Thailand · Delayed Price · Currency is THB Indorama Ventures PCL Earnings Call Transcripts
Fiscal Year 2026
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Exceptional first half 2026 results were driven by structural advantages, disciplined inventory and operational management, and favorable market conditions, with broad-based earnings growth across all segments and regions. Deleveraging progressed ahead of schedule, and management remains confident in meeting 2026 and 2028 targets despite expected earnings moderation in the second half.
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A leaner, federated model and operational excellence underpin the 2026-2028 plan, targeting a doubling of EBITDA, major inventory optimization, and significant deleveraging. Portfolio actions include asset rationalization, divestments, and innovation in recycling and sustainability, with management incentives tied to share price.
Fiscal Year 2025
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Q3 2025 saw continued margin pressure and weak demand across all segments, with revenue and EBITDA declining year-on-year. Management executed major cost reductions, asset rationalizations, and digital initiatives, while focusing on deleveraging and strategic partnerships to position for recovery as industry consolidation and trade measures take effect.
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Q2 2025 is expected to improve due to operational normalization, seasonality, and better industry spreads. Capex for 2025 is set at $800M, with growth focused on packaging and fibers. India remains a strategic, high-growth market, contributing 7-8% of revenue.
Fiscal Year 2024
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2024 saw improved earnings and operational resilience amid industry headwinds, with adjusted EBITDA up 10% to $1.52 billion and significant cost savings from asset rationalization. Management expects further benefits in 2025 as working capital normalizes and transformation initiatives continue.
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Q3 2024 saw a 32% year-on-year rise in Adjusted EBITDA to $427 million, driven by cost savings, asset rationalization, and margin recovery across all segments. Strategic initiatives, including asset sales and upcoming IPOs, are set to further reduce debt and enhance value.
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Q2 2024 saw adjusted EBITDA of $370M, with asset optimization driving $666M in impairments and expected annual fixed cost savings of $170M by 2025. Sales volumes rose, cash flow remained strong, and strategic actions position the company for improved margins and growth despite ongoing market challenges.
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The company is rapidly expanding its global PET recycling capacity, targeting 1.5 million tons by 2030 and aiming for 40% circular feedstock and a 30% reduction in GHG emissions. Operational improvements, regulatory support, and strong customer partnerships are driving growth, with India and Africa as key expansion markets.