Key Takeaways
- Orbia Netafim’s Precision Agriculture business reported a 6% year-over-year revenue increase in Q1 2025.
- EBITDA for Precision Agriculture grew 16%, with adjusted EBITDA up 28%.
- Growth was led by markets in Brazil and Peru; declines noted in Mexico and Northern Europe.
- Orbia’s consolidated adjusted EBITDA rose 3% to $260 million.
- Net loss improved to $29 million, driven by lower financial costs and tax benefits.
Precision Agriculture (Netafim) Grows in Q1 2025
Orbia’s Precision Agriculture business, operating under the Netafim brand, recorded a revenue increase of 6% year-over-year in Q1 2025, reaching $271 million. EBITDA rose 16% to $33 million, with an adjusted EBITDA of $37 million—up 28% from the same period last year. This growth was attributed to strong performance in Brazil and Peru, partially offset by weaker demand in Mexico and Northern Europe.
According to Orbia, the increase was supported by higher revenues and continued cost optimization. The adjusted EBITDA margin for the segment rose to 13.6%, reflecting gains from operational efficiencies.
Orbia Netafim’s Role in Global Agricultural Sustainability
Netafim’s portfolio includes irrigation systems, digital farming tools, and services designed to enhance crop yields using fewer resources. The business group focuses on enabling efficient and sustainable farming through targeted water and nutrient use, supporting global food production while minimizing environmental impact.
CEO Sameer Bharadwaj noted: “Our first-quarter results demonstrate the resilience of our businesses across market cycles. We remain focused on financial discipline while advancing our long-term strategy.”
Orbia Company-Wide Overview
While the Precision Agriculture segment delivered growth, Orbia’s overall net revenues declined by 3% to $1.81 billion. EBITDA dropped 21% to $198 million, although adjusted EBITDA increased by 3% to $260 million. The company cited performance pressures in Polymer Solutions and Building & Infrastructure but reported improvements in Fluor & Energy Materials.
The company also improved its operating cash outflow, which stood at $22 million compared to $50 million in Q1 2024.
Outlook for Precision Agriculture
Orbia expects stable market conditions in the agriculture segment throughout 2025. Growth is anticipated from expanded market presence in Brazil, India, and the U.S., alongside digital platform development and new product initiatives.
The company will maintain a focus on operational efficiency and controlled capital expenditure across its businesses, including Orbia Netafim.
Discover the complete financial results here.
5 Comments