Orbia Reports Financial Results for Q1 2025
Orbia Advance Corporation, S.A.B. de C.V. (BMV: ORBIA*) (“Orbia” or “the Company”) announced today its unaudited financial results for the Reports first quarter ended March 31, 2025. Despite ongoing challenges across select business units and markets, the Company demonstrated operational resilience, reporting steady progress in key strategic initiatives including cost optimization, divestment of non-core assets, and continued investments in high-growth areas.
Q1 2025 Key Highlights:
- Reported EBITDA: $198 million, down 21% year-over-year
- Adjusted EBITDA: $260 million, up 3% year-over-year
- Net Revenues: $1,811 million, a decline of 3%
- Net Loss to Majority Shareholders: $54 million, improved by $20 million
- Operating Cash Outflow: $22 million, an improvement of $28 million
- Net Debt-to-EBITDA: Increased to 3.67x from 3.30x at year-end 2024
Commenting on the results, Sameer Bharadwaj, CEO of Orbia, said“Our first-quarter performance reflects our disciplined approach to navigating complex market conditions. While some segments faced pricing and volume headwinds, we achieved notable improvements in adjusted EBITDA, underscoring our commitment to delivering sustainable value. Reports We are actively managing what we can control—executing against our long-term strategy, optimizing our cost structure, and reinforcing our leadership across diversified end markets.”
Segment and Financial Performance Overview
Revenue Performance
For the first quarter of 2025, Orbia reported consolidated revenues of $1.811 billion, a 3% decline compared to the same quarter last year. This decrease was primarily attributed to weakness in the Polymer Solutions and Building & Infrastructure segments.ReportsLower prices and operational disruptions at a major supplier affected the performance of Polymer Solutions, while Building & Infrastructure revenues were impacted by reduced demand in Continental Europe and Mexico.
However, this softness was partially offset by solid growth in the Company’s Fluor & Energy Materials and Precision Agriculture businesses. Notably, the newly operational manufacturing facility in Indonesia contributed to incremental revenue growth in Building & Infrastructure, while Brazil and the U.K. showed positive momentum.
Cost Management and Profitability
Cost of goods sold (COGS) for the quarter was $1.417 billion, reflecting a 1% decrease year-over-year, primarily due to productivity improvements, strategic cost-saving initiatives, and operational efficiencies. Reports These gains helped offset the impact of a raw material supply disruption that affected several production lines.
Selling, general and administrative (SG&A) expenses rose to $353 million, an 8% increase compared to Q1 2024. The rise was largely attributed to legal and restructuring charges. However, when excluding these one-time costs and depreciation, SG&A expenses actually declined by $16 million, reflecting improved expense discipline.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
Reported EBITDA for the quarter was $198 million, a 21% decline from the prior-year period. The decrease in profitability was largely driven by the underperformance in Polymer Solutions and Building & Infrastructure, as well as the impact of legal and restructuring-related expenditures.
Adjusted EBITDA—which excludes non-recurring legal and restructuring charges as well as the impact from supply chain disruptions—reached $260 million, representing a 3% increase from Q1 2024. Adjusted EBITDA margin stood at 14.4%, versus 13.6% a year earlier, signaling operational resilience in a challenging environment.
Segment Performance Highlights
Polymer Solutions:
Revenue: $586 million (-6%)
EBITDA: $37 million (-43%)
Adjusted EBITDA: $64 million (-2%)
Polymer Solutions experienced pricing pressure and supply chain disruption, particularly affecting operations in Continental Europe and Mexico. Reports Strength in Brazil and the U.K., along with the contribution from Indonesia, provided some offset. The segment was also burdened by restructuring costs, though adjusted EBITDA reflected a modest decline of 2%.
Precision Agriculture (Netafim):
Revenue: $271 million (+6%)
EBITDA: $33 million (+16%)
Adjusted EBITDA: $37 million (+28%)
Orbia’s Precision Agriculture business, operating under the Netafim brand, delivered a solid performance driven by revenue growth in Brazil and Peru. Higher sales and the successful execution of cost-saving initiatives contributed to a 28% increase in adjusted EBITDA. This growth further reinforces Netafim’s mission of enabling farmers to grow more with less through smart irrigation solutions.
Fluor & Energy Materials (Koura):
Revenue: $216 million (+14%)
EBITDA: $64 million (+18%)
Koura, Orbia’s fluorine-based business, delivered strong results thanks to increased volumes in refrigerants and stability in pricing for upstream materials. Margin improvement was supported by a reduction in fixed costs, even as input prices remained elevated.
Connectivity Solutions (Dura-Line):
Revenue: $194 million (-1%)
EBITDA: $26 million (+12%)
Despite a slight decline in revenue, driven by lower pricing, Dura-Line achieved year-over-year EBITDA growth. This was supported by higher volumes and favorable input costs, alongside continued efficiency gains.
Balance Sheet and Capital Allocation
As of March 31, 2025, Orbia reported net debt of $3.826 billion, comprising total debt of $4.686 billion and cash and cash equivalents of $860 million. The Company’s net debt-to-EBITDA ratio increased to 3.67x from 3.30x at year-end 2024. On an adjusted EBITDA basis, the net debt-to-EBITDA ratio rose from 3.04x to 3.23x.
The increase in leverage was attributed to a $149 million reduction in cash, a $60 million rise in total debt, and a $55 million decrease in trailing 12-month EBITDA. The increase in borrowing during the quarter reflected seasonal working capital needs.
In April 2025, Orbia issued approximately $300 million in long-term notes in the Mexican capital markets to refinance existing debt and enhance financial flexibility. These new certificados bursátiles will be used to replace the ORBIA 22L issuance and repay other obligations in Mexico.
Cash Flow and Capital Expenditures
Orbia reported an operating cash outflow of $22 million for the quarter, an improvement of $28 million versus Q1 2024. Free cash flow, although still negative at $155 million, improved by $46 million. The improvements were driven by effective working capital management, foreign currency gains, and lower capital expenditures, which fell 20% year-over-year to $105 million.
Capital expenditures in the quarter supported essential maintenance and targeted growth initiatives aligned with Orbia’s long-term strategic priorities.
