Orbia (ORBIA) Q4 2025 earnings summary

Executive summary

• Full year 2025 revenues reached $7.6 billion, up 2% year-over-year, with growth in all segments except Polymer Solutions; EBITDA declined 7% to $1.02 billion, and Adjusted EBITDA, excluding $90 million in one-time items, was $1.11 billion.

• EBITDA margin declined 124 basis points year-over-year to 13.4%, with lower profitability in Polymer Solutions and Building & Infrastructure, offset by gains in Connectivity Solutions, Fluor & Energy Materials, and Precision Agriculture.

• Operating cash flow for FY 2025 increased by 24% to $645 million, with a conversion rate of 63%.

• Net debt-to-EBITDA ratio increased to 3.70x at year-end, mainly due to currency effects and lower EBITDA.

• Challenging market conditions persisted, especially in construction and infrastructure, with mixed performance across regions; positive trends were seen in Fluor & Energy Materials, Connectivity Solutions, and Precision Agriculture.

Financial highlights

• Q4 2025 net revenues were $1.9 billion, up 5% year-over-year, with growth in all segments except Polymer Solutions.

• Q4 EBITDA was $227 million, up 2% year-over-year; Adjusted EBITDA for the quarter was $236 million, down 14% due to Polymer Solutions.

• Full year operating cash flow was $645 million, up due to working capital improvements; free cash flow rose $175 million to $111 million.

• Capital expenditures for 2025 were $405 million, down 15% year-over-year.

• Net debt stood at $3.78 billion, with a net debt to EBITDA ratio of 3.70x at year-end.

Outlook and guidance

• 2026 EBITDA is expected between $1.1 billion and $1.2 billion; capex is projected at $400 million, focused on safety, operational integrity, and strategic growth, especially in Fluor & Energy Materials.

• Effective tax rate for 2026 is anticipated at 27–32%.

• No ordinary dividend proposed for 2026 to prioritize deleveraging and balance sheet strength.

• Positive momentum anticipated in Precision Agriculture, Fluor & Energy Materials, and Connectivity Solutions; Polymer Solutions and Building & Infrastructure expected to remain weak.

• Segment outlooks: PS faces excess supply but some price recovery; B&I subdued in Europe, moderate growth in Latin America; PA expects strong demand in Brazil, Africa, Middle East, and U.S.; F&EM sees growth in battery materials and medical propellants; CS benefits from broadband and data center investments.