In the first quarter of 2025, Orbia Advance Corporation experienced a mixed financial performance across its business groups. The company reported net revenues of $1,811 million, marking a 3% decrease compared to the previous year. This decline was primarily attributed to Polymer Solutions due to lower prices and operational disruptions from a key supplier. Additionally, Building & Infrastructure faced challenges in parts of Continental Europe and Mexico. However, there were positive contributions from Precision Agriculture, Fluor & Energy Materials, and other segments that showed growth. Despite the revenue drop, cost-saving measures and operational efficiencies helped mitigate some losses. Key financial metrics such as EBITDA and adjusted EBITDA saw reductions but remained resilient amidst market fluctuations.
The first quarter of 2025 was marked by varied performances among Orbia’s core business units. Polymer Solutions encountered difficulties, with revenues dropping by 9%. This segment grappled with a weak pricing environment and supply chain issues stemming from one of its critical suppliers. On the other hand, Precision Agriculture demonstrated robust growth, increasing revenues by 6%, driven mainly by strong demand in Brazil and Peru. Meanwhile, Fluor & Energy Materials achieved a 14% rise in sales, supported by higher volumes of refrigerants and stable pricing within its upstream minerals portfolio. Building & Infrastructure also faced regional weaknesses but managed modest gains through new product launches and geographic expansions.
Financial indicators revealed both challenges and successes during this period. Cost of goods sold decreased slightly by 1%, reflecting benefits from cost-saving initiatives and improved operations. However, selling, general, and administrative expenses climbed by 8%, largely due to increased legal and restructuring costs. Notably, financial costs plummeted by approximately $63 million year-over-year, attributed to favorable foreign exchange impacts and adjustments in derivative financial instruments. Tax benefits further enhanced profitability, contributing to an improvement in net loss for majority shareholders by $20 million compared to the prior year.
Looking at cash flow dynamics, operating cash outflows improved significantly, decreasing by $28 million, thanks to better working capital management and currency fluctuations. Capital expenditures fell by 20%, aligning with strategic efforts to manage investments carefully. Liquidity remained solid, though net debt-to-EBITDA ratios worsened slightly, indicating ongoing pressure on debt levels despite these improvements.
For future prospects, Orbia anticipates moderate growth in adjusted EBITDA between $1,100 and $1,200 million for 2025. Capital expenditure plans will be tightly controlled around $400 million or less, emphasizing safety, operational integrity, and selective growth projects. Each business unit has outlined strategies tailored to their respective markets—Polymer Solutions focusing on footprint optimization, Building & Infrastructure leveraging cost reductions, Precision Agriculture expanding digital farming platforms, Fluor & Energy Materials targeting low-carbon technologies, and Connectivity Solutions aiming for volume growth and manufacturing efficiency.
As Orbia navigates evolving market conditions, the company remains committed to enhancing profitability and cash generation while addressing regional challenges. Through strategic cost control, targeted investments, and innovative solutions, Orbia aims to maintain its competitive edge and deliver value to stakeholders throughout 2025 and beyond.