Indorama Ventures Public Company (IVL) Q2 2025 earnings summary

Executive summary

• Revenue reached $3.55B in 2Q25, up 2% QoQ but down 11% YoY, as volumes recovered from prior disruptions.

• Adjusted EBITDA rose 20% QoQ to $330M, but fell 11% YoY due to margin normalization and higher costs.

• Net profit was negative THB 521M, but adjusted net profit was positive at THB 595M, marking a turnaround from prior losses.

• 24.9% stake in EPL was acquired in May 2025, with full impact expected in 3Q25.

• Transformation under IVL 2.0 continues, focusing on operational excellence, asset optimization, and digital acceleration.

Financial highlights

• Sales volume increased 3% QoQ to 3.33MT, but 1H25 saw an 8% YoY decline in sales volumes and a 10% drop in revenue.

• Adjusted EBITDA margin for 2Q25 was 9%, up 175 bps QoQ.

• Operating cash flow in 1H25 was $618M, with 111% EBITDA conversion, driven by working capital improvements.

• Adjusted Net Debt/Equity was 1.39x as of June 2025.

• Reported EBITDA for 2Q25 was $280M.

Outlook and guidance

• Management expects improved volumes and margins in 2H25 as market conditions normalize and asset optimization benefits are realized.

• Q3 expected to improve for Indovinya as PKO prices normalize and seasonal demand increases.

• Fibers segment anticipated to remain weak in Q3 due to European holiday season.

• Cash proceeds of $190-200M from land and property sales are anticipated from 2H25 through 2026.

• Strategic focus remains on deleveraging, free cash flow generation, and achieving a long-term Debt/EBITDA target of 3x.