Alpek has closed out a punishing 2025 with earnings under pressure, weaker volumes and rising leverage, as persistent softness in global polyester markets overshadowed gains in cash flow and cost controls.
The petrochemical producer reported full-year Comparable EBITDA of $489 million, slightly below guidance and down 30% from 2024. Fourth-quarter Comparable EBITDA fell to $100 million — down 27% quarter-over-quarter and 40% year-over-year — as weak reference margins, lower volumes, historically low ocean freight rates and softer pricing weighed on performance.
Quarterly volume dropped 9% both sequentially and annually to 1,020 ktons, reflecting softer demand and longer-than-expected maintenance shutdowns across several sites. Revenues for the quarter slid 12% year-over-year to $1.53 billion.
For the full year, revenues declined 13% to $6.59 billion, while reported EBITDA plunged 35% to $418 million. Net loss attributable to controlling interest widened sharply to $150 million for the year, compared with a $33 million loss in 2024.
Alpek’s Polyester segment bore the brunt of the downturn. Quarterly Comparable EBITDA in the division dropped 59% year-over-year, while full-year Polyester Comparable EBITDA tumbled 42%.
By contrast, Plastics & Chemicals delivered comparatively steady results, with quarterly Comparable EBITDA up 17% sequentially.
“2025 was particularly challenging for our Polyester business, as global demand and reference margins remained under pressure,” said CEO Jorge Young. “In addition, planned maintenance shutdowns, which lasted longer than anticipated, impacted operations at several of our sites.”
Despite the earnings slump, Alpek boosted full-year operating free cash flow by 57% to $163 million, driven by disciplined capital expenditures and working capital optimization. CAPEX for the year rose to $170 million, up 40% from 2024.
Leverage climbed to 4.4x Net Debt to EBITDA, reflecting lower trailing earnings. Excluding restructuring and footprint optimization costs, pro forma leverage would have been 3.9x.
“Although our leverage remains at higher-than-expected levels, we successfully reduced and refinanced debt to maintain financial flexibility, and we will continue to look for opportunities to further improve the leverage ratio,” Young said.
The company reiterated that strengthening the balance sheet remains a top priority, alongside capitalizing non-strategic assets, refinancing debt and foregoing dividend payments.
In a significant corporate move, Alpek became a 100% free float company following its merger with Controladora Alpek on December 9, streamlining its structure and reinforcing its independence.
“A major milestone in 2025 was the successful spin-off and merger with Controladora Alpek, establishing Alpek as an independent entity with a streamlined corporate structure,” Young said. “This transformation reinforces our commitment to long-term value creation for our Shareholders.”
As part of ongoing cost-reduction and competitiveness initiatives, Alpek plans to suspend operations at its Reading, Pennsylvania recycling facility in the second quarter of 2026, relocating part of that capacity to its integrated site in Richmond, Indiana.
The company is also advancing footprint optimization in Polyester and expanding value-added products including PET sheet, thermoform and EPS, while growing its energy commercialization platform — initiatives aimed at generating incremental EBITDA with limited capital outlay.
Alpek has warned that 2026 is likely to mirror the difficult market dynamics of 2025. Ocean freight rates remain at historically low levels, and industry rationalization has progressed more slowly than expected.
“2026 is shaping up to mirror the complex market and industry dynamics that we experienced in 2025,” Young said. “As such, our Guidance reflects a prudent base case, grounded in controllable factors, while also identifying upside drivers should market conditions improve.”
Even amid the downturn, management struck a tone of resilience.
“The management team is keenly focused on taking actions in areas that it can control, seeking opportunities both internal and external, and working diligently to strengthen its financial position and operations as the industry remains challenged,” Young said.
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