Orbia Advance Corporation Reports 2025 Financial Results Highlighting Resilience and Operational Discipline
Orbia Advance Corporation, S.A.B. de C.V. (BMV: ORBIA*) (“Orbia” or “the Company”) released its unaudited results for the fourth quarter and full year of 2025, demonstrating resilience in a challenging global market environment and disciplined financial and operational management.
For the fourth quarter of 2025, Orbia reported net revenues of $1,875 million, representing a 5% increase compared to Q4 2024. Full-year revenues totaled $7,619 million, up 2% from 2024. Revenue growth was driven by strong performance in Connectivity Solutions, Fluor & Energy Materials, Building & Infrastructure, and Precision Agriculture, partially offset by lower contributions from the Polymer Solutions segment.
EBITDA and Adjusted EBITDA Performance
The Company reported EBITDA of $227 million for Q4 2025, a 2% increase from the same period last year, while full-year EBITDA amounted to $1,020 million, a 7% decline from 2024. Adjusted EBITDA, which excludes one-time and non-recurring items, was $236 million for the quarter, down 14% year-over-year, and $1,110 million for the full year, down 7%. The adjusted EBITDA margins were 12.6% in Q4 and 14.6% for the full year.
The increase in quarterly EBITDA was primarily driven by higher volumes and lower one-time costs in the Fluor & Energy Materials and Building & Infrastructure businesses. For the full year, EBITDA declined due to weaker performance in Polymer Solutions and Building & Infrastructure, partially offset by stronger results in Fluor & Energy Materials, Connectivity Solutions, and Precision Agriculture.
Operating Cash Flow and Free Cash Flow
Orbia continued to deliver strong cash generation. Operating cash flow for Q4 2025 was $349 million, up 23% compared to the prior year, while free cash flow rose to $204 million, a 64% increase. For the full year, operating cash flow totaled $645 million, up 24%, and free cash flow was $111 million, compared to negative $64 million in 2024. The improvement in cash flow was driven by efficient working capital management, cost optimization initiatives, and the absence of adverse currency impacts experienced in the previous year.
Segment Performance
- Polymer Solutions (Vestolit and Alphagary): Representing 30.8% of revenues, this segment focuses on PVC resins and specialty compounds. Q4 revenues declined 6% to $558 million, and full-year revenues decreased 4% to $2,420 million. EBITDA fell 55% for the quarter to $33 million and 30% for the year to $248 million, reflecting lower resin prices, operational disruptions, and supply constraints. Adjusted EBITDA was $39 million for Q4 and $279 million for the year.
- Building & Infrastructure (Wavin): Contributing 31.3% of revenues, this business provides advanced piping and water management solutions. Q4 revenues grew 4% to $600 million, while full-year revenues slightly declined 1% to $2,462 million. Q4 EBITDA increased 34% to $71 million, with full-year EBITDA decreasing 10% to $246 million. Adjusted EBITDA was $78 million for the quarter and $286 million for the year, reflecting ongoing benefits from cost-saving initiatives and favorable product mix.
- Precision Agriculture (Netafim): Representing 14% of revenues, the segment focuses on efficient irrigation systems. Q4 revenues increased 5% to $279 million, while full-year revenues grew 6% to $1,095 million. EBITDA for the quarter remained stable at $33 million, and full-year EBITDA rose 9% to $136 million. Adjusted EBITDA stood at $35 million for Q4 and $142 million for the full year.
- Fluor & Energy Materials: Accounting for 12.2% of revenues, this segment provides fluorine-based products for industrial, pharmaceutical, and energy applications. Q4 revenues surged 21% to $268 million, with full-year revenues up 11% to $958 million. EBITDA for Q4 more than doubled to $68 million, while full-year EBITDA increased 14% to $267 million. Adjusted EBITDA mirrored these results.
- Connectivity Solutions (Dura-Line): Representing 11.7% of revenues, this segment delivers telecommunications conduit and fiber infrastructure solutions. Q4 revenues increased 32% to $226 million, and full-year revenues rose 9% to $918 million. EBITDA grew 61% in the quarter to $21 million and 21% for the year to $131 million. Adjusted EBITDA increased 105% in Q4 and 23% for the year, reflecting strong volume growth and favorable product mix.
Regional Performance
North America contributed 34% of full-year revenues ($2,633 million), slightly down from 2024, while Europe accounted for 32% ($2,413 million), up 3%. South America delivered 21% of revenues ($1,620 million), with Asia contributing 10% ($745 million), and Africa and other regions 3% ($208 million).
Financial Costs, Taxes, and Net Income
Financial costs increased to $109 million in Q4 and $373 million for the full year due to higher interest expenses from debt refinancing and the appreciation of the Mexican Peso against the U.S. Dollar. Income tax expense was $85 million for the quarter and $291 million for the year, compared to an income tax benefit in the prior year, primarily driven by geographic earnings mix, currency effects, and non-recurring items.
Net loss attributable to majority shareholders was $158 million in Q4 and $457 million for the full year, compared to net losses of $62 million and net income of $145 million, respectively, in 2024. The increased losses were primarily due to higher taxes, higher financial costs, lower operating earnings, and non-cash impacts from divestments and impairments.
Balance Sheet and Capital Allocation
Orbia ended 2025 with $1,040 million in cash and cash equivalents. Net debt increased to $3,779 million, resulting in a net debt-to-EBITDA ratio of 3.70x, slightly higher than 3.30x in the prior year, largely due to currency appreciation and a slight decline in EBITDA. Adjusted net debt-to-EBITDA, reflecting underlying earnings, was 3.40x. Capital expenditures for the year totaled $405 million, down 15% from 2024, reflecting a combination of maintenance investments and growth initiatives. Working capital decreased by $47 million for the full year.
CEO Commentary
Sameer Bharadwaj, CEO of Orbia, commented:
“Global market conditions across our business groups were mixed but generally challenging in 2025, particularly in construction and infrastructure and in certain regions like Europe and Mexico. Despite this, we observed favorable trends in Fluor & Energy Materials, Connectivity Solutions, and Precision Agriculture. We remain committed to financial discipline, strengthening market positions, and driving results through operational excellence, earnings, and cash generation. Cost optimization initiatives and non-core asset sales are contributing meaningfully, and we continue to seek opportunities to simplify the business, enhance our balance sheet, and drive cash generation to support long-term strategic goals. We expect 2026 to remain challenging in some areas while showing continued improvement in others.”
