Indorama Ventures Public Company (IVL) Q1 2026 earnings summary

Executive summary

• Q1 2026 marked a strong operational and financial recovery from the 2023–2025 cyclical trough, with sequential momentum driven by IVL 2.0 strategy, PET margin rebound due to the Strait of Hormuz crisis, and a changed market post-Middle East disruptions.

• Management sees the business in an early to mid upcycle, supported by external tailwinds, internal actions, and four strategic moats: local-for-local integration, diversified business engines, Americas feedstock advantage, and disciplined S&OE execution.

• The company shifted to reporting in Thai baht, fully integrating inventory gain/loss into operational results, and transitioned to Thai Accounting Standard No. 34.

• Change in accounting policy for land measurement to the revaluation model, increasing land value and equity revaluation reserve, with restatement of prior period results.

• Strategic merger with EPL to scale packaging platform and enhance presence in high-growth markets.

Financial highlights

• Consolidated revenue rose 7% sequentially to THB 109 billion, with a 2% currency headwind, but was down 8% year-on-year.

• EBITDA increased 89% quarter-on-quarter to THB 8,048 million, though down 10% year-on-year.

• Net loss for Q1 2026 was THB 1,771 million, with loss attributable to owners at THB 2.8 billion.

• Operating cash flow after maintenance CapEx was THB 8.8 billion, covering all growth CapEx and interest.

• Net working capital reduced by THB 3.2 billion, and net debt to equity improved to 1.73x from 1.83x.

Outlook and guidance

• Management expects continued favorable pricing, higher asset utilization, and further margin expansion in Q2 2026, with sequential earnings improvement and accelerated deleveraging toward a target of 3x net debt to EBITDA.

• PET and PTA demand remains resilient despite geopolitical disruptions; spreads are expected to stay above prior years’ levels.

• CapEx for 2026 is projected below $400 million, likely between $300–350 million, with disciplined review of each project.

• Positive business outlook supported by disciplined execution and self-help measures, not just market dynamics.

• PET margins expected to remain strong due to sustained industry discipline and supply disruptions.