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

Second-quarter net revenues were approximately $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, improving by $9 million year over year. CapEx was $100 million, up $3 million year over year. By segment, polymer solutions revenue was $773 million and EBITDA $144 million (margin 18.6%); building and infrastructure revenue was $725 million and EBITDA $113 million (margin 15.7%); fluor and energy materials revenue was $329 million and EBITDA $114 million (margin 34.7%); precision agriculture revenue was $325 million and EBITDA $47 million (margin 14.5%); and connectivity solutions revenue was $319 million and EBITDA $54 million (margin 16.9%). Net debt-to-EBITDA improved to 3.28x from 3.64x versus the previous quarter, and net debt-to-adjusted-EBITDA improved to 3.24x from 3.55x. For 2026, management now expects EBITDA of at least $1.2 billion and CapEx of about $400 million.

The CEO framed the quarter as proof that Orbia’s multi-year focus on commercial execution, cost optimization, and cash generation is working. He said the company is benefiting from higher prices in polymer solutions, strong demand in connectivity and fluorine-related businesses, and proactive pricing actions to offset input-cost inflation. He also stressed that the company is watching demand carefully because some second-quarter benefits may not persist at the same level in the second half.

The CFO highlighted consolidated revenue of $2.4 billion, EBITDA of $467 million, operating cash flow of $62 million, and free cash flow of -$73 million. He pointed to a $185 million working capital build, largely seasonal and amplified by higher selling prices and raw material costs linked to Middle East dynamics, and said that working capital usually reverses in the second half. He also noted CapEx of $100 million and said net debt-to-EBITDA improved to 3.28x, with leverage expected to get very close to 3x this year as the company uses free cash flow, working capital discipline, and divestitures to delever. He added that Orbia has a $1.4 billion revolver liquidity backstop that is not being drawn.

Analysts focused on whether Middle East-related pricing benefits could be offset later by inflation and demand weakness, especially in downstream businesses and into 2027. Management said it has largely been able to pass through higher input costs, but is cautious about future demand and is watching the situation closely. Questions on connectivity centered on AI data centers, where management said the business is now seeing meaningful growth in both campus and interconnect applications and that data centers have grown to 15%-20% of connectivity revenue. On fluor, management explained that strong results came from pricing, product mix, and a one-time boost from the end-of-life medical propellant 227ea, which will not repeat next year.