ALPEK (ALPEKA) Q3 2025 earnings summary

Executive summary

• Achieved a 10% sequential improvement in financial and operating results in Q3 2025, with operational normalization in Polyester and stable demand in Plastics & Chemicals, despite ongoing industry challenges and global oversupply pressures.

• Strategic actions included footprint optimization, divestiture of non-core assets, and $690 million in debt refinancing to strengthen liquidity and extend maturities.

• Regulatory approval for the merger of Controladora ALPEK with ALPEK was received, aiming to create a single listed entity with 100% free float and potential IPC inclusion.

• Introduction of reciprocal tariffs on PET in the U.S. is anticipated to benefit domestic producers starting in 2026.

• Free cash flow remained strong at $68 million for the quarter, reflecting effective cost and inventory management.

Financial highlights

• Total volume was 1.12 million tons (1,124 ktons), up 1% sequentially but down 8% year-over-year due to persistent oversupply.

• Comparable EBITDA was $137 million, up 10% quarter-over-quarter but down 37% year-over-year; reported EBITDA included a $21 million negative adjustment for extraordinary costs.

• Operating free cash flow reached $68 million in Q3, a 41% sequential increase, totaling $123 million year to date.

• Revenues were $1.67 billion, down 1% quarter-over-quarter and 15% year-over-year, reflecting pressured pricing.

• Net loss attributable to controlling interest was $44 million, compared to a $28 million loss in Q2 and $26 million net income in Q3 2024.

Outlook and guidance

• Full-year comparable EBITDA guidance revised to approximately $500 million, reflecting continued margin pressure, industry volatility, and lower expected demand in Q4 due to seasonality and maintenance shutdowns.

• Reciprocal tariffs on PET imports into the U.S. are expected to benefit results starting in 2026 as contracts are renegotiated and imports are displaced.

• Company remains focused on cost structure improvements, balance sheet health, and expansion into higher value products.