Indorama Ventures Public Company (IVL) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $3.5 billion, down 3% sequentially and 9% year-over-year, impacted by global economic headwinds, planned maintenance, and weather disruptions.

• Adjusted EBITDA fell 23% QoQ and 30% YoY to $276 million, mainly due to weaker CPET spreads, higher energy costs, and compressed industry margins.

• Operating cash flow surged to $416 million, enabling a $100 million net debt reduction despite $183 million in capex.

• Digital transformation advanced, with 95% data integration and AI tools improving supply chain and working capital efficiencies.

• Indovinya and Fibers segments showed resilience, partially offsetting CPET declines.

Financial highlights

• CPET Adjusted EBITDA fell 43% QoQ and 50% YoY to $126 million, impacted by maintenance shutdowns and weaker spreads.

• Indovinya Adjusted EBITDA was stable at $21 million, with 6% sales volume growth QoQ.

• Fibers Adjusted EBITDA grew 43% QoQ and 22% YoY to $47 million, driven by higher sales and margins.

• Adjusted net profit was a loss of THB 975 million, down 239% QoQ and 143% YoY.

• Free cash flow reached $236 million after maintenance and growth capex.

Outlook and guidance

• Q2 2025 is expected to improve due to normalization after maintenance, better industry spreads, and seasonality.

• CPET and Fibers segments are projected to recover as volumes and margins rebound.

• 2025 total capex is planned at $800 million, with $600 million for growth, including the EPL acquisition.

• $2.0 billion refinancing planned in 2025, with $1.5 billion long-term loan term sheet received.

• Asset sales of $150–200 million expected in 2H25–1H26 to support net debt reduction.