Indorama Ventures Public Company Limited (SET: IVL), a global sustainable chemical producer, announced a strong first-quarter 2026 performance, signaling a decisive recovery from the cyclical trough of 2023-2025. The results reflect the disciplined execution of the company’s IVL 2.0 strategy, positioning it to capitalize on strengthening global chemical markets.
Consolidated revenue for 1Q26 rose 7% quarter-on-quarter (QoQ) to THB 109.3 billion, while reported EBITDA surged 89% QoQ to THB 8.0 billion. This significant sequential improvement was driven by a combination of volume growth, improved margins, and a favorable portfolio mix, partially offset by currency headwinds. The company’s new “Radical Clarity” reporting philosophy, which embraces inventory fluctuations as an integral part of the business, provides a more transparent view of performance.
The strong performance generated THB 8.8 billion in operating cash flow, with an EBITDA conversion rate of 109%. Proactive working capital management resulted in a THB 3.2 billion reduction, achieved despite higher sales volumes and rising crude prices. This discipline improved the net debt-to-equity ratio to 1.73x from 1.83x in the previous quarter.
Mr. Aloke Lohia, Group CEO of Indorama Ventures, commented, “1Q26 represents a clear inflection point. Our recovery is powered by both improving external conditions and the deliberate actions taken under IVL 2.0. Through Radical Clarity and disciplined execution, we are entering the upcycle in a stronger position. We expect continued sequential earnings improvement, accelerated deleveraging toward our 3x Net Debt/EBITDA target, and solid progress on our 2028 ambitions.”
Business Segment Highlights
Combined PET (CPET): The segment was a standout performer, with EBITDA surging 134% QoQ to THB 5.5 billion. The rebound was driven by volume normalization after planned turnarounds, improved industry spreads, and a widening structural cost advantage from the company’s shale-to-PET integration in the Americas.
Indovida (Packaging): The segment demonstrated continued resilience, posting EBITDA of THB 743 million, a 10% QoQ increase, supported by a broad recovery in key growth markets. The proposed merger with EPL Limited will create a formidable packaging federation for long-term growth.
Indovinya (Surfactants): EBITDA was THB 1.7 billion, a 7% QoQ decline, primarily due to market pressures in South America and a winter freeze event in the U.S. The segment is poised for a structural turnaround as supply chain disruptions are expected to neutralize cheap Asian imports into key markets.
Fibers: EBITDA improved 70% QoQ to THB 879 million. The result reflects disciplined production management to align supply with demand, prioritizing cash flow and inventory control over volume in softer mobility and lifestyle markets.
Strategic Execution and Outlook
Indorama Ventures’ performance was bolstered by its four competitive moats: a global local-for-local operating model, unmatched shale-to-PET integration, diversified end-markets, and a refined Sales & Operations Execution (S&OE) discipline. These strengths, amplified by the IVL 2.0 transformation, have enhanced the company’s ability to capture higher import parity pricing and improve cash flow.
The industry landscape is showing signs of structural improvement, with slowing PET capacity growth and rationalization across the ethylene value chain. These factors, combined with geopolitical disruptions accelerating market tightening, are creating a healthier and more disciplined supply environment.
Looking ahead, management expects continued momentum into the second quarter, supported by favorable pricing, higher utilization of advantaged assets, and further margin expansion. These drivers position Indorama Ventures to deliver additional sequential earnings improvement and accelerate progress toward its long-term strategic and financial targets.
