Orbia (ORBIA) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues were $1.8 billion, down 3% year-over-year, with reported EBITDA of $198 million, down 21%, but adjusted EBITDA rose 3% to $260 million, reflecting resilience amid market headwinds and supply disruptions.

• Cost reduction and footprint optimization programs are on track, with $160 million in annual savings expected by end-2025.

• Non-core asset divestments are progressing, targeting $75 million in proceeds for 2025 and $150 million by 2026.

• Maintained strong financial discipline and advanced balance sheet improvements.

Financial highlights

• Net revenues declined 3% year-over-year to $1.8 billion, mainly due to lower prices and supply disruptions in Polymer Solutions.

• EBITDA fell 21% to $198 million, impacted by non-recurring legal, restructuring, and supply disruption costs; adjusted EBITDA margin was 14.4%.

• Operating cash outflow improved by $28 million year-over-year to negative $22 million, driven by working capital management and currency gains.

• Free cash flow was negative $155 million, a $46 million improvement year-over-year, reflecting seasonal working capital needs.

• Capital expenditures were $105 million, down $27 million or 20% year-over-year.

Outlook and guidance

• 2025 adjusted EBITDA is expected to be $1.1–$1.2 billion; CapEx for 2025 will be managed to $400 million or less, focusing on safety, operational integrity, and selective growth.

• Effective tax rate projected at 27%–31%.

• Guidance reflects market uncertainty, including potential economic slowdown from trade tensions.

• Deleveraging plan remains on track, with leverage expected below 3x by year-end and below 2.5x in 2026.