Indorama Ventures Public Company (IVL) CMD 2026 summary

Strategic transformation and operating model

• Shifted to a leaner, federated operating model, empowering business segments and driving operational accountability.

• Transitioned financial reporting from USD-based adjusted metrics to reported results in Thai Baht, aligning management reporting with statutory accounts and enhancing visibility into currency impacts and operational efficiency.

• Five enterprise priorities: cost reduction, portfolio reorganization, cash and capital discipline, manufacturing excellence, and inventory optimization.

• Global Capability Center in Kolkata and new office in Costa Rica enhance efficiency, scalability, and talent development.

• Focused on radical clarity, transparency, and aligning management incentives to share price performance.

Financial guidance and capital allocation

• EBITDA targeted to grow from THB 32 billion in 2025 to THB 64 billion by 2028, with margins improving from 7% to 12%.

• Net debt reduction of THB 68 billion, aiming for net debt/EBITDA below 3x and return on capital at 11%.

• Free cash flow before growth and dividend to double to THB 100 billion; free cash flow projected to increase from THB 17 billion in 2025 to THB 36 billion by 2028.

• Portfolio optimization and asset rationalization expected to deliver THB 7.2 billion EBITDA and THB 31 billion free cash flow over 2026-28.

• IPOs for packaging and surfactant businesses on hold; deleveraging to be achieved through operational improvements and divestments.

Business segment highlights and market outlook

• U.S. shale-to-PET business leverages feedstock advantage, ensuring stable margins and superior ROCE.

• Packaging business expansion focused on Asia, Middle East, and Africa, leveraging local-for-local model and scale.

• Fiber segment executing self-help plan: $45 million fixed cost reduction, $137 million net working capital reduction, and multiple asset rationalizations.

• Fiber portfolio segmented into invest, protect, fix, and divest, with rigorous capital allocation and six asset rationalizations planned.

• Growth investments in innovation and sustainability, including chemical recycling and textile-to-textile recycling.