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Revenue: $2.4 billion, increased 20% year-over-year.

EBITDA: $467 million, increased 56% year-over-year.

Operating Cash Flow: $62 million, increased by $15 million compared to prior year.

Free Cash Flow: Negative $73 million, improved by $9 million year-over-year.

Capital Expenditures: $100 million, increased by $3 million over the prior year quarter.

Net Debt-to-EBITDA: Decreased from 3.64x to 3.28x compared to the previous quarter.

Polymer Solutions Revenue: $773 million, increased 25% year-over-year.

Polymer Solutions EBITDA: $144 million, increased 82% year-over-year, with an EBITDA margin of 18.6%.

Building & Infrastructure Revenue: $725 million, increased 15% year-over-year.

Building & Infrastructure EBITDA: $113 million, increased 79% year-over-year, with an EBITDA margin of 15.7%.

Fluor and Energy Materials Revenue: $329 million, increased 33% year-over-year.

Fluor and Energy Materials EBITDA: $114 million, increased 58% year-over-year, with an EBITDA margin of 34.7%.

Precision Agriculture Revenue: $325 million, increased 13% year-over-year.

Precision Agriculture EBITDA: $47 million, increased 19% year-over-year, with an EBITDA margin of 14.5%.

Connectivity Solutions Revenue: $390 million, increased 30% year-over-year.

Connectivity Solutions EBITDA: $54 million, increased 33% year-over-year, with an EBITDA margin of 16.9%.

Release Date: July 23, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Orbia Advance Corp SAB de CV (MXCHF) reported a 20% increase in revenues to approximately $2.4 billion and a 56% increase in EBITDA to $467 million compared to the prior year’s quarter.

The company demonstrated strong performance in Polymer Solutions, with revenues increasing by 25% year-over-year, driven by higher resin prices and favorable market dynamics.

Connectivity Solutions saw a 30% year-over-year revenue increase, driven by strong demand in US telecommunications, data center build-out, and power grid modernization.

The company successfully reduced its net debt-to-EBITDA ratio from 3.64x to 3.28x, reflecting improved financial discipline and cash generation.

Orbia Advance Corp SAB de CV (MXCHF) is well-positioned to capitalize on improving market conditions, with strategic focus on cost optimization, capital allocation discipline, and cash generation.

Negative Points

The company faces potential inflationary pressures and demand impacts in the midterm due to ongoing geopolitical conflicts in the Middle East.

There is a risk of demand deferral in the Building and Infrastructure segment, particularly in Europe, due to higher prices.

The company experienced a negative free cash flow of $73 million, although it improved by $9 million year-over-year.

Higher input and energy costs in Europe and adverse currency fluctuations partially offset gains in Polymer Solutions.

The company remains cautious about sustaining the favorable effects observed in the second quarter throughout the second half of the year.

Q & A Highlights

Q: Sameer, you’ve mentioned preemptive measures in response to the Middle East conflict. Can you elaborate on these measures and discuss the potential midterm inflationary pressures on your downstream businesses? A: Our preemptive measures involve our ability to respond to crises, developed over several years. This includes pricing, working capital management, inventory control, and cash generation. While the conflict provides short-term benefits, it could lead to inflationary pressures in the midterm. We remain cautious and agile, monitoring demand trends closely. Sameer Bharadwaj, CEO

Q: Regarding the connectivity business, how significant is the AI data center infrastructure to this segment, and does it impact margins? A: The AI data center infrastructure is crucial, contributing significantly to our growth. It involves on-campus and interconnect subsegments, both growing rapidly. This growth improves our operating rates and optimizes unit costs, positively impacting margins. Sameer Bharadwaj, CEO

Q: Are you seeing any demand deferral in the Netafim business due to El Nino or rising input costs? A: We haven’t observed demand deferral due to El Nino or input cost pressures. The business is performing well, with strong growth in regions like the US, Turkey, Brazil, and Africa, driven by new product launches and project backlogs. Sameer Bharadwaj, CEO

Q: How is Orbia preparing for the uncertainties in the market, such as oil price volatility and global interest rates? A: We focus on controllable factors, optimizing costs, restructuring, and introducing new products. Each business segment has unique dynamics, and we leverage resilience to navigate uncertainties. Our capital allocation prioritizes deleveraging and strengthening the balance sheet. Sameer Bharadwaj, CEO

Q: Can you provide more details on the strong performance of the Fluor division and its sustainability? A: The Fluor division benefits from strategic access to resources and robust pricing power. While some contributions, like the medical propellant 227 EA, are non-recurring, we expect continued strength from new products and market dynamics. Sameer Bharadwaj, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.