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 operational agility amid global trade disruptions.

• Operating free cash flow reached $127 million for the quarter, supporting accelerated net debt reduction and improved leverage to 2.2x.

• Diversification of the customer base and optimized asset utilization contributed to significant EBITDA and cash flow growth.

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

• Entered the second half of the year with a more resilient financial and operating position, supporting a guidance increase.

Financial highlights

• Reported EBITDA reached $407 million (+300% YoY, +150% QoQ); comparable EBITDA was $336 million (+169% YoY, +124% QoQ), including a $66 million inventory gain.

• Operating free cash flow totaled $127 million (+40% QoQ, +164% YoY), with a 31% EBITDA-to-cash conversion rate.

• Quarterly volume increased to 1.18 million tons, up 6% sequentially and 5% year-over-year.

• Net debt reduced to $1.66 billion, down 6% QoQ and 12% YoY; leverage ratio improved to 2.2x.

• Total revenues reached $2.15 billion, up 27% QoQ and 28% YoY.

Outlook and guidance

• Raised 2026 comparable EBITDA guidance to $750–$800 million and operating free cash flow to $300–$350 million.

• CapEx guidance increased to $150 million to support polypropylene and PET projects.

• Guidance excludes potential monetization of non-strategic assets and additional U.S. tariffs, which could provide upside.

• Assumes PET and PP margins and ocean freight rates will decline from Q2 highs but remain above original guidance.

• No dividend payments expected in 2026 to prioritize deleveraging and financial flexibility.