Indorama Ventures Public Company Limited (IVL) reported a sharp improvement in first-half 2026 earnings, with EBITDA surging 61% year-on-year to THB 29.7 billion, as stronger market conditions combined with tighter operational discipline.
Revenue rose 4% to THB 245.3 billion in the six months ended June, while operating cash flow after maintenance capital expenditure jumped 78% to THB 25.9 billion.
The strong cash generation also accelerated the company’s deleveraging efforts. Net debt-to-equity improved to 1.56x, allowing IVL to reach its 2026 Capital Markets Day target ahead of schedule.
Second-quarter performance was particularly strong, with all four business segments posting year-on-year improvements.
IVL credited its ongoing “IVL 2.0” self-help programme, including tighter sales & operations Execution, inventory discipline and working-capital management, for helping improve cash conversion. Inventory turnover rose to 5.0x in the second quarter from 4.7x at the end of 2025.
The company also kept operating rates under tight control, aligning production with inventory targets while protecting margins amid volatile pricing.
Aloke Lohia, Group CEO of Indorama Ventures, said, “Our first-half performance reflects both supportive market conditions and the progress we are making through the self-help actions we have taken to strengthen Indorama Ventures.
"Markets will normalize, so the more important test is whether we can convert the advantages of the platform we have built over three decades - our scale, integration, global footprint, local-for-local operating model and customer positions, into more consistent earnings, stronger cash generation and higher returns through the cycle."
He added: "We are beginning to see that translation in our performance. Greater discipline in how we manage our operations, inventory and working capital is improving cash generation, while our portfolio actions are strengthening the quality of the business and improving returns on capital. Together, these actions are building a more agile and financially resilient Indorama Ventures.
“We remain confident in our 2026 expectations and 2028 ambitions. Our focus is to continue executing on what we can control, strengthen our balance sheet and improve returns, while retaining the flexibility to capture growth opportunities as markets evolve.”
Combined PET was the biggest driver of the earnings improvement, benefiting from favorable market conditions as well as IVL’s integrated global platform and local-for-local operating model.
Indovida maintained its growth momentum, helped by its market-leading packaging position, close customer relationships and organic growth initiatives.
Indovinya delivered strong results across both its High Value Applications and Essentials businesses, supported by commercial excellence initiatives.
Fibers also improved sequentially in the second quarter, aided by stable Hygiene demand and ongoing transformation efforts. However, Lifestyle and Mobility end markets remained weak.
IVL cautioned that some of the exceptionally strong market tailwinds seen in the second quarter are likely to normalize in the coming months.
For the rest of 2026, the company said it will focus on sustaining earnings under normalized spreads, converting earnings into free cash flow, cutting absolute net debt and improving returns on capital.
The company said it remains confident in its 2026 expectations and 2028 ambitions, with management focused on strengthening the balance sheet while maintaining flexibility to pursue growth opportunities as market conditions evolve.
