Indorama Ventures Public Company Limited (IVL), a global sustainable chemical producer, reported a strong improvement in first-half 2026 earnings, supported by favorable market conditions and continued progress in strengthening its operating fundamentals. For the first half of 2026, IVL reported revenue of THB 245.3 billion, up 4% year-on-year. Meanwhile, EBITDA increased 61% to THB 29.7 billion. The company delivered particularly strong performance in the second quarter, with all four business segments recording year-on-year improvements. At the same time, operating cash flow after maintenance capital expenditure rose 78% to THB 25.9 billion. Strong cash generation also helped IVL accelerate its deleveraging efforts. Its Net Debt-to-Equity ratio improved to 1.56x, reaching the company’s 2026 Capital Markets Day target ahead of schedule.
IVL Strengthens Cash and Working Capital Management
Alongside favourable market conditions, IVL continued implementing its IVL 2.0 self-help initiatives. These include Sales & Operations Execution (S&OE), tighter inventory management and stronger working capital discipline. Consequently, inventory turnover improved to 5.0x in the second quarter, compared with 4.7x at the end of 2025. The company also carefully managed operating rates, aligning production with inventory targets while protecting margins amid volatile pricing conditions.
Company Prepares for Normalized Market Conditions
Looking ahead, Indorama Ventures expects some of the exceptionally strong market tailwinds seen during the second quarter to moderate. Therefore, the company will focus on generating sustainable earnings under normalized market spreads, converting earnings into free cash flow, reducing absolute net debt and improving returns on capital during the remainder of 2026.
Aloke Lohia, Group CEO of Indorama Ventures, said the first-half results reflected both supportive market conditions and progress from the company’s self-help initiatives. He emphasized that the company’s long-term objective is to convert its scale, integration, global footprint, local-for-local operating model and customer relationships into more consistent earnings, stronger cash generation and higher returns through the cycle.
Combined PET Leads Business Improvement
The earnings improvement was led by Combined PET, which benefited from favorable market conditions and IVL’s integrated global platform and local-for-local operating model. Meanwhile, Indovida maintained its growth momentum, supported by its leading position in packaging, strong customer relationships and organic growth initiatives. Indovinya also delivered strong performance across its High Value Applications and Essentials businesses, supported by commercial excellence initiatives. The Fibers segment improved sequentially in the second quarter, driven by stable hygiene demand and ongoing transformation efforts. However, continued weakness in the Lifestyle and Mobility markets remained a challenge.
Focus Remains on Financial Resilience
IVL remains confident in its 2026 expectations and 2028 ambitions. Going forward, management will continue focusing on operational execution, balance-sheet strengthening and improved returns on capital. As per the press release, at the same time, the company aims to retain sufficient flexibility to capture growth opportunities as global chemical markets evolve.
