ALPEK (ALPEKA) Q1 2026 earnings summary

Executive summary

• Achieved strong Q1 performance with comparable EBITDA of $150 million, up 50% sequentially and 18–19% year-over-year, surpassing expectations amid volatile industry conditions and geopolitical disruptions.

• Maintained operational stability across most sites, with minor disruptions in Mexico; natural gas business contributed incremental EBITDA, benefiting from winter storms.

• Advanced strategic priorities: optimized asset footprint, monetized non-strategic assets, and invested in growth initiatives in EPS and polypropylene.

• Leadership transition: Rodrigo Prieto appointed as new CFO, succeeding José Carlos Pons, effective May 1, 2026.

Financial highlights

• Comparable EBITDA reached $150 million, up 50% sequentially; reported EBITDA was $162 million, up 133% sequentially and 24% year-over-year.

• Consolidated volume reached 1.1 million tons, up 9% quarter-over-quarter; total revenues were $1.69 billion, up 11% sequentially.

• Operating free cash flow was $90 million; CapEx totaled $38 million, focused on maintenance and plastics/chemicals initiatives.

• Net debt reduced to $1.77 billion, a 4% sequential and 6% year-over-year reduction; leverage improved to 3.9x from 4.4x at year-end.

• Net loss attributable to controlling interest was $63 million, compared to a loss of $86 million in the previous quarter.

Outlook and guidance

• Q2 volumes trending well; expect comparable EBITDA to reach or exceed $200 million.

• Anticipate reaching or surpassing the higher end of $550 million EBITDA guidance, but full-year guidance remains unchanged pending further visibility.

• Market volatility and elevated freight costs expected to persist due to Middle East disruptions; supply chain and margin impacts closely monitored.

• Continued focus on financial discipline, footprint optimization, and deleveraging.

• Priorities for 2026 include maintaining operational efficiency, reinforcing competitive position, and seeking growth opportunities.