Indorama Ventures Public Company (IVL) Q1 2025 earnings summary

Executive summary

• Revenue declined 3% sequentially and 9% year-over-year to $3.5B, impacted by planned turnarounds, winter freeze disruptions, and weak downstream demand.

• Adjusted EBITDA fell 23% QoQ and 30% YoY to $276M, mainly due to lower CPET performance, compressed industry spreads, and higher energy costs.

• Net profit (adjusted) was a loss of THB 975M, down 239% QoQ and 143% YoY.

• Operating cash flow surged to $416M, enabling a $100M net debt reduction despite $183M in CAPEX.

• Digital transformation initiatives advanced, improving supply chain, working capital efficiencies, and unifying 95% of data for AI-driven improvements.

Financial highlights

• Sales volume was 3.24MT, down 4% QoQ.

• Adjusted EBITDA margin declined to 8% from 10% in 4Q24 and 1Q24.

• Adjusted Net Debt/Equity at 1.39; DSCR at 1.24x; liquidity at $2.2B as of March 31, 2025.

• ESG-linked financing is 32% of total debt.

• Free cash flow for shareholders was $236M after maintenance and growth CAPEX.

Outlook and guidance

• Q2 2025 expected to show improvement due to normalization of turnaround activities, seasonality, and better industry spreads.

• CPET and Fibers segments anticipated to benefit from operational improvements and management actions.

• Packaging business (Indovinya) expected to maintain resilient EBITDA margins due to cost-plus contracts and seasonality.

• India and Africa remain strategic focuses with high demand growth and ongoing projects, with India contributing about 7-8% of revenue.

• $2.0B refinancing planned in 2025, with $1.5B long-term loan term sheet received.