By: ICN Bureau
Last updated : November 14, 2025 3:05 pm
IVL’s operating cash flow in the first nine months of 2025 reached $985 million
Indorama Ventures’ Q3 earnings slide amid industry turbulence, restructuring on the cards
Indorama Ventures Public Company Limited (IVL), the global sustainable chemical producer, reported a sharp decline in third-quarter earnings as the chemical industry faces deep structural shifts worldwide.
The company posted adjusted EBITDA of $285 million in Q3 2025, down 14% from the previous quarter and 33% year-on-year. Sales volumes fell 3% quarter-on-quarter and 9% year-on-year, largely due to maintenance turnarounds.
The global chemical sector continues to struggle with record overcapacity, weak demand, and disruptions from geopolitical tensions, technological changes, and evolving consumer behavior. Europe, in particular, remains challenged by structural issues, while unresolved tariffs and fractured supply chains are expected to pressure sector earnings through 2026.
In response, IVL is pushing ahead with its IVL 2.0 transformation plan, launched in March 2023 to address energy shortages in Europe and feedstock pricing disparities. The plan focuses on cost savings, cash generation, digital adoption, and sustainability innovation, the company said in a release.
"Margin pressure in our industry is unprecedented,” said Group CEO Aloke Lohia. “Corrective actions are underway in key markets, but urgent momentum is needed to restore supply-demand balance over the next 12-24 months. Structural reforms in Europe and a resolution to the Russia-Ukraine conflict could be defining triggers for recovery.”
Under IVL 2.0, site rationalizations—including the sale of Wellman International in Ireland—have reduced fixed costs by $130 million compared to 2023 and streamlined operations. The company expects an additional $200 million in proceeds from the sale of rationalized assets in Australia, Rotterdam, and Canada by 2026.
Despite a challenging environment, IVL’s operating cash flow in the first nine months of 2025 reached $985 million, with EBITDA conversion at 121%. The company is also targeting high-growth partnerships to expand in accretive categories while maintaining disciplined capital allocation amid elevated debt and interest rates.
“By taking proactive self-help measures now, we are positioning IVL to capitalize when global trade and demand realign,” Lohia said. “Valuations are depressed, but our focus on financial and commercial excellence will strengthen the company and its earnings quality over time.”