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

Consolidated net revenues were $2.4 billion, up 20% year over year, and EBITDA was $467 million, up 56% year over year. Operating cash flow was $62 million, up $15 million year over year, and free cash flow was -$73 million, an improvement of $9 million year over year. Working capital increased by $185 million versus $111 million in the same quarter last year, and capex was $100 million, up $3 million year over year. By segment, polymer solutions revenue was $773 million and EBITDA was $144 million (margin 18.6%); building and infrastructure revenue was $725 million and EBITDA was $113 million (margin 15.7%); fluor and energy materials revenue was $329 million and EBITDA was $114 million (margin 34.7%); precision agriculture revenue was $325 million and EBITDA was $47 million (margin 14.5%); and connectivity solutions revenue was $319 million and EBITDA was $54 million (margin 16.9%). Leverage improved to 3.28x net debt-to-EBITDA from 3.64x, and adjusted leverage improved to 3.24x from 3.55x. Management raised full-year 2026 EBITDA guidance to at least $1.2 billion and expects 2026 capex of approximately $400 million.

Sameer Bharadwaj framed the quarter as evidence that Orbia’s multi-year focus on commercial execution, cost optimization, capital discipline, and cash generation is working. He emphasized the company’s ability to respond quickly to geopolitical shocks, pass through higher input costs, and capture higher pricing where its cost position is advantaged. His tone was constructive but cautious: he called out strong momentum in fluor, energy materials, and connectivity, while saying the company is watching demand trends carefully because second-half benefits from the quarter may not persist at the same level.

Cristian Capellino highlighted the jump in EBITDA to $467 million and the improvement in operating cash flow to $62 million, while noting that free cash flow remained negative at -$73 million because of a seasonal working-capital build. He said working capital rose $185 million in the quarter, but also stressed that the company has reduced working-capital days by more than 10 days versus last year and has saved hundreds of millions through inventory, collection, and payables actions. He added that net debt-to-EBITDA improved to 3.28x, adjusted leverage to 3.24x, and that the company expects leverage to get close to 3x this year, supported by earnings growth, disciplined cash management, and about $400 million of capex for 2026.

Analysts pressed management on whether Middle East-related price benefits could create a later payback in 2027, and Sameer said the company sees some short-term demand moderation but has not seen a major impact yet; he said the team is using pricing, working capital, inventory, and operating discipline to respond. On connectivity, he said AI/data center demand is growing rapidly and is becoming a meaningful part of revenues, with the business operating at high utilization. On capital allocation and dividends, he said the near-term priority is free cash flow and debt reduction, with dividends likely only after leverage is reduced further. On fluor, he said the strong quarter reflected portfolio mix and tight supply in the fluorine chain, but one medical propellant benefit was described as non-recurring.