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Alpek Sab De Cv Ord
2/10/2026
Good morning, everyone. Welcome to Alpex for quarter 2025 earnings webcast. I am Barbara Amaya, Alpex IRO, and I am pleased to be here today with Jorge Young, our CEO, and Jose Carlos Pons, our CFO, who will be presenting today's material. Today, we'll be covering the following topics. First, Jorge will walk us through the key highlights for 2025. Second, Jose Carlos will cover the financial results for the quarter. Third, Jorge will discuss our outlook for 2026, followed by Jose Carlos who will delve into our guidance figures. Then, Jorge will outline our strategic priorities for 2026. And finally, we will conclude with a Q&A session. Please note that the information discussed today may include forward-looking statements regarding the company's future financial performance and prospects, which are subject to certain risks and uncertainties. Actual results may differ materially and the company cautions the market not to rely on dueling on these forward-looking statements. Alpec undertakes no obligation to publicly update or revise any forward-looking statements, whether it is as a result of new information, future events, or otherwise. We express our financial results in US dollars unless otherwise specified. For your convenience, this webcast is being recorded and will be available on our website. Jorge, I'll turn the call over to you.
Good morning, everyone. Thank you for joining us today. Throughout 2025, amid the continuation of a challenging environment for the chemical industry, our teams worked diligently on actions within our control to strengthen our financial position and solidify our global operations. Altec's financial and operating results were largely impacted by global overcapacity, resulting in a difficult year, particularly for our polyester business. We also executed several planned but longer than expected maintenance outages. By contrast, our plastics and chemicals businesses delivered a more stable performance. As a result, our full year comparable EBITDA totaled $489 million, down 30% from last year. I would like to emphasize that our focus on strengthening our financial position has led to a sequential improvement in our operating free cash flow, which was 163 million, a considerable improvement of 57% from previous year, demonstrating the company's resilience and financial discipline. We continue to execute our previously outlined four strategic pillars. which play a key role in reinforcing the company's competitiveness. First, strengthen our core business. We advanced on our targeted footprint optimization by seizing PT operations at the Cedar Creek facility and relocating that capacity to more competitive, larger assets. As a result of this initiative, we expect to realize a benefit of approximately $20 million in 2026. which will partially offset broader microeconomic headwinds. Second, financial flexibility. We maintain discipline, capital allocation, optimize our networking capital, and executed debt refinancing. This action strengthened our liquidity and extended our maturity profile. Additionally, we also suspended the dividend and made progress in the monetization of non-strategic assets, which are expected to materialize in 2026. Third, boosting growth. We advanced the development of high margin solutions in our PET thermoform and EPS businesses, and continued expanding our specialty products in our polypropylene businesses. This supports portfolio differentiation while providing incremental EBITDA over time. And fourth, capitalizing on opportunities. Beyond the developments already discussed, we have been selectively expanding outside the petrochemical industry, mainly through our energy commercialization business. Particularly by expanding recently to the power sector, which we expect will support growth over the coming years. Finally, the major milestone in 2025 was the successful spin-off and merger with Controladora Alpec, fully establishing Alpec as an independent entity with a streamlined corporate structure. Now, I will turn the call over to Jose Carlos to provide our financial performance in greater detail.
Good morning, everyone. Let me walk you through our quarterly results. Starting with our polyester segment, volume was 836,000 tons, down 10% both sequentially and year over year, reflecting softer demand and longer than expected plant maintenance outages at several of our sites. These operational factors weighted in on production in the short term. However, we have since resumed most of our operations. On an annual basis, seasonal effects were stronger alongside the strategic decision to exit low margin PTA and PTA exports. Polyester comparable levidad total 41 million, a 53% decrease versus the third quarter. Pressure by lower volumes, weaker margins, and historically low ocean freight. On a year-over-year basis, oversupply, trade-related dynamics, and global freight costs impacted performance. By contrast, the plastics and chemical segment continued to deliver stable results. Volume was 184,000 tons, decreasing 6% quarter-over-quarter and 7% year-over-year, reflecting softer demand in both periods. Plastic and chemicals comparable levidad total 55 million, up 17% sequentially and 50% lower year over year, as steady margins help offset softer volumes and typical seasonal effects. Together our segment resulted in a volume of 1.02 million tons, decreasing 9% versus the previous quarter and year over year. A reporte de vida total 70 million, a 40% decrease quarter on quarter, as a reduction in commodity prices and feedstocks resulting in a 29 million inventory adjustment. Primarily in the polyester segment, as paraxylene saw a 7% sequential decrease. Relevant reference margins for our polyester segment saw more stability compared to last quarter, yet remained pressure. For our plastic and chemical segments, reference margins were steady. Finally, comparable EBITDA was $100 million, a 27% decline versus the previous quarter. Looking at our full year free cash flow and capital allocation, we saw a net working capital recovery of $50 million, supported by optimizations and lower volatility in raw material prices. These efforts are aligned with our cash generation goals. CapEx for the quarter total 51 million, consisting of 41 million in maintenance and 10 million in strategic cap ex, aligned with a priority and planned maintenance across multiple sites. This resulted in an annual cap ex of 170 million. Full year operation free cash flow total 163 million, a significant improvement of 57% on an annual basis, demonstrating solid cash generation and Alpex resilience amidst a challenging environment. Moving to our balance sheet and financial position, leverage ended at 4.4 times net debt debita, reflecting lower last 12 months reported debita amid sustained low margin debts. The company is implementing additional measures to strengthen its balance sheet as a prolonged cycle recovery is expected and the leveraging continues to be a top priority. Notably, proforma leverage would have resulted in 3.9 times, adjusting for footprint optimization and restructuring costs. Net debt was $1.8 billion flat versus the previous quarter, yet we were able to decrease it by $44 million versus 2024, a solid accomplishment in the current market context. We remain financially flexible entering 2026, given the successful debt refinancing, solid cash generation, available community credit lines, and disciplined capex management. I'll turn the call back to Jorge to discuss our 2026 outlook.
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