ALPEK (ALPEKA) investor relations material

Executive summary

• Achieved strong financial improvement in Q2 2026, with reported EBITDA up 300% year-over-year and comparable EBITDA up 169% year-over-year, driven by higher volumes, improved margins, and favorable supply-demand dynamics.

• Maintained consistent free cash flow generation, with $127M in operating free cash flow for the quarter.

• Accelerated net debt reduction, reaching $1,664M by June 2026, and improved leverage to 2.2x, ahead of the 2.0–2.5x target.

• Completed the sale of the Beaver Valley site, generating additional free cash flow and supporting debt reduction.

Financial highlights

• Reported EBITDA reached $407M in Q2 2026, up from $41M in Q2 2025 (+300% YoY); comparable EBITDA was $336M (+169% YoY).

• Total revenues reached $2.15B, up 27% QoQ and 28% YoY, driven by higher volumes and prices.

• Operating free cash flow for Q2 2026 was $127M (+40% QoQ, +164% YoY).

• Net debt reduced from $1,768M in March 2026 to $1,664M in June 2026.

• Operating income was $369M, compared to a loss of $3M in 1Q26.

Outlook and guidance

• Revised 2026 guidance: comparable EBITDA of $750–$800M, operating free cash flow of $300–$350M, volume of 4.6M tons, and CAPEX of $150M.

• Guidance excludes potential monetization of non-strategic assets and benefits from additional U.S. tariffs.

• Assumptions for 2H26 include China PET margin of $170–200/ton, NA PP margin of 17 cpp, and FX rate of $18.00.

• Assumes reference margins and ocean freight rates will remain above initial estimates but below Q2 2026 levels.