Orbia (ORBIA) investor relations material

Executive summary

• Revenue rose 4% year-over-year to $2.0 billion, with EBITDA up 2% to $295 million, driven by strong performance in Precision Agriculture and Connectivity Solutions, but offset by mixed end-market conditions and lower profitability in some segments.

• Net loss to majority shareholders was $120 million, compared to net income of $86 million in Q3 2024, mainly due to higher taxes and a loss on divestment.

• Operating cash flow was $271 million, representing a 92% EBITDA conversion rate.

• Cost reduction and asset sales are ahead of schedule, with $169 million in annualized savings and $83 million in net proceeds from divestments.

• Moody’s downgraded the company’s debt rating to Ba1, but liquidity remains strong and all material debt maturities are extended to 2030 and beyond.

Financial highlights

• Net revenues increased 4% year-over-year to $2.0 billion, with EBITDA up 2% to $295 million and margin at 15.0%.

• Free cash flow improved by $2 million to $144 million, driven by lower capital expenditures.

• Net debt-to-EBITDA ratio improved from 3.98x to 3.85x; adjusted ratio at 3.42x.

• Cost reduction program achieved $169 million in annual savings, 68% of the $250 million target by 2027.

• Cash on hand was $991 million, with $1.4 billion available on revolving credit facility.

Outlook and guidance

• Full-year 2025 adjusted EBITDA guidance reaffirmed at $1.1–$1.2 billion, likely at the lower end.

• 2025 capital expenditures guidance maintained at $400 million, prioritizing safety, operational integrity, and selective growth projects.

• Effective tax rate for 2025 expected between 27%–32%, excluding discrete items.

• Persistent weak market dynamics expected in Polymer Solutions, with modest growth and margin expansion in Building & Infrastructure.

• Leverage expected to decline to around 3.2x by year-end and 2.7–2.8x by end of 2026.