit of $127 million in the prior year. The effective tax rate for the quarter and for the full year was negative 171% and 431%, respectively.

The change in the tax expense was primarily driven by the geographic mix of earnings, appreciation of the Mexican Peso relative to the U.S. Dollar, inflation related adjustments, and discrete items, including non-recurring dividend repatriation and impairment charges. Excluding the effects of foreign exchange gains and losses, inflation adjustments, valuation allowances, and other non-recurring items, the Company’s effective tax rate for the full year would have been approximately 25%.

Net loss to majority shareholders of $158 million in the quarter increased, compared to a net loss of $62 million in the same quarter in the prior year. For the full year, net loss to majority shareholders of $457 million, increased compared to net income of $145 million in the prior year.

The increase in the loss in the quarter was driven by higher taxes and higher financial costs, partially offset by an increase in operating income. For the full year, the increase in the loss was primarily driven by lower operating earnings, higher taxes, the non-cash effect from the loss on divestments of businesses during the year, and higher financial costs.

Operating cash flow of $349 million in the quarter increased 23% while free cash flow of $204 million increased by $80 million. For the full year, operating cash flow of $645 million increased 24% while free cash flow of $111 million increased compared to negative $64 million in the prior year.

The increase in operating cash flow in the quarter was driven by efficient working capital management and the absence of last year’s adverse currency impacts, partially offset by net interests paid and higher taxes. The increase in free cash flow was driven by the increase in operating cash flow and a decrease in capital expenditures. For the full year, the increase in operating cash flow was driven by the absence of last year’s adverse currency impacts and a lower cash impact from accruals, partially offset by lower EBITDA and lower working capital inflows, and higher taxes and net interest paid. The free cash flow increased due to higher operating cash flow and lower capital expenditures.

Net debt of $3,779 million included total debt of $4,819 million, less cash and cash equivalents of $1,040 million. The Company’s net debt-to-EBITDA decreased from 3.85x to 3.70x during the quarter.

The decrease in the net debt-to-EBITDA ratio was driven by a decrease in total debt of $82 million, an increase in cash and cash equivalents of $49 million and an increase in the last 12-months EBITDA of approximately $5 million during the quarter. Net debt-to-EBITDA at the end of 2025 using EBITDA adjusted³ for non-operating items to better reflect underlying earnings, was 3.40x.

Q4 and Full-Year 2025 Revenues by Region

(All metrics are compared to Q4 and FY 2024 unless otherwise noted)

Q4 and Full-Year 2025 Financial Performance by Business Group

(All metrics are compared to Q4 and FY 2024 unless otherwise noted)

Polymer Solutions (Vestolit and Alphagary), 30.8% 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 $558 million for the quarter decreased by 6%, and full-year revenues of $2,420 million decreased by 4%. EBITDA of $33 million for the quarter decreased 55% and EBITDA margin decreased 636 basis points to 5.9%, while full-year EBITDA of $248 million decreased 30% and EBITDA margin decreased 385 basis points to 10.2%. Excluding one-time items, adjusted EBITDA was $39 million in the quarter and $279 million for the full year, representing a decrease of 53% and a decrease of 26%, respectively. Adjusted EBITDA margin was 7.0% for the quarter and 11.5% for the year.

The decrease in revenues for the quarter was driven by lower operating rates in derivatives and lower prices in resins. This was partially offset by higher volumes in resins and higher prices in derivatives. For the full year, the decrease in revenues was primarily driven by lower volumes in derivatives, and lower prices in resins, partially offset by higher general resins volumes.

Fourth quarter EBITDA decreased year-over-year, driven by lower prices and higher input costs. For the full year, the decrease in EBITDA was driven by lower resin prices, operational disruptions in derivatives, and a key raw material supply disruption during the first half of the year. This was partially offset by lower fixed costs from cost-saving initiatives.

Building & Infrastructure (Wavin), 31.3% 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 $600 million for the quarter increased 4%, and full-year revenues of $2,462 million decreased 1%. EBITDA of $71 million for the quarter increased 34% and EBITDA margin increased 266 basis points to 11.9%, while full-year EBITDA of $246 million decreased 10% and EBITDA margin decreased 97 basis points to 10.0%. Excluding one-time items, adjusted EBITDA was $78 million in the quarter and $286 million for the full year, representing an increase of 20% and a decrease of 2%, respectively. Adjusted EBITDA margin was 13.1% for the quarter and 11.6% for the year.

The increase in revenues for the quarter was driven primarily by higher volumes in Western Europe, Mexico and other portions of Latin America, favorable currency fluctuations and better pricing. This was partially offset by the impact of divestments of the India and clay pipe businesses that were completed earlier in the year. For the full year, the decrease in revenues was driven by the impact of the completed divestments and weak demand in Mexico. This was partially offset by growth in Brazil and EMEA.

Fourth quarter EBITDA increased year-over-year, driven by lower one-time restructuring costs, better margins, favorable product mix and the continued benefits from cost-saving initiatives. For the full year, the decrease in EBITDA was driven primarily by lower results in Mexico and Western Europe, higher material costs and higher one-time restructuring costs compared to last year. This was partially offset by better performance in the U.K. and Brazil and the benefit from cost-saving initiatives.

Precision Agriculture (Netafim), 14.0% 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 $279 million for the quarter increased 5% and full-year revenues of $1,095 million increased 6%. EBITDA of $33 million for the quarter was slightly lower year-over-year and EBITDA margin decreased 67 basis points to 11.8%, while full-year EBITDA of $136 million increased 9% and EBITDA margin increased 34 basis points to 12.4%. Excluding one-time items, adjusted EBITDA was $35 million in the quarter and $142 million for the full year, representing a decrease of 3% and an increase of 7%, respectively. Adjusted EBITDA margin was 12.5% for the quarter and 12.9% for the year.

The increase in revenues for the quarter was primarily driven by strength in Brazil, Europe and Israel, partially offset by India and Mexico. For the full year, the increase in revenues was primarily driven by growth in Brazil, Peru and the U.S., partially offset by the soft demand in Mexico.

Fourth quarter EBITDA was slightly lower year-over-year, driven by lower performance the in the U.S., Mexico and Central America. This was partially offset by better performance in EMEA, Brazil and Turkey. For the full year, the increase in EBITDA was driven primarily by Brazil, the U.S., Turkey and Peru, partially offset by negative impacts from currency fluctuations and soft demand in Mexico.

Fluor & Energy Materials, 12.2% 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 for the quarter of $268 million increased 21% and full-year revenues of $958 million increased 11%. EBITDA for the quarter of $68 million increased 107% and EBITDA margin increased to 25.2%, while full-year EBITDA of $267 million increased 14% and EBITDA margin increased to 27.8%. Excluding one-time items, adjusted EBITDA was $68 million in the quarter and $267 million for the full year, representing an increase of 3% and a decrease of 1%, respectively. Adjusted EBITDA margin was 25.2% for the quarter and 27.8% for the year.

The increase in revenues for the quarter was primarily driven by higher volumes from pharma and upstream minerals and favorable prices across most of the product portfolio, partially offset by lower volumes in refrigerants. For the full year, the increase in revenues was primarily driven by strong results across the product portfolio.

Fourth quarter EBITDA increased year-over-year due to higher revenue and the absence of prior year one-time legal expenses, partially offset by higher raw material costs. Excluding the one-time item, the result was slightly higher compared to last year. For the full year, the increase in EBITDA was primarily driven by the absence of prior year one-time legal expenses, partially offset by higher raw material costs and higher operating costs in Mexico, driven by the appreciation of the Mexican Peso against the U.S. Dollar.

Connectivity Solutions (Dura-Line), 11.7% 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 for the quarter of $226 million increased 32% and full-year revenues of $918 million increased 9%. EBITDA for the quarter of $21 million increased 61% and EBITDA margin increased to 9.5%, while full-year EBITDA of $131 million increased 21% and EBITDA margin increased to 14.2%. Excluding one-time items, adjusted EBITDA was $33 million in the quarter and $144 million for the full year, representing an increase of 105% and 23%, respectively. Adjusted EBITDA margin was 14.8% for the quarter and 15.7% for the year.

The increase in revenues for the quarter and the full year was driven by strong volume growth across all end markets and a favorable product mix, partially offset by lower prices.

Fourth quarter and full year EBITDA increased year-over-year primarily due to higher revenues, higher capacity utilization, and continued benefits from cost reduction initiatives. This was partially offset by lower prices.

Balance Sheet, Liquidity and Capital Allocation

For the full year, Orbia’s net debt-to-EBITDA ratio increased from 3.30x to 3.70x year-over-year primarily driven by an increase of $162 million in net debt, of which $147 million was due to the appreciation of the Mexican Peso against the U.S. Dollar, and a decrease of $76 million in the last 12-months EBITDA, partially offset by an increase in cash and cash equivalents of $31 million. The Company had cash on hand of $1,040 million at year-end 2025. Adjusted net debt-to-EBITDA⁵ increased from 3.04x to 3.40x year-over-year and was slightly below the end of the prior quarter.

Working capital decreased by $313 million during the quarter compared to a decrease of $243 million in the prior-year quarter. Working capital decreased by $47 million during the full year, compared to a decrease of $105 million in the prior year. Capital expenditures of $117 million during the quarter decreased 11% year-over-year and decreased 15% for the full year to $405 million. Spending for 2025 included ongoing maintenance and investments to support the Company’s targeted growth initiatives.

2025 Sustainability Highlights

In 2025, Orbia remained committed to delivering and expanding its range of sustainable solutions for its clients. The Fluor & Energy Materials business group expanded its custom electrolyte facility in the U.S. and its presence in low-GWP gases and medical propellants. Additionally, we continue with the construction of the new facility to produce next generation medical propellant 152a at commercial scale, with production expected to begin in early 2027. The Building & Infrastructure business improved its urban climate resilience solutions offering.

Throughout 2025, Orbia achieved significant improvements in environmental performance across its operations. The Company surpassed its 2025 sustainability-linked bond target for sulfur oxide (SOx) emissions reduction.

Orbia again earned recognition from major sustainability benchmarks in 2025, maintaining its place in the S&P Dow Jones Best-in-Class MILA Pacific Alliance, the S&P Sustainability Yearbook, the FTSE4Good Index and the BMV ESG Index.

The Company will release its 2025 Impact Report on March 9, providing further detail on sustainability performance.

2026 Outlook

The outlook for the year presents two distinct dynamics. We expect continued positive market momentum in Precision Agriculture, Fluor & Energy Materials, and Connectivity Solutions. Meanwhile, Polymer Solutions and Building & Infrastructure end markets are expected to remain relatively weak. We expect growth in EBITDA from these segments due to the absence of the operational disruptions experienced in 2025 in the derivatives business as well as from commercial initiatives and new product introductions in Building & Infrastructure.

For 2026, the Company expects full-year EBITDA will be in the range of $1,100 million – $1,200 million, with capital expenditures expected to be approximately $400 million. The primary focus of capital expenditures will be investments to ensure safety and operational integrity as well as selective strategic growth projects, particularly 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%⁶ in 2026.

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

• Polymer Solutions: The global PVC market is expected to experience continued excess supply. However, prices have recovered modestly compared to the trough levels seen in the second half of 2025. Recent governmental policy shifts, particularly in China, and announcements of capacity rationalization in Europe and the U.S. should help support a firmer global pricing environment. The focus remains on maximizing production, maintaining strict control over fixed costs and cash, and growing profitability.
• Building & Infrastructure: Market conditions are expected to remain subdued in Europe, and moderate growth is anticipated in Latin America. Orbia anticipates incremental growth driven by greater adoption of new products, contribution from value added solutions, and ongoing benefits from cost optimization initiatives.
• Precision Agriculture: The business expects continued strong momentum across key markets, led by robust demand in Brazil, solid project execution in Africa and the Middle East, and sustained strength in U.S. permanent crops. The business will also advance growth initiatives through its new digital farming platform and new projects, while capturing additional benefits from ongoing operational efficiency efforts.
• Fluor & Energy Materials: The business expects positive fluorine market trends to continue, with strong demand to help offset the impact of raw material and mining cost inflation. Orbia’s operating philosophy is to ensure safe and stable mining and chemical operations and maximize the value of fluorine across minerals and chemical intermediates, refrigerants and medical propellants. Growth investments will focus on battery materials, next‑generation medical propellants and mining infrastructure.
• Connectivity Solutions: The business anticipates growing demand driven by broadband expansion, new data center investments and the modernization of the U.S. electric power grid. Profitability is projected to improve, supported by these incremental volumes, higher plant utilization, and the ongoing implementation of cost-control initiatives.

The Board of Directors has resolved to approve and intends to propose to shareholders at Orbia's Annual General Meeting that no ordinary dividend be declared for 2026. This recommendation aligns with the Company’s strategic priority to strengthen its balance sheet and reduce leverage.

Conference Call Details

Orbia will host a conference call to discuss Q4 and Full Year 2025 results on February 25, 2026, at 9:00 AM Central Time (CT; Mexico City)/10:00 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 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 $7,619 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 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/20260223634555/en/

Investor Relations
Diego Echave
Vice President, Investor Relations
diego.echave@orbia.com

Media
Kacy Karlen
Chief Communications Officer
kacy.karlen@orbia.com

Source: Orbia Advance Corporation, S.A.B. de C.V.