ALPEK (ALPEKA) Q1 2026 earnings summary

Executive summary

• Achieved strong Q1 performance with comparable EBITDA of $150M, up 50% sequentially and 18-19% year-over-year, surpassing expectations due to operational readiness, improved margins, and favorable market dynamics, especially amid Middle East tensions.

• Maintained steady operations globally, except for a temporary PTA site disruption in Mexico; Natural Gas business contributed incremental EBITDA, supporting overall profitability.

• Advanced strategic priorities: optimized asset footprint, monetized non-strategic assets, launched growth initiatives in EPS and polypropylene, and invested in differentiated products.

• CFO transition: Rodrigo Prieto Treviño to succeed José Carlos Pons as of May 1, 2026.

Financial highlights

• Comparable EBITDA reached $150M, up 50% sequentially; reported EBITDA was $162M, up 133% sequentially and 24% year-over-year.

• Consolidated volume reached 1.1M tons, up 9% quarter-over-quarter; total revenues were $1.69B, up 11% sequentially.

• Operating free cash flow was $90M; CapEx totaled $38M, mainly for maintenance and plastics/chemicals initiatives.

• Net debt stood at $1.77B, reduced by $72M sequentially; leverage improved to 3.9x from 4.4x.

• Net loss attributable to controlling interest was $63M, compared to a loss of $86M in the previous quarter.

Outlook and guidance

• Q2 volumes trending well; Chinese PTA margins near $300/ton, ocean freight to South America at $110/ton, and polypropylene margins expected to rise by at least $0.04/lb in April.

• Expecting Q2 comparable EBITDA to reach or exceed $200M; full-year EBITDA guidance likely to hit or surpass $550M, with market volatility and geopolitical risks persisting.

• Priorities: operational efficiency, financial discipline, footprint optimization, and growth opportunities.