Orbia Advance Corporation, S.A.B. de C.V. (BMV: ORBIA*) (“the Company” or “Orbia”) today released unaudited results for the second quarter of 2025.

Orbia delivered revenues of $1.97 billion and EBITDA of $300 million for the second quarter of 2025, despite continued challenging market conditions in many parts of the world. However, we are beginning to observe early signs of stabilization and slight improvement in select markets. The Company made meaningful progress on its operational efficiency initiatives and maintained or improved its market position across most business groups.

Q2 2025 Financial Highlights

(All metrics are compared to Q2 2024 unless otherwise noted)

• Net revenues of $1,967 million were flat year-over-year, driven by lower revenues in Polymer Solutions and Building & Infrastructure offset by higher revenues in Fluor & Energy Materials, Connectivity Solutions and Precision Agriculture.
• EBITDA of $300 million decreased 10%, primarily driven by Polymer Solutions and Building & Infrastructure.
• Operating cash flow of $47 million improved by $43 million. The improvement was mainly due to lower interest expense and a lower cash impact from accruals, partially offset by lower EBITDA.
• Annual EBITDA guidance, adjusted for non-operating items, reaffirmed between $1,100 million and $1,200 million.

“Orbia’s second quarter results reflect resilience amid a persistently challenging global economic landscape. Most of our markets seem to have stabilized at current levels, and in some cases are showing early signs of improvement with pockets of growth emerging in certain areas. We continue to make meaningful progress on the strengthening of our balance sheet through disciplined cost management, unlocking incremental EBITDA from recently completed growth investments, maintaining focused capital allocation, and advancing the divestiture of non-core assets. We also extended all material debt maturities out to 2030 and beyond during the quarter, raising approximately $1.4 billion to refinance existing debt. Looking ahead, we are confident in the compelling growth opportunities across each of our business segments. Our teams remain focused on what we can control— meeting our customers’ needs, enhancing financial strength, driving free cash flow, and positioning Orbia for sustainable value creation,” said Sameer Bharadwaj, CEO of Orbia.

Q2 2025 Consolidated Financial Information¹

(All metrics are compared to Q2 2024 unless otherwise noted)

Net revenues of $1,967 million in the second quarter were flat year-over-year.

The result in revenues for the quarter was driven by lower prices in Polymer Solutions and lower volumes in certain countries within Building & Infrastructure. These were offset by increases in Fluor & Energy Materials, Connectivity Solutions and Precision Agriculture compared to the prior year quarter.

Cost of goods sold of $1,534 million for the quarter increased 4% compared to the same quarter of the prior year.

The increase in cost of goods sold for the quarter was primarily driven by higher raw material costs in Polymer Solutions and Fluor & Energy Materials, partly offset by the benefits from cost savings initiatives and operational efficiencies across all business groups.

Selling, general and administrative expenses of $295 million for the quarter decreased 10% compared to the same quarter of last year. As a percentage of sales, SG&A decreased 163 basis points to 15.0%.

The decrease in selling, general and administrative expenses for the quarter was primarily due to the benefits from cost savings initiatives.

EBITDA of $300 million for the quarter decreased 10%, while EBITDA margin decreased 166 basis points to 15.2%.

The decrease in EBITDA and EBITDA margin was due to lower revenues and prices in Polymer Solutions, unfavorable product mix in Building & Infrastructure and generally higher input costs.

Financial costs of $96 million for the quarter increased by approximately $60 million year-over-year.

The increase in financial costs for the quarter was mainly driven by a shift from an FX gain in the prior year to a slight loss in the current year, primarily driven by the appreciation of the Mexican Peso.

An income tax expense of $143 million was recognized for the quarter compared to an income tax benefit of $85 million in the same quarter in the prior year, driven by a shift in the Company’s earnings profile between the two periods.

The effective tax rate for the quarter was 334%, primarily driven by the earnings mix across tax jurisdictions, the appreciation of the Mexican Peso against the U.S. Dollar, and inflation adjustments in certain countries. Excluding the impact of these discrete factors, the effective tax rate was approximately 124%, which remains elevated due to the relatively low level of pre-tax earnings for the quarter. The effective tax rate for the quarter is not reflective of Orbia’s normalized rate which is typically 27% to 32%².

Net loss to majority shareholders of $126 million in the quarter decreased, compared to a net income of $195 million in the same quarter in the prior year. The decrease was driven by higher taxes, higher financial costs and the decrease in operating income.

Operating cash flow of $47 million in the quarter improved by $43 million, while free cash flow of negative $82 million improved by $48 million.

The improvements were mainly due to lower interest expense and a lower cash impact from incentive compensation payments and accruals, partially offset by lower EBITDA.

Net debt of $4,016 million included total debt of $4,875 million, less cash and cash equivalents of $859 million. The Company’s net debt-to-EBITDA increased from 3.67x to 3.98x compared to the previous quarter. The increase in the net debt-to-EBITDA ratio during the second quarter was primarily driven by an increase in total debt of $189 million and a decrease in the last 12-months EBITDA of approximately $34 million. Net debt-to-EBITDA at the end of the second quarter using EBITDA adjusted³ for non-operating items to better reflect underlying earnings increased from 3.23x to 3.51x.

Q2 2025 Revenues by Region

(All metrics are compared to Q2 2024 unless otherwise noted)

Q2 2025 Financial Performance by Business Group

(All metrics are compared to Q2 2024 unless otherwise noted)

Polymer Solutions (Vestolit and Alphagary), 30.4% 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 $616 million decreased 4%. EBITDA of $79 million decreased 26% and EBITDA margin decreased 374 basis points to 12.8%.

The decrease in revenues for the quarter was driven by lower resin pricing and an operational disruption in derivatives, which was addressed by the end of the quarter.

Second quarter EBITDA decreased year-over-year, driven primarily by lower revenues, the operational disruption in derivatives and higher input costs.

Building & Infrastructure (Wavin), 31.0% 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 $629 million decreased 5%. EBITDA of $63 million decreased 19% and EBITDA margin decreased 162 basis points to 10.1%.

The decrease in revenues for the quarter was driven by lower volumes in India (as a result of the sale of the tanks business) and Mexico, and an unfavorable product mix, partly offset by strong performance in the U.K. and increased volumes in Indonesia.

Second quarter EBITDA decreased year-over-year, driven by unfavorable product mix in Western Europe, and lower revenue in Mexico and India, partially offset by the U.K., Indonesia, Eastern Europe and Brazil and continued benefits from cost saving initiatives.

Precision Agriculture (Netafim), 14.2% 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 $288 million increased 2%. EBITDA of $40 million slightly increased year-over-year and EBITDA margin decreased 14 basis points to 13.8%.

The increase in revenues for the quarter was primarily driven by Brazil, U.S. and Peru, partially offset by declines in Mexico and Chile and lower greenhouse projects activity.

Second quarter EBITDA increased slightly year-over-year, driven by higher revenues and a favorable product mix.

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 of $247 million increased 7%. EBITDA of $72 million decreased 11% and EBITDA margin decreased 606 basis points to 29.2%.

The increase in revenues for the quarter was primarily driven by favorable prices in upstream minerals and a favorable product mix. These gains were partially offset by lower upstream minerals volumes and an unfavorable refrigerant gas mix.

Second quarter EBITDA decreased year-over-year driven by higher input costs across key raw materials and unfavorable currency fluctuations, partially offset by a favorable product mix and the benefits from cost saving initiatives.

Connectivity Solutions (Dura-Line), 12.1% 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 $246 million increased 4%. EBITDA of $41 million increased 1% and EBITDA margin decreased 64 basis points to 16.6%.

The increase in revenues for the quarter was driven by higher volumes supported by increased demand in North America telecommunications and data center markets as well as a favorable product mix, partially offset by lower prices.

Second quarter EBITDA increased year-over-year primarily driven by higher revenues, favorable costs, partially offset by lower prices.

Balance Sheet, Liquidity and Capital Allocation

Orbia’s net debt-to-EBITDA ratio increased from 3.39x to 3.98x year-over-year primarily driven by an increase of $179 million in net debt and a reduction of $124 million in the last 12-months EBITDA. The Company had cash on hand of $859 million at the end of the quarter compared to $797 million during the prior year quarter. The increase in net debt is due to an increase in borrowings of $104 million and the negative impact of the strengthening of the Mexican Peso. Adjusted net debt-to-EBITDA⁴ for the quarter, was 3.51x as compared to 3.04x at the end of 2024 and 3.23x at the end of the prior quarter.

On April 11, 2025, Orbia issued long-term notes (certificados bursátiles) in the Mexican debt market, for approximately $300 million, split evenly between 3 and 10 years notes. The proceeds of the notes were used to refinance its short-term maturities in the local market. On April 30, 2025, Orbia issued senior notes due 2030 and 2035, for approximately $1,100 million. The proceeds of the notes have been used primarily to refinance the previous Senior Notes due in 2026 and 2027. Orbia has redeemed and cancelled its 2026 Senior Notes and a portion of its 2027 Senior Notes. The Company plans to redeem the remaining 2027 Senior Notes on the next eligible redemption date, in accordance with the underlying indenture.

Working capital increased by $111 million during the quarter compared to an increase of $56 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 $97 million during the quarter decreased 10% year-over-year, including ongoing maintenance spending and investments to support the Company’s targeted growth initiatives.

2025 Outlook

The underlying assumptions for the most recent guidance remain generally unchanged. Therefore, Orbia reaffirms its full-year 2025 Adjusted⁵ EBITDA guidance in the range of $1,100 million to $1,200 million.

The Company also reaffirms its 2025 capital expenditures guidance of approximately $400 million or less, with a continued 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 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 estimates an effective tax rate of 27% to 32%⁶ in 2025. Orbia remains committed to managing global tax risks amid a volatile currency and inflation environment and will continue to monitor local tax developments as conditions evolve.

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

• Polymer Solutions: Persistent soft market dynamics, driven by excess supply and lower export prices out of China and the U.S. are expected to continue for the remainder of the year. The full year performance is expected to be lower than last year due to the one-off impacts of the raw material supply disruption and operational challenges in derivatives experienced during the first half of the year. With these issues behind, the business expects that second half results will improve compared to first half results. In this environment, Orbia remains focused on realizing the benefits of cost saving initiatives and disciplined cash management.
• Building & Infrastructure: The business expects modest growth from new product launches and stabilization across key markets despite continued challenging market conditions in Western Europe and Mexico. The business will continue its focus on realizing operational cost efficiencies to improve profitability.
• Precision Agriculture: Market conditions are expected to remain stable to slightly improving, supported by recent positive momentum in Brazil, the U.S. and Turkey. The Company anticipates continued strong performance in parts of Latin America and projects in Africa. The business will remain focused on driving growth through deeper penetration in extensive crops, while maintaining a consistent emphasis on cost management and working capital improvements.
• Fluor & Energy Materials: The business anticipates continued strength in fluorine markets, with demand and pricing expected to remain stable or show modest improvement through the remainder of the year, helping offset input cost increases. To support margins, cost-control initiatives will remain a priority, alongside active product portfolio management focused on maximizing value creation.
• Connectivity Solutions: Volumes are expected to continue growing throughout the year, supported by sustained momentum in network deployment, datacenter demand and investment in the power sector. Profitability growth will be driven by increased demand, along with benefits from cost-saving initiatives and higher utilization of manufacturing facilities, partly offset by a weak pricing environment.

Conference Call Details

Orbia will host a conference call to discuss second quarter 2025 results on June 24, 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 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: https://www.orbia.com/49e826/siteassets/documents/code-of-ethics/orbia_codeofethics-2025_en_external.pdf. 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.

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