Netafim Reports 7% Revenue Growth in Q1 2026, Orbia’s Precision Agriculture Segment Advances on Turkey, Brazil, and Africa Demand

Key Takeaways

• Netafim, the commercial brand of Orbia’s Precision Agriculture business group, posted Q1 2026 revenues of $290 million, a 7% year-over-year increase, driven by strong performance in Turkey and Brazil and higher project revenues in Africa.
• EBITDA for Precision Agriculture rose 2% to $34 million in Q1 2026, while EBITDA margin declined 58 basis points to 11.8%, reflecting higher fixed costs from Israeli Shekel appreciation against the U.S. Dollar.
• Operating income at Netafim increased 19% to $7 million in Q1 2026 compared to $6 million in Q1 2025, marking the segment’s third consecutive quarter of operating profit improvement.
• Adjusted EBITDA for Precision Agriculture declined 8% year-over-year to $34 million from $37 million in Q1 2025, as currency headwinds more than offset revenue gains on a normalized basis.
• Orbia expects Precision Agriculture to sustain strong momentum through 2026, supported by demand in Brazil, Peru, and Africa, alongside the launch of GrowSphere FLEX Beta, a new direct pressure regulator with integrated valve, and a new orchard cooling solution.

Netafim Delivers 7% Revenue Growth in Q1 2026

Orbia Advance Corporation, S.A.B. de C.V. (BMV: ORBIA*) released unaudited first-quarter 2026 results on April 29, 2026. The company’s Precision Agriculture segment, operating under the Netafim brand, generated revenues of $290 million in Q1 2026, up from $271 million in Q1 2025, representing 14.3% of Orbia’s total consolidated revenues of $1.96 billion.

Revenue growth was driven primarily by strength in Turkey and Brazil, two of Netafim’s largest markets, complemented by higher project revenues in Africa. Operating income for the segment reached $7 million, a 19% increase from $6 million in the prior-year quarter, reflecting top-line gains alongside continued cost discipline.

“The favorable trends that emerged across 2025 in our Fluor & Energy Materials, Connectivity Solutions and Precision Agriculture segments have carried over into 2026,” said Sameer Bharadwaj, CEO of Orbia.

Currency Headwinds Weigh on EBITDA Despite Top-Line Gains

Netafim’s EBITDA grew modestly, rising 2% to $34 million in Q1 2026 from $33 million in the year-prior quarter. EBITDA margin contracted 58 basis points to 11.8%. On an adjusted basis — which excludes one-time restructuring costs recorded in Q1 2025 — EBITDA declined 8% from $37 million to $34 million, and Adjusted EBITDA margin fell 188 basis points year-over-year. The primary factor was higher fixed costs attributable to the appreciation of the Israeli Shekel relative to the U.S. Dollar, which increased operating expenses for Netafim’s Israel-based operations. This headwind was only partially offset by higher revenues across the segment’s global markets.

Orbia's Netafim Outlook for 2026

For the remainder of 2026, Orbia expects Netafim to maintain strong commercial momentum, led by robust demand in Brazil and Peru and expanding project revenue in Africa. The company also anticipates recovery in the U.S. market. In response to raw material cost increases driven by the Middle East conflict, Netafim has proactively implemented price actions across its portfolio. The segment is additionally focused on realizing further benefits from ongoing operational efficiency projects and cash generation initiatives, alongside the commercial ramp-up of recently launched technologies: a new direct pressure regulator with an integrated valve, a new orchard cooling solution, and GrowSphere FLEX Beta, a digital farming platform feature currently in beta testing.

“We remain focused on optimizing costs, strengthening the balance sheet, generating cash, and simplifying the portfolio, in line with our long-term strategic objectives,” said Sameer Bharadwaj, CEO of Orbia.

Orbia Q1 2026 Consolidated Financial Highlights

The following table summarizes Orbia’s consolidated financial performance for the first quarter of 2026 compared to the same period in 2025.