About Orbia Advance Corporation
Orbia Advance Corporation is a conglomerate offering solutions in the fields of agriculture, water, urban development, and connectivity. The company has recently reported negative results for the first quarter of 2025, leading to a reduction in its projected operating cash flow (EBITDA) for the year.
Revised EBITDA Projections
Orbia now estimates its EBITDA to range between $1,100 and $1,200 million by the end of 2025. This represents a decrease of 4% to 12% compared to the $1,250 million projected for 2024.
Reasons for the Adjustment
The adjustment is attributed to the current business environment, according to Orbia’s report on first-quarter results. The company anticipates capital investments of $400 million or less, focusing on completing growth projects nearing sales and maintaining strict selectivity in growth projects.
First Quarter Performance
- EBITDA decreased by 21.7%, surpassing the projections of Infosel’s consensus.
- Revenues dropped by 2.8%, which was less than market expectations.
Segment-wise Performance
The decline in performance during the quarter was primarily due to lower revenues from the Polymer Solutions business, which experienced reduced prices and disruptions in raw material supply from a key provider.
- Building & Infrastructure faced weak performance in Continental Europe and Mexico, which could not be offset by the advances in Precision Agriculture (6% sales growth) and Fluor & Energy Materials (14% growth).
Financial Position Update
Orbia’s leverage ratio increased to 3.67 times during the quarter due to a decrease in its last twelve months’ EBITDA by $200 million and an increase of $148 million in net debt.
Key Questions and Answers
- What is Orbia Advance Corporation? Orbia Advance Corporation is a conglomerate offering solutions in agriculture, water management, urban development, and connectivity.
- Why did Orbia reduce its EBITDA projections? The reduction is due to the challenging business environment, including disruptions in raw material supply and lower-than-expected revenues from certain business segments.
- What were the key factors affecting Orbia’s first-quarter performance? The primary factors were reduced prices and supply disruptions in the Polymer Solutions business, as well as weak performance in Building & Infrastructure in Continental Europe and Mexico.
- How did Orbia’s financial position change in the first quarter? Orbia’s leverage ratio increased to 3.67 times, driven by a decrease in EBITDA and an increase in net debt.
