ALPEK (ALPEKA) Q2 2026 earnings summary

Executive summary

• Achieved strong operational performance and supply chain management, driving significant EBITDA growth and customer diversification amid global trade disruptions and higher freight costs.

• Reported EBITDA rose 300% year-over-year to $407 million, with comparable EBITDA up 169% to $336 million in Q2 2026, supported by higher volumes and improved margins.

• Operating free cash flow reached $127 million, and net debt was reduced to $1.66 billion, improving leverage to 2.2x.

• Entered the second half of the year with a more resilient operating and financial position, supporting a raised 2026 EBITDA guidance.

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

Financial highlights

• Comparable EBITDA rose 169% year-over-year to $336 million; reported EBITDA reached $407 million, up 300% from last year, including a $66 million inventory gain.

• Operating free cash flow totaled $127 million, with a 31% earnings-to-cash conversion rate.

• Net debt reduced to $1.66 billion, with leverage ratio improved to 2.2x.

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

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

Outlook and guidance

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

• CapEx guidance for 2026 set at $150 million, supporting polypropylene and PET projects.

• Guidance assumes normalization of margins and freight rates in H2, but still above original expectations.

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

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