Orbia Advance Corporation, S.A.B. de C.V. (BMV: ORBIA*) (“the Company” or “Orbia”) today released unaudited results for the third quarter of 2025.

Orbia delivered revenues of $1.97 billion and EBITDA of $295 million for the quarter. Operating cash flow of $271 million represented a conversion rate of 92% of EBITDA for the third quarter of 2025. While the demand environment remains subdued in Polymer Solutions and Building & Infrastructure, market conditions have generally stabilized in the other business groups. In line with its objectives to make progress in reducing its financial leverage ratios, the Company is on track to deliver on its cash generation initiatives, while also successfully strengthening or sustaining its market position across its business groups.

Q3 2025 Financial Highlights

(All metrics are compared to Q3 2024 unless otherwise noted)

• Net revenues of $1,966 million increased 4%, reflecting higher sales across all business groups.
• EBITDA of $295 million increased 2%, primarily driven by Connectivity Solutions and Precision Agriculture, offset by Polymer Solutions, Building & Infrastructure and Fluor & Energy Materials.
• Operating cash flow of $271 million decreased by $12 million and represented a conversion rate of 92% of EBITDA. The decrease was mainly due to a reduction in cash generated from working capital compared to the same quarter of the prior year.
• Annual EBITDA guidance, adjusted for non-operating items, is reaffirmed between $1,100 million and $1,200 million, likely falling in the lower half of the range.

“Orbia’s third quarter results reflect subdued end markets in some of our business groups, with some positive signs in others. In this environment, we are focused on strengthening our leading market positions, making important progress on cost reduction and cash generation, realizing incremental profitability from recently completed investments, executing non-core asset sales and taking proactive actions to simplify and strengthen our business and balance sheet for the long-term,” said Sameer Bharadwaj, CEO of Orbia.

Q3 2025 Consolidated Financial Information¹

(All metrics are compared to Q3 2024 unless otherwise noted)

Net revenues of $1,966 million in the third quarter increased 4%.

The result in revenues for the quarter was mainly driven by strong demand in Precision Agriculture (Brazil, the U.S. and higher project activity), higher volume in Connectivity Solutions and Polymer Solutions, favorable pricing across most of EMEA, Brazil and the Andean region in Building & Infrastructure, and strength in Fluor & Energy Materials.

Cost of goods sold of $1,533 million for the quarter increased 5% compared to the same quarter of the prior year.

The increase in cost of goods sold for the quarter was primarily driven by higher sales in all business groups and higher raw material costs in Fluor & Energy Materials, partly offset by the benefits from cost saving initiatives and operational efficiencies across all business groups.

Selling, general and administrative expenses of $303 million for the quarter decreased 1% compared to the same quarter of last year. As a percentage of sales, SG&A decreased 74 basis points to 15.4%.

The decrease in selling, general and administrative expenses for the quarter was primarily due to the benefits from cost saving initiatives.

EBITDA of $295 million for the quarter increased 2%, while EBITDA margin decreased 26 basis points to 15.0%.

The increase in EBITDA was due to higher volumes in Connectivity Solutions and favorable product mix in Precision Agriculture, partially offset by lower resins pricing in Polymer Solutions, restructuring costs and unfavorable product mix in Building & Infrastructure and higher input costs in Fluor & Energy Materials.

Financial costs of $93 million for the quarter increased by $14 million year-over-year.

The increase in financial costs for the quarter was mainly driven by a shift from an FX gain in the prior year to a slight loss in the current year, due to the appreciation of the Mexican Peso. In addition, interest expense increased following the recently completed debt refinancing.

An income tax expense of $68 million was recognized for the quarter compared to an income tax benefit of $56 million in the same quarter in the prior year. The effective tax rate for the quarter was 243%, primarily driven by the earnings mix across tax jurisdictions, the appreciation of the Mexican Peso against the U.S. Dollar, and inflation adjustments in certain countries. Additionally, the effective tax rate for the quarter reflects the impact of several discrete items, including non-recurring dividend repatriation and business divestment. Excluding the impact of these discrete factors, the effective tax rate was 9.6%.

Net loss to majority shareholders of $120 million in the quarter decreased, compared to a net income of $86 million in the same quarter in the prior year. The decrease was driven by higher taxes and the non-cash effect from the loss on divestment of the pipes and fittings business in India.

Operating cash flow of $271 million in the quarter decreased by $12 million, while free cash flow of $144 million improved by $2 million.

The decrease in operating cash flow was driven by a lower cash generation from working capital. The increase in free cash flow was driven by lower capital expenditure, which more than offset the lower operating cash flow.

Net debt of $3,910 million included total debt of $4,901 million, less cash and cash equivalents of $991 million. The Company’s net debt-to-EBITDA ratio decreased to 3.85x compared to 3.98x in the previous quarter. The decrease in the net debt-to-EBITDA ratio during the third quarter was primarily driven by an increase in cash and cash equivalents of $132 million and an increase in the last 12-months EBITDA of approximately $7 million, partly offset by an increase in total debt of $26 million. The increase in debt was entirely driven by a $33 million impact from the appreciation of the Mexican Peso against the U.S. Dollar during the quarter and included a $7 million debt repayment. Net debt-to-EBITDA at the end of the third quarter using EBITDA adjusted² for non-operating items to better reflect underlying earnings decreased to 3.42x from 3.51x in the previous quarter.

Q3 2025 Revenues by Region

(All metrics are compared to Q3 2024 unless otherwise noted)

Q3 2025 Financial Performance by Business Group

(All metrics are compared to Q3 2024 unless otherwise noted)

Polymer Solutions (Vestolit and Alphagary), 31.9% of Revenues

Orbia’s Polymer Solutions business group (commercial brands Vestolit and Alphagary) focuses on general purpose and specialty PVC resins (polyvinyl chloride), PVC and zero-halogen specialty compounds with a wide variety of applications in everyday products for everyday life, from pipes and cables to household appliances and medical devices. The business group supplies Orbia’s downstream businesses and a global customer base.

Revenues of $647 million increased 2%. EBITDA of $78 million decreased 13% and EBITDA margin decreased 212 basis points to 12.1%.

The increase in revenues for the quarter was driven by higher resins volume, partially offset by lower derivatives volume and lower resin pricing.

EBITDA decreased year-over-year, driven primarily by lower resin pricing and higher ethane costs.

Building & Infrastructure (Wavin), 31.8% of Revenues

Orbia’s Building & Infrastructure business group (commercial brand Wavin) is redefining today’s pipes and fittings industry by creating solutions that last longer and perform better, all with less installation labor required. The business group benefits from supply chain integration with the Polymer Solutions business group, a customer base spanning three continents, and investments in sustainable, resilient technologies for water and indoor climate management.

Revenues of $647 million increased 2%. EBITDA of $76 million decreased 3% and EBITDA margin decreased 63 basis points to 11.7%.

The increase in revenues for the quarter was driven by better pricing across most of EMEA, Brazil and the Andean region, partially offset by lower volume and pricing in Mexico and Eastern Europe and the recently completed non-core assets divestments.

Third quarter EBITDA decreased year-over-year, driven by restructuring costs and unfavorable product mix in Western Europe, partially offset by better results in the U.K. and Brazil, and continued benefits from cost reduction initiatives.

Precision Agriculture (Netafim), 12.7% of Revenues

Orbia’s Precision Agriculture business group’s (commercial brand Netafim) leading-edge irrigation systems, services and digital farming technologies enable stakeholders to achieve significantly higher and better-quality yields while using less water, fertilizer and other inputs. By helping farmers worldwide grow more with less, the business group is contributing to feeding the planet efficiently and sustainably.

Revenues of $257 million increased 11%. EBITDA of $30 million increased 28% and EBITDA margin increased 157 basis points to 11.8%.

The increase in revenues for the quarter was primarily driven by strong demand in Brazil and the U.S. as well as higher project activity in Africa and Peru, partially offset by declines in Mexico and Central America.

Third quarter EBITDA increased year-over-year, driven by higher revenues and a favorable product mix.

Connectivity Solutions (Dura-Line), 12.4% of Revenues

Orbia’s Connectivity Solutions business group (commercial brand Dura-Line) produces more than 500 million meters of essential and innovative connectivity infrastructure per year to bring a world’s worth of information everywhere. The business group produces telecommunications conduit, cable-in-conduit and other HDPE products and solutions that create physical pathways for fiber and other network technologies connecting cities, homes and people.

Revenues of $253 million increased 8%. EBITDA of $42 million increased 36% and EBITDA margin increased 351 basis points to 16.7%.

The increase in revenues for the quarter was driven by strong volume growth, supported by increased demand in telecommunications and datacenter markets as well as a favorable product mix, partially offset by lower prices.

Third quarter EBITDA increased year-over-year primarily driven by higher revenues, higher plant utilization levels and benefits from cost reduction initiatives, partially offset by lower prices.

Fluor & Energy Materials, 11.2% of Revenues

Orbia’s Fluor & Energy Materials business group provides fluorine and downstream products that support modern, efficient living. The business group owns and operates the world’s largest fluorspar mine and produces intermediates, refrigerants and propellants used in automotive, infrastructure, semiconductor, health, medicine, climate control, food cold chain, energy storage, computing and telecommunications applications.

Revenues of $227 million increased 3%. EBITDA of $64 million decreased 3% and EBITDA margin decreased 158 basis points to 28.1%.

The increase in revenues for the quarter was driven by strong demand across most of the product portfolio, partially offset by constrained volume and shipment timing for upstream minerals and intermediates.

Third quarter EBITDA decreased year-over-year driven by higher input costs across key raw materials, freight costs and unfavorable currency fluctuations, partially offset by strength in refrigerants and the benefits from cost saving initiatives.

Balance Sheet, Liquidity and Capital Allocation

Orbia’s net debt-to-EBITDA ratio increased from 3.36x to 3.85x year-over-year primarily driven by an increase of $215 million in net debt, of which $71 million was due to the appreciation of the Mexican Peso against the U.S. Dollar, and a decrease of $85 million in the last 12-months EBITDA. The Company had cash on hand of $991 million at the end of the quarter compared to $909 million during the prior year quarter. Adjusted net debt-to-EBITDA³ for the quarter increased from 3.36x to 3.42x year-over-year and was lower than the 3.51x ratio at the end of the prior quarter.

Working capital decreased by $14 million during the quarter compared to a decrease of $111 million in the prior-year quarter. This decrease is consistent with the seasonal pattern that follows the operational trends of the Company’s businesses. Capital expenditures of $86 million during the quarter decreased 20% year-over-year, including ongoing maintenance spending and investments to support the Company’s targeted growth initiatives.

2025 Outlook

The underlying assumptions for the Company’s guidance reflect a continued subdued environment in Polymer Solutions and Building & Infrastructure, partially offset by improving conditions in Precision Agriculture, Connectivity Solutions and Fluor & Energy Materials. Therefore, Orbia reaffirms its full-year 2025 Adjusted⁴ EBITDA guidance in the range of $1,100 million to $1,200 million, likely falling in the lower half of the range.

The Company also reaffirms its 2025 capital expenditures guidance of approximately $400 million, with a continued focus on investments to ensure safety and operational integrity, completing growth projects under execution that are close to revenue and being extremely selective on any new growth investments.

Excluding discrete items that do not reflect ongoing operational results such as foreign exchange rate changes and inflation adjustments, as well as other non-recurring items, the Company anticipates an effective tax rate of 27% to 32%⁵ in 2025. Orbia remains committed to managing global tax risks amid a volatile currency and inflation environment and will continue to monitor local tax developments as conditions evolve.

For each of Orbia’s businesses the Company is assuming the following:

• Polymer Solutions: Persistent weak market dynamics, driven by excess supply and lower export prices from China and the U.S., are expected to continue for the remainder of the year, alongside rising ethane and ethylene input costs. While the first half was marked by raw material disruptions and operational issues in derivatives, the business has now stabilized operations and is focused on running at high utilization to improve profitability and generate cash.
• Building & Infrastructure: The business anticipates modest growth driven by new product launches and margin expansion. This growth is expected despite persistently challenging market conditions in Western Europe and Mexico. To navigate this environment, the business remains intensely focused on realizing operational cost efficiencies to further improve profitability.
• Precision Agriculture: Market conditions are expected to remain stable to slightly improving, supported by continued positive momentum in Brazil and the U.S. The Company anticipates continued strong performance in parts of Latin America and from projects in Africa. The business will remain focused on driving growth through deeper penetration in extensive crops, while maintaining a consistent emphasis on cost management and working capital improvements.
• Connectivity Solutions: The business expects continued volume growth throughout the year, supported by sustained momentum in network deployment, datacenter demand, and investment in the power sector. Profitability is set to grow, driven by the benefits of cost-saving initiatives and higher facility utilization.
• Fluor & Energy Materials: The business anticipates continued strength in fluorine markets, with resilient demand and pricing expected through the remainder of the year, which will help offset input cost increases. To support margins, the business is centered on prioritizing cost-control initiatives, complemented by active product portfolio management to maximize value creation.

Conference Call Details

Orbia will host a conference call to discuss third quarter 2025 results on October 23, 2025, at 9:00 AM Central Time (CST; Mexico City)/11:00 AM Eastern Time (ET; New York). To access the call, please dial 001-855-817-7630 (Mexico), 1-888-339-0721 (United States) or 1-412-317-5247 (International).

Participants may pre-register for the conference call here.

The live webcast can be accessed here.

A recording of the webcast will be posted several hours after the call is completed on Orbia’s website.

For all company news, please visit www.orbia.com/this-is-orbia/newsroom.

Consolidated Income Statement

Consolidated Balance Sheet

Cash Flow Statement

Notes and Definitions

The results contained in this release have been prepared in accordance with International Financial Reporting Standards (“NIIF” or “IFRS”) with U.S. Dollars as the reporting currency. Figures are presented in millions, unless specified otherwise.

Figures and percentages have been rounded and may not add up.

About Orbia

Orbia Advance Corporation, S.A.B. de C.V. (BMV: ORBIA*) is a company driven by a shared purpose: to advance life around the world. Orbia operates in the Polymer Solutions (Vestolit and Alphagary), Building & Infrastructure (Wavin), Precision Agriculture (Netafim), Connectivity Solutions (Dura-Line) and Fluor & Energy Materials sectors. The five Orbia business groups have a collective focus on expanding access to health and well-being, reinventing the future of cities and homes, ensuring food, water and sanitation security, connecting communities to information and enabling the energy transition with basic and advanced materials, specialty products and innovative solutions. Orbia has a global team of over 23,000 employees, commercial activities in more than 100 countries and operations in over 50, with global headquarters in Boston, Mexico City, Amsterdam and Tel Aviv. The company generated $7,506 million in revenue in 2024. To learn more, visit: orbia.com

Prospective Information

In addition to historical information, this press release contains "forward-looking" statements that reflect management's expectations for the future. The words “anticipate,” “believe,” “expect,” “hope,” “have the intention of,” “might,” “plan,” “should” and similar expressions generally indicate comments on expectations. The forward-looking statements included in this press release are subject to a number of material risks and uncertainties, and our results may be materially different from current expectations due to factors, which include, but are not limited to, global and local changes in politics, economic factors, business, competition, market and regulatory factors, cyclical trends in relevant sectors as well as other factors affecting our operations, markets, products, services and prices that are highlighted under the title “Risk Factors” in the annual report submitted by Orbia to the Mexican National Banking and Securities Commission (CNBV) and available on our website at Investor Relations | Orbia. The forward-looking statements included herein represent Orbia’s views as of the date of this press release. Orbia undertakes no obligation to revise or update publicly any forward-looking statement for any reason unless required by law.”

Orbia has implemented a Code of Ethics that helps define our obligations to and relationships with our employees, clients, suppliers, and others. Orbia’s Code of Ethics is available for consultation at the following link: http://www.Orbia.com/Codigo_de_etica.html. Additionally, according to the terms contained in the Mexican Securities Exchange Act No 42, the Orbia Audit Committee has established a “hotline” system permitting any person who is aware of a failure to adhere to applicable operational and accounting records guidelines, internal controls or the Code of Ethics, whether by the Company itself or any of its controlled subsidiaries, to file a complaint (including anonymously). This system is operated by an independent third-party service provider. The system may be accessed via telephone in Mexico, via internet at www.ethics.orbia.com or via email at ethics@orbia.com. Orbia’s Audit Committee has oversight responsibility for ensuring that all such complaints are appropriately investigated and resolved.

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