Orbia Announces Third Quarter 2026 Financial Results

MEXICO CITY--(BUSINESS WIRE)--Orbia Advance Corporation, S.A.B. de C.V. (BMV: ORBIA*) (“the Company” or “Orbia”) today released unaudited results for the third quarter of 2026.

Q3 2026 Financial Highlights
(All metrics are compared to Q3 2025 unless otherwise noted)

• Net revenues of $2,196 million increased 12%, reflecting higher sales across all business groups.
• EBITDA of $332 million increased 12%, primarily driven by Connectivity Solutions, Fluor & Energy Materials and Building & Infrastructure, partly offset by Polymer Solutions and Precision Agriculture.
• Operating cash flow of $245 million decreased by $26 million, mainly due to incremental working capital investments and higher taxes paid, partly offset by higher EBITDA.

“Orbia’s third quarter results reflect the strengths of our businesses amid uneven demand across markets and geographies. The impact of higher raw material, energy and logistics costs, currency volatility and rising interest rates weighed most heavily on rate-sensitive construction and housing markets and on our operations in Europe. At a business group level, Connectivity Solutions captured strong demand from AI data center, telecom, power and electrification investments in the U.S., and Fluor & Energy Materials continued to benefit from solid fluorine chain fundamentals," said Sameer Bharadwaj, CEO of Orbia.

Bharadwaj continued, "This diversification allows us to absorb temporary pressures in parts of the business while capturing opportunities in others, supporting more resilient earnings and cash flow across market cycles. Our teams are responding efficiently to rising input, energy and freight costs with disciplined commercial actions, while actively managing our supply chains. We remain focused on strengthening the balance sheet through cost optimization, disciplined capital allocation, cash generation, and making progress on non-core asset sales. Supported by our clear priorities and the strength of our businesses, Orbia is well positioned to deliver sustainable shareholder value as market conditions evolve.”

Q3 2026 Consolidated Financial Information¹
(All metrics are compared to Q3 2025 unless otherwise noted)

mm US$	Third Quarter
Financial Highlights	2026	2025	% Var.
Net sales	2,196	1,966	12%
Cost of Sales	1,696	1,533	11%
Selling, general and administrative expenses	339	303	12%
Operating income	161	130	24%
EBITDA	332	295	12%
EBITDA margin	15.1%	15.0%	10 bps
Financial cost	111	93	19%
Loss on sale of a business	-	66	-100%
Earnings before taxes	53	(28)	N/A
Income tax expense (benefit)	(8)	68	N/A
Consolidated net (loss) income	61	(96)	N/A
Net majority (loss) income	38	(120)	N/A
Operating cash flow	245	271	-10%
Capital expenditures	(79)	(86)	-8%
Free cash flow	130	144	-9%
Net debt	3,979	3,910	2%

^1 Unless noted otherwise, all figures in this release are derived from the Consolidated Financial Statements of the Company as of September 30, 2026 and 2025 and are prepared in accordance with International Accounting Standards 34 “Interim Financial Reporting” of the International Financial Reporting Standards (IFRS), which have been published in the Bolsa Mexicana de Valores (BMV). See Notes and Definitions at the end of this release for further explanation of terms used herein.

Net revenues of $2,196 million in the third quarter increased 12%.

Revenues increased in the third quarter, with growth coming from all business groups.

Cost of goods sold of $1,696 million for the quarter increased 11% compared to the same quarter of the prior year.

The increase in cost of goods sold was driven by higher volumes, primarily in Fluor & Energy Materials and Connectivity Solutions, as well as higher raw material costs across all business groups.

Selling, general and administrative expenses of $339 million for the quarter increased 12% compared to the same quarter of last year. As a percentage of sales, SG&A remained flat year-over-year at 15.4%.

Selling, general and administrative expenses for the quarter increased due to unfavorable currency fluctuations, higher personnel-related costs and professional services costs.

EBITDA of $332 million for the quarter increased 12%, while EBITDA margin increased 10 basis points to 15.1%.

The increase in EBITDA was driven primarily by strong demand and improved product mix in Connectivity Solutions and commercial strength in Fluor & Energy Materials, partly offset by higher costs in Europe in Polymer Solutions and unfavorable sales mix in Precision Agriculture.

Financial costs of $111 million for the quarter increased by $18 million year-over-year.

The increase in financial costs was mainly driven by lower non-cash fair value gains from investments, compared to the prior-year period, higher interest expense as a result of higher debt, and lower interest income due to lower average cash balances.

An income tax benefit of $8 million was recognized for the quarter compared to an income tax expense of $68 million in the same quarter in the prior year. The effective tax rate for the quarter was negative 15%, primarily driven by the depreciation of the Mexican Peso relative to the U.S. Dollar, inflation-related adjustments, and changes in valuation allowances. Excluding the impact of certain discrete factors, the effective tax rate for the quarter would have been approximately 29%, reflecting the geographic mix of earnings.

Net income to majority shareholders of $38 million in the quarter improved compared to a net loss of $120 million in the same quarter in the prior year. The increase was driven by lower income taxes, the absence of the prior-year non-cash loss on the divestment of the pipes and fittings business in India and higher operating income, partially offset by higher financial costs.

Operating cash flow of $245 million in the quarter decreased by $26 million, while free cash flow of $130 million decreased by $14 million.

The operating cash flow result was mainly due to higher working capital investments and taxes paid, partly offset by higher EBITDA. The decrease in free cash flow was driven by lower operating cash flow, partly offset by lower capital expenditures.

Net debt of $3,979 million included total debt of $4,958 million, less cash and cash equivalents of $979 million. The Company’s net debt-to-EBITDA ratio decreased from 3.28x to 3.10x compared to the previous quarter. This was primarily driven by a decrease in net debt of $115 million, mainly driven by positive free cash flow, and an increase in the last 12-months EBITDA of $37 million.

Q3 2026 Revenues by Region
(All metrics are compared to Q3 2025 unless otherwise noted)

mm US$	Third Quarter
Region	2026	2025	% Var.	% Revenue
North America	895	707	26%	41%
Europe	619	616	0%	28%
South America	437	424	3%	20%
Asia	182	167	9%	8%
Africa and others	63	52	23%	3%
Total	2,196	1,966	12%	100%

Q3 2026 Financial Performance by Business Group
(All metrics are compared to Q3 2025 unless otherwise noted)

Polymer Solutions (Vestolit and Alphagary), 29.6% of Revenues

Orbia’s Polymer Solutions business group (commercial brands Vestolit and Alphagary) focuses on general purpose and specialty PVC resins (polyvinyl chloride), PVC and zero-halogen specialty compounds with a wide variety of applications in everyday products for everyday life, from pipes and cables to household appliances and medical devices. The business group supplies Orbia’s downstream businesses and a global customer base.

mm US$	Third Quarter
Polymer Solutions	2026	2025	% Var.
Total sales*	675	647	4%
Operating (loss) income	3	12	-76%
EBITDA	68	78	-14%
*Intercompany sales were $68 million and $42 million in Q3 26 and Q3 25, respectively.

Revenues of $675 million increased 4%. EBITDA of $68 million decreased 14% and EBITDA margin decreased by 207 basis points to 10.0%.

The increase in revenues for the quarter was driven by higher prices in general resins and was partially offset by soft demand for derivatives in Europe.

Third quarter EBITDA decreased year-over-year, driven primarily by higher feedstock, electricity and logistics costs, mainly in Europe, partly offset by higher margin in general resins.

Building & Infrastructure (Wavin), 28.9% of Revenues

Orbia’s Building & Infrastructure business group (commercial brand Wavin) is redefining today’s pipes and fittings industry by creating solutions that last longer and perform better, all with less installation labor required. The business group benefits from supply chain integration with the Polymer Solutions business group, a customer base spanning three continents, and investments in sustainable, resilient technologies for water and indoor climate management.

mm US$	Third Quarter
Building & Infrastructure	2026	2025	% Var.
Total sales	660	647	2%
Operating income	40	39	4%
EBITDA	79	76	4%

Revenues of $660 million increased 2%. EBITDA of $79 million increased 4% and EBITDA margin increased 29 basis points to 12.0%.

The increase in revenues for the quarter was driven by growth in Latin America and the benefits from the pricing actions implemented to offset higher raw material costs during the last quarter, partially offset by soft demand in Europe.

Third quarter EBITDA increased year-over-year due to margin expansion in Latin America driven by favorable pricing, partially offset by lower volumes in EMEA, and the reversal of the timing lag benefit between price increases and rising input costs experienced in the previous quarter.

Connectivity Solutions (Dura-Line), 16.4% of Revenues

Orbia’s Connectivity Solutions business group (Dura-Line) delivers engineered conduit solutions and accessories that enable telecommunications networks, AI data center infrastructure, and power grid modernization, supporting the connectivity and energy systems underpinning growing digital demand. End markets include fiber-to-the-premises, long-haul and wireless networks, AI campus data and power connectivity, interconnect solutions, and grid infrastructure.

mm US$	Third Quarter
Connectivity Solutions	2026	2025	% Var.
Total sales	373	253	47%
Operating income	55	28	99%
EBITDA	71	42	68%

Revenues of $373 million increased 47%. EBITDA of $71 million increased 68% and EBITDA margin increased by 234 basis points to 19.1%.

The increase in revenues for the quarter was driven by continued volume growth, supported by strong demand across the U.S. telecommunications and data center markets. Revenues improved as well supported by the favorable pricing actions taken to offset higher raw material costs during the last quarter.

Third quarter EBITDA increased year-over-year, driven by higher revenues, a favorable product mix and high plant utilization.

Fluor & Energy Materials, 13.7% of Revenues

Orbia’s Fluor & Energy Materials business group provides fluorine and downstream products that support modern, efficient living. The business group owns and operates the world’s largest fluorspar mine and produces intermediates, refrigerants and propellants used in automotive, infrastructure, semiconductor, health, medicine, climate control, food cold chain, energy storage, computing and telecommunications applications.

mm US$	Third Quarter
Fluor & Energy Materials	2026	2025	% Var.
Total sales	311	227	37%
Operating income	67	48	41%
EBITDA	89	64	39%

Revenues of $311 million increased 37%. EBITDA of $89 million increased 39% and EBITDA margin increased by 48 basis points to 28.6%.

The increase in revenues for the quarter was driven by strong volume and the pricing actions implemented to offset the significant cost inflation pressures experienced during the year.

Third quarter EBITDA increased year-over-year, driven by higher revenue, a favorable product mix and the temporary benefit from product life cycle dynamics in part of the medical propellant product portfolio, partially offset by higher raw material costs, primarily sulphur, and higher freight costs.

Precision Agriculture (Netafim), 11.4% of Revenues

Orbia’s Precision Agriculture business group’s (commercial brand Netafim) leading-edge irrigation systems, services and digital farming technologies enable stakeholders to achieve significantly higher and better-quality yields while using less water, fertilizer and other inputs. By helping farmers worldwide grow more with less, the business group is contributing to feeding the planet efficiently and sustainably.

mm US$	Third Quarter
Precision Agriculture	2026	2025	% Var.
Total sales	261	257	1%
Operating income (loss)	(3)	3	N/A
EBITDA	24	30	-21%

Revenues of $261 million increased 1%. EBITDA of $24 million decreased 21%, and EBITDA margin decreased by approximately 262 basis points to 9.2%.

The increase in revenues for the quarter was mainly driven by higher project revenues in the Middle East and Africa, continued positive performance in Peru and the U.S., and the impact of pricing actions as a result of higher raw material costs.

Third quarter EBITDA decreased year-over-year, driven by an unfavorable sales mix, the reversal of the timing lag benefit between price increases and rising input costs, partially offset by pricing actions.

Balance Sheet, Liquidity and Capital Allocation

Orbia’s net debt-to-EBITDA ratio decreased from 3.85x to 3.10x year-over-year, primarily driven by an increase of $270 million in the last 12-months EBITDA, partly offset by an increase of $69 million in net debt, driven by an increase in working capital investments due to higher price and costs, and the appreciation of the Mexican Peso against the U.S. Dollar. Excluding this currency fluctuation, net debt increased by $37 million. The Company had cash on hand of $979 million at the end of the quarter compared to $991 million during the prior-year quarter.

Working capital increased by $10 million during the quarter compared to a decrease of $14 million in the prior-year quarter. The increase in the current period is due to elevated business activity as well as higher sales prices and input costs resulting from the Middle East conflict. Capital expenditures of $79 million during the quarter decreased by $7 million compared to the prior-year quarter and included ongoing maintenance spending and investments to support the Company’s targeted growth initiatives.

2026 Outlook

Based on the results so far and the Company’s expectations for the remainder of this year, Orbia now expects full-year 2026 EBITDA will be approximately $1,250 million. Orbia remains watchful regarding demand trends for the remainder of this year and will manage operations accordingly.

The Company reaffirms its 2026 capital expenditures guidance of approximately $400 million, with a primary focus on investments to ensure safety and operational asset integrity, and selective strategic growth projects, primarily in the Fluor & Energy Materials business group.

Excluding discrete items that do not reflect ongoing operational results, such as foreign exchange rate changes and inflation adjustments, as well as other non-recurring items, the Company anticipates an effective tax rate of 27% to 32%² in 2026.

For each of Orbia’s businesses the Company is assuming the following:

• Polymer Solutions: PVC resin prices have moderated as global supply conditions have eased, although expected to remain above pre-conflict levels. Recent oil and coal price increases have provided pricing support. However, near-term performance is expected to be tempered by soft demand and higher input costs in Europe and operational challenges in derivatives in Mexico. The business will remain focused on cost and pricing discipline, operational safety, asset reliability, cash generation and profitability.

• Building & Infrastructure: The business expects demand conditions will remain challenging, particularly in Europe, with ongoing pricing pressure and the normalization of material margins. The business continues to prioritize profitability and cash generation through footprint optimization, new product introductions, cost discipline and working capital management.

• Fluor & Energy Materials: The business expects the favorable fluorine pricing and product mix to continue supporting performance, offset by seasonal volume trends, rising raw materials and logistics cost and the absence of the contribution from favorable product end of life cycle dynamics in part of the medical propellants product portfolio. The business will maintain its focus on strategic pricing, safe and reliable operations, while advancing investments in next-generation medical propellants, mining infrastructure and battery materials.

• Precision Agriculture: Demand is expected to strengthen as input costs stabilize as well as due to seasonality. The business expects to sustain solid momentum supported by strong project activity in Africa, continued strong demand in Peru and the U.S., improving conditions in selected markets and the ramp up of recently launched products. The business will focus on disciplined sales execution, cost management, inventory optimization and cash generation initiatives.

• Connectivity Solutions: The business expects sustained demand growth supported by telecommunications networks expansion, and AI and data center infrastructure investment in the U.S. Continued pricing discipline, deeper penetration of higher-value applications and improved plant utilization are expected to support margin expansion and profitability growth.

^2 Excluding the impact of inflation and foreign exchange rate changes in Mexico

Building & Infrastructure Rebranding

Orbia is rebranding its Building & Infrastructure business group as Orbia Water & Climate Solutions (W&CS) to better reflect its evolving portfolio, strategic direction and long-term growth opportunities. The new name reinforces the business’ focus on delivering differentiated water and climate solutions that advance water security, climate resilience and sustainable living, supported by growing capabilities in customer-centric innovation and upstream engagement.

Conference Call Details

Orbia will host a conference call to discuss third quarter 2026 results on October 28, 2026, at 9:00 AM Central Time (CT; Mexico City)/11:00 AM Eastern Time (ET; New York). To access the call, please dial 001-855-817-7630 (Mexico), 1-888-339-0721 (United States) or 1-412-317-5247 (International).

Participants may pre-register for the conference call here.

The live webcast can be accessed here.

A recording of the webcast will be posted several hours after the call is completed on Orbia’s website.

For all company news, please visit www.orbia.com/this-is-orbia/newsroom.

Consolidated Income Statement

mm US$	Third Quarter			January - September
Income Statement	2026	2025	%	2026	2025	%
Net sales	2,196	1,966	12%	6,511	5,744	13%
Cost of sales	1,696	1,533	11%	4,936	4,484	10%
Gross profit	500	433	15%	1,575	1,260	25%
Selling, general and administrative expenses	339	303	12%	1,015	951	7%
Operating income	161	130	24%	560	309	81%
Financial cost (income)	111	93	19%	357	265	35%
Equity in income of associated entity	3	1	226%	5	3	59%
Loss on sale of a business	-	66	N/A	-	66	N/A
Income (loss) from continuing operations before income tax	53	(28)	N/A	208	(19)	N/A
Income tax	(8)	68	N/A	116	206	-44%
(Loss) Income from continuing operations	61	(96)	N/A	92	(225)	N/A
Consolidated net (loss) income	61	(96)	N/A	92	(225)	N/A
Minority stockholders	23	24	-7%	77	75	3%
Majority Net (loss) income	38	(120)	N/A	15	(300)	N/A
EBITDA	332	295	12%	1,059	793	34%

Consolidated Balance Sheet

	mm US$
Balance sheet	Sep 2026	Dec 2025	Sep 2025
Total assets	11,480	11,071	11,439
Current assets	4,298	3,772	4,096
Cash and temporary investments	979	1,040	991
Receivables	1,902	1,566	1,832
Inventories	1,333	1,080	1,207
Others current assets	84	86	66
Non current assets	7,182	7,299	7,343
Property, plant and equipment, net	3,270	3,329	3,285
Right of use fixed assets, net	438	457	468
Intangible assets and goodwill	2,812	2,897	2,936
Long-term assets	662	616	654
Total liabilities	8,744	8,426	8,607
Current liabilities	2,837	2,487	2,629
Current portion of long-term debt	389	276	307
Suppliers	1,007	845	889
Letters of credit	378	393	426
Short-term leasings	132	128	127
Other current liabilities	931	845	880
Non current liabilities	5,907	5,939	5,978
Long-term debt	4,569	4,543	4,594
Long-term employee benefits	140	148	147
Long-term deferred tax liabilities	336	342	326
Long-term leasings	354	369	377
Other long-term liabilities	508	537	534
Consolidated shareholders' equity	2,736	2,645	2,832
Minority shareholders' equity	484	510	522
Majority shareholders' equity	2,252	2,135	2,310
Total liabilities & shareholders' equity	11,480	11,071	11,439

Cash Flow Statement

	Third Quarter			January - September
mm US$	2026	2025	%Var.	2026	2025	%Var.
EBITDA	332	295	12%	1,059	793	34%
Taxes paid, net	(45)	(32)	41%	(149)	(137)	9%
Net interest / bank commissions	(70)	(67)	5%	(237)	(210)	13%
Change in trade working capital	(10)	14	N/A	(407)	(266)	53%
Others (other assets - provisions, Net)	42	52	-19%	34	76	-56%
CTA and FX	(4)	9	N/A	8	40	-81%
Operating cash flow	245	271	-9%	308	296	4%
Capital expenditures	(79)	(86)	-8%	(273)	(288)	-5%
Leasing payments	(36)	(41)	-11%	(107)	(101)	5%
Free cash flow	130	144	-9%	(72)	(93)	-22%
FCF conversion (%)	39.1%	48.6%		-6.8%	-11.7%
Dividends to shareholders	-	-		-	-
Buy-back shares program	1	3	-77%	(1)	4	N/A
Debt	(10)	(6)	64%	129	157	-18%
Minority interest payments	(38)	(35)	9%	(104)	(98)	6%
Mergers, acquisitions & divestitures	-	32	-100%	-	51	-100%
Financial instruments and others	(4)	(6)	-30%	(13)	(39)	-68%
Net change in cash	79	132	-40%	(61)	(18)	241%
Initial cash balance	900	859	5%	1,040	1,009	3%
Cash balance	979	991	-1%	979	991	-1%

Notes and Definitions

The results contained in this release have been prepared in accordance with International Financial Reporting Standards (“NIIF” or “IFRS”) with U.S. Dollars as the reporting currency. Figures are presented in millions, unless specified otherwise.

Figures and percentages have been rounded and may not add up.

About Orbia

Orbia Advance Corporation, S.A.B. de C.V. (BMV: ORBIA*) is a company driven by a shared purpose: to advance life around the world. Orbia operates in the Polymer Solutions (Vestolit and Alphagary), Water & Climate Solutions (Wavin), Precision Agriculture (Netafim), Connectivity Solutions (Dura-Line) and Fluor & Energy Materials sectors. The five Orbia business groups have a collective focus on expanding access to health and well-being, inventing the future of resilient cities and homes, ensuring food and water security, connecting communities to information and enabling the energy transition with basic and advanced materials, specialty products and innovative solutions. Orbia has a global team of over 22,000 employees, commercial activities in more than 100 countries and operations in over 50, with global headquarters in Boston, Mexico City, Amsterdam and Tel Aviv. The company generated $7,619 million in revenue in 2025. To learn more, visit: orbia.com.

Prospective Information

In addition to historical information, this press release contains "forward-looking" statements that reflect management's expectations for the future. The words “anticipate,” “believe,” “expect,” “hope,” “have the intention of,” “might,” “plan,” “should” and similar expressions generally indicate comments on expectations. The forward-looking statements included in this press release are subject to a number of material risks and uncertainties, and our results may be materially different from current expectations due to factors, which include, but are not limited to, global and local changes in politics, economic factors, business, competition, market and regulatory factors, cyclical trends in relevant sectors as well as other factors affecting our operations, markets, products, services and prices that are highlighted under the title “Risk Factors” in the annual report submitted by Orbia to the Mexican National Banking and Securities Commission (CNBV) and available on our website at Investor Relations | Orbia. The forward-looking statements included herein represent Orbia’s views as of the date of this press release. Orbia undertakes no obligation to revise or update publicly any forward-looking statement for any reason unless required by law.”

Orbia has implemented a Code of Ethics that helps define our obligations to and relationships with our employees, clients, suppliers, and others. Orbia’s Code of Ethics is available for consultation at the following link: http://www.Orbia.com/Codigo_de_etica.html. Additionally, according to the terms contained in the Mexican Securities Exchange Act No 42, the Orbia Audit Committee has established a “hotline” system permitting any person who is aware of a failure to adhere to applicable operational and accounting records guidelines, internal controls or the Code of Ethics, whether by the Company itself or any of its controlled subsidiaries, to file a complaint (including anonymously). This system is operated by an independent third-party service provider. The system may be accessed via telephone in Mexico, via internet at www.ethics.orbia.com or via email at [e-mail]. Orbia’s Audit Committee has oversight responsibility for ensuring that all such complaints are appropriately investigated and resolved.