Orbia (ORBIA) investor relations material

Executive summary

• Revenues reached $2 billion, up 4% year over year, with EBITDA of $295 million, a 2% increase, driven by strong performance in Connectivity Solutions and Precision Agriculture, despite mixed end-market conditions and operational disruptions.

• 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.

• Maintained strong financial discipline, advancing cost optimization, non-core asset divestments, and balance sheet improvements.

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

Financial highlights

• Net revenues of $2 billion increased 4% year over year, with EBITDA of $295 million up 2%, and free cash flow improved by $2 million to $144 million.

• EBITDA margin was 15.0%, down 26 bps year-over-year; operating income grew 4% to $130 million.

• Net debt to EBITDA decreased from 3.98x to 3.85x; adjusted net debt to EBITDA improved from 3.51x to 3.42x.

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

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

Outlook and guidance

• Full-year 2025 adjusted EBITDA guidance reaffirmed at $1.1–$1.2 billion, likely at the lower end, with CAPEX expected at $400 million, prioritizing safety, operational integrity, and selective growth.

• Effective tax rate for 2025 projected at 27–32%.

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

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

• Growth anticipated in Precision Agriculture and Connectivity Solutions, with continued strength in Fluor & Energy Materials.