Latest news with #BMV
Business Wire
4 days ago
- Business
- Business Wire
FIBRA Macquarie México Reports Second Quarter 2025 Results
MEXICO CITY--(BUSINESS WIRE)--FIBRA Macquarie México (FIBRAMQ) (BMV: FIBRAMQ) announced its financial and operating results for the second quarter ended June 30, 2025. SECOND QUARTER 2025 HIGHLIGHTS Total Industrial portfolio leasing activity comprised 1.3 million square feet of GLA, including early renewals of 424 thousand square feet Solid tenant retention rates of approximately 80% across Industrial and Retail portfolios Consolidated 2Q25 NOI up 18.1% YoY in Peso terms Consolidated 2Q25 AFFO up 23.3% YoY in Peso terms 'We are proud to report another quarter of strong performance, highlighted by record results across multiple metrics, including AFFO per certificate that was up 8.6% in underlying US dollar terms, to US$30.3 million,' said Simon Hanna, FIBRA Macquarie's chief executive officer. 'Our industrial portfolio continues to demonstrate remarkable strength, achieving record leasing renewal spreads of 27.7%, and the continued demand for space in our markets is reflected in our solid retention and rental rate growth across both our industrial and retail portfolios. On the growth capex front, we are particularly excited about our expanded development program in Tijuana, which represents an attractive opportunity with plans for four Class A buildings totaling approximately 750 thousand square feet. This strategic investment aligns with our long-term vision for sustainable growth in key markets.' Mr. Hanna continued, 'Through our prudent financial management, we have maintained our strong balance sheet position, with ample liquidity and prudent leverage. While we remain mindful of broader economic uncertainties, Mexico maintains a key strategic position within North American supply chains. We continue to successfully navigate the current market conditions, while pursuing selective growth opportunities and maintaining our commitment to disciplined capital allocation. With our reaffirmed full-year US dollar AFFO and distribution per CBFI guidance, we are confident in our ability to deliver sustained value for our certificate holders.' CAPITAL ALLOCATION FIBRAMQ continues to pursue a strategy of investing in and developing Class A industrial assets in core markets that demonstrate strong performance and a positive economic outlook. Industrial Portfolio Growth Capex Program FIBRAMQ has approximately 600 thousand square feet of GLA in stabilization. No new building construction starts were commenced during the quarter. The forecast 2025 cash investment for the industrial development program continues to be in a range of US$50.0 million to US$100.0 million. FIBRAMQ remains disciplined in its capital deployment as it stabilizes recent deliveries and maintains an attractive future growth pipeline. FIBRAMQ continues to target a NOI development yield on cost between 9.0% and 11.0%, which incorporates the highest sustainability standards and is designed to generate embedded operational efficiencies for its customers. Projects in process are summarized below. For further details regarding recently delivered projects, please refer to the Supplementary Information materials located at BMV Filings ( Industrial Development Projects in Process Guadalajara, Jalisco FIBRAMQ continues to make progress in pre-development works including obtaining initial permits, licenses and commencement of initial infrastructure works for the first building comprising 330 thousand square feet of GLA FIBRAMQ anticipates developing two Class A buildings in this park over time, with a total GLA of approximately 460 thousand square feet Apodaca, Nuevo León FIBRAMQ is marketing for lease a 200 thousand square foot property that was delivered during 3Q24 Tijuana, Baja California FIBRAMQ is marketing for lease a 385 thousand square foot property that was delivered during 2Q25 FIBRAMQ has entered into a 50-50 joint venture to develop an industrial park in the prime Pacifico/Libramiento submarket of Tijuana. The project will feature up to four Class A industrial buildings, totaling approximately 750 thousand square feet of GLA with pre-development works, including obtaining initial permits and licenses, and commencement of initial infrastructure works underway FINANCIAL AND OPERATING RESULTS Consolidated Portfolio FIBRAMQ's consolidated 2Q25 results were as follows: Industrial Portfolio The following table summarizes 2Q25 results for FIBRAMQ's industrial portfolio: FIBRAMQ's industrial portfolio performance remains robust, with growing average rental rates and sustained retention. For the quarter ended June 30, 2025, FIBRAMQ's industrial portfolio delivered NOI of US$51.1 million, a 6.0% increase YoY. Total leasing activity comprised 1.3 million square feet, including 120 thousand square feet of new leases. Renewal leases comprised 14 contracts across 1.1 million square feet, driving a retention rate of 93.2% for the quarter and 80.1% over the last 12 months. For the remainder of the year, FIBRAMQ's industrial portfolio scheduled lease expirations, including expired leases in regularization, total 4.8% of annualized base rents. Retail Portfolio The following table summarizes the proportionally combined 2Q25 results for FIBRAMQ's retail portfolio: FIBRAMQ signed 54 new and renewal leases during the quarter totaling 11.5 thousand square meters of GLA, across a diverse range of tenants. The retail portfolio has a retention of 77.8% over the last twelve months. Of note, retail portfolio occupancy of 93.4% represents a post-pandemic record. Lease Rental Rate Summary Based on annualized base rents, leases in FIBRAMQ's consolidated portfolio is now 71.2% linked to either Mexican or US CPI, representing an increase of 525 bps over the last twelve months. In the Industrial portfolio, FIBRAMQ achieved a weighted average positive releasing spread of 27.7% in respect of 2Q25. During the prior 12-month period, FIBRAMQ achieved a weighted average lease spread of 22.0% in respect of commercially negotiated lease renewals generating US$33.2 million of annualized base rent. For further details about FIBRA Macquarie's Second Quarter 2025 results, please refer to the Supplementary Information materials located at BMV Filings ( Replacement of Trustee As previously announced, FIBRAMQ replaced CIBanco, S.A., Institución de Banca Múltiple ('CIBanco') with HSBC México, S.A., Institución de Banca Múltiple, Grupo Financiero HSBC, as FIBRA trustee effective July 18, 2025. BALANCE SHEET At June 30, 2025, FIBRAMQ had US$1,230.2 million of debt outstanding and total liquidity of US$420.9 million comprising US$228.8 million available on its undrawn committed revolving credit facilities as well as US$192.1 million of unrestricted cash on hand. FIBRAMQ's indebtedness is 85.0% fixed rate, with 3.0 years of weighted average tenor remaining. As of June 30, 2025, FIBRAMQ's CNBV regulatory debt to total asset ratio was 33.7% and debt service coverage ratio was 6.3x. CERTIFICATE REPURCHASE PROGRAM FIBRAMQ has a Ps. 1,000 million CBFI repurchase-for-cancellation program available through to June 25, 2026. No certificates were repurchased during the quarter. SUSTAINABILITY At June 30, 2025, FIBRA Macquarie's green building certification coverage represented 41.8% of consolidated GLA, representing an increase of 481bps YoY. The sustainability and green financing linked portion of drawn debt stands at 68.3% DISTRIBUTION FIBRAMQ declared a cash distribution of Ps. 0.6125 per certificate for the quarter ended June 30, 2025. The distribution is expected to be paid on or about September 26, 2025, to holders of record on September 25, 2025. FIBRAMQ's certificates are expected to commence trading ex-distribution on September 25, 2025. FY25 GUIDANCE AFFO FIBRA Macquarie is reaffirming its FY25 AFFO guidance in underlying US dollar terms to a range of US$115.0 million to US$119.0 million, representing an annual increase of between 1.0% and 5.0%. FIBRAMQ maintains a cautious outlook on operational performance for 2025, and this guidance assumes no material deterioration of the geopolitical landscape or Mexico's key trading relationships. This guidance assumes: an average exchange rate of Ps. 18.50 per US dollar for the remainder of 2025; no new acquisitions or divestments; no issuances or repurchases of certificates; no deterioration in broader economic and market conditions, including the potential implementation of tariffs or deterioration in the trade relationship with key trading partners Following the recent appreciation of the Peso relative to the US dollar, FIBRAMQ is updating its FY25 AFFO per certificate guidance to a range of Ps. 2.80 to Ps. 2.85. Cash Distribution FIBRAMQ is reaffirming guidance for cash distributions in FY25 of Ps. 2.45 per certificate, paid in equal quarterly instalments of Ps. 0.6125 per certificate. The FY25 per certificate cash distribution guidance equates to an annual increase of 16.7% in Peso terms, with an expected FY25 AFFO payout ratio of approximately 87.0%, based on the AFFO guidance midpoint. In underlying USD terms, the FY25 cash distribution guidance equates to approximately US$101 million, representing an annual increase of 10.8%. The payment of distributions is subject to the approval of the Manager, stable market conditions and prudent management of FIBRAMQ's capital position. Outstanding certificates FIBRA Macquarie had 797,311,397 outstanding certificates as of June 30, 2025. WEBCAST AND CONFERENCE CALL FIBRAMQ will host an earnings conference call and webcast presentation on Friday, July 25, 2025, at 11:00 a.m. CT / 13:00 p.m. ET. The conference call, which will also be webcast, can be accessed online at or by dialing toll free +1-877-407-2988. Callers from Mexico may dial 01-800-522-0034 and other callers from outside the United States may dial +1-201-389-0923. Please ask for the FIBRA Macquarie Second Quarter 2025 Earnings Call. An audio replay will be available by dialing +1-877-660-6853 or +1-201-612-7415 for callers from outside the United States. A webcast archive of the conference call and FIBRA Macquarie's financial information for the second quarter 2025 will also be available on FIBRAMQ's website, About FIBRA Macquarie FIBRA Macquarie México (FIBRA Macquarie) (BMV:FIBRAMQ) is a real estate investment trust (fideicomiso de inversión en bienes raíces), or FIBRA, listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores) targeting industrial, retail and office real estate opportunities in Mexico, with a primary focus on stabilized income-producing properties. FIBRA Macquarie's portfolio consists of 243 industrial properties and 17 retail properties, located in 20 cities across 16 Mexican states as of June 30, 2025. Nine of the retail properties are held through a 50/50 joint venture. For additional information about FIBRA Macquarie, please visit Cautionary Note Regarding Forward-looking Statements This release may contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ significantly from these forward-looking statements and we undertake no obligation to update any forward-looking statements. Other than Macquarie Bank Limited ABN 46 008 583 542 ('Macquarie Bank'), any Macquarie Group entity noted in this document is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities. In addition, if this document relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment. THIS RELEASE IS NOT AN OFFER FOR SALE OF SECURITIES IN THE UNITED STATES, AND SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED.
Globe and Mail
4 days ago
- Business
- Globe and Mail
Corporación Inmobiliaria Vesta Reports Second Quarter 2025 Earnings Results
Corporación Inmobiliaria Vesta S.A.B. de C.V., ('Vesta', or the 'Company') (BMV: VESTA; NYSE: VTMX), a leading industrial real estate company in Mexico, today announced results for the second quarter ended June 30, 2025. All figures included herein were prepared in accordance with International Financial Reporting Standards (IFRS), which differs in certain significant respects from U.S. GAAP. This information should be read in conjunction with, and is qualified in its entirety by reference to, Vesta's consolidated financial statements, including the notes thereto. Vesta's financial results are stated in US dollars unless otherwise noted. Q2 2025 Highlights Vesta delivered strong financial results for the second quarter 2025: total income reached US$ 67.3 million; a 6.8% year over year increase, while total income excluding energy reached US$ 65.4 million; a 7.3% increase compared to US$ 61.0 million in the second quarter 2024. Second quarter 2025 Adjusted NOI 1 margin and Adjusted EBITDA 2 margin reached 94.5% and 84.1%, respectively. Vesta FFO reached US$ 43.1 million for the second quarter 2025; a 12.9% increase compared to US$ 38.2 million in the second quarter 2024, while Vesta FFO per share reached US$ 0.050; a 16.6% year over year increase. Second quarter 2025 leasing activity reached 1.8 million sf: 411 thousand sf in new contracts with both existing and new Vesta tenants in the electronics, food and beverage and automotive sectors, and 1.4 million sf in lease renewals with an average weighted lease life of approximately five years. Vesta's second quarter 2025 total portfolio occupancy therefore was 92.3%, while stabilized and same-store occupancy reached 95.5% and 97.0%, respectively. Second quarter 2025 renewals and re-leasing reached 1.5 million sf with a trailing twelve-month weighted average spread of 13.7%. Same-store NOI increased by 1.9% year over year. During the second quarter 2025, Vesta acquired 128.4 acres of land in Guadalajara, representing 2.3 million square feet in buildable area. Also during the quarter, Vesta finalized its acquisition of 20.2 acres of land in Monterrey, representing a 449 thousand square foot buildable area, as was announced in the first quarter 2025. Vesta ended the second quarter 2025 with 1.3 million sf in current construction in progress; an estimated investment of approximately US$ 91.0 million with a projected yield on cost of 10.8%, in Querétaro and Monterrey. The Company expects to achieve its stated 2025 guidance and remains focused on the Vesta Route 2030 long-term strategy while navigating current uncertainty. Vesta paid US$ 17.4 million in dividends for the second quarter 2025 on July 15, 2025 , equivalent to PS$ 0.3796 per ordinary share. Vesta is pleased to announce the appointment of Rodrigo Cueto Bosch as Chief Investment Officer, effective on October 1, 2025 with the planned retirement of Guillermo Díaz, a founding executive whose contributions have been instrumental to the Company's growth. A structured leadership transition will ensure continuity and upholds Vesta's strategic objectives, alignment, and long-term organizational success. Mr. Cueto has considerable investment and Real Estate finance expertise with a proven track record of delivering results. He has been an integral part of Vesta's team since 2021, most recently as Senior Vice President of Finance and Capital Markets. 6 months Financial Indicators (million) Q2 2025 Q2 2024 Chg. % 2025 2024 Chg. % Total Rental Income 67.3 63.0 6.8 134.3 123.6 8.7 Total Revenues (-) Energy 65.4 61.0 7.3 130.3 120.7 7.9 Adjusted NOI 61.8 57.7 7.2 123.9 115.0 7.8 Adjusted NOI Margin % 94.5% 94.6% 95.1% 95.2% Adjusted EBITDA 55.0 50.4 9.0 110.3 101.1 9.1 Adjusted EBITDA Margin % 84.1% 82.7% 84.6% 83.7% EBITDA Per Share 0.0641 0.0569 12.6 0.1278 0.1141 12.0 Total Comprehensive Income 31.4 109.6 (71.3) 43.7 233.6 (81.3) Vesta FFO 43.1 38.2 12.9 88.1 78.6 12.1 Vesta FFO Per Share 0.0502 0.0431 1662.4 0.1021 0.0887 1501.0 Vesta FFO (-) Tax Expense 37.7 20.3 85.4 73.8 148.1 (50.2) Vesta FFO (-) Tax Expense Per Share 0.0439 0.0229 91.5 0.0855 0.1672 (48.9) Diluted EPS 0.0366 0.1237 (70.4) 0.0507 0.2638 (80.8) Shares (average) 858.3 886.6 (3.2) 863.0 885.7 (2.6) Second quarter 2025 total revenue reached US$ 67.3 million; a 6.8% year on year increase from US$ 63.0 million in the second quarter 2024. Total revenues excluding energy increased to US$ 65.4 million; a 7.3% year on year increase from US$ 61.0 million in 2024 due to US$ 5.3 million in new revenue-generating contracts and a US$ 2.0 million inflationary benefit on second quarter 2025 results. Second quarter 2025 Adjusted Net Operating Income (Adjusted NOI) increased 7.2% to US$ 61.8 million, compared to US$ 57.7 million in the second quarter 2024. The second quarter 2025 Adjusted NOI margin was 94.5%; a 7-basis-point year on year decrease due to higher costs related to rental income generating properties. Adjusted EBITDA for the quarter increased 9.0% to US$ 55.0 million, as compared to US$ 50.4 million in the second quarter 2024. The Adjusted EBITDA margin was 84.1%; a 137-basis-point increase primarily due to an 8.0% decrease in administrative expenses compared to last year´s quarter, reflecting Vesta's continued discipline related to expense control aligned with internal budgeting, while identifying further opportunities for cost savings throughout the organization. Second quarter 2025 Vesta funds from operations after tax (Vesta FFO (-) Tax Expense) increased to US$ 37.7 million, from US$ 20.3 million for the same period in 2024. Vesta FFO after tax per share was US$ 0.0439 for the second quarter 2025 compared with US$ 0.0229 for the same period in 2024, a 91.5% increase. This increase is due to a combination of higher EBITDA, lower interest expenses and lower taxes, as well as a decreased number of shares outstanding in the second quarter 2025. Second quarter 2025 Vesta FFO excluding current tax was US$ 43.1 million compared to US$ 38.2 million in the second quarter 2024 due to higher 2025 profit and lower interest expenses compared to the same period in 2024. Second quarter 2025 total comprehensive income was US$ 31.4 million, versus a US$ 109.6 million gain in the second quarter 2024, primarily due to lower gain on revaluation during the second quarter 2024. The total value of Vesta's investment property portfolio was US$ 3.9 billion as of June 30, 2025; a 4.4% increase compared to US$ 3.7 billion at the end of December 31, 2024. For a full version of Corporación Inmobiliaria Vesta Second Quarter 2025 Earnings Release, please visit: CONFERENCE CALL INFORMATION Conference Call Friday July 25, 2025 9:00 a.m. (Mexico City Time) 11:00 a.m. (Eastern Time) To participate in the conference call please connect via webcast or by dialing: Webcast: The replay will be available two hours after the call has ended and can be accessed from Vesta's IR website. About Vesta Vesta is a real estate owner, developer and asset manager of industrial buildings and distribution centers in Mexico. As of June 30, 2025, Vesta owned 231 properties located in modern industrial parks in 16 states of Mexico totaling a GLA of 41.7 million sf (3.9 million m2). Vesta has several world-class clients participating in a variety of industries such as automotive, aerospace, retail, high-tech, pharmaceuticals, electronics, food and beverage and packaging. For additional information visit: Note on Forward-Looking Statements This report may contain certain forward-looking statements and information relating to the Company and its expected future performance that reflects the current views and/or expectations of the Company and its management with respect to its performance, business and future events. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like 'believe,' 'anticipate,' 'expect,' 'envisages,' 'will likely result,' or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. Some of the factors that may affect outcomes and results include, but are not limited to: (i) national, regional and local economic and political climates; (ii) changes in global financial markets, interest rates and foreign currency exchange rates; (iii) increased or unanticipated competition for our properties; (iv) risks associated with acquisitions, dispositions and development of properties; (v) tax structuring and changes in income tax laws and rates; (vi) availability of financing and capital, the levels of debt that we maintain; (vii) environmental uncertainties, including risks of natural disasters; (viii) risks related to any potential health crisis and the measures that governments, agencies, law enforcement and/or health authorities implement to address such crisis; and (ix) those additional factors discussed in reports filed with the Bolsa Mexicana de Valores and in the U.S. Securities and Exchange Commission. We caution you that these important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in this presentation and in oral statements made by authorized officers of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. The Company undertakes no obligation to update or revise any forward-looking statements, including any financial guidance, whether as a result of new information, future events or otherwise except as may be required by law.
Malaysian Reserve
5 days ago
- Business
- Malaysian Reserve
Rotoplas: Second Quarter 2025 Results
MEXICO CITY, July 23, 2025 /PRNewswire/ — Grupo Rotoplas S.A.B. de C.V. (BMV: AGUA*) ('Rotoplas', 'the Company'), the leading provider of water solutions in the Americas, today reports its unaudited financial results for the second quarter of 2025. The information has been prepared in accordance with International Financial Reporting Standards (IFRS). Figures are expressed in millions of Mexican pesos. Key Highlights Q2'25 Net sales were $2.9 billion, a 0.9% decrease compared to Q2'24. On a cumulative basis, net sales reached $5.6 billion, a 1.0% decrease compared to 2024. EBITDA of $369 million, with a 12.5% margin. The cumulative EBITDA was $669 million, with a cumulative margin of 12.0%. Net income was $42 million, with a 1.4% margin. In the first half of the year, net income was $65 million, with a margin of 1.2%. Service sales increased by 16.7% during the quarter and by 15.8% in the first half of the year, primarily driven by bebbia. bebbia exceeded 155,000 active subscribers at the end of June. Message from the CEO 'We started the second quarter aware of the challenging comparative base we would face due to the 2024 drought in Mexico. Even so, we delivered stable results: sales were nearly in line with the previous year, reflecting solid performance across our operations, particularly outside Mexico. Notably, the United States stood out, where we achieved profitable growth, undoubtedly marking an important step forward for the Company. In the services segment, sustained growth and EBITDA margin improvement stood out, confirming our progress toward a more balanced and resilient business model. We remain focused on improving the factors within our control, such as disciplined expense management and protecting cash flow. In this regard, we succeeded in reducing expenses as a percentage of sales, optimizing working capital, and maintaining a selective approach to CapEx allocation. These efforts are reflected in sequential improvement in EBITDA margin and a reduction in net debt compared to the previous quarter. We continue advancing in digitalization, with our e-commerce channel in Mexico meeting expectations and the expansion of IoT solutions. We closed the quarter with sequential operational improvement and a stronger financial position.' — Carlos Rojas Aboumrad Results January – June(Figures in millions of Mexican pesos) Indicator Q2'25 Q2'24 %YoY 6M'25 6M'24 %YoY Net Sales 2,945 2,972 (0.9 %) 5,580 5,639 (1.0 %) Adjusted EBITDA1 369 450 (18.1 %) 669 1,005 (33.4 %) % margin 12.5 % 15.1 % (260) bps 12.0 % 17.8 % (580) bps Net Result 42 60 (30.9 %) 65 364 (82.1 %) ROIC2 5.2 % 12.7 % (750) bps Net Financial Debt3 3,753 3,667 2.3 % Net Financial Debt / EBITDA2 3.2 x 1.8 x 1.4 x Q2'25 vs Q2'24 Results Net Sales reached $2,945 million, 0.9% below Q2'24, driven by a 2.5% decline in the product segment, which, despite solid growth in the United States and other countries, was not enough to offset the contraction recorded in Mexico, which faced a high comparative base due to the 2024 drought in the central region of the country. In contrast, the services segment grew 16.7%, driven by the strong performance of bebbia and the growth of RSA Mexico. Gross profit was $1,217 million. Gross margin closed at 41.3%, contracting by 550 bps due to lower product sales in Mexico and Argentina, which affected the absorption of fixed costs. Operating income reached $207 million, down 32.6% compared to Q2'24. The decline was mainly due to a weaker gross margin, which more disciplined expense control could not fully offset—even though expenses remained lower as a percentage of sales. However, operating income showed a positive sequential trend, increasing 49.1% compared to the previous quarter. EBITDA closed at $369 million, and the EBITDA margin stood at 12.5%. Despite the year-over-year decrease, sequential improvement was observed compared to previous quarters, mainly reflecting expense control. Net income was $42 million, 30.9% below the previous year, driven by lower operating income. Cumulative Results 2025 vs 2024 Net sales reached $5,580 million, a 1.0% decrease, driven by a 2.6% decline in the product segment, partially offset by 15.8% growth in the services segment. Gross profit was $2,333 million, a 14.9% decrease. Gross margin closed at 41.8%, contracting by 680 bps mainly due to lower absorption of fixed costs in Mexico and Argentina. Operating income reached $346 million, a 52.5% decrease compared to 2024. This decline was the result of gross margin pressure, as the Company achieved a slight reduction in expenses as a percentage of sales. EBITDA closed at $669 million, with an EBITDA margin of 12.0%. While this represents a decrease compared to the same period last year, it shows an improvement over the previous semester. Net income was $65 million, an 82.1% decrease. This decline was driven by lower operating income and a slight increase in financial expenses. Net Financial debt / EBITDA4 leverage closed at 3.2x, resulting from the decline in LTM EBITDA. CapEx for the period amounted to $211 million, primarily focused on the services segment in Mexico, particularly in bebbia and in water treatment and recycling plants. Sales and EBITDA by Geography and Solution January – June(Figures in millions of Mexican pesos) Sales Q2'25 Q2'24 % YoY 6M'25 6M'24 % YoY Mexico 1,711 1,831 (6.5 %) 3,248 3,533 (8.1 %) Argentina 550 554 (0.7 %) 1,001 996 0.5 % United States 315 261 20.6 % 595 485 22.6 % Other 369 326 13.0 % 737 625 17.8 % Products 2,661 2,729 (2.5 %) 5,041 5,174 (2.6 %) Services 284 243 16.7 % 539 466 15.8 % EBITDA Q2'25 Q2'24 % YoY 6M'25 6M'24 % YoY Mexico 327 433 (24.5 %) 614 905 (32.1 %) Argentina (43) 17 NM (64) 90 NM United States 26 (31) NM 6 (69) NM Other 58 30 93.1 % 113 79 43.7 % Products 409 528 (22.5 %) 723 1,136 (36.3 %) Services (41) (78) (48.0 %) (54) 131 (58.5 %) EBITDA Margin Q2'25 Q2'24 % YoY 6M'25 6M'24 % YoY Mexico 19.1 % 23.7 % (460) bps 18.9 % 25.6 % (670) bps Argentina (7.8 %) 3.1 % NM (6.4 %) 9.0 % NM United States 8.1 % (11.9 %) NM 1.0 % (14.2 %) NM Other 15.8 % 9.3 % 650 bps 15.4 % 12.6 % 280 bps Products 15.4 % 19.4 % (400) bps 14.3 % 22.0 % (770) bps Services (14.4 %) (32.3 %) NM (10.1 %) (28.0 %) NM Sales and EBITDA breakdown by geography 2Q'25 6M'25 Sales EBITDA Sales EBITDA Mexico 58 % 89 % 58 % 92 % Argentina 19 % -12 % 18 % -10 % United States 11 % 7 % 11 % 1 % Other 13 % 16 % 13 % 17 % Total 100 % 100 % 100 % 100 % Mexico Sales decreased by 6.5% on a quarterly basis and 8.1% on a cumulative basis, due to the contraction in product sales, impacted by a high comparative base following the 2024 drought and a challenging macroeconomic environment. During the semester, key highlights include the completion of the nationwide rollout of Tinaco Plus+, the launch of the new vertical water tank, and continued progress in digitalization through B2B and B2B2C e-commerce platforms. Additionally, the services platform sustained double-digit growth, mainly driven by bebbia, which reached 155,000 active subscriptions as of June, along with higher RSA sales. EBITDA was impacted by lower sales volumes in the product segment, although cost control measures allowed the margin to remain stable compared to the previous quarter. Argentina Sales decreased by 0.7% during the quarter and increased by 0.5% on a cumulative basis. This performance reflects demand impacted by an adverse macroeconomic environment, characterized by high inflation, competitive pressure, and low consumer confidence—factors that continued limiting business growth. Sales volumes in all three categories—storage, water flow, and improvement—stabilized during the quarter; however, signs of recovery remain limited. EBITDA was impacted by the reduced ability to pass on cost increases to prices and by lower absorption of fixed costs. United States Sales grew 20.6% during the second quarter and 22.6% on a cumulative basis, driven by favorable conditions such as drought in the western region, growth in data center construction, and higher municipal investments in water infrastructure, which offset weakness in the residential and agricultural sectors. EBITDA was positive both for the quarter and year-to-date, driven by a combination of higher sales, increased operational productivity at physical stores, and strict expense control. Other Countries(Peru, Central America, and Brazil) Sales increased 13.0% in Q2'25 and by 17.8% in the first half of the year, driven by solid growth in all countries: In Peru, growth was observed across all three categories — storage, flow, and improvement — driven by the launch of Tinaco Plus+, the expansion of the piping line, and the cold season, which boosted demand for water Central America, growth was driven by higher sales volumes in the storage and water flow categories, along with strong performance in Guatemala and Costa Brazil, sales of treatment plants maintained a sustained growth trend. EBITDA showed improvement, reflecting both higher sales volumes and disciplined spending under an operational efficiency approach. Products Sales contracted due to a high comparative base following the peak of the 2024 drought in Mexico, which could not be offset by the solid results recorded in the United States and other countries. EBITDA declined due to lower volumes in Mexico and the adverse macroeconomic environment in Argentina, which—despite stronger expense control—limited the absorption of fixed costs. Services Sales continued growing at a double-digit rate, mainly driven by the performance of bebbia, which surpassed 155,000 active subscribers, as well as the growth of RSA in Mexico. Although still negative, EBITDA showed a significant improvement, supported by RSA's sustained growth and the scaling of bebbia. Other Indicators January – June(Figures in millions of Mexican pesos) Indicators 6M'25 6M'24 % YoY Cash and cash equivalents 762 666 14.5 % Short Term Financial Debt5 515 333 54.7 % Long Term Financial Debt6 3,999 3,999 0.0 % Total Debt 4,515 4,332 4.2 % Net Debt 3,753 3,667 2.3 % CapEx 211 236 (10.5 %) Mexico 177 224 (21.0 %) Argentina 10 8 32.5 % United States – – NM Other 24 4 NM Change in Working Capital (cash flow) (56) (545) (89.7 %) CCC (days) 51 47 4 days Comprehensive Financing Result (271) (250) 8.1 % CapEx Capital investments represented 3.8% of sales for the semester. In line with financial priorities focused on strengthening cash flow, maintenance CapEx remained at low levels, with most of the total investment allocated to services. Comprehensive Financing Result The comprehensive financing result for the second quarter recorded an expense of $154 million, compared to $187 million in Q2'24. The 2025 expense includes $126 million for interest, commissions, and leases, and a $28 million impact from exchange rate effects and inflation in Argentina. The cumulative comprehensive financing result recorded an expense of $271 million, compared to $250 million in 2024. The 2025 expense includes $278 million for interest, commissions and leases, and a $7 million benefit from exchange rate effects and inflation in Argentina. Derivative Financial Instruments As of June 30th, 2025, the market value of Grupo Rotoplas' position was: Market Value Instrument MXN/USD exchange rate forward ($6.13) million Sustainability Strategy Milestones Supplier Engagement Assessment – CDPGrupo Rotoplas was recognized by CDP as a global sustainability leader in its supply chain, achieving the highest rating in the Supplier Engagement Assessment. This distinction reflects its solid performance in carbon footprint measurement, decarbonization target setting, and supplier engagement. Rotoplas is one of only two Mexican companies included in this list, alongside CEMEX. Sustainable Management Company – PeruRotoplas Peru received the Sustainable Management Company Distinction for the eighth consecutive year, in recognition of its ongoing commitment to best environmental, social, and governance (ESG) practices in the country. Community ActionRotoplas collaborated in Peru with strategic entities such as SUNASS (Superintendencia Nacional de Servicios de Saneamiento) to donate storage solutions, directly benefiting over 11,300 people in educational centers and shelters. In Mexico, in partnership with Heineken, the Company delivered rainwater harvesting systems to community centers, impacting 35 schools in Nuevo León. These initiatives reinforce Rotoplas' commitment to bringing more and better water to the communities where it operates. Biodiversity Analysis Rotoplas completed its first biodiversity analysis focused on its operations in Mexico, marking a key step toward the comprehensive management of environmental impacts beyond climate change. This high-level analysis evaluates dependencies, impacts, risks, and opportunities associated with biodiversity loss within operations in Mexico and throughout the supply chain. The study aligns with international frameworks such as TNFD, reinforcing the integration of nature in strategic decision-making. Analyst Coverage Institution Analyst Recommendation Target Price (MXN) BTG Pactual Orlando Alcántara Neutral $24.80 GBM Regina Carrillo Outperform $44.00 Punto Casa de Bolsa Gerardo Campos Buy $18.64 Miranda Research Martín Lara Buy $28.00 Apalache Jorge Plácido Buy $28.50 Consensus Buy $28.79 Investor Conference Call Invite Thursday, July 24, 2025, at 10:00am Mexico City time (12:00pm EST)Speakers: Carlos Rojas (CEO), Andrés Pliego (CFO)Registration: Financial Statements Income Statement(Unaudited figures in millions of Mexican pesos) Q2 6M 2025 2024 %Δ 2025 2024 %Δ Net Sales 2,945 2,972 (0.9 %) 5,580 5,639 (1.0 %) COGS 1,728 1,582 9.3 % 3,247 2,898 12.1 % Gross Profit 1,217 1,390 (12.5 %) 2,333 2,742 (14.9 %) % margin 41.3 % 46.8 % (550) bps 41.8 % 48.6 % (680) bps Operation Expenses 1,010 1,083 (6.8 %) 1,987 2,014 (1.3 %) Operating Income 207 307 (32.6 %) 346 728 (52.5 %) % margin 7.0 % 10.3 % (330) bps 6.2 % 12.9 % (670) bps Comp. Financing Result (154) (187) (17.4 %) (271) (250) 8.1 % Financial Income 19 35 (46.2 %) 33 46 (27.5 %) Financial Expenses (173) (221) (21.9 %) (304) (296) 2.6 % Income Before Taxes 52 120 (56.7 %) 74 477 (84.4 %) Taxes 10 60 (82.5 %) 9 114 (91.8 %) Net Income 42 60 (30.9 %) 65 364 (82.1 %) % margin 1.4 % 2.0 % (60) bps 1.2 % 6.4 % (520) bps Adjusted EBITDA7 369 450 (18.1 %) 669 1,005 (33.4 %) % margin 12.5 % 15.1 % (260) bps 12.0 % 17.8 % (580) bps Balance Sheet(Unaudited figures in millions of Mexican pesos) June 2025 2024 %Δ Cash and Cash Equivalents 762 666 14.5 % Clients and Other Accounts Receivable 1,766 1,816 (2.7 %) Inventory 1,446 1,376 5.1 % Other Current Assets 553 675 (18.0 %) Current Assets 4,527 4,532 (0.1 %) Property, Plant and Equipment – Net 3,911 4,061 (3.7 %) Other Long-term Assets 5,707 4,892 16.7 % Total Assets 14,145 13,484 4.9 % Short-term Financial Debt8 515 333 54.7 % Suppliers and Other Accounts Payable 927 949 (2.2 %) Other Current Liabilities 1,046 1,041 0.5 % Short-term Liabilities 2,489 2,323 7.2 % Long-term Financial Debt9 3,999 3,999 0.0 % Other long-term Liabilities 1,304 882 47.9 % Total Liabilities 7,793 7,204 8.2 % Total Stockholders' Equity 6,352 6,281 1.1 % Total Liabilities + Stockholders' Equity 14,145 13,484 4.9 % Cash Flow(Unaudited figures in millions of Mexican pesos) January – June 2025 2024 %Δ EBIT 346 728 (52.5 %) Depreciation and Amortization 321 276 16.4 % Inventory 216 (295) NM Accounts Receivable (39) (364) (89.4 %) Accounts Payable (233) 114 NM Other Current Liabilities 120 152 (21.3 %) Taxes (65) (91) (28.8 %) Operating Cash Flow 667 521 27.9 % CapEx (211) (236) (10.5 %) Other Investment Activities 51 (62) NM Investing Cash Flow (161) (298) (46.0 %) Dividends 0 (242) NM Repurchase Fund (4) 7 NM Short and Long-term Debt (166) 303 NM Interest and Leases (322) (287) 12.3 % Financing Cash Flow (492) (218) NM Change in Cash 14 5 NM Effect of exchange rate on cash 16 95 NM Net Change in Cash 30 100 NM Initial Cash Balance 732 566 29.4 % Final Cash Balance 762 666 14.5 % Investor Relations Contact Mariana Fernández mfernandez@ María Fernanda Escobar mfescobar@ agua@ Disclaimer This document may contain forward-looking statements regarding the future performance of Grupo Rotoplas S.A.B. de C.V. These statements are based on current management expectations and information available at the time of publication. Actual results may differ materially due to various risks, uncertainties, and external factors beyond the Company's control. Grupo Rotoplas assumes no obligation to update or revise any forward-looking statements. About the Company Grupo Rotoplas S.A.B. de C.V. is America's leading provider of water solutions, including products and services for storing, piping, improving, treating, and recycling water. With over 40 years of experience in the industry and 18 plants throughout the Americas, Rotoplas is present in 14 countries and has a portfolio that includes 27 product lines, a services platform, and an e-commerce business. Grupo Rotoplas has been listed on the Mexican Stock Exchange (BMV) under the ticker 'AGUA' since December 10th, 2014. Pedregal 24, 19th Floor, Molino del ReyMiguel HidalgoZip Code 11040, Mexico CityT. +52 (55) 5201 1 In 2025, Adjusted EBITDA for the quarter includes $1 million in donations, and $2 million on a year-to-date basis. By comparison, in 2024, $0.4 million were considered in the quarter and $1 million on a cumulative basis for the same period.2 The 2025 LTM NOPAT and EBITDA calculation does not include the post-closing 2024 adjustment related to Argentina's results. Considering this adjustment, ROIC based on audited figures would be 2.9% and leverage (Net Financial Debt / EBITDA) would stand at 3.9x.3 Excluding leases. 4 The LTM EBITDA calculation does not include the post-closing 2024 adjustment related to Argentina's results. Considering this adjustment, leverage (Net Financial Debt / EBITDA) based on audited figures would stand at 3.9x.5 Excluding leases.6 Excluding leases.7 In 2025, Adjusted EBITDA for the quarter includes $1 million in donations, and $2 million on a cumulative basis. By comparison, in 2024, $0.4 million were considered in the quarter and $1 million on a cumulative basis for the same period.8 Excluding leases.9 Excluding leases. View original content:
Business Wire
5 days ago
- Business
- Business Wire
Orbia Announces Second Quarter 2025 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 second quarter of 2025. Orbia delivered revenues of $1.97 billion and EBITDA of $300 million for the second quarter of 2025, despite continued challenging market conditions in many parts of the world. However, we are beginning to observe early signs of stabilization and slight improvement in select markets. The Company made meaningful progress on its operational efficiency initiatives and maintained or improved its market position across most business groups. Q2 2025 Financial Highlights (All metrics are compared to Q2 2024 unless otherwise noted) Net revenues of $1,967 million were flat year-over-year, driven by lower revenues in Polymer Solutions and Building & Infrastructure offset by higher revenues in Fluor & Energy Materials, Connectivity Solutions and Precision Agriculture. EBITDA of $300 million decreased 10%, primarily driven by Polymer Solutions and Building & Infrastructure. Operating cash flow of $47 million improved by $43 million. The improvement was mainly due to lower interest expense and a lower cash impact from accruals, partially offset by lower EBITDA. Annual EBITDA guidance, adjusted for non-operating items, reaffirmed between $1,100 million and $1,200 million. 'Orbia's second quarter results reflect resilience amid a persistently challenging global economic landscape. Most of our markets seem to have stabilized at current levels, and in some cases are showing early signs of improvement with pockets of growth emerging in certain areas. We continue to make meaningful progress on the strengthening of our balance sheet through disciplined cost management, unlocking incremental EBITDA from recently completed growth investments, maintaining focused capital allocation, and advancing the divestiture of non-core assets. We also extended all material debt maturities out to 2030 and beyond during the quarter, raising approximately $1.4 billion to refinance existing debt. Looking ahead, we are confident in the compelling growth opportunities across each of our business segments. Our teams remain focused on what we can control— meeting our customers' needs, enhancing financial strength, driving free cash flow, and positioning Orbia for sustainable value creation,' said Sameer Bharadwaj, CEO of Orbia. Q2 2025 Consolidated Financial Information1 (All metrics are compared to Q2 2024 unless otherwise noted) mm US$ Second Quarter Financial Highlights 2025 2024 %Var. Net sales 1,967 1,976 0% Cost of Sales 1,534 1,474 4% Selling, general and administrative expenses 295 329 -10% Operating income 138 173 -20% EBITDA 300 334 -10% EBITDA margin 15.2% 16.9% -166 bps Financial cost 96 35 171% Earnings before taxes 43 139 -69% Income tax expense (benefit) 143 (85) N/A Consolidated net (loss) income (100) 224 N/A Net majority (loss) income (126) 195 N/A Operating cash flow 47 4 N/A Capital expenditures (97) (107) -10% Free cash flow (82) (130) -37% Net debt 4,016 3,838 5% Expand Net revenues of $1,967 million in the second quarter were flat year-over-year. The result in revenues for the quarter was driven by lower prices in Polymer Solutions and lower volumes in certain countries within Building & Infrastructure. These were offset by increases in Fluor & Energy Materials, Connectivity Solutions and Precision Agriculture compared to the prior year quarter. ____________________ 1 Unless noted otherwise, all figures in this release are derived from the Consolidated Financial Statements of the Company as of June 30, 2025 and 2024 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. Expand Cost of goods sold of $1,534 million for the quarter increased 4% compared to the same quarter of the prior year. The increase in cost of goods sold for the quarter was primarily driven by higher raw material costs in Polymer Solutions and Fluor & Energy Materials, partly offset by the benefits from cost savings initiatives and operational efficiencies across all business groups. Selling, general and administrative expenses of $295 million for the quarter decreased 10% compared to the same quarter of last year. As a percentage of sales, SG&A decreased 163 basis points to 15.0%. The decrease in selling, general and administrative expenses for the quarter was primarily due to the benefits from cost savings initiatives. EBITDA of $300 million for the quarter decreased 10%, while EBITDA margin decreased 166 basis points to 15.2%. The decrease in EBITDA and EBITDA margin was due to lower revenues and prices in Polymer Solutions, unfavorable product mix in Building & Infrastructure and generally higher input costs. Financial costs of $96 million for the quarter increased by approximately $60 million year-over-year. The increase in financial costs for the quarter was mainly driven by a shift from an FX gain in the prior year to a slight loss in the current year, primarily driven by the appreciation of the Mexican Peso. An income tax expense of $143 million was recognized for the quarter compared to an income tax benefit of $85 million in the same quarter in the prior year, driven by a shift in the Company's earnings profile between the two periods. The effective tax rate for the quarter was 334%, primarily driven by the earnings mix across tax jurisdictions, the appreciation of the Mexican Peso against the U.S. Dollar, and inflation adjustments in certain countries. Excluding the impact of these discrete factors, the effective tax rate was approximately 124%, which remains elevated due to the relatively low level of pre-tax earnings for the quarter. The effective tax rate for the quarter is not reflective of Orbia's normalized rate which is typically 27% to 32%2. Net loss to majority shareholders of $126 million in the quarter decreased, compared to a net income of $195 million in the same quarter in the prior year. The decrease was driven by higher taxes, higher financial costs and the decrease in operating income. Operating cash flow of $47 million in the quarter improved by $43 million, while free cash flow of negative $82 million improved by $48 million. The improvements were mainly due to lower interest expense and a lower cash impact from incentive compensation payments and accruals, partially offset by lower EBITDA. Net debt of $4,016 million included total debt of $4,875 million, less cash and cash equivalents of $859 million. The Company's net debt-to-EBITDA increased from 3.67x to 3.98x compared to the previous quarter. The increase in the net debt-to-EBITDA ratio during the second quarter was primarily driven by an increase in total debt of $189 million and a decrease in the last 12-months EBITDA of approximately $34 million. Net debt-to-EBITDA at the end of the second quarter using EBITDA adjusted3 for non-operating items to better reflect underlying earnings increased from 3.23x to 3.51x. ____________________ 2 Excluding the impact of inflation and foreign exchange rate changes in Mexico. 3 Adjusted EBITDA is EBITDA adjusted for items that have a limited number of occurrences, are clearly identifiable and not reflective of ongoing business performance. Expand Q2 2025 Revenues by Region (All metrics are compared to Q2 2024 unless otherwise noted) mm US$ Second Quarter Region 2025 2024 % Var. Prev Year % Revenue North America 679 728 -7% 34% Europe 624 582 7% 32% South America 404 387 4% 21% Asia 207 217 -5% 11% Africa and others 53 62 -13% 3% Total 1,967 1,976 0% 100% Expand Q2 2025 Financial Performance by Business Group (All metrics are compared to Q2 2024 unless otherwise noted) Polymer Solutions (Vestolit and Alphagary), 30.4% 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$ Second Quarter Polymer Solutions 2025 2024 %Var. Total sales* 616 644 -4% Operating income 13 39 -66% EBITDA 79 107 -26% *Intercompany sales were $34 million and $51 million in Q2 25 and Q2 24, respectively. Expand Revenues of $616 million decreased 4%. EBITDA of $79 million decreased 26% and EBITDA margin decreased 374 basis points to 12.8%. The decrease in revenues for the quarter was driven by lower resin pricing and an operational disruption in derivatives, which was addressed by the end of the quarter. Second quarter EBITDA decreased year-over-year, driven primarily by lower revenues, the operational disruption in derivatives and higher input costs. Building & Infrastructure (Wavin), 31.0% of Revenues Orbia's Building & Infrastructure business group (commercial brand Wavin) is redefining today's pipes and fittings industry by creating solutions that last longer and perform better, all with less installation labor required. The business group benefits from supply chain integration with the Polymer Solutions business group, a customer base spanning three continents, and investments in sustainable, resilient technologies for water and indoor climate management. mm US$ Second Quarter Building & Infrastructure 2025 2024 %Var. Total sales 629 665 -5% Operating income 28 42 -33% EBITDA 63 78 -19% Expand Revenues of $629 million decreased 5%. EBITDA of $63 million decreased 19% and EBITDA margin decreased 162 basis points to 10.1%. The decrease in revenues for the quarter was driven by lower volumes in India (as a result of the sale of the tanks business) and Mexico, and an unfavorable product mix, partly offset by strong performance in the U.K. and increased volumes in Indonesia. Second quarter EBITDA decreased year-over-year, driven by unfavorable product mix in Western Europe, and lower revenue in Mexico and India, partially offset by the U.K., Indonesia, Eastern Europe and Brazil and continued benefits from cost saving initiatives. Precision Agriculture (Netafim), 14.2% of Revenues Orbia's Precision Agriculture business group's (commercial brand Netafim) leading-edge irrigation systems, services and digital farming technologies enable stakeholders to achieve significantly higher and better-quality yields while using less water, fertilizer and other inputs. By helping farmers worldwide grow more with less, the business group is contributing to feeding the planet efficiently and sustainably. mm US$ Second Quarter Precision Agriculture 2025 2024 %Var. Total sales 288 284 2% Operating income 12 13 -5% EBITDA 40 39 1% Expand Revenues of $288 million increased 2%. EBITDA of $40 million slightly increased year-over-year and EBITDA margin decreased 14 basis points to 13.8%. The increase in revenues for the quarter was primarily driven by Brazil, U.S. and Peru, partially offset by declines in Mexico and Chile and lower greenhouse projects activity. Second quarter EBITDA increased slightly year-over-year, driven by higher revenues and a favorable product mix. Fluor & Energy Materials, 12.2% of Revenues Orbia's Fluor & Energy Materials business group provides fluorine and downstream products that support modern, efficient living. The business group owns and operates the world's largest fluorspar mine and produces intermediates, refrigerants and propellants used in automotive, infrastructure, semiconductor, health, medicine, climate control, food cold chain, energy storage, computing and telecommunications applications. mm US$ Second Quarter Fluor & Energy Materials 2025 2024 %Var. Total sales 247 230 7% Operating income 55 64 -15% EBITDA 72 81 -11% Expand Revenues of $247 million increased 7%. EBITDA of $72 million decreased 11% and EBITDA margin decreased 606 basis points to 29.2%. The increase in revenues for the quarter was primarily driven by favorable prices in upstream minerals and a favorable product mix. These gains were partially offset by lower upstream minerals volumes and an unfavorable refrigerant gas mix. Second quarter EBITDA decreased year-over-year driven by higher input costs across key raw materials and unfavorable currency fluctuations, partially offset by a favorable product mix and the benefits from cost saving initiatives. Connectivity Solutions (Dura-Line), 12.1% of Revenues Orbia's Connectivity Solutions business group (commercial brand Dura-Line) produces more than 500 million meters of essential and innovative connectivity infrastructure per year to bring a world's worth of information everywhere. The business group produces telecommunications conduit, cable-in-conduit and other HDPE products and solutions that create physical pathways for fiber and other network technologies connecting cities, homes and people. mm US$ Second Quarter Connectivity Solutions 2025 2024 %Var. Total sales 246 236 4% Operating income 26 29 -11% EBITDA 41 41 1% Expand Revenues of $246 million increased 4%. EBITDA of $41 million increased 1% and EBITDA margin decreased 64 basis points to 16.6%. The increase in revenues for the quarter was driven by higher volumes supported by increased demand in North America telecommunications and data center markets as well as a favorable product mix, partially offset by lower prices. Second quarter EBITDA increased year-over-year primarily driven by higher revenues, favorable costs, partially offset by lower prices. Balance Sheet, Liquidity and Capital Allocation Orbia's net debt-to-EBITDA ratio increased from 3.39x to 3.98x year-over-year primarily driven by an increase of $179 million in net debt and a reduction of $124 million in the last 12-months EBITDA. The Company had cash on hand of $859 million at the end of the quarter compared to $797 million during the prior year quarter. The increase in net debt is due to an increase in borrowings of $104 million and the negative impact of the strengthening of the Mexican Peso. Adjusted net debt-to-EBITDA4 for the quarter, was 3.51x as compared to 3.04x at the end of 2024 and 3.23x at the end of the prior quarter. On April 11, 2025, Orbia issued long-term notes (certificados bursátiles) in the Mexican debt market, for approximately $300 million, split evenly between 3 and 10 years notes. The proceeds of the notes were used to refinance its short-term maturities in the local market. On April 30, 2025, Orbia issued senior notes due 2030 and 2035, for approximately $1,100 million. The proceeds of the notes have been used primarily to refinance the previous Senior Notes due in 2026 and 2027. Orbia has redeemed and cancelled its 2026 Senior Notes and a portion of its 2027 Senior Notes. The Company plans to redeem the remaining 2027 Senior Notes on the next eligible redemption date, in accordance with the underlying indenture. Working capital increased by $111 million during the quarter compared to an increase of $56 million in the prior-year quarter. These are seasonal increases that follow the operational trends of the Company's businesses, and which are liquidated in the later part of the year. Capital expenditures of $97 million during the quarter decreased 10% year-over-year, including ongoing maintenance spending and investments to support the Company's targeted growth initiatives. ____________________ 4 Adjusted EBITDA is EBITDA adjusted for items that have a limited number of occurrences, are clearly identifiable and not reflective of ongoing business performance. Expand 2025 Outlook The underlying assumptions for the most recent guidance remain generally unchanged. Therefore, Orbia reaffirms its full-year 2025 Adjusted5 EBITDA guidance in the range of $1,100 million to $1,200 million. The Company also reaffirms its 2025 capital expenditures guidance of approximately $400 million or less, with a continued focus on investments to ensure safety and operational integrity, completing growth projects under execution that are close to revenue and being extremely selective on any new growth investments. 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 estimates an effective tax rate of 27% to 32%6 in 2025. Orbia remains committed to managing global tax risks amid a volatile currency and inflation environment and will continue to monitor local tax developments as conditions evolve. For each of Orbia's businesses the Company is assuming the following: Polymer Solutions: Persistent soft market dynamics, driven by excess supply and lower export prices out of China and the U.S. are expected to continue for the remainder of the year. The full year performance is expected to be lower than last year due to the one-off impacts of the raw material supply disruption and operational challenges in derivatives experienced during the first half of the year. With these issues behind, the business expects that second half results will improve compared to first half results. In this environment, Orbia remains focused on realizing the benefits of cost saving initiatives and disciplined cash management. Persistent soft market dynamics, driven by excess supply and lower export prices out of China and the U.S. are expected to continue for the remainder of the year. The full year performance is expected to be lower than last year due to the one-off impacts of the raw material supply disruption and operational challenges in derivatives experienced during the first half of the year. With these issues behind, the business expects that second half results will improve compared to first half results. In this environment, Orbia remains focused on realizing the benefits of cost saving initiatives and disciplined cash management. Building & Infrastructure: The business expects modest growth from new product launches and stabilization across key markets despite continued challenging market conditions in Western Europe and Mexico. The business will continue its focus on realizing operational cost efficiencies to improve profitability. The business expects modest growth from new product launches and stabilization across key markets despite continued challenging market conditions in Western Europe and Mexico. The business will continue its focus on realizing operational cost efficiencies to improve profitability. Precision Agriculture: Market conditions are expected to remain stable to slightly improving, supported by recent positive momentum in Brazil, the U.S. and Turkey. The Company anticipates continued strong performance in parts of Latin America and projects in Africa. The business will remain focused on driving growth through deeper penetration in extensive crops, while maintaining a consistent emphasis on cost management and working capital improvements. Market conditions are expected to remain stable to slightly improving, supported by recent positive momentum in Brazil, the U.S. and Turkey. The Company anticipates continued strong performance in parts of Latin America and projects in Africa. The business will remain focused on driving growth through deeper penetration in extensive crops, while maintaining a consistent emphasis on cost management and working capital improvements. Fluor & Energy Materials: The business anticipates continued strength in fluorine markets, with demand and pricing expected to remain stable or show modest improvement through the remainder of the year, helping offset input cost increases. To support margins, cost-control initiatives will remain a priority, alongside active product portfolio management focused on maximizing value creation. The business anticipates continued strength in fluorine markets, with demand and pricing expected to remain stable or show modest improvement through the remainder of the year, helping offset input cost increases. To support margins, cost-control initiatives will remain a priority, alongside active product portfolio management focused on maximizing value creation. Connectivity Solutions: Volumes are expected to continue growing throughout the year, supported by sustained momentum in network deployment, datacenter demand and investment in the power sector. Profitability growth will be driven by increased demand, along with benefits from cost-saving initiatives and higher utilization of manufacturing facilities, partly offset by a weak pricing environment. ____________________ 5 Adjusted EBITDA is EBITDA adjusted for items that have a limited number of occurrences, are clearly identifiable and not reflective of ongoing business performance. 6 Excluding the impact of inflation and foreign exchange rate changes in Mexico. Expand Conference Call Details Orbia will host a conference call to discuss second quarter 2025 results on June 24, 2025, 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 Consolidated Income Statement mm US$ Second Quarter January - June Income Statement 2025 2024 % 2025 2024 % Net sales 1,967 1,976 0% 3,778 3,839 -2% Cost of sales 1,534 1,474 4% 2,951 2,905 2% Gross profit 433 502 -14% 827 934 -11% Selling, general and administrative expenses 295 329 -10% 648 655 -1% Operating income 138 173 -20% 179 279 -36% Financial cost (income) 96 35 171% 172 174 -1% Equity in income of associated entity 1 1 60% 2 2 39% Impairment expense - - N/A - - N/A Income (loss) from continuing operations before income tax 43 139 (0) 9 107 (0) Income tax 143 (85) N/A 138 (70) N/A (Loss) Income from continuing operations (100) 224 N/A (129) 177 N/A Discontinued operations - - N/A - - N/A Consolidated net (loss) income (100) 224 N/A (129) 177 N/A Minority stockholders 26 29 -10% 51 56 -8% Majority Net (loss) income (126) 195 N/A (180) 121 N/A EBITDA 300 334 -10% 498 587 -15% Expand Consolidated Balance Sheet mm US$ Balance sheet Jun 2025 Dec 2024 Jun 2024 Total assets 11,608 11,057 11,214 Current assets 4,057 3,610 3,800 Cash and temporary investments 859 1,009 797 Receivables 1,893 1,448 1,733 Inventories 1,217 1,098 1,186 Others current assets 88 55 84 Non current assets 7,551 7,447 7,414 Property, plant and equipment, net 3,330 3,271 3,316 Right of use fixed assets, net 466 431 476 Intangible assets and goodwill 3,049 3,028 3,069 Long-term assets 706 717 553 Total liabilities 8,646 8,077 8,156 Current liabilities 2,629 2,628 2,515 Current portion of long-term debt 325 548 317 Suppliers 953 821 804 Letters of credit 421 395 387 Short-term leasings 133 111 118 Other current liabilities 797 753 889 Non current liabilities 6,017 5,449 5,641 Long-term debt 4,550 4,078 4,318 Long-term employee benefits 146 130 134 Long-term deferred tax liabilities 378 345 335 Long-term leasings 366 346 376 Other long-term liabilities 577 550 478 Consolidated shareholders' equity 2,962 2,980 3,058 Minority shareholders' equity 533 547 601 Majority shareholders' equity 2,429 2,433 2,457 Total liabilities & shareholders' equity 11,608 11,057 11,214 Expand Cash Flow Statement Second Quarter January - June mm US$ 2025 2024 %Var. 2025 2024 % Var. EBITDA 300 334 -10% 498 587 -15% Taxes paid, net (55) (48) 14% (105) (94) 12% Net interest / bank commissions (73) (92) -21% (143) (156) -8% Change in trade working capital (111) (56) 98% (280) (249) 13% Others (other assets - provisions, Net) (23) (98) -76% 24 (89) N/A CTA and FX 9 (36) N/A 31 (45) N/A Operating cash flow 47 4 997% 25 (46) N/A Capital expenditures (97) (107) -10% (202) (239) -16% Leasing payments (32) (27) 18% (60) (46) 30% Free cash flow (82) (130) -37% (237) (331) -28% FCF conversion (%) -27.4% -39.0% -47.5% -56.4% -100% Dividends to shareholders - (80) -100% - (80) -100% Buy-back shares program - - 1 - Debt 104 26 294% 163 (147) N/A Minority interest payments (36) (32) 13% (63) (59) 8% Mergers & acquisitions 19 (0) N/A 19 (0) N/A Financial instruments and others (6) (37) -83% (33) (42) -22% Net change in cash (1) (253) -100% (150) (659) -77% Initial cash balance 860 1,050 -18% 1,009 1,456 -31% Cash balance 859 797 8% 859 797 8% Expand 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), Building & Infrastructure (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, reinventing the future of cities and homes, ensuring food, water and sanitation 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 23,000 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 $7,506 million in revenue in 2024. To learn more, visit: 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. 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Indianapolis Star
6 days ago
- Health
- Indianapolis Star
Transgender Hoosiers push back on ban on driver's license gender changes. Will opposition matter?
Dozens of Hoosiers testified on July 22 in opposition to a proposed rule change by the Indiana Bureau of Motor Vehicles that would prohibit gender marker changes on driver's licenses, an effort stemming from Gov. Mike Braun's executive order from March that aimed to promote the 'biological dichotomy between men and women' and discourage 'modern gender ideology.' BMV leaders, though, likely don't have much power to significantly alter the proposed rule since the agency has to comply with Braun's order. "While we are committed to ensuring that all voices and points of view are heard and considered," Gregory Dunn, executive director of communications for the BMV said in a statement, "we also have a responsibility to carry out our duties as defined by law." What was intended to be an hour-long public hearing stretched nearly three hours as speakers criticized what some described as an intentionally anti-transgender initiative by state elected officials. Among them were transgender Hoosiers and advocates alike, including a 15-year-old nonbinary teenager looking to get their driver's license and a man with an intersex partner. Before Gov. Braun's order, people could change gender markers on their licenses by obtaining a court order, a process speakers described as arduous. Under the proposed rule change, the gender on an individual's driver's license must reflect their biological sex determined at birth. An 'X' will no longer be allowed in place of a gender marker for nonbinary people. While driver's licenses that have already changed will remain valid, new licenses issued must follow the updated guidelines. Shortly after Braun's executive order, the Indiana Department of Health told local health departments to stop accepting requests to change genders on birth certificates. When a health department subsequently refused to change the gender of a teenage transgender girl on the birth certificate, the American Civil Liberties Union of Indiana sued the governor for allegedly violating the equal protection and privacy clauses of the U.S. Constitution. The executive order has not been the first challenge to the BMV's policy of changing gender markers. In 2020, then-Attorney General Curtis Hill issued an advisory opinion saying the BMV did not have the authority to issue an 'X' as a gender marker. That opinion eventually led to an Indiana Court of Appeals decision in 2024 that determined 'gender' has the same legal meaning as 'sex" when it comes to laws pertaining to motor vehicles, a precedent that was cited by a regulatory analysis of the proposed rule change. That same regulatory analysis became a point of contention for some speakers, specifically one line that listed 'impacted parties' as 'none.' Those who testified cited scientific studies, legal principles, Bible verses and poems. They described hypothetical scenarios where the proposed rule change could cause more confusion at traffic stops, in hospitals and even when issuing a description for a missing person. Among the speakers was Kit Malone, a transgender woman and former strategist for the ACLU who said the change will impact transgender Hoosiers in everyday scenarios where IDs are required, like bars, movie theaters and grocery store checkouts, because many will not look like the gender listed on their ID. 'I updated my ID because it was getting weird not to,' she said. 'I was getting looks.' Eli Lucas, a transgender man who works for a Fortune 500 company in Indianapolis, said the change affects hardworking taxpayers like himself. He said he feared the change could complicate police interactions, enhance the risk of violence and create humiliation in everyday interactions that require an ID. 'We transgender Hoosiers are your neighbors, your coworkers, your friends and your family who simply want to live without fear,' he said. Others spoke to the broader political climate, referencing a pastor who delivered a sermon in June at an Indianapolis church where he told congregants to pray for the deaths of LGBTQ+ people. Some who testified said they had friends who had left Indiana because of its attitude toward transgender people, but that they loved the state they grew up in too much to follow them. Amy Kleyla, a combat veteran and 50501 protest organizer, said the national environment had gotten increasingly hostile as well. She said she transitioned 28 years ago but has never experienced as much hate as she has this year. 'That hate is force fed into the American people right now,' Kleyla said. The BMV did not provide details about how much the agency could modify the proposed changes to still comply with Braun's executive order. "Hoosiers have too many pressing needs to spend their tax dollars trying to redefine what it means to be a boy or a girl," Braun previously said when he signed the executive order. "Today's executive order will end any confusion about our state's policy on this issue so we can focus on my goal to secure freedom and opportunity for all Hoosiers."
