Indorama Ventures Public Company Limited (SET: IVL) reported a net profit of Bt6.0 billion (Bt1.02 per share) in the second quarter of 2026, marking its first quarterly profit in six periods. This turnaround comes amid improved EBITDA and EBITDA margins across all business segments. Group EBITDA surged 169% quarter-on-quarter (QoQ) and 129% year-on-year (YoY), totaling Bt21.7 billion for the period. Improvements were seen in CPET, packaging, Indovinya, and fibers, helping push EBITDA margin to 16%.
Second quarter net profit surpassed market consensus by 16%, though it fell short of CLSA’s forecast by 2%. Group utilization was at 74%, down by three percentage points QoQ, in line with sales volumes. Contributing factors included a tighter supply situation in Asia, which drove the CPET spread up to US$279 per ton, compared with US$176 per ton in the previous quarter. IVL recorded a Bt796 million impairment loss relating to fiber and PET assets, and a Bt2.3 billion tax expense.
Looking ahead, CPET spreads in China softened to US$184 per ton in July from US$279 in the second quarter but remained above 2025 levels. Other product spreads showed a mixed trend. Management indicated during a conference call that IVL is reviewing strategic options for its idle MEG assets in Clear Lake, Texas, with a decision expected in 2027.
Financially, IVL’s balance sheet showed improvement, with net debt to EBITDA ratio down to 5.4x from 7.6x in the first quarter, and net debt to equity reduced to 1.6x from 1.8x.
CLSA has reiterated its Outperform rating on IVL, with a target price of Bt28.00, citing improved operations and a stronger balance sheet but noting that quarterly earnings may soften going forward.
Meanwhile, JPMorgan has downgraded IVL to Neutral from Outperform, lowering the target price to Bt22.00 from Bt26.00. The downgrade is based on expectations of weaker spreads in the second half, fair valuation, and the need for further clarity on underperforming assets such as the Clear Lake facility. Management aims to reduce the net debt to EBITDA ratio below 3x by 2028 and continues to enhance inventory turnover, which improved to 5.0x in the first half of 2026 due to disciplined inventory management.
