20
25
Integrated Annual
Report
Table of
Contents
01
04
07
05
08
10
06
09
11
02
03
Message from
Management
2025 Highlights
• Financial Highlights
• ESG Highlights
About Alpek
• Introduction
• Market Presence
• Alpek in the Daily Lives
• Long-term Strategy
2025
Performance
• Polyester
• P&C
• ESG
Our Governance
• Corporate Governance
• Board of Directors
• Management Team
• Risk Management
• Operative Framework
• Materiality Assessment
• ESG Model
• Code of Conduct
• Cybersecurity
Alpek’s People
• Our Team
• Quality of Life
• DEI
• Occupational Safety
• Human Rights
Social Impact
• Community Impact
• Alpek’s Value Chain
Natural Capital
• Net Zero Roadmap
• Material Issues &
Progress
Consolidated
Financial
Statements
Financial Review
Contact Us
ABOUT
ALPEK
OUR
GOVERNANCE
NATURAL
CAPITAL
FINANCIAL
REVIEW
2
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
3
GRI: 2-22
TCFD: Governance
result that reflects the challenges of the environment and, at
the same time, the strength of our diversification.
Despite the adverse external backdrop, Alpek strengthened
its operating discipline and maintained solid cash generation.
In 2025, Operating Free Cash Flow reached US$163 million, a
performance that reflects the quality of our portfolio and our
consistent focus on efficiency.
Dear Shareholders,
2025 was a challenging year for the global petrochemical in-
dustry. Overcapacity across several value chains, weakness
in certain end markets, and volatile economic environment
pressured margins across the industry.
Alpek is no stranger to these types of environments. Through-
out its history, the Company has faced complex cycles and has
been able to adapt, make timely decisions, and strengthen its
competitiveness. Today, as in other decisive moments in our
history, we are confident that the actions we have undertaken
over recent years and the strategic initiatives currently underway
will allow us to capture an improvement in results as markets
normalize, while we continue to evolve our product and market
portfolio to strengthen the resilience of our sales. This approach
combines preparation for a gradual recovery in demand with
concrete actions aimed at improving the quality, diversification,
and stability of our revenues. The accumulated experience of
our management team and its disciplined execution continue
to be a fundamental pillar in navigating these cycles.
Industrial activity during the year showed contrasting trends. In
Polyester, the combination of global oversupply and scheduled
maintenance shutdowns limited volumes and profitability. In
contrast, the Plastics & Chemicals segment delivered stable
results, despite constrained reference margins, supported by
a diversified portfolio that partially offset consolidated perfor-
mance. Overall, Comparable EBITDA totaled US$489 million, a
This cash generation
supported our liquidity,
extended our maturity
profile, and, together with
other financial actions
implemented during the
year, allowed us to continue
advancing key strategic
initiatives.
Message
from
Management
01
ABOUT
ALPEK
OUR
GOVERNANCE
NATURAL
CAPITAL
FINANCIAL
REVIEW
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
3
During the year, we took meaningful steps under our four-initia-
tive strategic framework, focused on strengthening the Com-
pany’s position to drive long-term growth and value creation.
2. Financial Flexibility and
Discipline
We continued to strengthen our financial position
through strict capital allocation, working capital improve-
ments, debt refinancing, and the temporary suspension
of the dividend.
Across different cycles, consistent cash generation has
distinguished Alpek and underpins our decision making.
3. Driving Growth in Higher
Value-added Solutions
We advanced higher-margin applications in PET sheet,
thermoforming, and specialized solutions in Expandable
Polystyrene and Polypropylene, expanding our partici-
pation in attractive markets.
4. Expansion of Emerging
Businesses
Our energy commercialization business continued to
scale and consolidate, making a positive contribution
to annual performance. The expansion of this mod-
el, initially focused on natural gas and now extending
into the power sector, has progressed in ways that
strengthen the Company’s diversification beyond the
petrochemical cycle.
These four initiatives reinforce our strategic direction and position
us to capture value-creation opportunities both in the current
environment and in a gradual recovery scenario, strengthening
our resilience regardless of the cycle.
On the financial front, the year closed with leverage of 4.4x, above
expectations. Debt reduction remains our top financial priority,
and we are executing concrete actions such as the monetization
of non-strategic assets, cost-optimization initiatives, and disci-
plined capital allocation. Our long-term leverage target remains
at 2.5x, and we are committed to returning to that level.
From a corporate structure standpoint, a key milestone during
the year was the merger with Controladora Alpek, which allowed
us to become a fully independent company with 100% free float.
This transformation strengthens our corporate governance, in-
creases stock liquidity, and enhances our potential inclusion in
relevant indices. It also broadens our access to a new universe
of investors.
In addition, we would like to highlight the tenth anniversary of
our Styropek business, a leading Expandable Polystyrene pro-
ducer in North America. We remain committed to operational
excellence and to the continued development of new products.
Looking ahead to 2026, we expect conditions similar to the prior
year, with significant challenges stemming from continued global
oversupply, mature demand, and low interoceanic freight costs
that facilitate the entry of more competitive Asian products into
our core markets, pressuring industry profitability. Even so, we
anticipate a year of greater operating stability and gradual signs
of improvement in certain markets.
In Polyester, we expect more stable operations following the
maintenance shutdowns carried out in the prior year, prioritiz-
ing domestic markets where our integration and scale provide
competitive advantages. In Plastics & Chemicals, while new
Propylene capacity entering the region and the slow recovery
of construction suggest a more challenging environment, we
believe our strategic initiatives in the segment will strengthen
the business profile. In addition, we expect our diversification
efforts toward higher value-added products, particularly PET
sheet and thermoforming, Expandable Polystyrene specialties,
and high-performance Polypropylene solutions, together with the
gradual growth of the energy commercialization business, now
expanded into electricity, to continue on a positive trajectory,
contributing incrementally and sustainably to the Company’s
value and supporting the construction of a portfolio that is less
dependent on the traditional petrochemical cycle.
We look to the future with realism and confidence. We recognize
the work carried out in 2025 as a foundation to move forward
with determination.
We extend our sincere gratitude, first and foremost, to you, our
Shareholders, as well as to our employees, customers, suppli-
ers, and Board members, for your continued commitment and
support. Your trust inspires us to continue building a stronger,
more competitive Alpek, well prepared for the future.
Álvaro Fernández Garza
Chairman of the Board
Jorge P. Young Cerecedo
Chief Executive Officer
1. Strengthening our Operations
and Core Business
We advanced measures to enhance efficiency and com-
petitiveness, including the suspension of PET operations
at Cedar Creek to focus on larger-scale integrated sites.
ABOUT
ALPEK
OUR
GOVERNANCE
NATURAL
CAPITAL
FINANCIAL
REVIEW
4
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
Highlights02
$163M
OPERATING FREE CASH FLOW1
+25 K Tons
RECYCLED R-PEK EXTRUSION
PLANT IN TENNESSEE
33%
SCOPE 1&2 CO2e EMISSIONS
REDUCTION VS 2019 (SBTi-based)
$489M
COMPARABLE EBITDA 100%
FREE FLOAT IN MEXICAN
STOCK EXCHANGE
12 sites
WITH 0 RECORDABLE INCIDENTS
1 OPERATING FREE CASH FLOW IS DEFINED AS CASH FLOW GENERATED BY OPERATIONS AFTER NET WORKING CAPITAL,
FINANCIAL EXPENSES, TAXES AND MAINTENANCE CAPEX, PRIOR TO STRATEGIC CAPEX, DIVIDENDS AND OTHER EFFECTS.
ABOUT
ALPEK
OUR
GOVERNANCE
NATURAL
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FINANCIAL
REVIEW
5
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
MESSAGE FROM
OUR MANAGEMENT
2025
HIGHLIGHTS
03
About Alpek
Alpek develops essential products
to benefit people’s everyday lives
through constant innovation and
sustainable manufacturing. Alpek’s
materials extend from the daily
food and medical industries to long-
term applications in housing and
construction.
Working to meet
global societal
and environmental
everyday needs has
been, and will always
be, essential to Alpek’s
purpose and values.
AUTOMOTIVE | PP
Key Components
SPORTS | PET
Hydration & Wellness
CONSTRUCTION | EPS
Thermal Insulation
FOOD | PET SHEET
Social Gathering
OUR
GOVERNANCE
NATURAL
CAPITAL
FINANCIAL
REVIEW
6
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
ABOUT
ALPEK
9
+5,000
34
USA
CANADA
MEXICO
BRAZIL
UNITED
KINGDOM
SAUDI
ARABIA
OMAN
ARGENTINA
CHILE
PLANTS
PLANTS
USA
MEXICO
BRAZIL
ARGENTINA
CHILE
CANADA
UNITED
KINGDOM
SAUDI
ARABIA
OMAN
PLANTS
COUNTRIES
EMPLOYEES
OUR
GOVERNANCE
NATURAL
CAPITAL
FINANCIAL
REVIEW
7
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
ABOUT
ALPEK
Market
Presence
Mexico
2,760 Kta
Canada
144 Kta
USA
2,409 Kta
Argentina
246 Kta
Brazil
1,136 Kta
Chile
28 Kta
Oman
1,072 Kta
Saudi Arabia
11 Kta
United
Kingdom
220 Kta
PTA
Resin
Sheet
Flake
Pellet
SPT
PP
EPS
Other
PET
PET
rPET
rPET
rPET
CAPACITY
MESSAGE FROM
OUR MANAGEMENT
ABOUT
ALPEK
initiatives
ABOUT
ALPEK
OUR
GOVERNANCE
NATURAL
CAPITAL
FINANCIAL
REVIEW
8
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
Strategy
Strengthen Core
Business
Build a solid operational
foundation driven by
competitiveness and efficiency.
Core Business
Core + Emerging Business
Emerging Business
Financial Flexibility
Enhance cash flow
generation and maintain
strong liquidity.
Boosting Growth
Drive transformative growth
initiatives in the core business.
Capitalizing on
Opportunities
Explore opportunities for
diversification to seize growth.
Our long-
term vision
is built on
four key
01
03
04
02
ABOUT
ALPEK
04
2025
Performance
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CONSOLIDATED FINANCIAL
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IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
2025
PERFORMANCE
VOLUME
(K TONS)
COMPARABLE EBITDA
(US$, MILLIONS)
4,635
2023
734
2023
4,798
2021
962
2021
4,745
2024
699
2024
5,065
2022
1,396
2022
4,380
2025
489
2025
GRI: 201-1
Polyester
Plastics & Chemicals
Others
Reported EBITDA
REVENUES (US$, MILLIONS)
NET DEBT & LEVERAGE (DEBT US$, MILLIONS & LEVERAGE TIMES)
6,585
7,530
7,759
10,555
7,697
2025
2025
1,840
2024
2024
1,884
2023
2023
2022
2022
2021
2021
1,729
1,860
1,225
4,099
966
3,785
849
3,911
834
3,609
458
480
823
567
497
232
464
223
267
209
771
24
5
5
12
13
3,796
1,002
2.9
3.4
1.3
1.1
4.4
2025 Financial Highlights
514
1,145
646
1,455
418
163
Operating Free
Cash Flow
(US $, Millions)
MESSAGE FROM
OUR MANAGEMENT
2025
PERFORMANCE
ABOUT
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FINANCIAL
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CONSOLIDATED FINANCIAL
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IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
2025
PERFORMANCE
6,938
thousand tons
installed capacity
#1 PTA, PET and recycled
PET producer across the
Americas
Leading PET producer
worldwide
25 plants
3,496
employees
Polyester
ARGENTINA
BRAZIL
CANADA
MEXICO
USA
OMAN
SAUDI ARABIA
UK
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IMPACT
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HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
2025
PERFORMANCE
2025 marked a challenging year for the Polyester
segment. Global oversupply from Asia resulted in
continued pressure on reference margins and lower
demand levels. In addition to this, the segment ex-
perienced market fluctuations and volatility resulting
from the reciprocal tariffs imposed by the U.S. on
PET, which signaled market players to operate cau-
tiously, particularly during the first half of the year.
During the second half of the year, the segment ex-
perienced longer than expected maintenance shut-
downs and declining ocean freight costs. As a result,
full-year Guidance was revised downward.
Asian PET reference margins averaged $283 per ton,
a decrease of 5% over 2024, seeing lower levels com-
pared to the same periods last year on a quarterly
basis. On the other hand, average Chinese reference
margins experienced greater volatility during the first
half of the year, and gradually stabilized towards year
end, resulting in an average of $142 per ton, 10%
lower annually.
Volume levels remained pressured in the segment,
and alongside maintenance shutdowns, declined by
8% year-over-year, resulting in 3,609 thousand tons.
Full-year Comparable EBITDA totaled $267 million,
a significant drop of 42% compared to 2024, as ref-
erence margins and prices decreased. Additionally,
ocean freight costs decreased to historical levels.
Overall performance reflected the ongoing pressure
across the global petrochemical industry.
For 2026, we expect overcapacity pressures across
the industry to persist, however we are beginning
to see more stable levels for volume and reference
margins, which could present potential upsides in
the segment. Industry-wide rationalization efforts are
progressing more slowly than anticipated and ocean
freight costs are expected to remain at relatively low
levels. Additionally, most of our operations have since
resumed. Overall, we expect greater operational and
financial stability, forecasting a modest improvement
in results.
Included in our Guidance for the year is the potential
benefit resulting from reciprocal tariff negotiations,
which remain pending with regulatory resolution. We
will continue to monitor these effects as they evolve
through the year.
Relevant Events:
Footprint optimizations: During the year, as part of our core business strengthening initiatives, we execut-
ed a key strategic action to shut down our Cedar Creek facility and reallocating production to scalable and
integrated sites. Through this, we expect additional savings of over $20 million, distributed throughout 2026.
2026 Strategy:
Commodity segment (PTA and PET resins): Our focus is on integrated, scalable hubs serving at-
tractive domestic markets, primarily in the United States, Brazil and Mexico.
–
Footprint Optimization: Decision to suspend operations at the Reading recycling facility.
–
Demand for virgin PET: Relocating capacity to our Richmond facility, which offers a more cost-com-
petitive platform.
High-value Polyester (PET Sheet and Thermoformed): We are advancing targeted,
low-CAPEX investments to debottleneck operations in the Middle East and strengthening
our product development capabilities.
–
Scalability: Expanding our position into a fast-growing segment and increasing our
exposure to higher margin applications.
1. Expansion of Emerging
Businesses
Our energy commercialization business continued to
scale and consolidate, making a positive contribution
to annual performance. The expansion of this mod-
el, initially focused on natural gas and now extending
into the power sector, has progressed in ways that
strengthen the Company’s diversification beyond the
petrochemical cycle.
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HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
2025
PERFORMANCE
Only PP producer in Mexico
Plastics &
Chemicals
1,018
thousand tons
installed capacity
9 plants
#1 EPS producer in
the Americas
Alpek produces
Polypropylene (PP),
Expandable Polystyrene
(EPS), fertilizers and specialty
chemicals
1,126
employees
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IMPACT
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HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
2025
PERFORMANCE
GRI: 2-6
On a higher note, the Plastics & Chemicals seg-
ment delivered stable performance, as it main-
tained solid demand levels and reference margins
across the product portfolio. Results reflected a
gradual continuation of trends seen in 2024, as
demand pressure was offset by resilient reference
margins. Within the broader industry context, these
results highlighted the resilience and importance
of the diversified portfolio.
Regarding reference margins, EPS averaged 34
cpp, an improvement over 2024 of 12%, following
the spike seen towards the end of last year. North
American PP reference margins saw a decrease to
14 cpp, declining by 7% year-over-year, as a ramp-
up in installed capacity resulted in pressured but
stable performance.
Demand throughout the year remained under pres-
sure, given the global industry conditions, result-
ing in a volume of 771 thousand tons, down 8%
year-over-year. This led to a Comparable EBITDA
of $209 million, 6% lower than last year.
For 2026, we expect profitability in this segment
to remain somewhat constrained. New capacity
additions in North America, particularly in Polypro-
pylene, are expected to pressure reference margins
and a continuation of softness in EPS demand,
as a recovery in construction markets has yet to
materialize, impacting demand. Notably, Alpek is
moving forward with specialized product solutions
that will expand the portfolio and enhance the seg-
ment’s competitiveness.
2026 Strategy:
Leverage Competitive Regional Assets: We are expanding into high-performance and specialty
solutions.
–
Strategic Investments: We will begin ramping up investments made in prior years for EPS special-
ties and initiating a multi-year growth project focused on Polypropylene and other high-performance
solutions, which are expected to become key EBITDA contributors over time.
ABOUT
ALPEK
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CONSOLIDATED FINANCIAL
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PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
2025
PERFORMANCE
Ratings
GRI: 2-27
TCFD: Governance, Risk Management
CSA S&P: 1.3
Strategy & Execution
Alpek maintains a strong commitment to transparency and high stan-
dards of environmental, social, and governance (ESG) performance.
To strengthen credibility and comparability, the Company continues to
actively engage with leading ESG rating agencies, using their assess-
ments as tools to identify opportunities for improvement and enhance
sustainability management practices.
Progress 2025
In 2025, Alpek strengthened the robustness of its sustainability disclosures and
performance across governance, climate change, water stewardship, and sustain-
ability management.
These efforts led to improved ESG ratings, including achieving Sustainalytics’ Low
Risk category for the first time, a four-point increase in its CSA ESG Overall Score,
and an upgrade in CDP Water Security rating from B- to B, reinforcing its commit-
ment to transparency and continuous improvement.
ESG SCORE
(SCORE IMPROVEMENT YOY)
Chemical Industry’s Average Score
ESG RISK RATING
(RISK REDUCTION YOY.
THE LESS RISK, THE BETTER)
Chemical Industry’s Average Risk Percentile
CLIMATE CHANGE
(SCORE IMPROVEMENT YOY)
Chemical Industry’s Average Score
WATER SECURITY
(SCORE IMPROVEMENT YOY)
Chemical Industry’s Average Score
ESG RATING
(SCORE IMPROVEMENT YOY)
Chemical Industry’s Average Score
59
26
20
18
59
63
25
27
B
C
BB
28
31
-
-
BB
32
31
B
B
-
2023
2023
2024
2025
2024
2025
The following graphs
show Alpek’s progress
with the most relevant
rating agencies from
2023 to 2025
BBB
B
B-
BB
B
B-
B
B
2023
2023
2023
2024
2024
2024
2025
2025
2025
BBB
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2025
PERFORMANCE
Certifications
Strategy & Execution
As part of its commitment to sustainability, Alpek upholds widely recognized certifications in qual-
ity, environmental management, and corporate responsibility throughout its operations. These
certifications help ensure adherence to international standards, improve operational efficiency,
and foster ongoing improvement through independent external audits.
CERTIFIED TO ISO
CSA S&P: 2.1.2
ISO 9001 certification is maintained
across multiple operations, including sites
in Mexico, the United States, Brazil, Oman,
Chile, Argentina, Canada, the United King-
dom, and Saudi Arabia. This certification
supports the implementation of Quality
Management Systems (QMS) designed
to ensure consistent product and service
quality, meet customer and regulatory re-
quirements, enhance operational efficien-
cy, promote continuous improvement, and
strengthen customer satisfaction.
ISO 14001 certification is maintained
across several Alpek operations in Mexi-
co, the United States, Brazil, Oman, Chile,
Argentina, and the United Kingdom. This
certification supports the implementation
of Environmental Management Systems
(EMS) designed to identify and manage
environmental impacts, ensure regulatory
compliance, improve resource efficiency,
mitigate environmental risks, and drive
continuous environmental improvement
across manufacturing activities.
ISCC+ is a globally recognized sustainabil-
ity certification that supports the respon-
sible sourcing and use of bio-based and
circular materials, with a strong emphasis
on traceability across selected operations.
Alpek holds ISCC+ certification for its sus-
tainable expandable polystyrene product
line, reinforcing its commitment to circu-
lar economy principles and sustainable
innovation.
Alpek’s styrenics business holds SCS
Global Services certification for recycled
content, which independently verifies the
percentage of recycled material incorpo-
rated into its production processes. This
certification ensures traceability, integri-
ty, and validation of recycled inputs, rein-
forcing the plant’s commitment to circu-
lar economy principles and responsible
manufacturing.
RESPONSIBLE CARE
CERTIFIED
Alpek maintains Responsible Care (Siste-
ma de Administración de Responsab-
ilidad Integral, or SARI in Spanish)
certification across multiple business
segments, underscoring its commitment
to health, safety, environmental steward-
ship, and the responsible management
of chemical products.
ISO 9001
ISO 14001
ISCC+ Certification
SCS Recycled Content (Mexico)
R e s p o n s a b i l i d a d I n t e g r a l
otorga el presente
a la empresa
Por haber cumplido los compromisos
derivados del Sistema de Administración
de Responsabilidad Integral.
Ciudad de México, 29 de Noviembre de 2024
Certificado RCMX-055624-1121
Vencimiento: Noviembre 21, 2027
Responsabilidad Integral
La Asociación Nacional de la Industria Química, A. C.
en su carácter de promotor del desarrollo sustentable
INDELPRO, S.A. DE C.V.
2026
2025
2024
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2025
PERFORMANCE
Alliances &
Commitments
GRI: 2-28, 2-29
CSA S&P: 1.5.1, 2.5.12
Strategy & Execution
Alpek actively forges alliances with organizations and initiatives
that advance sustainable development. By engaging in global and
industry-led platforms, the Company demonstrates its dedication
to responsible business practices, collaboration, and continuous
improvement across its operations. Alpek aligns with interna-
tionally recognized initiatives on sustainability, climate action,
human rights, and circularity, embedding these commitments
into its long-term sustainability strategy.
In 2025, Alpek remained
active in over 100
associations and
initiatives.
The Company has reinforced its commitment to the Sustainable
Development Goals (SDGs) by endorsing the Women’s Empow-
erment Principles (WEPs). It is committed to reducing emissions
through the Science Based Targets initiative (SBTi) and supports
the UN Global Compact, encouraging other Mexican companies
to join these global efforts. In addition, Alpek actively partners
with recycling advocates.
Alpek is a signatory
to the Women’s
Empowerment Principles
(WEPs).
Alpek has
science-based
greenhouse gas
emissions reduction
targets approved by the
Science Based Targets
initiative (SBTi).
Alpek is a
participant in the
United Nations Global
Compact and supports
its Ten Principles on
human rights, labor,
environment, and anti-
corruption.
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2025
PERFORMANCE
05
Our
Governance
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REVIEW
18
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
OUR
GOVERNANCE
Governance
85%
GRI: 2-9, 2-10, 2-11, 2-12, 2-13
CSA S&P: 1.2
Board of Directors
The Board of Directors, together with the Audit and Corporate Practices Committees, imple-
ment and maintain the best practices and highest standards of Corporate Governance in
the Company. As a public Company, Alpek has the obligation to keep its investors informed
of all its financial activities under required standards, thus ensuring full transparency. Its
Board of Directors is Alpek’s highest governing body. Its members are chosen based on
their skills and previous experience with Alpek’s strategic and ESG needs, as well as their
integrity and standing in the global community.
of Alpek’s Board members
are independent, and 100%
of the committee members
are independent.
Proprietary directors
with no alternates
of the Board
members are women
Directors
2
13
8%
Independent
Board members
ADDITIONAL AND DETAILED INFORMATION FOR
2025 CAN BE FOUND IN THE SUSTAINABILITY REPORT.
11
ABOUT
ALPEK
NATURAL
CAPITAL
FINANCIAL
REVIEW
19
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
OUR
GOVERNANCE
Audit & Corporate Practices Committees
The Audit and Corporate Practices Committees support the Board, and are entirely composed of independent members.
The Committees meet, separately, every quarter and oversee the following topics throughout the year:
Selection and
determination of fees
for the external auditor
Recommendations for
succession plans and
replacement options
Coordination with the
Company’s internal
audit committee
Sustainability issues
review
Assessment of accounting policies,
employment terms and severance
payments, as well as compensation
for senior executives
01
02
02
03
01
The Company has internal control systems with general guidelines that
are submitted to both the Audit and Corporate Practices Committee for
its opinion. In addition, the external auditor validates the effectiveness
of the internal control system and issues the corresponding reports.
Alpek promotes good corporate citizenship. It has a mission, vision,
values and a code of ethics that are promoted within the organization.
Audit Committee
Corporate Practices Committee
ABOUT
ALPEK
NATURAL
CAPITAL
FINANCIAL
REVIEW
20
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
OUR
GOVERNANCE
Sustainability
Governance
GRI: 2-12, 2-13, 2-15
CSA S&P: 1.4.2
Alpek’s Leadership Team drives a top-down
approach across all sustainability and climate
initiatives, ensuring alignment with the Com-
pany’s business objectives. To support effec-
tive implementation, Sustainability Champi-
ons have been appointed at the business
unit level. These champions, together with
the Corporate Sustainability Team led by the
Chief Sustainability Officer (CSO), have further
developed Alpek’s Sustainability Strategy and
ensure it is embedded across operations.
The CSO regularly reports progress to the
Sustainability Executive Committee (C-Suite)
and the Audit Committee. The Sustainability
Support Team communicates updates on
initiatives, performance, and key outcomes
during quarterly meetings with management
teams, sustainability champions, and opera-
tional taskforces across all regions.
The CSO role is currently led by the company’s
Chief Financial Officer (CFO).
Audit Commitee
Oversees sustainability- and cli-
mate-related risks and opportu-
nities, ensuring they are integrat-
ed into the Company’s risk map,
aligned with strategy, monitored
through KPIs, and supported by
effective controls that maintain
consistency with IFRS S1 and S2
disclosures.
Sustainability Executive
Committee (C-Suite)
Defines the Company’s sustain-
ability and climate strategy, sets
objectives and metrics, and mon-
itors performance and resource
allocation.
Circularity & Operations
Committee
Implements climate and circulari-
ty initiatives, monitors operational
performance, and escalates risks
and opportunities to the executive
level.
IT Committee
Oversees cybersecurity and related
technology risks, ensuring proper
controls, monitoring, and alignment
with Company strategy.
Chief Executive Officer (CEO)
Ensures that sustainability-related matters are reflected in the business
strategy and budget.
Chief Sustainability Officer (CSO)
Drives the implementation of the sustainability strategy and the execution
of sustainability-related activities.
Sustainability
Collects and analyzes data, implements the sus-
tainability strategy, and prepares disclosures and
reports while coordinating external assurance.
Internal Audit
Conducts reviews in accordance with the ap-
proved plan, focusing on sustainability-related
topics.
Human Resources
Oversees social-related regulatory activities and
proposes training initiatives based on input from
community liaisons.
Committees Responsible for Sustainability Oversight
Frequency:
Annually
Quarterly
Quarterly
Bi-monthly
Management Roles
Support Teams
Alpek firmly believes that the success of its sustainability strategy relies on active engagement and strong leadership within top management. Through this
comprehensive organizational structure and the establishment of periodic committees across management levels, the Company ensures effective guidance,
accountability, and stewardship of its sustainability material topics, risks, and objectives.
ABOUT
ALPEK
NATURAL
CAPITAL
FINANCIAL
REVIEW
21
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
OUR
GOVERNANCE
Board of Directors
GRI: 2-9, 2-11, 2-17
Exceedingly Qualified Board of Directors
NAME
AGE
BOARD TERNURE
CEO EXPERIENCE
INDEPENDENT
RELATED
PATRIMONIAL
CORPORATE
PRACTICES
COMMITTEE
AUDIT COMMITTEE
STRATEGIC PLANNING
FINANCE
OPERATIONS
MARKETING
PUBLIC POLICY
ADMINISTRATION
INVESTMENTS
AUDIT & RISK
MANAGEMENT
CORPORATE
GOVERNANCE
INTERNATIONAL
AFFAIRS
CONSUMER GOODS
PETROCHEMICALS
AUTOMOTIVE
INDUSTRIAL
TELECOMMUNICATIONS
CONSTRUCTION
INDUSTRIAL
RETAIL
REAL ESTATE
ENERGY
BANKING
INTERNATIONAL
COMMERCE
HEALTH
STEEL
MANUFACTURING
INTERNATIONAL
TRADE
Álvaro Fernández Garza
CHAIRMAN OF THE BOARD
57
15
Rodrigo Fernández Martínez
50
14
Armando Garza Sada
68
15
Francisco José Calderón Rojas
59
14
Andrés Enrique Garza Herrera
58
14
Cecilia Montserrat Ramiro Ximénez
53
3
José de Jesús Valdez Simanca
73
3
Alejandro Mariano Werner Wainfeld
59
3
Jaime Zabludovsky Kuper
69
7
Armando Garza Herrera
30
1
David Martinez Guzmán
68
1
Enrique Castillo Sánchez Mejorada
69
1
Guillermo Francisco Vogel Hinojosa
75
1
GENERAL
BOARD MEMBER TYPE
EXPERTISE
INDUSTRY
ROLE
ABOUT
ALPEK
NATURAL
CAPITAL
FINANCIAL
REVIEW
22
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
OUR
GOVERNANCE
Board of
Directors
GRI: 2-9, 2-11, 2-17
Álvaro Fernández Garza
CHAIRMAN OF THE BOARD
Age: 57
Board-Related Information:
Tenure: 15 years (2011)
Key Experience:
Position: Chairman & CEO of
Sigma Foods, S.A.B. de C.V.
Public Boards: 6 Total | Sigma
Foods (Chairman) | Axtel (Co-Chairman) +
CTAxtel (Chairman) | Nemak (Chairman)
| Cydsa (Member) | Vitro (Member)
Education: BA from Notre Dame
University | MBA from ITESM | MBA
from Georgetown University
Rodrigo Fernández
Martínez
Age: 50
Board-Related Information:
Tenure: 14 years (2012)
Key Experience:
Position: CEO of Sigma
Alimentos, S.A. de C.V.
Public Boards: N/A
Education: BA from UVA
| MBA from Wharton
Armando Garza Sada
INDEPENDENT
Age: 68
Board-Related Information:
Tenure: 15 years (2011)
Key Experience:
Position: Member of the
Board of Directors of Alpek
Public Boards: 5 Total | Sigma
Foods (formerly ALFA) (Member) | Nemak
(Member) | Axtel + CTAxtel (Member) | |
Liverpool (Member) | Lamosa (Member)
| BBVA México (Alternate Member)
Education: BA from MIT
| MBA from Stanford
Francisco José
Calderón Rojas
INDEPENDENT
Age: 59
Board-Related Information:
Tenure: 14 years (2012)
Key Experience:
Position: President of Franca Industrias,
S.A. de C.V. and Franca Servicios S.A. de C.V.
Public Boards: 1 Total
| FEMSA (Member)
Education: BA from ITESM
| MBA from UCLA
Andrés Enrique
Garza Herrera
INDEPENDENT
Age: 58
Board-Related Information:
Tenure: 14 years (2012)
Key Experience:
Position: President of
Consejo Nuevo León
Public Boards: N/A
Education: BA from ITESM | MBA
from the University of San Diego | Global
Leadership Program at IMD (Switzerland
Audit Committee
Audit Comittee
ABOUT
ALPEK
NATURAL
CAPITAL
FINANCIAL
REVIEW
23
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
OUR
GOVERNANCE
Board of
Directors
GRI: 2-9, 2-11, 2-17
Cecilia Montserrat
Ramiro Ximénez
INDEPENDENT
Age: 53
Board-Related Information:
Tenure: 3 years (2023)
Key Experience:
Position: Country Manager
UGT Renewables
Public Boards: Total 2 | BlackRock
Mexico (Member) | Fibra MX (Member)
Education: BA in Economics from
ITAM | MS in Economics from University
College London | GradDip in Finance from
Harvard Extension School – Cambridge |
GradDip in Corporate Social Responsibility
from Harvard Business School
José de Jesús
Valdez Simancas
INDEPENDENT
Age: 73
Board-Related Information:
Tenure: 3 years (2023)
Key Experience:
Position: Member of the Board of Alpek
Public Boards: Total 1 |
Betterware de México (Member)
Education: BS and MBA from
ITESM | Master’s Degree in Industrial
Engineering from Stanford University
Alejandro Mariano
Werner Wainfeld
INDEPENDENT
Age: 59
Board-Related Information:
Tenure: 3 years (2023)
Key Experience:
Position: Founding Director at
Georgetown Americas Institute
Public Boards: Total 1 |
Acciona Energia (Member)
Education: BA in Economics from
ITAM | PhD in Economics from MIT
Jaime Enrique
Zabludovsky Kuper
INDEPENDENT
Age: 69
Board-Related Information:
Tenure: 7 years (2019)
Key Experience:
Position: VP of IQOM
Inteligencia Comercial
Public Boards: Total 1
| Fibrahotel (Member)
Education: BA from ITAM | PhD from Yale
Armando Garza Herrera
INDEPENDENT
Age: 30
Board-Related Information:
Tenure: 1 year (2025)
Key Experience:
Position: Global Customer
Manager at Sigma Alimentos
Public Boards: N/A
Education: BS from Cornell University
Corporate Practices Committee
Corporate Practices Committee
Corporate Practices Committee
ABOUT
ALPEK
NATURAL
CAPITAL
FINANCIAL
REVIEW
24
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
OUR
GOVERNANCE
Board of
Directors
GRI: 2-9, 2-11, 2-17
David Martínez Guzmán
INDEPENDENT
Age: 68
Board-Related Information:
Tenure: 1 year (2025)
Key Experience:
Position: Founder and Special
Director of Fintech Advisory Inc.
Public Boards: Total 2 | CEMEX
(Member) | Vitro (Member)
Education: Mechanical and
Electrical Engineering from UNAM |
MBA from Harvard Business School
Enrique Castillo
Sánchez Mejorada
INDEPENDENT
Board-Related Information:
Tenure: 1 year (2025)
Key Experience:
Position: Chief Executive
Officer of Tejocotes 134, S.C.
Public Boards: Total 5 | Grupo Hérdez
(Member) | Southern Copper Corporation
(Member) | Medica Sur (Member) | Sigma
Foods, S.A.B. de C.V. (Member) | CNP
Assurance Paris, France (Member)
Education: BS from Universidad Anáhuac
Guillermo Francisco
Vogel Hinojosa
INDEPENDENT
Board-Related Information:
Tenure: 1 year (2025)
Key Experience:
Position: Chairman of the Board
of Grupo Collado | Vice Chairman
of the World Board of Tenaris
Public Boards: Total 2 |
Banco Santander México (Member)
| Operbus, S.A. de C.V. (Member)
Education: BS from
UNAM | MBA from UT
Age: 75
ABOUT
ALPEK
NATURAL
CAPITAL
FINANCIAL
REVIEW
25
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
OUR
GOVERNANCE
Audit Committee
Age: 69
ALEJANDRO
LLOVERA
ZAMBRANO
President of
Polyester
Business
ALEJANDRO
ALANÍS
FERNÁNDEZ
President of
Polypropylene
Business
Management
Team
JORGE P.
YOUNG
CERECEDO
Chief
Executive
Officer
TERESA
QUINTERO
MÁRMOL
Senior Vice
President
Human
Capital
JOSÉ
CARLOS
PONS DE
LA GARZA
Chief
Financial
Officer
ANDREAS
PLETTNER
RUTISHAUSER
President of
Expandable
Polystyrene
Business
DAVID
COINDREAU
GARZA
President
of Specialty
Chemicals
Business
ROBERTO
BLANCO
SÁNCHEZ
President of
Natural Gas
Business
ABOUT
ALPEK
NATURAL
CAPITAL
FINANCIAL
REVIEW
26
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
OUR
GOVERNANCE
GRI: 201-2
CSA S&P: 1.4.1, 1.4.2
Progress 2025
During the year, Alpek continued strengthening its site-specific assessment of physical climate
risks using the ThinkHazard platform, which evaluates potential exposure to climate-related
hazards at each operating site. The Company also continued refining its water risk manage-
ment approach, further enhancing operational resilience.
In addition, Alpek developed a Double Materiality Assessment aligned with CSRD, which
identifies ESG impacts, risks, and opportunities. This assessment directly informs risk iden-
tification, prioritization, and mitigation strategies, ensuring that the most critical ESG-related
risks are systematically captured, structured, and managed within Alpek’s overall Risk Man-
agement framework, while also supporting preparation for IFRS S1/S2 reporting.
Risk Management Process
Alpek classifies risks into three categories:
Risk Management
Strategy & Execution
RISK IDENTIFICATION
BY BUSINESS UNIT
RISK
EVALUATION
(By impact and probability)
RISK AND
ACTION PLAN
MONITORING
RISK PRIORITIZATION
AT GLOBAL LEVEL
MITIGATION PLAN
EXECUTION
MITIGATION PLAN
DEVELOPMENT
Board Meeting
Audit Committee
· Relevant risks are escalated
1
2
3
4
5
6
RISK MANAGEMENT
PROCESS
Alpek has established and continuously updates a
set of processes to identify, monitor, and manage
potential risks, considering both short and long-term
horizons. Identified risks and corresponding mitiga-
tion actions are periodically reviewed in the Audit
Committee and escalated to the Board Meetings
when necessary.
The Company’s risk management framework address-
es a broad range of ESG-related risks, including raw
material and utilities shortages, legal and regulato-
ry challenges related to plastics, and cybersecurity
attacks, among others. In parallel, Alpek has been
strengthening the integration of climate-related
threats with the objective of quantifying potential
environmental and social impacts and enabling ef-
fective mitigation strategies.
Risk management at Alpek is embedded at the
business unit level, where directors and operational
teams are responsible for identifying and managing
risks specific to their activities. This locally-driven
approach supports early detection and response,
while ensuring consistency through regular oversight
at the corporate level.
An Audit Committee assesses emerging risks, mon-
itors existing ones, and evaluates the effectiveness
of mitigation actions, with outcomes reported directly
to the CEO. Additionally, the Corporate Audit Director
oversees monitoring and auditing practices to vali-
date risk management effectiveness. ESG material
issues are further reviewed on a quarterly basis by
Sustainability Committees.
Strategic risks: Internal or external events that may affect busi-
ness goals and strategy.
Emerging risks: Unprecedent external events with the potential
to generate long-term impacts.
Climate-related risks: Impacts of climate change on operations,
value chain and financial inputs.
1
2
3
NUMBER OF SITES LOCATED IN HIGH-RISK AREAS
Main Physical Risks
19 11
9
7
8
5
WILDFIRE
RIVER FLOOD
CYCLONE
COASTAL
FLOOD
EXTREME
HEAT
WATER
SCARCITY
ABOUT
ALPEK
NATURAL
CAPITAL
FINANCIAL
REVIEW
27
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
OUR
GOVERNANCE
ABOUT
ALPEK
ALPEK’S
GOVERNANCE
NATURAL
CAPITAL
FINANCIAL
REVIEW
ANNEXES
5
CONSOLIDATED FINANCIAL
STATEMENTS
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2024
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
2024
PERFORMANCE
2025
Performance
GRI: 2-22, 201-2
CSA S&P: 1.4.4
Strategic Risks
Strategy & Execution
Alpek’s Top 10 Strategic Risks Identified for 2025
Alpek uses an internal risk portal to
consolidate strategic risks identified
across its business units. This platform
supports the effective management
and monitoring of risks as well as their
corresponding mitigation actions. The
data captured includes the likelihood
and potential impact of each risk, the
defined mitigation strategies, and the
staff member or role responsible of ad-
dressing each identified risk. The most
significant risks within Alpek’s business
units are ranked by their likelihood and
impact. The Company regularly reviews
and updates its comprehensive strategic
risk profile, which typically encompasses
30 to 35 ongoing operational risks.
RISK ID
AREA
RISK
RISK DESCRIPTION
R1
IT
Cyberattack
Business disruption due to cybercrimes such as loss of privacy, data theft, and fraud
R2
Procurement
Dependence on Mexico’s
raw material supply
Declining production levels in Mexico may limit the availability of feedstock at certain Alpek production sites
R3
Operations
Delays in permits for raw
material imports
Delayed permits process with customs authorities for raw material importing
R4
Commercial
New competition, less margin
Global oversupply exerting a downward pressure on prices and margins
R5
Commercial
Plastic pollution regulation
and social pressure
Plastic Treaty resolution and new policies to minimize specific plastic usage
R6
Procurement
Raw material supply chain issues
Lack of availability of raw materials, utilities, and other supplies
R7
Procurement
Dependence on suppliers
Dependence on suppliers for raw material, materials and services
R8
Environmental
Non-compliance with
environmental requirements
Changes in and increasing stringency of environmental regulations
R9
Procurement
Dependence on specific
transportation suppliers
Reliance on a limited number of transportation service providers
R10
Comercial
Increased competition
from new plants
Increased regional competition from new plants
VERY LOW
LOW
MODERATE
HIGH
VERY HIGH
IMPROBABLE
OCCASIONALLY
RARELY
POSSIBLE
EXPECTED
R9
R1
R2
R7
R5
R3
R6
R4
R8
R10
IMPACT
PROBABILITY
MITIGATION ACTIONS TO STRATEGIC RISKS CAN
BE FOUND IN THE SUSTAINABILITY REPORT.
Risk
Heat Map
ABOUT
ALPEK
NATURAL
CAPITAL
FINANCIAL
REVIEW
28
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
OUR
GOVERNANCE
GRI: 201-2
CSA S&P: 1.4.2, 2.5.5, 2.5.8
Climate
Related Risks
Climate-Related Risks
Identification
Alpek continues to enhance its approach to identifying cli-
mate-related risks. In 2025, Alpek performed a Double Ma-
teriality Assessment (CSRD-based) and identified its material
topics. Under the climate change category, Alpek explores all
climate-related risks that could impact its assets.
In this context, the Company evaluates the potential impact
of each identified risk and estimates the timeframe in which
these risks may affect its value chain. The assessment consid-
ers three time horizons: short-term (0–2 years), medium-term
(3–5 years), and long-term (over 5 years).
Identifying climate-related
hazards
Assessing the vulnerability of
assets to those hazards
Valuing the risk by quantifying
the financial impacts
01
02
03
Climate-Related Risks Analysis
For the analysis of climate-related risks, Alpek relies on quan-
titative assessments conducted through Climanomics, an S&P
Global platform that estimates the financial impacts of cli-
mate-related events under various scenarios. This methodology
follows a Hazard–Vulnerability–Risk approach, which consists of:
1. Severity of weather events
2. Changing weather and precipitation patterns
3. Rising mean temperatures
4. Rising sea levels
5. Water stress
6. Greenhouse Gas Emissions
above limiting regulations
7. Unsuccessful Greenhouse Gas Emissions
Management: Long-term and short-term
8. Increased pricing of GHG emissions
9. Enhanced emissions-reporting obligations
10. Mandates on and regulation of
existing products and services
11. Exposure to litigation
12. Unsuccessful investments in new technologies
13. Transition to lower emissions technology costs
14. Substitution of existing products and
services with lower emissions options
15. Energy Management on operations
16. Product Design for Use-phase Efficiency
17. Changing customer behavior
18. Increased cost of raw materials
19. Shifts in consumer preferences
20. Stigmatization of sector
21. Increased stakeholder concern or
negative stakeholder feedback
12
13
14
15
16
17
18
19
20
21
1
2
3
4
5
6
7
8
9
10
11
A
C
U
T
E
R
IS
K
S
C
H
R
O
NI
C
RI
S
K
S
P
O
LI
TI
C
A
L
RI
S
K
S
T
E
C
H
N
O
L
O
G
IC
A
L
RI
S
K
S
M
A
R
K
E
T
R
IS
K
S
R
E
P
U
T
A
TI
O
N
A
L
RI
S
K
S
PHYSICAL RISKS
TRANSITIONAL
RISKS
Climanomics estimates the direct financial impacts of climate
change through the Modeled Average Annual Loss (MAAL)
metric, which captures climate-related costs, potential reduc-
tions in revenue, and business interruptions associated with
climate-related risks.
ABOUT
ALPEK
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FINANCIAL
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29
CONSOLIDATED FINANCIAL
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2025
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ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
OUR
GOVERNANCE
REPRESENTATIVE CONCENTRATION PATHWAY (RCP)
Scientists use the RCPs to model climate change
and build scenarios about the impacts
Radiative forcing
W/m2
Years
If we follow
the RCP8.5
pathway
more
wildfires
will occur.
If we follow
the RCP2.6
pathway
fewer
wildfires
will occur.
Temperature
2081-2100
Average
increase
relative to
1986-2005
Extreme
weather
2081-2100
Moderate
Weather
Increase
3.7 °C
1.0 °C
Analysis Description
The analysis covered 26 regions where Alpek operates
production sites and assessed projected impacts over
short-, medium-, and long-term horizons. To estimate the
scale of potential financial effects, Alpek defined a materi-
ality threshold aligned with its current financial materiality
framework, distinguishing between material and non-ma-
terial risks.
Alpek’s climate scenarios are based on IPCC Shared So-
cioeconomic Pathways (SSPs), which are standardized
narratives used in climate research to explore how global
socioeconomic trends could evolve through 2100 and in-
fluence greenhouse gas emissions and climate outcomes.
SSPs combine assumptions about demographics, economic
growth, technological development, energy use, and envi-
ronmental policy to generate a range of future pathways.
Within this framework, SSP1-2.6 represents a sustainable
development trajectory with relatively low emissions; SSP5-
8.5 reflects a high-emissions future driven by fossil-fuel
dependence, resulting in significantly higher radiative forc-
ing by 2100, and is widely used to model outcomes un-
der weak mitigation efforts. These scenarios help provide
a consistent basis for comparing future climate impacts
across different socioeconomic conditions.
Transition Climate Risks
Across both climate scenarios, Carbon Pricing emerges as the transition risks that could have
a financial material effect in the long term.
Physical Climate Risks
Physical risks refer to the financial and operational challenges that may arise from the increas-
ing frequency and severity of climate-related hazards. These risks stem from extreme weather
events, long-term shifts in climate patterns, and the exposure of assets and operations to such
changes.
In this assessment, Alpek evaluated all physical risks under the SSP1-2.6 and SSP5-8.5 sce-
narios. Among these, Extreme Heat, Drought, and Water Stress were identified as having a ma-
terial financial impact in the long term, while only Extreme Heat and Drought were considered
material in the medium term.
Alpek will closely monitor both transition and physical risks and explore adaptive measures to
mitigate potential financial and operational impacts.
0
1
2
3
4
5
6
7
2000
2025
2050
2075
2100
SSP1 – 2.6
Aggressive
mitigation scenario
Net Zero Emissions
by 2050
Global average temperature rising by 1.3 – 2.4°C by 2100
Aligned with Paris Agreement
SSP5 – 8.5
Low mitigation scenario
Emissions tripled by 2075
Global average temperature rising by 3.3 – 5.7°C by 2100
Aligned with business-as-usual projections
Carbon Pricing
Implement emerging policies
and regulations that impose a
carbon pricing mechanisms.
Litigation
Face increasing costs to
defend against climate-
related legal proceedings.
Market
Adapt to the impacts of the
transition to a lower-carbon
economy, affecting supply
and demand for products.
Reputation
Manage the perception of an organization’s
environmental impact.
Technology
Address the financial implications of
transitioning to a lower-carbon economy
through technological advancements.
Transition risks refer to financial and operational challenges that may arise as the global econ-
omy shifts toward lower carbon intensity. These stem from evolving policies, regulatory require-
ments, market conditions, technological change, and growing expectations from stakeholders
to address climate change. In this assessment, Alpek evaluated the following transition risk
categories under the SSP1-2.6 and SSP5-8.5 scenarios:
RCP8.5
RCP2.6
ABOUT
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IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
OUR
GOVERNANCE
GRI: 2-23, 2-24
TCFD: Governance, Strategy
& Risk Management
Operative
Framework
ESG
As part of Alpek’s ESG Risk Management framework,
the Company has adopted a dynamic materiality ap-
proach through which it conducts a comprehensive
analysis of ESG and industry-related trends, as well
as their relevance from a stakeholder perspective.
This process is supported by ongoing dialogue with
stakeholders, enabling Alpek to respond effectively
to their expectations and requirements while pro-
actively managing potential impacts on the orga-
nization.
Identify ESG Risks & Opportunities
(R&Os)
Implement a dynamic materiality
analysis
Integrate ESG R&Os into its business
risk management strategy
Determine the extent of change
required to achieve best-in-class
standards
Deploy appropriate initiatives to
address R&Os
Build and enhance internal
capabilities to react quickly
Identify and establish partnerships
that enable ongoing performance
enhancement
Define key performance indicators
(KPIs) and set targets to track the
success of each initiative
Measure and evaluate the impact of
results achieved
Establish appropriate initiatives to
ensure targets are met
Assign appropriate roles and
responsibilities for decision-making
Establish mechanisms to ensure
targets are achieved
Communicate and report progress at
the organizational level
Review performance and implement
continuous improvements
ESG Risk
Identification
and Analysis
Strategy and
Execution
Targets and
Metrics
Commitment
and Oversight
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2025
HIGHLIGHTS
MESSAGE FROM
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OUR
GOVERNANCE
Materiality
GRI: 2-29, 3-1
TCFD: Governance, Strategy, Risk Management
CSA S&P: 1.3, 1.3.1
In 2025, Alpek conducted a double materiality
analysis (DMA) to prepare for the upcoming
disclosure requirements under the Corporate
Sustainability Reporting Directive (CSRD). This
analysis identifies which topical disclosure re-
quirements need to be communicated. Double
materiality considers both impact and financial
materiality. A topic is considered material when
it either reflects significant environmental or
social impacts or generates, or has the potential
to generate, material financial effects.
The assessment aims to identify, understand,
and prioritize the material Environmental, So-
cial, and Governance (ESG) impacts, risks,
and opportunities (IROs) relevant to Alpek. To
achieve this, the Company gathered input from
internal and external stakeholders, as well as
proxy sources, regarding key sustainability top-
ics and their associated actual and potential
IROs. The results of the double materiality anal-
ysis provide a foundation for strategic planning
and decision-making related to managing the
most material sustainability topics and their
corresponding IROs.
This double materiality assessment was con-
ducted collaboratively by Alpek and a third-party
global sustainability consulting firm with over
50 years of experience. The process includ-
ed identifying and classifying key stakeholder
groups, both internal and external, to gain a
deeper understanding of actual and potential
negative impacts, as well as related risks and
opportunities. IROs were then identified and
categorized. Each risk and opportunity was eval-
uated based on the likelihood of occurrence
and the magnitude of associated financial ef-
fects. Material IROs are those that exceed a
reasonable threshold of severity and likelihood
for impacts, or significance and likelihood for
financial risks and opportunities.
After performing the DMA, 20 sustainable top-
ics were identified with varying levels of impact
and financial materiality.
Assess
Current
State
Evaluate
Impacts,
Risks, and
Opportunities
Engage
Stakeholders
Prioritize
and Align
Topics
1
2
3
4
Review the Company’s sustainability
data and documentation
Identify and map relevant internal and
external stakeholders
Confirm and score IROs based on
impact and financial materiality
Outline potential Impacts, Risks, and
Opportunities (IROs)
Gather insights through interviews and
surveys with stakeholders
Summarize and analyze feedback
Determine which IROs are
material and link them to
ESRS topics
Integrate findings into
corporate strategy and risk
management
Double Materiality
Assessment Process
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Materiality
Matrix
GRI: 3-2
TCFD: Governance,
Strategy, Risk Management
CSA S&P: 1.3
Environment
1 Climate Change
2 Energy
3 Microplastics
4 Pollution of Soil
5 Pollution of Air
6 Pollution of Water
7 Substances of Very
High Concern
8 Water Use / Consumption
9 Biodiversity Impacts
10 Resource Outflows
Related to Products
11 Resource Inflows
Including Resource Use
12 Waste
Social
13 Working Conditions
14 Equal Treatment and
Working Opportunities
15 Affected Communities
Information Related to
Impacts for Consumers
Governance
17 Supply Chain Management
18 Cybersecurity
19 Corruption and Bribery
20 Business Conduct
Low
Financial Materiality
High
15
3
4
6
12
14
17
18
9
7
20
11
5
10
2
19
8
13
1
16
Low
Impact Materiality
High
E
S
G
16
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2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
OUR
GOVERNANCE
LEAD WITH
EMPATHY
Alpek empowers its
people and engages
with stakeholders
to foster safe
workplaces, respect
human rights, and
contribute positively to
communities.
• Working Conditions
• Equal Treatment and Working
Opportunities
• Affected Communities
GROW
RESPONSIBLY
Alpek strives to
continue growing
sustainably, minimizing
environmental impacts
from its operations
and products while
promoting efficient
resource use and
circularity.
• Climate Change & Energy
• Water
• Circularity
• Waste & Substances of Very
High Concern
• Biodiversity
• Microplastics & Pollution
UPHOLD
HIGHEST
STANDARDS
Alpek is committed to
conducting business
with integrity,
strengthening
governance practices,
and ensuring
transparency,
accountability, and
ethical behavior across
its operations and value
chain.
• Cybersecurity
• Corruption and Bribery
• Business Conduct
EMBRACE
CHANGE
Alpek actively
monitors its changing
environment,
strengthens
relationships across
the value chain, and
develops solutions
that address emerging
risks and stakeholder
expectations.
• Information Related to
Impacts for Consumers
• Supply Chain Management
ESG Model
GRI: 2-23, 2-24
TCFD: Governance, Strategy
Alpek’s ESG model is an internal platform de-
signed to deploy programs and initiatives that
support the tracking and development of its en-
vironmental, social, and governance objectives.
The model promotes cross-functional partici-
pation across all levels of the organization and
reinforces a shared commitment to economic
growth, stakeholder development, social equity
and environmental protection.
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2025
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OUR
GOVERNANCE
Corporate Policies
GRI: 2-23
CSA S&P: 1.4.2, 1.7.1, 1.8.1, 2.2,2. 3.4
As part of Alpek’s risk management processes, the
Company has developed and published policies
and initiatives that support compliance with its ESG
strategy across operations.
CLICK ON EACH FIGURE TO VISIT THE POLICY.
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2025
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Code of Conduct
GRI: 2-23
CSA S&P: 1.5.2
Alpek maintains a Code of Conduct applicable to all employees,
suppliers, and third parties involved in its operations. The Code
establishes the Company’s core values, ethical standards, and
expected behaviors, serving as a foundation for responsible
and lawful business conduct.
The Code addresses key topics such as anti-corruption prac-
tices, conflicts of interest, protection of proprietary information
and intellectual property, human rights, environmental protec-
tion, community relations, and occupational health and safety.
All of Alpek’s
operations are
conducted within
a framework of
legality, respect for
human rights, and
ethical conduct.
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2025
HIGHLIGHTS
36
MESSAGE FROM
OUR MANAGEMENT
OUR
GOVERNANCE
Cybersecurity
TCFD: Risk Management
CSA S&P: 1.9.1, 1.9.3
Strategy & Execution
As cybersecurity challenges continue
to evolve, Alpek acknowledges the im-
portance and strategic priority of this
material topic. Alpek’s strategy involves
a plan to protect the organization’s criti-
cal assets, aligned with business objec-
tives, combining technology (tools and
solutions), processes (policies and con-
trols), people (training and awareness),
and data (classification and protection)
to ensure the confidentiality, integrity,
availability, and resilience of information
against threats. In addition, Alpek has
an IT Strategic Committee responsible
for addressing cybersecurity matters
where Top Management is included and
is led by the Chief Information Security
Officer (CISO).
Main Capabilities
Cyber Resilience & Risk Management
Strengthening cyber resilience through the evo-
lution toward a more agile and adaptive cyber-
security model, supported by a continuous im-
provement approach that enhances prevention,
detection, response, and recovery capabilities.
This approach is reinforced by ongoing vulnera-
bility assessments, risk prioritization, and attack
surface reduction initiatives to ensure opera-
tional continuity.
Internal and External Audits
Continuous strengthening of internal and external
audit processes to ensure compliance with cor-
porate policies and regulatory requirements and
to confirm alignment with international standards
and the effectiveness of governance practices.
Awareness, Training, and Employee
Engagement
Enhances its cybersecurity awareness and
training program by deploying educational cam-
paigns, including videos and newsletters, and
by conducting phishing simulations across all
business units to reinforce employee awareness
and compliance.
2025 Results
During the reporting period, no material cyberse-
curity incidents were identified or reported that
could have impacted the confidentiality, integrity,
or availability of the information.
ALPEK’S
CYBERSECURITY
FRAMEWORK
IDENTIFY
PROTECT
RECOVER
RESPOND
DETECT
Alpek states its commitment to safe-
guarding the confidentiality, integrity,
and availability of its information assets
through its Information Security Poli-
cy and international frameworks (ISO,
COBIT, ISA, NIST), which applies to its
stakeholders.
ABOUT
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2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
OUR
GOVERNANCE
06
Alpek’s
People
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2025
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MESSAGE FROM
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ALPEK’S
GOVERNANCE
OUR
PEOPLE
Alpek’s Team
GRI: 401-2, 404-2
CSA S&P: 3.3.2, 3.3.8
Employee Development Programs
Employee development is a core element of Alpek’s corporate
culture. The Company is committed to offering structured pro-
grams and initiatives that continuously strengthen workforce
capabilities, supporting a culture of learning, growth, and in-
novation.
Over the course of the year, more than (#) employees bene-
fited from these programs.
Performance Appraisal
Performance evaluation is a key component of Alpek’s approach
to workforce development and effectiveness. The Company
applies different performance appraisal methodologies across
business units and employee levels to ensure consistent and
meaningful assessments that support professional growth and
align individual performance with Alpek’s strategic objectives.
Performance evaluations are conducted at least annually for
executive management and management positions.
How Does it Work at Alpek?
Management
by Objectives
360°
Feedback
Leadership and Project Management Capacity Building
During 2025, Alpek delivered multiple training programs across its business
units focused on strengthening leadership, team communication, and project
management skills, while also reinforcing organizational culture and support-
ing employees in adapting to new digital tools, processes, and technologies.
Training related to digital transformation reached 1,580 participants, helping
employees strengthen capabilities needed in an increasingly digital workplace.
In addition, 1,739 employees participated in culture-focused training, covering
topics such as integrity, open and authentic communication as well as other
behaviors that promote a collaborative and respectful work environment.
The Company also continued to support employees’ academic development
through scholarship programs for professional certifications, diplomas, and
master’s degrees, benefiting 21 employees during the year. These initiatives
contributed to the professional development of employees and supported
overall organizational effectiveness.
Management by Objectives: Each
year, executive management and
employees jointly define objectives
aligned with departmental goals and the
Company’s overall strategy.
360° Feedback: Alpek’s 360°
feedback progress gathers confidential
input from supervisors, peers, and
direct reports, offering a well-rounded
view of performance as well as helping
identify strengths and opportunities for
improvement.
ABOUT
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2025
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MESSAGE FROM
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OUR
PEOPLE
Quality of Life
GRI: 401-2
CSA S&P: 3.3.7, 3.3.9
Strategy and Execution
Alpek is committed to fostering a supportive and inclusive work envi-
ronment that enhances employee well-being and professional devel-
opment. To support this objective, the Company implements a range
of programs and policies aimed at strengthening work-life balance
and enabling long-term career growth.
Key Initiatives
Flexible Work Arrangements, including remote work, part-time
roles, and adaptable schedules.
Paid Parental Leave is provided to all employees, including in
countries where such benefits are not legally mandated. Female
employees are entitled to between 4 and 24 weeks of paid leave,
while male employees receive between 5 days and 5 weeks,
depending on local regulations.
Dedicated Lactation Rooms and related support are available
to promote a family-friendly workplace.
OrientaMe Program offers access to professional therapy,
personalized nutrition guidance, and financial and tax advisory
services.
Through these initiatives, along with additional benefits, Alpek con-
tinues to foster a workplace culture focused on employee well-being,
engagement, and long-term success.
Progress 2025
In 2025, Alpek continued implementing its customized
employee engagement survey to enhance the qual-
ity and relevance of workforce insights. The survey
was conducted across operations in nine countries
and captured the perspectives of more than 4,800
employees. It assessed topics such as happiness,
stress, energy levels, purpose, job satisfaction, and
work-life balance, addressing key aspects of employ-
ee well-being.
Following an 86% response rate in 2024, partici-
pation increased to 93%, reflecting even stronger
employee engagement.
Engagement
High levels of commitment and loyalty, reflect-
ed in employees’ willingness to go above and
beyond.
Enablement
Placing the right people in the right roles to
foster a productive and high-performing work
environment.
93%
response rate
Most Effective
Detached
Frustrated
Least Effective
High Performance Model
High Performance
Components
ABOUT
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GOVERNANCE
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PERFORMANCE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
OUR
PEOPLE
GRI: 405-11 to 2
CSA S&P: 3.1.3
Diversity, Equity and
Inclusion (DEI)
Strategy & Execution
Alpek recognizes that diversity in gender, cultural backgrounds, and perspec-
tives across all levels of the organization, combined with an inclusive work
environment, strengthens innovation, creativity, and decision-making. To sup-
port this objective, the Company promotes inclusive recruitment practices,
development programs focused on underrepresented groups, and DEI training
initiatives aimed at building a more diverse workforce.
Progress 2025
Alpek continued strengthening its commitment to diversity, equity and
inclusion by advancing leadership development and capacity-building
initiatives aimed at fostering a more inclusive workplace.
During the year, the Company launched a Global Women’s Development
Program that brought together 30 women in executive positions from all
of Alpek’s business units. The program lasted 10 months and included
monthly webinars, as well as six months of coaching. Its content addressed
the seven key hurdles women face in the workplace, creating a shared
space to learn and reflect across regions.
Throughout 2025, training on the basic concepts of diversity, equity,
inclusion, and unconscious bias was cascaded across the organization,
successfully reaching employees at multiple levels. All business units
achieved participation rates above 85% of their respective employee
populations, marking a significant milestone in fostering an inclusive
environment across Alpek.
These initiatives reflect Alpek’s ongoing efforts to advance cultural trans-
formation and leadership development across the organization.
We embrace women’s contributions to our organization
and society, acknowledging that equality is everyone’s
responsibility. Alpek will further diversify its workforce through
strategic hiring, retention, and organizational development. Our
success relies on innovation that comes from having different
strengths perspectives, and experiences.”
Gender Diversity
2025
4,150 men
women
997
81%
19%
21% of
Management
positions are held
by women
Note: Management positions include roles from Junior
Management to Executive level.
Hispanic or Latino
African
American
Indigenous or
Native American
White
Asian
Other races
JORGE YOUNG
ALPEK CEO
Race Diversity
2025
% of Alpek´s Workforce
50%
29%
14%
4%
2%
1%
Note: Races classified according to S&P CSA report.
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2025
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OUR
PEOPLE
Occupational
Safety
GRI: 403-1, 403-5, 403-9
SASB: RT-CH 320A.1
CSA S&P: 3.4
Strategy & Execution
Alpek continues to invest in maintaining a safe and healthy work environment for all its employees and
contractors. Each facility operates under a Health and Safety Management System aligned with inter-
national standards and local regulations, supporting continuous improvement in occupational safety
performance.
Progress 2025
During 2025, 12 sites achieved zero recordable incidents.
By the end of the year, a total of 39 initiatives were carried
out to boost health and safety in operations. Additionally,
Alpek conducted 1,328 safety-related training programs,
totaling more than 62,128 hours of training. Among the
most relevant courses, based on training hours, were
emergency response and firefighting training, regulatory
safety programs (NR-5, NR-13 and NOM-035), and safe
operation and certification of industrial vehicles, including
forklifts.
Safety is a top priority for Alpek. As a result of the trainings
and initiatives implemented across the Company, safety
performance improved in 2025, with a decrease in incident
rates (TRIR and LTIR). This improvement reflects Alpek’s
continued commitment to protecting its workforce and
fostering a safer working environment.
1,367
initiatives
and training
programs were
rolled out across
operations,
addressing
areas such as
safety, facility
upgrades, and
equipment
modifications.
Recordable
Incidents
Lost-Time
Incidents
2023
2023
2024
2024
2025
2025
47
0.42
0.51
0.47
0.27
0.35
0.30
49
45
30
34
29
Total Recordable
Incidents Rate (TRIR)
Lost-Time Incidents
Rate (LTIR)
RECORDABLE INCIDENTS | TRIR
(NUMBER OF CASES | CASES PER 200,000 MAN-HOURS)
LOST TIME INCIDENTS | LTIR
(NUMBER OF CASES | CASES PER 200,000 MAN-HOURS)
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2025
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MESSAGE FROM
OUR MANAGEMENT
OUR
PEOPLE
Human Rights
GRI: 2-23, 2-24, 2-25
CSA S&P: 1.5.4, 3.2.1, 3.2.2, 2.2.4
Strategy & Execution
Alpek is committed to respecting and promoting internationally
recognized human rights across its operations, value chain,
and communities. This commitment is embedded in the Com-
pany’s Code of Ethics and Human Rights Policy, which guide
business conduct and decision-making. The Company embeds
ethical principles throughout its corporate culture and applies
a robust due diligence process to address any potential human
rights violations.
Through Alpek’s internal audit process, human rights assessments
are conducted periodically to identify potential risks and improve-
ment areas. Audit cycles typically cover all sites every 2 to 3 years,
with follow-up actions and improvement plans defined as needed
to strengthen compliance and performance.
Human rights due diligence is conducted across business units,
considering key aspects such as:
Employment is freely chosen
Safe and hygienic working conditions
Prohibition of child labor
Payment of living wages
Reasonable working hours
Non-discrimination
Prohibition of harassment and inhumane treatment
Progress 2025
Following the spin-off, Alpek developed its own transparency
line to enable the reporting of any misconduct.
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2025
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OUR
PEOPLE
Human Rights
GRI: 2-23, 2-24, 2-25, 2-26
MESSAGE
CLASSIFICATION
ANALYSIS AND
ASSIGNMENT
RESOLUTION
CASE
EVALUATION
MEETING
REPORT
TO AUDIT
COMMITTEE
1. Complaint Filing
2. Complaint
Information gathering
3. Investigation
and resolution
EMAIL
transparency@alpek.com
TELEPHONES
1-800
WEB FORM
https://www.alpek.com/transparency-helpline/
IDENTIFIABLE
ANONYMOUS
Since 2021, Alpek has been a signatory of the United Nations
Global Compact, reaffirming its commitment to respect and
promote internationally recognized human rights. To ensure
adherence, Alpek has implemented a comprehensive Human
Rights Due Diligence framework, which includes clear report-
ing channels, defined investigation procedures, and effective
remediation processes.
Human rights-related concerns and potential violations can be
reported through the Integrity and Transparency Helpline, en-
suring prompt review and appropriate follow-up. This approach
reflects Alpek’s ongoing commitment to fostering a workplace
and value chain that respects dignity, fairness, and ethical
conduct.
All of Alpek’s sites are governed by this Due Diligence Pro-
cess
Internal Audit Team conducts the investigation and analysis
of reported cases
Depending on the nature of the complaint, additional Com-
pany personnel may be involved
Any violation or non-compliance with the Code of Ethics or
Human Rights Policy may result in disciplinary action, up
to and including termination of employment
1. Complaint Filing
Telephone
Reporting
Channels
2. Complaint Information Gathering
3. Investigation and Resolution
COUNTRY
Argentina
Brazil
Chile
Canada
United Kingdom
PHONE
0800-444-5685
0800-892-2016
123-00200179
1-866-238-2860
0800-031-5389
Mexico
United States
Oman
U.A.E Saudi Arabia
.
8111348760
1-833-6485493
800-30700
800-62825
800-1111-500
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MESSAGE FROM
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OUR
PEOPLE
07
Social
Impact
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PEOPLE
2025
HIGHLIGHTS
MESSAGE FROM
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SOCIAL
IMPACT
Supporting
Communities
GRI: 201-1, 413-1
CSA S&P: 3.6.2
Progress 2025
As part of its “Lead with Empathy” approach, Alpek continued
strengthening its engagement with local communities through
initiatives focused on education, environmental awareness, social
welfare, and health.
Supporting Education and Youth Development: Alpek pro-
moted education through scholarships for students, partnerships
with universities and technical institutions, participation in job
fairs and academic events, and support for school infrastructure,
including the construction and improvement of classrooms and
educational spaces. The Company also contributed to student
development by sponsoring academic activities, conferences, and
internship programs, and by engaging with schools through site
visits and career talks.
Promoting Environmental Awareness and Action: Environ-
mental stewardship remained a priority in 2025. Alpek organized
and supported recycling campaigns, awareness talks in schools,
PET and plastic collection drives, and initiatives such as bottle-ex-
change programs and environmental education activities. Employ-
ees and volunteers participated in reforestation projects, river and
beach clean-ups, and community campaigns to promote recycling
and responsible waste management.
Enhancing Social Welfare and Community Support: Alpek
contributed to improving quality of life in surrounding communities
through donations of food, clothing, toys, blankets, computers,
wheelchairs, and other essential goods, as well as support for
vulnerable populations, including children, the elderly, and families
affected by natural disasters or economic hardship. The Company
also supported charitable organizations, community shelters, and
social development programs, including initiatives aimed at people
with disabilities and low-income families.
Supporting Health and Safety Initiatives: The Company sup-
ported healthcare and well-being by contributing medical equip-
ment to hospitals, sponsoring health awareness campaigns, sup-
porting cancer-related initiatives, and promoting preventive health
activities. Additional efforts included campaigns to raise awareness
of occupational health, ergonomics, and disease prevention, as
well as support for community safety and emergency prepared-
ness initiatives.
Encouraging Community Engagement: Alpek sponsored and
participated in local sports tournaments, youth championships,
cultural festivals, and community events that promote inclusion,
healthy lifestyles, and social integration. Employees also took
part in volunteer activities such as preparing meals for vulnerable
populations, fundraising initiatives, and holiday donation drives.
Strategy & Execution
Supporting local communities is a key com-
ponent of Alpek’s strategy and is carried
out through initiatives focused on educa-
tion, environmental awareness, social wel-
fare, and health, reflecting the needs and
context of the communities in which the
Company operates. Through these efforts,
Alpek contributes to strengthening social
well-being while advancing the “Lead with
Empathy” pillar of its sustainability model.
+$260,000
USD in donations
(cash & in-kind, etc.)
+32,700
people benefited
+2,300
employees and
external volunteers
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IMPACT
Alpek’s Value
Chains
Alpek’s
products are
used by millions
of people daily,
in a wide variety
of applications.
OIL
NAPHTHA
REFORMER
PARAXYLENE
EPS
POLYPROPYLENE
ETHYLENE
OXIDE
MONOETHYLENE
GLYCOL
BENZENE
PENTANE
PTA
NAPHTHA
PROPYLENE
ETHYLENE
ETHANE
from natural gas
OIL
PROPANE
REFINERY
REFINERY
PDH
CRACKER
THERMOFORM
PACKAGING
rPET
SHEET
rPET
FLAKE
rPET
PELLET
PET SHEET
PET
CRACKER
STYRENE
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MESSAGE FROM
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SOCIAL
IMPACT
Value Chain
GRI: 2-6, 308-1
CSA S&P: 1.7
Strategy & Execution
Alpek recognizes that realizing its sustainability vision and stra-
tegic objectives requires aligning its core values through close
collaboration across the value chain, particularly with suppliers
and customers.
To promote a sustainable value chain, the Company has, in re-
cent years, engaged with customers on sustainability initiatives,
including innovation projects aimed at reducing the environmen-
tal impact of products and processes. In line with evolving best
practices in sustainable supply chain management, Alpek is
committed to strengthening supplier relationships that adhere
to the highest ethical, social, and environmental standards.
Supplier Screening Results
In 2025, Alpek maintains a network of over 2,250 Tier-1 suppliers,
with more than 450 classified as critical.
Due to the extensive supplier base, the initial screening process,
conducted for the first time in 2024, focused on 17 key suppliers
across three SASB industries:
Oil & Gas – Exploration & Production
Oil & Gas – Refining & Marketing
Chemicals
The screening revealed that 3 of the 17 key suppliers did not meet
industry thresholds and were designated as suppliers requiring
enhanced engagement for Alpek. This phase provided a broad
understanding of the sustainability progress among Alpek’s key
suppliers.
Moving forward, Alpek aims to refine its methodology, expand
supplier coverage, and gather more detailed data to better un-
derstand supply chain risks and align with its sustainability goals.
Supplier Screening Process
Alpek’s supplier screening methodology is tailored to industry-specific standards,
aiming to effectively identify and mitigate supply chain risks while promoting sustain-
ability throughout its operations. The process includes the following steps:
Identify the industries
of Alpek’s suppliers
using the Sustainable
Accounting Standards
Board’s (SASB) industry
classification standards.
Compile a comprehensive
list of ESG indicators
recommended by SASB for
each industry to measure
performance and progress.
Select a subset of industry-
specific ESG indicators
to serve as thresholds,
ensuring standardized
comparability and risk
identification. Establish
minimum requirements
for each ESG pillar
(Environmental, Social
and Governance).
Further assess suppliers
that do not meet at
least one industry-
specific threshold. This
assessment, combined
with the supplier’s
business relevance,
determines their
significance and identifies
major ESG risk aspects.
Supplier
Industry
Mapping
SASB KPIs
Identification
Significant
Supplier
Threshold
Risk Level
Assessment
01
02
03
04
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Supply Chain
Management
GRI: 308-1
CSA S&P: 1.7.1, 1.7.2, 1.7.3, 1.7.4, .1.7.5, 1.7.6
Progress 2025
In recent years, Alpek conducted a comprehensive review of
its Scope 3 emissions, which revealed that more than 50% are
associated with Purchased Goods and Services and the Pro-
cessing of Sold Products. These emissions are directly linked to
the activities of Alpek’s suppliers and customers, respectively.
As a result, Alpek has focused its efforts on addressing these
key areas. On the supplier side, the Company has been identi-
fying its main suppliers and learning about their decarboniza-
tion plans, as well as their offerings of alternative low-carbon
raw materials. On the customer side, Alpek aims, over the long
term, to expand its customer base while encouraging stronger
sustainability commitments.
Looking ahead, Alpek seeks to enhance the collection of ac-
curate, firsthand data from its value chain through targeted
surveys. During the year, the Company implemented specialized
ESG software that will enable the deployment and management
of these surveys, further strengthening its sustainability efforts.
During 2025, Alpek introduced big bags made
with recycled content at one of its sites in
Altamira through an initiative developed in
coordination with its supplier. This initiative
supports the reduction of virgin material use,
promotes circularity within the supply chain,
and contributes to lowering the Company’s
overall environmental footprint. By incorpo-
rating recycled materials into its packaging
solutions, Alpek also strengthens supplier col-
laboration and advances its broader sustain-
ability objectives.
89%
was the average satisfaction rate
achieved in customer satisfaction
assessments conducted by Alpek’s
business units.
Supplier Code of Conduct
These surveys assess overall satisfaction, product quality,
customer service, supply reliability, and other relevant
performance aspects.
Alpek is dedicated to conducting business with the highest standards of integrity, ethics,
and sustainability. The Company’s Supplier Code of Conduct sets clear expectations for
all suppliers to uphold these principles, including compliance with applicable laws, an-
ti-corruption measures, fair labor practices, and environmental responsibility. Alpek also
encourages suppliers to respect human rights, ensure health and safety, and maintain
confidentiality. In line with its commitment to social responsibility, the Company invites
customers and partners to join in fostering a culture of transparency and ethical business
practices, collaboratively building a more sustainable and responsible future.
Note: The customer satisfaction assessment incorporates survey results from 2025 and 2024 and reflect responses from five of the six main business units.
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IMPACT
FOR MORE INFORMATION, CLICK HERE TO ACCESS:
ALPEK’S SUPPLIER CODE OF CONDUCT POLICY
08
Natural
Capital
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MESSAGE FROM
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SOCIAL
IMPACT
NATURAL
CAPITAL
Climate Change
GRI: 305-5
TCFD: Targets and Metrics
SASB: RT-CH-110A.2
CSA S&P: 2.5.12
Strategy & Execution
In pursuit of its 2030 SBTi goal, Alpek has
made significant progress, while steadfastly
maintaining its long-term ambition of achieving
carbon neutrality by 2050.
In 2023, Alpek initiated the development of its
Net Zero roadmap through a comprehensive
review of global decarbonization technologies
and approaches. This analysis identified the
facilities contributing the most to Alpek’s Scope
1 and 2 emissions, representing over 90% of
the total. Three key decarbonization pathways
emerged as having the greatest potential:
Electrification
Renewable Energy
Carbon Capture, Utilization, and Storage
(CCUS)
Progress 2025
Building upon this foundation, in the initial assess-
ment phase, site visits were conducted at the most
strategic locations, culminating in the development
of detailed decarbonization plans for each.
In 2025, these efforts advanced further, resulting
in the consolidation of investment estimates and
detailed reviews with each site. Research efforts
were also expanded to provide a holistic overview
of progress.
Furthermore, the results confirmed that achiev-
ing long‑term Net Zero goals will require contin-
ued energy‑efficiency improvements, accelerated
clean‑energy adoption, strategic electrification,
and the evaluation of CCUS as the key pathway
for addressing residual thermal and process emis-
sions, supported by ongoing technology surveil-
lance for viable solutions.
Looking ahead, robust monitoring mechanisms
and a governance model will be designed and
implemented by Sustainability and Innovation to
track roadmap execution at each site. In addition,
emerging regulations and incentive opportunities
across key markets will be mapped and integrated
into the strategy to assess the feasibility of lever-
aging these opportunities.
Other disruptive
technologies
Offsetting
Carbon-free
energy
Optimization*
Electrification
Remaining
emissions
Total emissions
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2%
20%
20%
22%
2%
27%
7%
2019
2022
2030
2035
2040
2045
2050
* Optimization considers process and site portfolio optimization.
SBTi Target
27.5%
S1&2
reduction
by 2030
This model represents an ideal scenario based on different criteria, including carbon pricing projections, a 2030-2050
implementation horizon, CCUS deployment primarily at U.S. sites, and a progressive transition to clean energy
CCU/CCS*
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Climate Change
CSA S&P: 2.5.13
Internal Carbon Pricing
Alpek continues to explore the implementation of an Internal
Carbon Pricing (ICP) system to align its operations with carbon
emissions reduction goals.
As part of this effort, the Company is evaluating the potential
adaptation of its Investment Review Process to incorporate
the impact of carbon emissions.
Carbon Tax Costs Incurred in 2025
During 2025, the Company paid an average of approximately
$10 USD per ton of CO2e in regions where carbon taxes apply.
Application of Internal Carbon
Pricing in Investment Decisions
In 2025, within the Mexico region, Alpek has been assessing
a strategic initiative aimed at reducing energy consumption,
factoring projected CO2 emissions reductions into the project’s
evaluation. A shadow carbon price is used, ranging from $6.7
USD to $17.9 USD per ton of CO2e, depending on the applica-
ble project year.
This initiative aims to integrate Alpek’s sustainability strategy
with its corporate objectives.
Potential Investment Review Process
CURRENT PROCESS
ADDITIONAL STEPS
Generate investment ideas by subsidiaries
Definition of the potential benefits
and/or additional costs
Identify if there is a decrease or
increase in energy consumption
Assess economic viability
Calculate & add carbon
emission impact
Present CAPEX to Top Management
Request formal approval
Track approved projects that
impact Alpek’s CO2 emissions
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2025
HIGHLIGHTS
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OUR MANAGEMENT
Energy&Emissions
GRI: 302-1, 302-3, 302-4, 305-1, 305-2, 305-4, 305-5
TCFD: All elements
SASB: RT-CH-110a.1, RT-CH-110a.2
CSA S&P: 2.2, 2.2.1
Strategy & Execution
Since 2022, Alpek’s decarbonization commitments for 2030 have
been approved by the Science Based Targets initiative (SBTi).
In recent years, the Company has been advancing initiatives focused
on reducing its carbon footprint, optimizing its asset footprint, and
improving energy performance.
Transition to Low- or Zero-Emission Energy Sources: Alpek
has been increasing the use of energy alternatives with minimal
or zero carbon emissions, including nuclear and solar energy.
Energy Efficiency Improvements: Alpek has been enhancing
energy efficiency through measures such as adopting more
efficient equipment, electrifying processes, and optimizing
thermal energy use across operations.
Asset Footprint Optimization: Alpek has been optimizing its
operational footprint by consolidating resources and modernizing
facilities to reduce overall environmental impact.
OUR TARGET
“Alpek commits to reduce absolute scope 1 and 2 GHG emissions by 27.5%
by 2030 from a 2019 base year. Alpek also commits to reduce scope 3
emissions by 13.5% within the same time frame”
Notes:
1. The emission figures provided adhere to SBTi criteria, with emissions from all acquired plants in-
cluded, regardless of the year of acquisition.
2. The energy consumption figures accurately reflect actual energy use, taking into account the dates
of acquisitions.
3. Low-carbon Electricity is calculated considering the consumption of nuclear and renewable energy,
along with purchased Renewable Energy Certificates (RECs).
Progress 2025
In 2025, Alpek achieved a 1% reduction in total Scope 1 and Scope 2 CO2e emissions
compared to 2024. This progress was driven by targeted initiatives, in particular the elec-
trification of diesel generators carried out by the polyester unit in Riyadh.
Alpek continued procuring nuclear energy at two sites in Mexico and International Renew-
able Energy Certificates (IRECs) for selected facilities in Chile, Argentina, Mexico, and Brazil.
Additionally, Alpek provides comprehensive training programs to strengthen employee
capabilities across energy management and operational efficiency. During the year, train-
ing initiatives covered topics such as energy conservation, thermal system operations
and optimization, motor efficiency, and renewable energy generation. Meanwhile, Alpek’s
operation teams continuously drive improvements in energy optimization, reliability, and
operational efficiency through targeted capital and infrastructure projects. Key initiatives
include turbine blade replacements, heat exchanger upgrades and replacements.
Alpek has already surpassed its SBTi 2030 target of a 27.5% reduction in Scope 1 and 2
emissions. The Company is now evaluating adherence to the 1.5°C climate pathway for
its future emissions reduction strategy.
ADDITIONAL AND DETAILED INFORMATION FOR 2025 CAN
BE FOUND IN ALPEK’S 2025 SUSTAINABILITY REPORT
1.9
1.1
0.8
1.8
1.0
0.8
2025
2024
2023
2.0
1.2
0.8
2019
SBTi Base
1.4
2.8
1.4
0.4
0.3
0.3
Scope 1
Scope 2
Natural
gas
Steam
Electricity
Other Fuels
CO2 Emissions Intensity:
(Ton CO2 /Ton Produced)
Energy Consumption Intensity
(GJ/Ton Produced)
0.6
27
2025
2024
28
10
10
11
10
2023
10
7
6
6
29
12
5
5
5
OVERALL CO2 EMISSIONS
(SBTi S1&2)
OVERALL ENERGY
CONSUMPTION
X 106 GJ
25.8%
Low-Carbon
Electricity
(% of total
electricity)
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Waste Management
GRI: 301-3, 306-1, 306-2, 306-3
TCFD: Governance
SASB: RT-CH-150a.1
CSA S&P: 2.3
Strategy & Execution
Alpek continues to advance circular economy prac-
tices and responsible waste management through-
out its operations. Through its recycling facilities,
the Company contributes to reducing overall envi-
ronmental impact compared to scenarios in which
purchased PET bottles are disposed of in landfills.
As Alpek progresses on its strategic priorities, it
remains focused on exploring solutions to decrease
landfill disposal, enhance packaging material reuse,
and reduce off-spec production.
Progress 2025
In 2025, approximately 3.2% of Alpek’s to-
tal waste was classified as hazardous and
therefore required controlled handling and
containment. About 22.6% of the
waste generated was recycled, reused,
or
commercially
recovered.
In
addition, 40.9% of the Company’s total
waste generation originated directly
from its recycling op-erations.
Over the year, Alpek began cleaning and
preparing a designated area for the con-
struction of a hazardous materials and
waste storage facility equipped with dedi-
cated waste classification cells in Altami-
ra. This project supports improved seg-
regation, handling, and control of waste
streams at the site.
In parallel, the Company continued ex-
ploring initiatives aimed at reducing the
volume of waste requiring final disposal.
These efforts included projects such as
redirecting certain by-product streams to
enable material recovery and their reuse
where feasible.
+840
participants in waste
management and
handling trainings.
OUR TARGET
“Alpek will generate a waste diversion plan by 2028, focusing on
sites generating ~90% of landfill waste, using 2023 as the baseline.”
Progress
During 2025, the Company conducted working sessions to better
understand site-level waste management practices, assess current
conditions, identify potential diversion opportunities, and prepare
a waste diversion plan for each site.
79
61
2025
2024
98
75
2023
31
23
18
110
79
WASTE GENERATION
(Thousand Tons)
Disposed
Recycled
Generated Waste
Productive Waste
79
19
9
51
Controlled
Landfill
Internal
Productive
Waste
External
Productive
Waste
106
125
+146%
PRODUCTIVE WASTE OVER LANDFILL RATIO
2.5
Productive Waste refers to waste that is utilized or repur-
posed in a manner that contributes to productive activities
or generates value.
Internal Productive Waste includes waste that is reused,
recycled, or otherwise directed towards energy generation
within the Company’s operations.
External Productive Waste includes the volume of PET
bales entering the Company’s recycling facilities, net of
the volume sent to landfill from those sites.
19
2025 GENERATED VS. PRODUCTIVE WASTE
(Thousand Tons)
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Biodiversity
GRI: 101-2, 101-4, 101-5, 101-6, 101-7
CSA S&P: 2.6.1
Strategy & Execution
Alpek acknowledges the vital importance of biodiversity for business continuity and for managing oper-
ational and reputational risks. To address these concerns, the Company carries out a Biodiversity Risk
Assessment (BRA) using the WWF Biodiversity Risk Framework (BRF). This framework assesses both
physical and reputational risks by assigning numeric scores to operational sites, taking into account
industry-specific vulnerabilities and geographic factors.
This proactive strategy helps Alpek recognize high-risk locations and embed biodiversity considerations
into its risk management practices.
Progress 2025
In 2025, Alpek continued reviewing its Biodiversity Risk Assessment (BRA). The initial BRA
focused on Alpek’s operational sites and surrounding areas, in line with the BRF classification
for the “Chemicals and Other Materials Production” industry. The assessment identified sites
with elevated biodiversity risks.
These risks reflect potential operational disruptions due to environmental dependencies, while
stakeholder attention underscores the importance of managing biodiversity impacts. Key find-
ings showed that, out of Alpek’s global operations, only two sites were in the upper range of
the vulnerability scale.
Looking ahead, Alpek will explore approaches to manage biodiversity risks and enhance envi-
ronmental stewardship at key sites.
01
02
03
04
BRF methodology follows the approach showed below
Scoping the
Assessment
Data
Collection
Risk
Assessment
Risk
Aggregation
Identified industry materiality
and explored biodiversity
importance and integrity.
Gathered location-specific
operational data.
Evaluated biodiversity-
related physical and
reputational risks.
Consolidated site-level
risk scores to determine
company-wide exposure.
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Water Management
GRI: 303-1, 303-2, 303-3
CSA S&P: 2.4.1 , 2.4.3, 2.4.5, 2.4.6
SASB: RT-CH-140a.1, RT-CH-140a.3
Strategy and Execution
Alpek is committed to improving water efficiency across its operations while
maintaining full compliance with applicable state and federal regulations.
Recognizing the critical importance of water, the Company proactively ad-
dresses environmental challenges associated with this essential resource.
To support this approach, Alpek conducts comprehensive water risk as-
sessments using the Aqueduct tool, which enables the identification of
potential risks based on indicators such as water depletion and water
stress. This process supports the effective monitoring and reduction of
water consumption, particularly in regions facing drought conditions and
freshwater scarcity.
WATER INTAKE
(Million m3)
125
2025
2024
2023
140
134
21.9
22.7
Water Intake Intensity
(m3/ton Produced)
24.4
+100
participants in
water management
trainings
OUR TARGET
“All of Alpek’s high water-stressed and water-scarce sites will have a water stewardship and mitigation
action plan by 2028.”
Progress
Alpek engaged with sites to assess local conditions, identify risks, and define mitigation actions. Site visits
further supported the development of tailored action plans, advancing progress toward generating water
stewardship and mitigation plans across all relevant sites.
EL CARMEN
RIYADH
CONCÓN
SANTIAGO
ALTAMIRA
SALALAH
LERMA
Extremely High (4)
High (2)
WATER
STRESS
LEVEL
(# of sites)
Progress 2025
During 2025, Alpek initiated a project at its Polyester site in Brazil
to secure a reliable raw water supply amid regional shortages. The
project aims to create a second supply line capable of delivering up to
500 m³/h, enhancing water security, reducing the risk of shutdowns,
and supporting sustainable operations in a water-scarce region. By
establishing this new connection, the Company strengthens the re-
silience of its operations and ensures continuity in production even
during periods of low water availability.
Note: Water-stress in sites was assessed by Aqueduct, only active operational sites are displayed on the map.
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CAPITAL
Water-scarce areas (3)
Innovation
GRI: 2-25, 306-2
TCFD: Risk Management
Strategy and Execution
Innovation at Alpek begins with curiosity, our drive
to question, explore, and turn learning into mean-
ingful progress.
In 2025, Alpek brought this spirit to life by putting
innovation methodologies into action, strengthened
by our new community of Innovation Catalysts. The
Company focused on applying new knowledge,
sharing best practices across Business Units, and
experimenting boldly to learn faster and adapt in
a rapidly evolving environment. Together, teams
lead projects that reinforce Alpek’s resilience, ac-
celerate growth, and move forward. One idea, one
experiment, and one shared success at a time.
Alpek continued advancing its internal innovation
portfolio. These initiatives span five categories:
sustainability, new business models, process im-
provements, strategy, and new products, reflecting
our commitment to strengthening both operational
performance and long‑term value creation. As Alpek
moves forward, it remains focused on scaling what
works, learning from every challenge, and turning
innovative ideas into tangible impact.
2025 Innovation Awards
During Alpek’s 2025 Innovation Awards, teams across the orga-
nization presented projects aligned with Alpek’s five innovation
segments, resulting in:
6 new products, including our biodegradable EPS, Biopek®,
used in food packaging and medical applications.
Potentially generating ~$24M USD in revenues and savings
of ~$5M USD.
Alpek remains committed to fostering a culture of innovation
that drives transformative change across the organization.
107 initiatives in development by Alpek through its
internal innovation program in 2025.
Alpek Polyester
29
Styropek
25
Polioles
25
Indelpro
16
Terza
11
Alpek HQ
1
EVALUATION: 31%
IMPLEMENTATION: 25%
FINISHED: 40%
INITIATIVES BY TYPE
#
Process
69
Sustainability
16
Product / Service
11
Strategic
10
Business Model / Market
1
OPERATIVE
RESEARCH
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IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
NATURAL
CAPITAL
Circularity
GRI: 301-2
Strategy & Execution
Alpek, a leading plastics manufacturer, is
committed to addressing pollution and the
depletion of finite raw materials by promot-
ing a circular economy. Its long-term strategy
centers on developing innovative products and
adapting operations to reduce environmental
impact, with a strong focus on integrating re-
cycled and bio-based materials and enhancing
the efficiency of recycling facilities to promote
circularity.
In parallel, the Company is committed to en-
suring that its circular products meet the high-
est circularity standards. Alpek’s expandable
polystyrene business holds an Environmental
Product Declaration (EPD) from the Internation-
al EPD® System for its bio-based EPS.
Progress 2025
Alpek’s expandable Polystyrene business launched
a state-of-the-art extrusion facility in Tennessee,
capable of processing up to 25 ktons of recycled
material per year. The facility is designed to produce
EPS solutions with recycled content and enhanced
thermal insulation, further reinforcing the Company’s
commitment to advancing a circular economy.
Over the course of the year, Alpek implemented target-
ed upgrades across its recycling operations, including
enhancements to sorting and grinding equipment and
the addition of specialized systems to improve pellet
OUR TARGET
PP: “Alpek will leverage its partnerships to develop recycling solutions for Polypropyl-
ene and increase its share of Copolymers, employed in long-term usage applications.”
EPS: “By 2030, Alpek commits to offer up to 30% of recycled and/ or bio-based con-
tent in packaging products, and expand its portfolio of highly energy-efficient products
for thermal insulation applications in the construction sector up to 100%.”
RECYCLED CAPACITY
(Thousand Tons)
PET Bottle
to Flake
132
204
PET Flake
to Pellet
41
169
Single Pellet
Technology
30
78
r-PET
Sheet
0
33
R-PEK
0
25
2020
2025
Over 7,000
tons of EPS with
biodegradable and
recyclable content
sold in the Americas
in 2025
For additional details, readers
may scan the QR code above
to access the full EPD on the
official website.
https://www.environdec.com/
library/epd25386
quality. These improvements boosted material recov-
ery, increased process reliability, and enhanced the
viscosity of recycled outputs, demonstrating Alpek’s
pursuit of operational excellence within its circular
economy strategy.
In 2025, Alpek continues to uphold its APR Third-Par-
ty PCR Certification at all U.S. recycling sites, high-
lighting its ongoing dedication to sustainability and
maintaining rigorous standards for recycled-content
products.
ABOUT
ALPEK
OUR
GOVERNANCE
FINANCIAL
REVIEW
58
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
NATURAL
CAPITAL
09
Financial
Review
ABOUT
ALPEK
OUR
GOVERNANCE
NATURAL
CAPITAL
59
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
FINANCIAL
REVIEW
Management Analysis
GRI: 301-2
Unless otherwise specified, figures are expressed in millions
of nominal pesos, while certain figures are expressed as mil-
lions of dollars (US$) due to the high dollarization of Alpek’s
revenues. Percentage variations are stated in nominal terms.
All information is presented in accordance with International
Financial Reporting Standards (IFRS).
Volume
Alpek experienced a moderation in demand levels during
2025, reflected in lower volumes across its product portfo-
lio. Total volume reached 4,380 thousand tons, representing
an 8% decrease compared to 2024. The decline was driven
by lower volumes in the Polyester and Plastics & Chemicals
segments, which reached 3,609 thousand tons and 771 thou-
sand tons, respectively.
Volume
[Thousands of Tons]
2025
2024
2023
‘25 VS ‘24
[%]
‘24 VS ‘23
[%]
Polyester
3,609
3,911
3,785
-8
3
Plastics & Chemicals
771
834
849
-8
-2
Total Volume
4,380
4,745
4,635
-8
2
Average Price
2025
2024
2023
‘25 VS ‘24
[%]
‘24 VS ‘23
[%]
Polyester
Millions of Pesos
25
26
27
-2
-5
Millions of Dollars
1
1
2
-7
-8
Plastics & Chemicals
Millions of Pesos
33
35
33
-7
8
Millions of Dollars
2
2
2
-12
6
Total
Millions of Pesos
29
29
30
-
-3
Millions of Dollars
2
2
2
-5
-5
ABOUT
ALPEK
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GOVERNANCE
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60
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
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FINANCIAL
REVIEW
Revenues
Alpek’s total revenues in 2025 amounted to $126,840 million (US $6,585 million), 8% and 13% lower compared to 2024.
The reduction was mainly driven by pressured margins due to global oversupply and trade-related disruptions, across
Polyester and Plastics & Chemicals segments.
Revenues by Business
Segment
Polyester’s net revenues in 2025 amount-
ed to $90,486 million (US $4,697 million),
representing a 9% decrease in pesos
and a 14% decline in dollars compared
to $99,937 million (US $5,483 million)
in 2024. This segment decreased 2%
and 7% in average sale prices in pesos
and dollars, respectively, reflecting lower
feedstock pricing dynamics. Volume de-
creased by 8% compared to 2024 due
to softer demand.
Plastics & Chemicals’ net revenues
reached $25,379 million (US $1,316 mil-
lion) in 2025, declining 14% in pesos and
18% in dollars versus $29,501 million (US
$1,614 million) in 2024. The average sale
prices in pesos and dollars decreased
by 7% and 12%, primarily attributable to
pricing pressure. Volume decreased by
8% compared to 2024.
Revenues
2025
2024
2023
‘25 vs ‘24
[%]
‘24 vs ‘23
[%]
Polyester
Millions of Pesos
90,486
99,937
102,154
-9
-2
Millions of Dollars
4,697
5,483
5,739
-14
-4
Plastics & Chemicals
Millions of Pesos
25,379
29,501
27,709
-14
6
Millions of Dollars
1,316
1,614
1,556
-18
4
Others
Millions of Pesos
10,975
7,972
8,296
38
-4
Millions of Dollars
572
433
464
32
-7
Total
Millions of Pesos
126,840
137,409
138,159
-8
-1
Millions of Dollars
6,585
7,530
7,759
-13
-3
ABOUT
ALPEK
OUR
GOVERNANCE
NATURAL
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61
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
FINANCIAL
REVIEW
EBITDA
In 2025, consolidated EBITDA amounted to $8,104 million (US $418 million), representing a 31% decrease in pesos and
a 35% decline in dollars compared to $11,728 million (US $646 million) in 2024. It includes a net negative effect from ex-
traordinary items of $1,334 million (US $71 million), resulting in a Comparable EBITDA of $9,437 million (US $489 million),
27% and 30% lower compared to 2024.
REPORTED EBITDA
[Millions of Dollars]
2025
2024
2023
‘25 VS ‘24
[%]
‘24 VS ‘23
[%]
Polyester
216
426
281
-49
52
Plastics & Chemicals
190
207
228
-8
-9
Others
13
13
5
-
135
Total
418
646
514
-35
26
REPORTED EBITDA
[Millions of Pesos]
2025
2024
2023
‘25 VS ‘24
[%]
‘24 VS ‘23
[%]
Polyester
4,202
7,707
5,062
-45
52
Plastics & Chemicals
3,658
3,784
4,108
-3
-8
Others
244
236
90
3
164
Total
8,104
11,728
9,260
-31
27
ABOUT
ALPEK
OUR
GOVERNANCE
NATURAL
CAPITAL
62
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
FINANCIAL
REVIEW
COMPARABLE EBITDA
[Millions of Dollars]
2025
2024
2023
‘25 VS ‘24
[%]
‘24 VS ‘23
[%]
Polyester
267
464
497
-42
-7
Plastics & Chemicals
209
223
232
-6
-4
Others
13
12
5
4
143
Total
489
699
734
-30
-5
COMPARABLE EBITDA
[Millions of Pesos]
2025
2024
2023
‘25 VS ‘24
[%]
‘24 VS ‘23
[%]
Polyester
5,160
8,526
8,842
-39
-4
Plastics & Chemicals
4,035
4,109
4,159
-2
-1
Others
242
221
91
10
144
Total
9,437
12,855
13,092
-27
-2
EBITDA by Business Segment
In 2025, EBITDA for the Polyester segment amounted to $4,202 million (US $216 million), representing a 45% decrease
in pesos and a 49% decline in dollars compared to $7,707 million (US $426 million) in 2024. Adjusting for extraordinary
items of $959 (US $ 51 million), the Comparable EBITDA was $5,160 million (US $267 million), a decrease in pesos of
39% and 42% in dollars year-over-year.
EBITDA for the Plastics & Chemicals segment totaled $3,658 million (US $190 million) in 2025, declining 3% in pesos and
8% in dollars versus $3,784 million (US $207 million) in 2024. Adjusting extraordinary items of $377 (US $20 million), the
Comparable EBITDA was $4,035 million (US $209 million), a decrease of 2% in pesos and 6% in dollars year-over-year.
ABOUT
ALPEK
OUR
GOVERNANCE
NATURAL
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63
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
FINANCIAL
REVIEW
Net Financial Result
In 2025, Alpek reported a net financial cost of $2,362 mil-
lion (US $123 million), representing a 60% improvement
compared to $5,920 million (US $321 million), in 2024.
This improvement was mainly driven by a favorable foreign
exchange effect of $743 million (US $38 million), compared
to a loss of $2,340 million (US $ 130 million) in 2024. Net
financial expenses, decreased from $3,580 million (US
$191 million) in 2024 to $3,104 million (US $162 million)
in 2025.
Taxes
In 2025, an income tax of -$1,880 million (US -$99 million)
was recognized, compared to $582 million (US $27 million)
in 2024, mainly due to a decrease in deferred tax benefits
compared to the prior year.
Financial Result, Net
[Millions of Pesos]
2025
2024
2023
‘25 VS ‘24
[%]
‘24 VS ‘23
[%]
Financial expense
-3,783
-4,449
-3,982
15
-12
Financial income
678
869
1,317
-22
-34
Financial
expenses, net
-3,104
-3,580
-2,665
13
-34
Loss due to exchange
fluctuation, net
743
-2,340
-3
132
-83,342
Financial result, net
-2,362
-5,920
-2,668
60
-122
Taxes
[Millions of Pesos]
2025
2024
2023
‘25 VS ‘24
[%]
‘24 VS ‘23
[%]
Income (loss)
before taxes
-336
-794
-9,306
58
91
Income tax rate
30%
30%
30%
Statutory income
tax rate (expenses)
benefit
101
238
2,792
-58
-91
Taxes for permanent
differences between
accounting-
taxable profit
-1,981
344
-3,519
-676
110
Total income tax
-1,880
582
-727
-423
180
Effective tax rate
560%
73%
8%
Comprised as follows:
Current income tax
-1,146
-1,237
-2,358
7
48
Deferred income tax
-734
1,819
1,631
-140
12
Total income tax
-1,880
582
-727
-423
180
ABOUT
ALPEK
OUR
GOVERNANCE
NATURAL
CAPITAL
64
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
FINANCIAL
REVIEW
Statement of Income
[Millions of Pesos]
2025
2024
2023
‘25 VS ‘24
[%]
‘24 VS ‘23
[%]
Operating income
2,022
5,170
-6,437
-61
180
Financial result, net
-2,362
-5,920
-2,668
60
-122
Equity in income
of associates and
joint ventures
4
-44
-201
109
78
Income tax
-1,880
582
-727
-423
180
Consolidated
net income
-2,216
-212
-10,033
-947
98
Income attributable to
Controlling Interest
-2,774
-765
-10,914
-262
93
Net (Loss) Income Attributable to the Controlling Interest
In 2025, operating income was $2,022 million (US $101 million), 61% lower than the $5,170 million (US $295 million), in
2024. Consolidated net loss attributable to the controlling interest amounted to $2,774 million (US $150 million), compared
to a consolidated net loss of $765 million (US $33 million) in 2024.
Investments in Fixed and Intangible Assets
In 2025, investments in fixed and intangible assets totaled $3,247 million (US $170 mil-
lion), 46% higher than the $2,223 million (US $121 million), in the prior year, mainly driven
by maintenance CAPEX across multiple sites.
Operating Free Cash Flow
Despite a challenging industry environment characterized by persistent oversupply and low-
er ocean freight rates, positive free cash flow generation was maintained. During the year,
financial strength improved through disciplined capital allocation and enhanced net working
capital efficiency, resulting in an increase of $163 million in operating free cash flow.
ABOUT
ALPEK
OUR
GOVERNANCE
NATURAL
CAPITAL
65
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
FINANCIAL
REVIEW
Debt Profile
Short and Long Term Debt2
[Millions of Dollars]
2025
2024
‘25 VS ‘24
Integrated
2025
Integrated
2024
Short term debt
115
81
43%
5%
4%
Current portion of LT Debt
3
-
100%
-
-
2 years
7
120
-94%
-
6%
3 years
235
503
-53%
11%
25%
4 years
627
200
213%
30%
10%
5 years
380
499
-24%
18%
25%
6 years
613
-
100%
29%
-
7 years
113
597
-81%
5%
30%
8+ years
8
8
-6%
-
-
Total
2,101
2,007
5%
100%
100%
Avg Maturity LT
Debt (years)
4.2
4.3
Avg Maturity Total
Debt (years)
4.2
4.1
Financial Indicators
[Times]
2025
2024
2023
Net Debt / EBITDA
4.4
2.9
3.4
Interest Coverage
2.6
3.4
3.4
Total liabilities / Stockholder’s equity
2.6
2.5
2.1
Net Debt1
Net debt was $33,055 (US $1,840 million) as of December 31, 2025, 13% below the $38,190 million (US $1,884 million)
as of December 31, 2024. The cash balance and cash equivalents totaled $8,051 million (US $448 million) including re-
stricted cash at year end 2025.
(1) Net Debt = Current debt plus non-current debt (excluding debt issuance costs), plus accrued interest payable, less cash
and cash equivalents, less restricted cash and cash equivalents.
(2) Exclude leases and lease interests.
ABOUT
ALPEK
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GOVERNANCE
NATURAL
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CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
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FINANCIAL
REVIEW
Financial
Statements
10
ABOUT
ALPEK
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GOVERNANCE
NATURAL
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FINANCIAL
REVIEW
67
CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
PEOPLE
SOCIAL
IMPACT
2025
HIGHLIGHTS
MESSAGE FROM
OUR MANAGEMENT
Alpek, S. A. B. de C. V. and Subsidiaries
Consolidated Financial Statements as of
and for the Years Ended December 31,
2025, 2024 and 2023, and Independent
Auditors’ Report Dated January 31, 2026
Alpek, S. A. B. de C. V. and Subsidiaries
Independent Auditors’ Report and Consolidated
Financial Statements as of and for the Years Ended
December 31, 2025, 2024 and 2023
Table of Contents
Page
Independent Auditors’ Report
1
Consolidated Statements of Financial Position
5
Consolidated Statements of Income
6
Consolidated Statements of Comprehensive Income
7
Consolidated Statements of Changes in Stockholders’ Equity
8
Consolidated Statements of Cash Flows
9
Notes to the Consolidated Financial Statements
10
Deloitte se refiere a Deloitte Touche Tohmatsu Limited, sociedad privada de responsabilidad limitada en el Reino Unido, y a su red de firmas miembro, cada una de ellas como una entidad legal
única e independiente. Conozca en www.deloitte.com/mx/conozcanos la descripción detallada de la estructura legal de Deloitte Touche Tohmatsu Limited y sus firmas miembro.
Galaz, Yamazaki,
Ruiz Urquiza, S.C.
Ave. Juárez 1102, piso 40
colonia Centro,
64000 Monterrey,
México
Tel: +52 (81) 8133 7300
www.deloitte.com/mx
Independent Auditors’ Report to
the Board of Directors and Stockholders of
Alpek, S. A. B. de C. V. and Subsidiaries
(Figures in millions of Mexican pesos “$” and millions of U.S. dollars “US$”)
Opinion
We have audited the consolidated financial statements of Alpek, S. A. B. de C. V. and Subsidiaries (“Alpek”
or the “Company”), which comprise the consolidated statements of financial position as of December 31,
2025, 2024 and 2023, the consolidated statements of income, the consolidated statements of
comprehensive income, the consolidated statements of changes in stockholders’ equity and the
consolidated statements of cash flows for the years then ended, and the notes to the consolidated financial
statements, including material accounting policies information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,
the consolidated financial position of Alpek, S. A. B. de C. V. and Subsidiaries as of December 31, 2025,
2024 and 2023, and their consolidated financial performance and consolidated cash flows for the years
then ended, in accordance with IFRS Accounting Standards, as issued by the International Accounting
Standards Board (IASB).
Basis for Opinion
We conducted our audits in accordance with International Standards on Auditing (“ISA”). Our
responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of
the Consolidated Financial Statements section of our report. We are independent of the Company in
accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional
Accountants (“IESBA Code”) together with the Code of Ethics issued by the Mexican Institute of Public
Accountants (“IMCP Code”), and we have fulfilled our other ethical responsibilities in accordance with the
IESBA Code and with the IMCP Code. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Other matters
The accompanying consolidated financial statements have been translated from Spanish to English for the
convenience of readers.
Emphasis Paragraphs
Merger of the Company with Controladora Alpek, S.A.B. de C.V. (“Controladora Alpek”)
As disclosed in Note 2 to the accompanying consolidated financial statements, on November 25, 2025, the
Company held an Extraordinary Shareholders’ Meeting in which, among other matters, the merger of
Controladora Alpek into the Company was approved, subject to certain conditions. Pursuant to the
foregoing, Controladora Alpek would cease to exist and its shares would be cancelled, while the Company
would remain as the surviving entity, and the number of outstanding shares would remain unchanged,
except for any excess shares resulting from the application of the exchange ratio that are determined to be
cancelled, as well as for the cancellation of shares derived from the Company’s share repurchase program.
The merger became fully effective on November 26, 2025.
2
Beginning on December 9, 2025 (the “Exchange Date”), the shares representing the Company’s capital
stock that were previously owned by Controladora Alpek were delivered to the shareholders of
Controladora Alpek at an exchange ratio of 0.309933698216403 Company shares for each share of
Controladora Alpek. On the same date, the listing of the shares representing the capital stock of
Controladora Alpek on the Mexican Stock Exchange was cancelled, and the merger process was completed.
The effects of this merger on the Company’s financial information are presented in the Consolidated
Statements of Changes in Stockholders’ Equity.
Since this transaction involved a merger between a subsidiary (Alpek) and its holding company
(Controladora Alpek), it was accounted for as a transaction between entities under common control,
incorporating Controladora’s historical carrying amounts of assets and liabilities into Alpek. Our opinion has
not been modified as a result of this matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the consolidated financial statements for the current period. These matters were addressed in the
context of our audit of the consolidated financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters. We have determined that the matter
described below is the key audit matter that should be reported in our report.
Recognition of revenue in subsidiaries
The amount of the Company's revenue has a high degree of dependence on the adequacy of
management's assessment regarding the point in time when control of the goods is considered to have
been transferred to its customers, which is highly related to the contractually agreed-upon terms of sale,
said terms vary among Alpek's subsidiaries.
Due to the significance of the evaluation that the Company's management must perform at each reporting
period to identify the moment when the performance obligation is satisfied for revenue recognition, we
consider this to represent a key audit matter.
How our audit addressed this key audit matter:
To carry out audit procedures that mitigate the identified risk in a reasonable manner, we include, among
others, the following procedures:
•
We identified and assessed the risks of material misstatement related to revenue recognition,
including the risk of fraud.
•
We tested design and implementation, as well as operating effectiveness of relevant controls that
mitigate the risks.
•
We determined the scope for subsidiaries aiming to reduce the risk to an acceptably low level.
•
We designed and performed substantive tests of details and substantive analytical procedures.
•
We directed, supervised, and reviewed the work of component auditors.
•
We reviewed compliance with the presentation and disclosure requirements set forth in the
accounting standard IFRS 15, Revenue from Contracts with Customers.
The results of our procedures were satisfactory.
Information other than the consolidated financial statements and auditor’s report thereon
The Company’s management is responsible for the additional information presented. Additional information
includes: i) the sustainability‑related information that the Company is required to prepare in accordance with
Article 33, Section I, subsection (a); ii) the information that will be incorporated in the annual report that the
Company is required to prepare in accordance with Article 33, section I, subsection b) of Title Four, Chapter
One of the General Provisions Applicable to Issuers and other Participants of the Stock Market in México and
the Instructions that accompany these provisions (the "Provisions"), which is expected that the Annual Stock
Exchange Filling and the annual report to be available for reading after the date of this audit report; and iii)
other additional information, which is a measure that is not required by IFRS Accounting Standards of
accounting, and has been incorporated for the purpose of providing additional explanation to its investors and
main readers of its consolidated financial statements to evaluate the performance of each of the operating
segments and other indicators on the capacity to meet obligations regarding the earnings before interest,
taxes, depreciation, amortization and non-current asset impairment ("adjusted EBITDA") of the Company;
this information is presented in Note 29.
3
Our opinion of the consolidated financial statements will not cover the additional information and we will
not express any form of assurance about it.
In connection with our audit of the consolidated financial statements, our responsibility will be to read the
additional information, when it becomes available, and when we do so, to consider whether the additional
information contained therein is materially inconsistent with the consolidated financial statements or our
knowledge obtained in the audit or appears to contain a material misstatement. When we read the Annual
Report, we will issue the declaration on its reading, required in Article 33, Section I, subsection b) number
1.2 of the Provisions. Also, and in connection with our audit of the consolidated financial statements, our
responsibility is to read and recalculate the additional information, which in this case is the measure not
required by IFRS Accounting Standards of accounting, and in doing so, consider whether the other
information contained therein is materially inconsistent with the consolidated financial statements or our
knowledge obtained during the audit, or appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement in the additional information; we would be
required to report that fact. As of the date of this report, we have nothing to report in this regard.
Responsibilities of management and those charged with governance for the consolidated
financial statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with IFRS Accounting Standards of accounting issued by the IASB, and for such
internal control as management determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to liquidate the
Company or to cease operations, or has no realistic alternative but to do so.
Those responsible with Company´s governance are responsible for overseeing the Company’s consolidated
financial reporting process.
Auditors’ responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee
that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
−
Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
−
Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Company’s internal control.
−
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
4
−
Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditors’
report to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditors’ report. However, future events or conditions may cause the Company to cease to
continue as a going concern.
−
Evaluate the overall presentation structure and content of the financial statements, including the
disclosures, and whether the consolidated financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.
−
Plan and perform the group audit to obtain sufficient audit evidence regarding the financial information
of the entities or business units within Alpek as a basis for forming an opinion on the group’s financial
statements. We are responsible for the direction, supervision, and review of the audit work performed
for the purposes of Alpek's group audit. We are solely responsible for our audit opinion.
We communicate with those charged with governance in the Company regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance in the Company with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence, and where
applicable, related safeguards.
From the matters communicated with those charged with governance in the Company, we determine those
matters that were of most significance in the audit of the consolidated financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditors’ report unless
law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Galaz, Yamazaki, Ruiz Urquiza, S.C.
Affiliate of a member firm of Deloitte Touche Tohmatsu Limited
C. P. C. Jesús Israel Almaguer Gámez
Monterrey, Nuevo León, México
January 31, 2026
5
Alpek, S. A. B. de C. V. and Subsidiaries
Consolidated Statements of Financial Position
As of December 31, 2025, 2024 and 2023
In millions of Mexican pesos
Note
2025
2024
2023
Assets
Current assets:
Cash and cash equivalents
6
$ 8,043
$ 6,216
$ 7,391
Restricted cash
6
7
386
8
Trade and other accounts receivable, net
7
14,424
18,431
17,473
Inventories
8
23,434
28,244
23,322
Derivative financial instruments
4
148
10
86
Prepayments
9
993
885
744
Total current assets
47,049
54,172
49,024
Non-current assets:
Restricted cash
6
-
-
314
Property, plant and equipment, net
10
40,876
46,317
40,952
Right-of-use asset, net
11
3,005
3,737
3,170
Goodwill and intangible assets, net
12
2,894
3,675
3,494
Deferred income taxes
20
1,989
4,140
1,334
Derivative financial instruments
4
10
5
9
Prepayments
9
16
12
6
Investments accounted for using the equity method and other non-
current assets
13
2,905
4,659
4,381
Total non-current assets
51,695
62,545
53,660
Total assets
$ 98,744
$116,717
$102,684
Liabilities and Stockholders’ Equity
Current liabilities:
Debt
16
$ 2,131
$ 1,636
$ 689
Lease liability
17
880
944
701
Trade and other accounts payable
15
25,416
31,336
27,129
Income taxes payable
20
238
433
390
Derivative financial instruments
4
304
802
253
Provisions
18
258
199
749
Total current liabilities
29,227
35,350
29,911
Non-current liabilities:
Debt
16
35,549
38,934
32,648
Lease liability
17
2,482
3,160
2,755
Derivative financial instruments
4
4
37
12
Provisions
18
1,009
1,651
739
Deferred income taxes
20
1,933
3,075
2,024
Employee benefits
19
832
854
880
Other non-current liabilities
21
123
151
493
Total non-current liabilities
41,932
47,862
39,551
Total liabilities
71,159
83,212
69,462
Stockholders’ equity
Controlling interest:
Capital stock
22
5,956
6,019
6,019
Share premium
8,145
8,908
8,909
Retained earnings
10,372
13,777
17,298
Other reserves
(1,621)
(451)
(3,534)
Total controlling interest
22,852
28,253
28,692
Non-controlling interest
14
4,733
5,252
4,530
Total stockholders’ equity
27,585
33,505
33,222
Total liabilities and stockholders’ equity
$ 98,744
$116,717
$102,684
The accompanying notes are an integral part of these consolidated financial statements.
6
Alpek, S. A. B. de C. V. and Subsidiaries
Consolidated Statements of Income
For the years ended December 31, 2025, 2024 and 2023
In millions of Mexican pesos, except for losses per share amounts
Note
2025
2024
2023
Revenues
29
$126,840
$137,409
$138,159
Cost of sales
24
(118,783)
(125,721)
(127,863)
Gross profit
8,057
11,688
10,296
Selling expenses
24
(1,755)
(2,012)
(2,132)
Administrative expenses
24
(3,825)
(3,997)
(3,718)
Other loss, net
25
(455)
(509)
(10,883)
Operating income (loss)
2,022
5,170
(6,437)
Financial income
26
678
869
1,317
Financial expenses
26
(3,783)
(4,449)
(3,982)
Gain (Loss) due to exchange fluctuation, net
26
743
(2,340)
(3)
Financial result, net
(2,362)
(5,920)
(2,668)
Equity in loss of associates and joint ventures recognized
using the equity method
4
(44)
(201)
Loss before taxes
(336)
(794)
(9,306)
Income taxes
20
(1,880)
582
(727)
Net consolidated loss
$ (2,216)
$ (212)
$(10,033)
Loss attributable to:
Controlling interest
$ (2,774)
$ (765)
$(10,914)
Non-controlling interest
558
553
881
$ (2,216)
$ (212)
$(10,033)
Losses per basic and diluted share, in Mexican pesos
$ (1.32)
$ (0.36)
$ (5.18)
Weighted average outstanding shares (millions of shares)
2,101
2,107
2,107
The accompanying notes are an integral part of these consolidated financial statements.
7
Alpek, S. A. B. de C. V. and Subsidiaries
Consolidated Statements of Comprehensive Income
For the years ended December 31, 2025, 2024 and 2023
In millions of Mexican pesos
Note
2025
2024
2023
Net consolidated loss
$ (2,216)
$ (212)
$(10,033)
Other comprehensive (loss) income for the year:
Items that will not be reclassified to the statement of
income:
Remeasurement of employee benefit obligations, net of
taxes
19, 20
50
98
5
Items that will be reclassified to the statement of income:
Equity in other comprehensive income of associates and
joint ventures recognized through the equity method
(1)
1
(1)
Effect of derivative financial instruments designated as
cash flow hedges, net of taxes
4, 20
499
(452)
765
Translation effect of foreign entities
4, 20
(2,328)
4,345
(5,923)
Total other comprehensive (loss) income for the
year
(1,780)
3,992
(5,154)
Consolidated comprehensive (loss) income
$ (3,996)
$ 3,780
$(15,187)
Attributable to:
Controlling interest
$ (3,944)
$ 2,318
$(15,381)
Non-controlling interest
(52)
1,462
194
Comprehensive (loss) income for the year
$ (3,996)
$ 3,780
$(15,187)
The accompanying notes are an integral part of these consolidated financial statements.
8
Alpek, S. A. B. de C. V. and Subsidiaries
Consolidated Statements of Changes in Stockholders’ Equity
For the years ended December 31, 2025, 2024 and 2023
In millions of Mexican pesos
Capital
stock
Share
premium
Retained
earnings
Other
reserves
Total
controlling
interest
Non-
controlling
interest
Total
stockholders’
equity
Balance as of January 1, 2023
$ 6,021
$ 8,917
$ 31,032
$ 933
$ 46,903
$ 5,291
$ 52,194
Net loss
-
-
(10,914)
-
(10,914)
881
(10,033)
Total other comprehensive loss for the year
-
-
-
(4,467)
(4,467)
(687)
(5,154)
Comprehensive loss
-
-
(10,914)
(4,467)
(15,381)
194
(15,187)
Dividends declared
-
-
(2,866)
-
(2,866)
(955)
(3,821)
Reissuance of shares
36
176
-
-
212
-
212
Repurchase of shares
(38)
(184)
-
-
(222)
-
(222)
Other
-
-
46
-
46
-
46
Balance as of December 31, 2023
6,019
8,909
17,298
(3,534)
28,692
4,530
33,222
Net loss
-
-
(765)
-
(765)
553
(212)
Total other comprehensive loss for the year
-
-
-
3,083
3,083
909
3,992
Comprehensive loss
-
-
(765)
3,083
2,318
1,462
3,780
Dividends declared
-
-
(2,634)
-
(2,634)
(776)
(3,410)
Reissuance of shares
31
108
-
-
139
-
139
Repurchase of shares
(31)
(109)
-
-
(140)
-
(140)
Other
-
-
(122)
-
(122)
36
(86)
Balance as of December 31, 2024
6,019
8,908
13,777
(451)
28,253
5,252
33,505
Net loss
-
-
(2,774)
(2,774)
558
(2,216)
Total other comprehensive loss for the year
-
-
-
(1,170)
(1,170)
(610)
(1,780)
Comprehensive loss
-
-
(2,774)
(1,170)
(3,944)
(52)
(3,996)
Dividends declared
-
-
-
-
-
(668)
(668)
Repurchase of shares
(17)
(60)
-
-
(77)
-
(77)
Merger Effects (note 2a)
-
-
(1,416)
-
(1,416)
-
(1,416)
Cancellation of shares (note 22)
(46)
(703)
749
-
-
-
-
Business acquisitions
244
244
Other
-
-
36
-
36
(43)
(7)
Balance as of December 31, 2025
$ 5,956
$ 8,145
$ 10,372
$ (1,621)
$ 22,852
$ 4,733
$ 27,585
The accompanying notes are an integral part of these consolidated financial statements.
9
Alpek, S. A. B. de C. V. and Subsidiaries
Consolidated Statements of Cash Flows
For the years ended December 31, 2025, 2024 and 2023
In millions of Mexican pesos
2025
2024
2023
Cash flows from operating activities
Loss before income taxes
$ (336)
$ (794)
$ (9,306)
Depreciation and amortization
5,158
4,767
4,619
Impairment of long-lived assets
924
1,791
11,078
Allowance for doubtful accounts
(21)
(17)
(101)
Financial result, net
1,387
4,678
2,007
Gain on business combinations
-
(47)
-
(Loss) gain on sale of property, plant and equipment
(80)
(27)
66
Statutory employee profit sharing, provisions and other items
(375)
(403)
2,247
Subtotal
6,657
9,948
10,610
Movements in working capital
(Increase) decrease in trade receivables and other assets
1,304
2,910
(2,107)
Decrease (increase) in inventories
3,047
(2,482)
6,623
Increase (decrease) in trade and other accounts payable
(2,313)
(2,746)
4,296
Income taxes paid
(1,080)
(1,372)
(4,398)
Net cash flows generated from operating activities
7,615
6,258
15,024
Cash flows from investing activities
Interest collected
430
670
1,258
Cash flows in acquisition of property, plant and equipment
(2,422)
(2,016)
(2,501)
Cash flows in sale of property, plant and equipment
33
61
13
Cash flows in acquisition of intangible assets
(73)
(18)
(40)
Cash flows in sale of intangible assets
55
-
-
Cash flows in business acquisition, net of cash acquired
(618)
1
(512)
Cash flows paid in investment in associates and joint ventures
(222)
(250)
(1,925)
Loans granted to related parties
-
(216)
(65)
Notes receivable
129
(67)
-
Collection of notes
58
128
273
Restricted cash
359
1
179
Net cash flows used in investing activities
(2,271)
(1,706)
(3,320)
Cash flows from financing activities
Proceeds from debt
38,454
16,470
36,732
Payments of debt
(36,322)
(15,966)
(37,104)
Lease payments
(1,516)
(1,269)
(1,170)
Interest paid
(2,555)
(2,595)
(3,059)
Dividends paid by Alpek, S. A. B. de C. V.
-
(2,537)
(2,966)
Dividends paid by subsidiaries to non-controlling interest
(668)
(776)
(955)
Repurchase of shares
(152)
(140)
(222)
Reissuance of shares
75
139
212
Others
(7)
-
-
Net cash flows used in financing activities
(2,691)
(6,674)
(8,532)
Increase (decrease) in cash and cash equivalents
2,653
(2,122)
3,172
Effect of changes in exchange rates
(826)
947
(2,100)
Cash and cash equivalents at the beginning of the year
6,216
7,391
6,319
Cash and cash equivalents at the end of the year
$ 8,043
$ 6,216
$ 7,391
The accompanying notes are an integral part of these consolidated financial statements.
10
Alpek, S. A. B. de C. V. and Subsidiaries
Notes to the Consolidated Financial Statements
As of and for the years ended December 31, 2025, 2024 and 2023
Millions of Mexican pesos, except where otherwise indicated
1.
General information
Alpek, S. A. B. de C. V. and Subsidiaries (“Alpek” or the “Company”), formerly a subsidiary of
Controladora Alpek, S.A.B. de C.V. (“Controladora Alpek”) with which it merged on November 26, 2025
(see Note 2 a), with Alpek remaining as the merging and surviving entity, is a petrochemical company with
operations through two major business segments: “Polyester” and “Plastics and Chemicals”. The Polyester
segment comprises the production of purified terephthalic acid (“PTA”), polyethylene terephthalate
(“PET”), recycled PET (“rPET"), and polyester fibers, which are mainly used for food and beverage
packaging, textile and industrial filament markets. The Plastics & Chemicals business segment comprises
the production of polypropylene (“PP”), expandable styrene (“EPS” and “Arcel®”), fertilizers and other
chemicals, which serves a wide range of markets, including the consumer goods, automotive, construction,
agriculture, pharmaceutical and other markets.
Alpek is one of the largest petrochemical companies in México and one of the largest in Latin America.
Additionally, it is the main integrated producer of polyester and one of the main producers of rPET in
America. It operates the largest EPS plant in the continent, and one of the largest PP plants in North
America.
When reference is made to the controlling entity Alpek, S.A.B. of C.V. as an individual legal entity, it will
be referred to as “Alpek SAB”.
The shares of Alpek SAB are traded on the Mexican Stock Exchange (“MSE”) and previously had Sigma
Foods, S. A. B. de C. V. (“Sigma Foods”) (formerly known as “Alfa S. A. B. de C. V.”) as its main holding
company. As of December 31, 2025, 2024 and 2023, the percentage of shares that traded on the MSE was
96%, 17.37%, and 17.37%, respectively.
Alpek SAB is located at Avenida Gómez Morín Sur No. 1111, Col. Carrizalejo, San Pedro Garza García,
Nuevo León, México and operates productive plants located in México, the United States of America,
Oman, Saudi Arabia, Canada, Argentina, Chile, Brazil and United Kingdom.
In the following notes to the financial statements when referring to pesos or "$", it means millions of
Mexican pesos. When referring to dollars or "US$", it means millions of dollars from the United States of
America. When referring to Euros or "€" it means millions of Euros.
2.
Significant events
2025
a.
Merger with Controladora Alpek, S.A.B. de C.V
On November 25, 2025, the Company held an Extraordinary Shareholders’ Meeting at which, among
other matters, the merger of Controladora Alpek, S.A.B. de C.V. into the Company was approved,
subject to certain conditions. As a result, Controladora Alpek would cease to exist and its shares would
be cancelled, while the Company would remain as the surviving entity and the number of the
Company’s outstanding shares would remain unchanged, except for any excess shares resulting from
the application of the exchange ratio which—if so resolved—would be cancelled, as well as for the
cancellation of shares derived from the Company’s share repurchase program. The merger became
fully effective on November 26, 2025.
Effective December 9, 2025 (the “Exchange Date”), the shares representing the Company´s capital
stock, previously held by Controladora Alpek, were delivered to the shareholders of Controladora
Alpek at an exchange ratio of 0.309933698216403 Company shares for each Controladora Alpek share.
On the same date, the listing of Controladora Alpek’s shares on the Mexican Stock Exchange was
cancelled, marking the completion of the merger process.
Since this transaction involved a merger between a subsidiary (Alpek) and its holding company
(Controladora Alpek), it was accounted for as a transaction between entities under common control,
incorporating Controladora’s historical carrying amounts of assets and liabilities into Alpek.
11
b.
Suspension of operations at PET plant in North Carolina
On May 30, 2025, the Company announced its plans to cease operations at its Cedar Creek plant in
Fayetteville, North Carolina, effective July 31, 2025.
The Company recognized impairment of $362 (US$19) and $14 (US$0.8) for fixed assets and right of
use assets, respectively, for the year ended December 31, 2025.
c.
Conclusion of the Spin-off of Alfa’s Equity Interest in Alpek and Creation of Controladora Alpek
On March 27, 2025, Alpek announced that Alfa, S.A.B. de C.V. received authorization from the
National Banking and Securities Commission (“CNBV”) for the registration of Controladora Alpek’s
shares in the National Securities Registry.
The distribution of Controladora Alpek’s shares represents the conclusion of the spin-off process
approved by Alfa’s shareholders on October 24, 2024. As a result of this transaction, ALFA’s
shareholders will receive one share of Controladora Alpek for each Alfa share they hold as of market
close on April 4, 2025. The number of Alpek shares remains unchanged. Controladora Alpek began
trading on the Mexican Stock Exchange on April 7, 2025.
2024
d.
Approval of the spin-off of Alfa´s equity interest in Alpek and the creation of Controladora Alpek
On October 24, 2024, the Shareholders' Meeting of Alfa SAB approved the spin-off of its entire equity
interest in Alpek.
The process was subject to certain suspensive conditions, including the registration of Controladora
Alpek as a listed issuer on the Stock Exchange, which has not been completed as of December 31,
2024.
e.
Suspension of EPS operations in Beaver Valley
On November 4, 2024, the Company announced its plans to suspend production at its Beaver Valley
EPS facility in Monaca, Pennsylvania, by January 2025.
The Company recognized impairment of inventories and fixed assets amounting to $96.5 (US$4.8) and
$1,191 (US$58.7), respectively, for the year ended December 31, 2024.
2023
f.
Interruption for an indefinite term of Cooper River's PET resin production
On March 1, 2023, the Company announced the indefinite interruption of PET resin production at its
Cooper River plant, located in Charleston, South Carolina. The plant had an installed capacity of
170,000 tons of PET resin.
The Company started the process of decommissioning and dismantling of assets, as well as
environmental cleanup and remediation, which is why the Company registered provisions for these
concepts for $379 (US$20.8). Additionally, the Company had other direct costs attributable to the
closure, mainly for severance pay and cancellation of contracts for $169 (US$9.1).
Derived from the interruption in production, the Company performed impairment tests on the fixed
assets associated with the plant and recorded an impairment charge related to these assets of $950
(US$51.9). Additionally, it recognized and inventory impairment of $63 (US$3.4).
g.
US$200 million loan linked to sustainability
On August 3, 2023, Alpek announced that it refinanced the outstanding balance of the bond due in
August 2023, with bank debt that includes a US$200 Sustainability Linked Credit maturing in 2028.
The loan incorporates a pricing mechanism that incentivizes progress on two of the Company’s ESG
objectives:
•
Reduction in carbon emissions Scope 1, 2 and 3.
•
Reduction in its incidence rate for its employees and contractors.
12
h.
Closure of the filament production plant
On August 18, 2023, the Company announced the closure of its textile and industrial fiber production
plant located in Monterrey. Alpek made the decision to close operations at these facilities and not
replace their production because the excess production experienced worldwide in recent years has
represented a significant reduction in its profitability for the filament industry and it is not expected
that this situation will change in the near future.
The Company recognized an impairment of inventories and fixed assets for $121 (US$7) and $409
(US$23.7), respectively, for the year ended December 31, 2023. Additionally, it had impacts due to
employee terminations for $193 (US$11.1).
i.
Corpus Christi Polymers construction pause
On September 27, 2023, Alpek announced that Corpus Christi Polymers (“CCP”) temporarily paused
construction of the integrated PTA-PET plant in Corpus Christi, Texas. The partners decided to pause
it because high inflation rates and other factors caused construction and labor costs to exceed initial
expectations. Options will also be evaluated to optimize the project's costs and schedule. This site will
be adequately preserved so that construction can resume in the future.
Based on the requirements of IAS 28 and IAS 36, the Company identified that the pause in construction
of the plant generated signs of impairment on its investment in the joint venture. Alpek determined
through the discounted cash flow model and considering the decisions of its Board of Directors, to
recognize an impairment of its investment in the joint venture of $9,591 (US$557) for the year ended
December 31, 2023.
As of December 31, 2024, construction of the integrated PTA-PET plant in Corpus Christi, Texas,
remains on pause.
3.
Summary of material accounting policies
The following are the material accounting policies followed by the Company and its subsidiaries, which
have been consistently applied in the preparation of their financial information in the years presented, unless
otherwise specified:
a)
Basis of preparation
The consolidated financial statements of Alpek have been prepared in accordance with International
Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board
(“IASB”). IFRS include all International Accounting Standards ("IAS") in force and all related
interpretations issued by the International Financial Reporting Interpretations Committee (“IFRIC”),
including those previously issued by the Standing Interpretations Committee (“SIC”).
The consolidated financial statements have been prepared on a historical cost basis, except for the cash
flow hedges, which are measured at fair value, and for the financial assets and liabilities at fair value
through profit or loss with changes reflected in the consolidated statement of income and for financial
assets available for sale.
The preparation of the consolidated financial statements in conformity with IFRS requires the use of
certain critical accounting estimates. Additionally, it requires Management to exercise judgment in the
process of applying the Company's accounting policies. The areas involving a higher degree of
judgment or complexity, or areas where judgments and estimates are significant to the consolidated
financial statements are disclosed in Note 5.
b)
Consolidation
i.
Subsidiaries
The subsidiaries are all the entities over which the Company has control. The Company controls an
entity when it is exposed or has the right to variable returns from its interest in the entity and it is
capable of affecting the returns through its power over the entity. When the Company's participation
in subsidiaries is less than 100%, the share attributed to outside stockholders is reflected as non-
controlling interest. Subsidiaries are fully consolidated from the date on which control is transferred to
the Company and up to the date it loses such control.
13
The accounting method used by the Company for business combinations is the acquisition method.
The Company defines a business combination as a transaction through which it obtains control over a
business, whereby it has the power to steer and manage the relevant operations of all assets and
liabilities of the business with the purpose of providing a return in the form of dividends, lower costs
or other economic benefits directly to investors.
The consideration transferred for the acquisition of a subsidiary is the fair value of the assets
transferred, the liabilities incurred and the equity interests issued by the Company. The consideration
transferred includes the fair value of any asset or liability resulting from a contingent consideration
arrangement. Identifiable acquired assets and liabilities and contingent liabilities assumed in a business
combination are initially measured at their fair values at the acquisition date. The Company recognizes
any non-controlling interest in the acquiree based on the share of the non-controlling interest in the net
identifiable assets of the acquired entity.
The Company accounts for business combinations of entities using the predecessor method in a jointly
controlled entity. The predecessor method involves the incorporation of the carrying amounts of the
acquired entity, which includes the goodwill recognized at the consolidated level with respect to the
acquiree. Any difference between the carrying value of the net assets acquired at the level of the
subsidiary and its carrying amount at the level of the Company is recognized in stockholders’ equity.
The acquisition-related costs are recognized as expenses in the consolidated statement of income when
incurred.
Goodwill is initially measured as excess of the sum of the consideration transferred and the fair value
of the non-controlling interest over the net identifiable assets and liabilities assured. If the consideration
transferred is less than the fair value of the net assets of the subsidiary acquired in the case of a bargain
purchase, the difference is recognized directly in the consolidated statement of income.
If the business combination is achieved in stages, the value in books at the acquisition date of the equity
previously held by the Company in the acquired entity is remeasured at its fair value at the acquisition
date. Any loss or gain resulting from such remeasurement is recorded in the consolidated income of
the year.
Transactions, intercompany balances and unrealized gains on transactions between Alpek’s companies
are eliminated in preparing the consolidated financial statements. Alpek’s subsidiaries consistently
apply the accounting policies as those disclosed in these consolidated financial statements.
As of December 31, 2025, 2024 and 2023, the main companies that comprise the consolidated financial
statements of the Company are as follows:
Country (1)
Ownership percentage (%) (2)
Functional
Currency
2025
2024
2023
Alpek, S. A. B. de C. V. (Holding Company)
Mexican peso
Alpek Polyester, S. A. de C. V. (Holding
Company)
100
100
100
US dollar
Alpek Polyester USA, LLC (3)
USA
100
100
100
US dollar
Alpek Polyester México, S.A. de C.V. (4)
100
100
100
US dollar
DAK Américas Exterior, S. L. (Holding Company)
Spain
100
100
100
US dollar
Alpek Polyester Argentina S. A. (5)
Argentina
100
100
100
US dollar
Compagnie Alpek Polyester Canada (Selenis)
Canada
100
100
100
US dollar
Tereftalatos Mexicanos, S. A. de C. V. (Temex)
91
91
91
US dollar
Akra Polyester, S. A. de C. V.
93
93
93
US dollar
Alpek Polyester Pernambuco S. A. (6)
Brazil
100
100
100
Brazilian real
Alpek Polyester Brasil S. A. (7)
Brazil
100
100
100
Brazilian real
Indelpro, S. A. de C. V. (Indelpro)
51
51
51
US dollar
Polioles, S. A. de C. V. (Polioles)
50
50
50
US dollar
Grupo Styropek, S. A. de C. V. (Holding
Company)
100
100
100
Mexican peso
Styropek México, S. A. de C. V.
100
100
100
US dollar
Styropek, S. A.
Argentina
100
100
100
Argentine peso
Aislapol, S. A.
Chile
100
100
100
Chilean peso
Styropek do Brasil, LTD
Brazil
100
100
100
Brazilian real
Unimor, S. A. de C. V. (Holding Company)
100
100
100
Mexican peso
Univex, S. A.
100
100
100
Mexican peso
Alpek Polyester UK LTD
United Kingdom
100
100
100
Pound sterling
BVPV Styrenics LLC
USA
100
100
100
US dollar
Octal
Oman
100
100
100
US dollar
Clear Path Recycling, LLC (7)
USA
100
100
-
US dollar
Agua Industrial del Poniente, S.A. de C.V. (6)
72
56
-
Mexican peso
Terza S.A. de C.V. (8)
50
-
-
Mexican peso
14
(1) Companies incorporated in México, except those indicated.
(2) Ownership percentage that Alpek has in the holding companies and ownership percentage that
such holding companies have in the companies integrating the groups. Ownership percentages
and the voting rights are the same.
(3) During 2023, DAK Americas LLC changed its legal name to Alpek Polyester USA, LLC.
(4) During 2023, Dak Resinas Américas México, S.A. de C.V. changed its legal name to Alpek
Polyester México, S.A. de C.V.
(5) On March 1, 2024, Alpek Polyester Argentina, S.A. changed its functional currency. As of and
for the year ended December 31, 2023, the functional currency was the Argentine peso.
(6) On June 13, 2024, Alpek obtained control over this investment in associates, holding 55.6% of
the shareholding as of December 31, 2024. The shareholding as of December 31, 2023 and
2022 was 47.6%.
(7) On September 1, 2024, Alpek obtained control over this investment in associates, holding
100% of the shareholding as of December 31, 2024. The shareholding as of December 31,
2023 was 49.9%.
(8) Entity acquired during 2025 (Note 14).
As of December 31, 2025, 2024 and 2023, there are no significant restrictions for investment in shares
of subsidiary companies mentioned above.
ii.
Absorption (dilution) of control in subsidiaries
The effect of absorption (dilution) of control in subsidiaries, in example, an increase or decrease
in the percentage of control, is recorded in stockholders' equity, directly in retained earnings, in
the period in which the transactions that cause such effects occur. The effect of absorption
(dilution) of control is determined by comparing the book value of the investment before the event
of dilution or absorption against the book value after the relevant event. In the case of loss of
control, the dilution effect is recognized in the consolidated income.
When the Company issues purchase obligations on certain non-controlling interests in a
consolidated subsidiary and non-controlling stockholders retain the risks and awards on these
shares in the consolidated subsidiary, these are recognized as financial liabilities for the present
value of the refundable amount of the options, initially recorded with a corresponding reduction
in the stockholders' equity, and subsequently accruing through financial charges to income during
the contractual period.
iii.
Sale or disposal of subsidiaries
When the Company ceases to have control any retained interest in the entity is re-measured at fair
value, and the change in the carrying amount is recognized in the consolidated statement of
income. The fair value is the initial carrying value for the purposes of accounting for any
subsequent retained interest in the associate, joint venture or financial asset. Any amount
previously recognized in comprehensive income in respect of that entity is accounted for as if the
Company had directly disposed of the related assets and liabilities. This results in the amounts
previously recognized in the consolidated comprehensive income being reclassified to the
consolidated income for the year.
iv.
Associates
Associates are all entities over which the Company has significant influence but not control.
Generally, an investor must hold between 20% and 50% of the voting rights in an investee for it
to be an associate. Investments in associates are accounted for using the equity method and are
initially recognized at cost. The Company's investment in associates includes goodwill identified
at acquisition, net of any accumulated impairment loss.
If the equity in an associate is reduced but significant influence is maintained, only a portion of
the amounts recognized in the consolidated comprehensive income are reclassified to the
consolidated income for the year, where appropriate.
15
The Company's share of profits or losses of associates post-acquisition is recognized in the
consolidated statement of income and its share in the consolidated other comprehensive income
of associates is recognized as other consolidated comprehensive income. When the Company's
share of losses in an associate, equals or exceeds its equity in the associate, including unsecured
receivables, the Company does not recognize further losses unless it has incurred obligations or
made payments on behalf of the associate.
The Company assesses at each reporting date whether there is objective evidence that the
investment in the associate is impaired.
Unrealized gains on transactions between the Company and its associates are eliminated to the
extent of the Company’s equity in such gains. Unrealized losses are also eliminated unless the
transaction provides evidence that the asset transferred is impaired. In order to ensure consistency
with the policies adopted by the Company, the accounting policies of associates have been
modified. When the Company ceases to have significant influence over an associate, any
difference between the fair value of the remaining investment, including any consideration
received from the partial disposal of the investment and the book value of the investment is
recognized in the consolidated statement of income.
v.
Joint ventures
Joint arrangements are those where there is joint control since the decisions over relevant activities
require the unanimous consent of each one of the parties sharing control.
Investments in joint arrangements are classified in accordance with the contractual rights and
obligations of each investor such as: joint operations or joint ventures. When the Company holds
the right over assets and obligations for related assets under a joint arrangement, this is classified
as a joint operation. When the company holds rights over net assets of the joint arrangement, this
is classified as a joint venture. The Company has assessed the nature of its joint arrangements and
classified them as joint ventures. Joint ventures are accounted for by using the equity method
applied to an investment in associates.
The Company evaluates at each reporting date whether there is objective evidence that there are
indications of impairment on the joint agreement. If there are indications, it determines the
recoverable value based on the requirements of IAS 36 and recognizes an impairment if such
recoverable value is below the carrying amount of the joint agreement.
c)
Foreign currency translation
i. Functional and presentation currency
The amounts included in the financial statements of each of the Company's subsidiaries, associates
and joint ventures should be measured using the currency of the primary economic environment
in which the entity operates (the “functional currency"). The consolidated financial statements are
presented in Mexican pesos.
When there is a change in the functional currency of one of the subsidiaries, according to
International Accounting Standard 21, Effects of Changes in Foreign Exchange Rates (“IAS 21”),
this change is accounted for prospectively, translating at the date of the functional currency
change, all assets, liabilities, equity, and income items at the exchange rate of that date.
ii. Transactions and balances
Transactions in foreign currencies are translated into the functional currency using the foreign
exchange rates prevailing at the transaction date or valuation date when the amounts are re-
measured. Gains and losses resulting from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated in foreign currencies at the closing
exchange rates are recognized as foreign exchange gain or loss in the consolidated statement of
income, except for those which are deferred in comprehensive income and qualify as cash flow
hedges.
Changes in the fair value of securities or monetary financial assets denominated in foreign
currency classified as available for sale are divided between fluctuations resulting from changes
in the amortized cost of such securities and other changes in value. Subsequently, currency
fluctuations are recognized in income and changes in the carrying amount arising from any other
circumstances are recognized as part of comprehensive income.
16
iii. Translation of subsidiaries with recording currency other than the functional currency
The financial statements of foreign subsidiaries having a recording currency different from their
functional currency were translated into the functional currency in accordance with the following
procedure:
a)
The balances of monetary assets and liabilities denominated in the recording currency were
translated at the closing exchange rate.
b)
To the historical balances of monetary assets and liabilities and stockholders' equity
translated into the functional currency the movements that occurred during the period were
added, which were translated at the historical exchange rates. In the case of the movements
of non-monetary items recognized at fair value, which occurred during the period, stated in
the recording currency, these were translated using the historical exchange rates in effect on
the date when the fair value was determined.
c)
The income, costs and expenses of the periods, expressed in the recording currency, were
translated at the historical exchange rate of the date they were accrued and recognized in the
consolidated statement of income, except when they arose from non-monetary items, in
which case the historical exchange rate of the non-monetary items was used.
d)
The exchange differences were recognized as income or expense in the consolidated
statement of income in the period they arose.
iv. Translation of subsidiaries with functional currency other than the presentation currency
The results and financial position of all Company entities that have a functional currency different
from the presentation currency are translated into the presentation currency as follows, depending
on whether the functional currency comes from a non-hyperinflationary or hyperinflationary
environment:
Non-hyperinflationary environment
a)
Assets and liabilities for each statement of financial position presented are translated at the closing
exchange rate at the date of the statement of financial position;
b)
Stockholders’ equity of each statement of financial position presented is translated at historical
exchange rate;
c)
Income and expenses for each statement of income are translated at average exchange rate (when
the average exchange rate is not a reasonable approximation of the cumulative effect of the rates
of the transaction, the exchange rate at the date of the transaction is used); and
d)
The resulting exchange differences are recognized in the consolidated statement of other
comprehensive income as translation effect.
Hyperinflationary environment
a)
Assets, liabilities and equity in the statement of financial position, as well as income and expenses
in the income statement, are translated at the closing exchange rate of the statement of financial
position, after being restated in its functional currency (Note 3d); and
b)
Assets, liabilities, equity, income and expenses of the comparative period, are maintained
according to the amount obtained in the translation of the year in question, that is, the financial
statements of the preceding period. These amounts are not adjusted to subsequent exchange rates
because the Company presents its financial information in Mexican pesos, which correspond to a
currency of a non-hyperinflationary environment.
17
The primary exchange rates in the various translation processes are listed below:
Local currency to Mexican pesos
Closing exchange rate
as of December 31,
Average annual
exchange rate
Currency
2025
2024
2023
2025
2024
2023
US dollar
17.97
20.27
16.89
19.14
18.52
17.61
Argentine peso
0.01
0.02
0.02
0.02
0.02
0.07
Brazilian real
3.28
3.28
3.48
3.43
3.39
3.53
Chilean peso
0.02
0.02
0.02
0.02
0.02
0.02
Pound sterling
24.16
25.39
21.53
25.25
23.70
21.96
d)
Hyperinflationary effects
As of July 1, 2018, the cumulative inflation from the prior 3 years in Argentina exceeded 100%;
consequently, the Argentine peso was classified as a currency of a hyperinflationary economic
environment. As a result, the financial statements of the subsidiaries located in that country, whose
functional currency was the Argentine peso, were restated and adjusted for inflation in accordance with
the requirements of the International Accounting Standard 29, Financial Information in
Hyperinflationary Economies ("IAS 29"), and have been consolidated in compliance with the
requirements of IAS 21. The purpose of applying these requirements is to consider changes in the
general purchasing power of the Argentine peso in order to present the financial statements in the
measuring unit current at the date of the statement of financial position. The financial statements before
including any inflation adjustments were prepared using the historical cost method.
The Company determined the inflation adjustments in its consolidated financial statements in the
following manner:
a. The amounts corresponding to non-monetary items of each statement of financial position, which
are not measured at the date of the statement of financial position at their fair value or net realizable
value, as the case may be, are restated by applying to their historical cost the change of a general
price index from the date of acquisition or the date of its last measurement at fair value, to the date
of the statement of financial position;
b.
The amounts corresponding to monetary items of the statement of financial position are not
restated;
c.
The components of stockholders’ equity of each statement of financial position are restated:
1)
At the beginning of the first period of application of IAS 29, except for retained earnings, by
applying the change of a general price index from the dates the components were originated
to the date of restatement. Restated retained earnings are derived from all the other balances
in the statement of financial position;
2)
At the end of the first period and in subsequent periods, all components of stockholders’
equity are restated by applying a general price index from the beginning of the period or the
date of contribution, if later.
d.
Revenues and expenses are restated by applying the change in the general price index, from the
date on which the expenses and revenues were recognized, up to the reporting date.
e.
Gains or losses arising from the net monetary position are recognized in the consolidated statement
of income.
The Company reflects the effects of hyperinflation on the financial information of its subsidiaries in
Argentina using price indexes that are considered appropriate in accordance with Resolution JG 539/18
(the “Resolution") of the Argentine Federation of Professional Councils of Economic Sciences. This
resolution establishes that a combination of price indexes should be used in the calculation of the effects
of restatement of financial statements. Therefore, the Company has decided to use the Consumer Price
Index (“CPI”) to restate balances and transactions.
The net effects of the restatement of the financial statements of the subsidiaries located in Argentina
were not material and are presented under the heading of "Financial result, net" for the years ended
December 31, 2025, 2024 and 2023.
18
As of March 1, 2024, Alpek Polyester Argentina, S.A., subsidiary of the Company, changed its
functional currency from the Argentine peso to the U.S. dollar as it has changed the way it operates,
actively seeking risk coverage against future devaluations of the Argentine peso, contemplating a
greater operation in U.S. dollars, likewise, there has been less restriction to enter into agreements and
collect in a currency other than the Argentine peso, as a result of the elimination of barriers and
restrictions that are triggered by Decree 70/2023 that strengthen the nature of the operation in US
dollars, among other factors.
From the change in the functional currency, all transactions in currencies other than the functional
currency are considered "foreign currency transactions". In accordance with the requirements of IAS
21, this change was applied prospectively, therefore Alpek Polyester Argentina converted its assets
and liabilities to the new functional currency at the exchange rate of March 1, 2024, and ceased to
apply the requirements of IAS 29, considering that the U.S. dollar is not a currency in a
hyperinflationary environment.
e)
Cash and cash equivalents
Cash and cash equivalents include cash on hand, bank deposits available for operations and other short-
term investments of high liquidity and high credit quality with original maturities of three months or
less, all of which are subject to insignificant risk of changes in value. Bank overdrafts are presented as
loans as part of the current liabilities.
f)
Financial instruments
Financial assets
The Company subsequently classifies and measures its financial assets based on the Company’s
business model to manage financial assets, and on the characteristics of the contractual cash flows of
such assets. This way financial assets can be classified at amortized cost, at fair value through other
comprehensive income, and at fair value through profit or loss. Management determines the
classification of its financial assets upon initial recognition. Purchases and sales of financial assets are
recognized at settlement date.
Financial assets are entirely written off when the right to receive the related cash flows expires or is
transferred, and the Company also has substantially transferred all the risks and rewards of its
ownership, as well as the control of the financial asset.
Classes of financial assets
i.
Financial assets at amortized cost
Financial assets at amortized cost are those that i) are held within a business model whose
objective is to hold said assets in order to collect contractual cash flows; and ii) the contractual
terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of
principal and interest on the amount of outstanding principal.
ii.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are financial assets held for trading. A financial
asset is classified in this category if it is mainly acquired for the purpose of being sold in the short
term.
Derivatives are also classified as held for trading unless they are designated as hedges. In addition
are those that do not meet the characteristics to be measured at amortized cost or fair value through
other comprehensive income, since: i) they have a business model different to those that seek to
collect contractual cash flows or collect contractual cash flows and sell the financial assets, or
otherwise ii) the generated cash flows are not solely payments of principal and interest on the
amount of outstanding principal.
Impairment of financial assets
The Company uses an impairment model based on expected credit losses rather than losses incurred,
applicable to financial assets subject to such assessment (i.e., financial assets measured at amortized
cost and at fair value through other comprehensive income), as well as lease receivables, contract
assets, certain written loan commitments, and financial guarantee contracts. The expected credit losses
on these financial assets are estimated from the initial recognition of the asset at each reporting date,
using as a reference the past experience of the Company's credit losses, adjusted for factors that are
specific to the debtors or groups of debtors, general economic conditions, and an assessment of both
the current direction and the forecast of future conditions.
19
a. Trade receivables
The Company adopted the simplified expected loss calculation model, through which expected
credit losses during the account receivable’s lifetime are recognized.
The Company performs an analysis of its portfolio of customer receivables, in order to determine
if there are significant customers for whom it requires an individual assessment; meanwhile,
customers with similar characteristics that share credit risks (participation in the portfolio of
accounts receivable, type of market, sector, geographic area, etc.), are grouped to be evaluated
collectively.
In its impairment assessment, the Company may include indications that the debtors or a group of
debtors are experiencing significant financial difficulties, and also observable data indicating that
there is a significant decrease in the estimated cash flows to be received, including arrears.
For purposes of the historical estimate, the Company considers that the following constitutes an
event of default, since historical experience indicates that financial assets are not recoverable when
they meet any of the following criteria:
•
The debtor does not fulfill its financial agreements; or
•
Information obtained internally or from external sources indicates that it is unlikely that the
debtor will pay its creditors, including the Company, in its entirety (without considering any
guarantee held by the Company).
The Company defined the breach threshold as the period from which the recovery of the
account receivable subjected to analysis is marginal, which is in line with internal risk
management.
b. Other financial instruments
The Company recognizes credit losses expected during the asset’s lifetime of all financial
instruments for which credit risk has significantly increased since its initial recognition (assessed
on a collective or individual basis), considering all the reasonable and sustainable information,
including the one referring to the future. If at the presentation date, the credit risk a financial
instrument has not significantly increased since its initial recognition, the Company calculates the
loss allowance for that financial instrument as the amount of expected credit losses in the following
12 months.
In both cases, the Company recognizes in profit or loss of the period the decrease or increase in the
expected credit loss allowance at the end of the period.
Management assesses the impairment model and the inputs used therein at least once every 3
months, in order to ensure that they remain in effect based on the current situation of the portfolio.
Financial liabilities
Non-derivative financial liabilities are initially recognized at fair value and are subsequently valued
at amortized cost using the effective interest method. Liabilities in this category are classified as
current liabilities if expected to be settled within the next 12 months, otherwise they are classified
as non-current.
Trade payables are obligations to pay for goods or services that have been acquired or received from
suppliers in the ordinary course of business. Loans are initially recognized at fair value, net of
transaction costs incurred. Loans are subsequently carried at amortized cost; any difference between
the funds received (net of transaction costs) and the settlement value is recognized in the
consolidated statement of income over the term of the loan using the effective interest method.
Derecognition of financial liabilities
The Company derecognizes financial liabilities if, and only if, the obligations of the Company are
fulfilled, cancelled or have expired. The difference between the carrying amount of the
derecognized financial liability and the consideration paid and payable is recognized in profit or
loss.
Additionally, when the Company carries out a refinancing transaction and the previous liability
qualifies to be derecognized, the costs incurred in the refinancing are recognized immediately in
profit or loss at the date of termination of the previous financial liability.
20
Offsetting financial assets and liabilities
Assets and liabilities are offset and the net amount is presented in the consolidated statement of
financial position when the right to offset the recognized amounts is legally enforceable and there
is an intention to settle on a net basis or to realize the asset and settle the liability simultaneously.
g)
Derivative financial instruments and hedging activities
All derivative financial instruments are identified and classified as fair value hedges or cash flow
hedges, for trading or the hedging of market risks and are recognized in the consolidated statement of
financial position as assets and/or liabilities at fair value and similarly measured subsequently at fair
value. The fair value is determined based on recognized market prices and its fair value is determined
using valuation techniques accepted in the financial sector.
The fair value of hedging derivatives is classified as a non-current asset or liability if the remaining
maturity of the hedged item is more than 12 months and as a current asset or liability if the remaining
maturity of the hedged item is less than 12 months.
Derivative financial instruments classified as hedges are contracted for risk hedging purposes and meet
all hedging requirements; their designation at the beginning of the hedging operation is documented,
describing the objective, primary position, risks to be hedged and the effectiveness of the hedging
relationship, characteristics, accounting recognition and how the effectiveness is to be measured.
Cash flow hedges
The changes in the fair value of derivative instruments associated to cash flow hedges are recorded in
stockholders' equity. The effective portion is temporarily recorded in comprehensive income, within
stockholders' equity and is reclassified to profit or loss when the hedged position affects these. The
ineffective portion is immediately recorded in income.
Net investment hedge in a foreign transaction
The Company applies the hedge accounting to currency risk arising from its investments in foreign
transactions for variations in exchange rates arising between the functional currency of such transaction
and the functional currency of the holding entity, regardless of whether the investment is maintained
directly or through a sub-holding entity. Variation in exchange rates is recognized in the other items of
comprehensive income as part of the translation effect, when the foreign transaction is consolidated.
To this end, the Company designates the debt denominated in a foreign currency as a hedging
instrument; therefore, the exchange rate effects caused by the debt are recognized in other components
of comprehensive income, on the translation effects line item, to the extent that the hedge is effective.
When the hedge is not effective, exchange differences are recognized in profit or loss.
Suspension of hedge accounting
The Company suspends hedge accounting when the derivative financial instrument or the non-
derivative financial instrument has expired, is cancelled or exercised, when the derivative or non-
derivative financial instrument is not highly effective to offset the changes in the fair value or cash
flows of the hedged item. The replacement or successive renewal of a hedging instrument for another
one is not an expiration or resolution if such replacement or renewal is part of the Company's
documented risk management objective, and it is consistent with this.
On suspending hedge accounting, in the case of fair value hedges, the adjustment to the carrying
amount of a hedged amount for which the effective interest rate method is used is amortized to income
over the period to maturity. In the case of cash flow hedges, the amounts accumulated in equity as a
part of comprehensive income remain in equity until the time when the effects of the forecasted
transaction affect income. In the event the forecasted transaction is not likely to occur, the income or
loss accumulated in comprehensive income are immediately recognized in the consolidated statement
of income. When the hedge of a forecasted transaction appears satisfactory and subsequently does not
meet the effectiveness test, the cumulative effects in comprehensive income in stockholders' equity are
transferred proportionally to the consolidated statement of income, to the extent the forecasted
transaction impacts it.
The fair value of derivative financial instruments reflected in the consolidated financial statements of
the Company is a mathematical approximation of their fair value. It is computed using proprietary
models of independent third parties using assumptions based on past and present market conditions
and future expectations at the closing date.
21
h) Inventories
Inventories are stated at the lower of cost or net realizable value. Cost is determined using the average
cost method. The cost of finished goods and work-in-progress includes cost of product design, raw
materials, direct labor, other direct costs and production overheads (based on normal operating
capacity).
It excludes borrowing costs. The net realizable value is the estimated selling price in the normal course
of business, less the applicable variable selling expenses. Costs of inventories include any gain or loss
transferred from other comprehensive income corresponding to raw material purchases that qualify as
cash flow hedges.
i)
Property, plant and equipment
Items of property, plant and equipment are recorded at cost less the accumulated depreciation and any
accrued impairment losses. The costs include expenses directly attributable to the asset acquisition.
Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow
to the Company and the cost of the item can be reliably measured. The carrying amount of the replaced
part is derecognized. Repairs and maintenance are recognized in the consolidated statement of income
during the year they are incurred. Major improvements are depreciated over the remaining useful life
of the related asset.
When the Company carries out major repairs or maintenance of its property, plant and equipment
assets, the cost is recognized in the book value of the corresponding asset as a replacement, provided
that the recognition criteria are met. The remaining portion of any major repair or maintenance is
derecognized. The Company subsequently depreciates the recognized cost in the useful life assigned
to it, based on its best estimate of useful life.
Depreciation is calculated using the straight-line method, considering separately each of the asset's
components, except for land, which is not subject to depreciation. The estimated useful lives of the
classes of assets are as follows:
Buildings and constructions
40 to 50 years
Machinery and equipment
10 to 40 years
Vehicles
15 years
Furniture and lab and IT equipment
2 to 13 years
Other
20 years
The spare parts to be used after one year and attributable to specific machinery are classified as
property, plant and equipment in other fixed assets.
Borrowing costs related to financing of property, plant and equipment whose acquisition or
construction requires a substantial period (nine months), are capitalized as part of the cost of acquiring
such qualifying assets, up to the moment when they are suitable for their intended use or sale.
Assets classified as property, plant and equipment are subject to impairment tests when events or
circumstances occur indicating that the carrying amount of the assets may not be recoverable. An
impairment loss is recognized in the consolidated statement of income in other expenses, net, for the
amount by which the carrying amount of the asset exceeds its recoverable amount. The recoverable
amount is the higher of fair value less costs to sell and value in use.
The residual value and useful lives of assets are reviewed at least at the end of each reporting period
and, if expectations differ from previous estimates, the changes are accounted for as a change in
accounting estimate.
Gains and losses on disposal of assets are determined by comparing the sale value with the carrying
amount and are recognized in other expenses, net, in the consolidated statement of income.
22
j)
Leases
The Company as lessee
The Company evaluates whether a contract is or contains a lease agreement at inception of a contract.
A lease is defined as an agreement or part of an agreement that conveys the right to control the use of
an identified asset for a period of time in exchange for a consideration. The Company recognizes an
asset for right-of-use and the corresponding lease liability, for all lease agreements in which it acts as
lessee, except in the following cases: short-term leases (defined as leases with a lease term of less than
12 months); leases of low-value assets (defined as leases of assets with an individual market value of
less than US$5,000 (five thousand dollars)); and, lease agreements whose payments are variable
(without any contractually defined fixed payment). For these agreements, which exempt the
recognition of an asset for right-of-use and a lease liability, the Company recognizes the rent payments
as an operating expense in a straight-line method over the lease period.
The right-of-use asset comprises all lease payments discounted at present value; the direct costs to
obtain a lease; the advance lease payments; and the obligations of dismantling or removal of assets.
The Company depreciates the right-of-use asset over the shorter of the lease term or the useful life of
the underlying asset; therefore, when the lessee will exercise a purchase option, the lessee shall
depreciate the right-of-use asset from the commencement date to the end of the useful life of the
underlying asset. Depreciation begins on the lease commencement date.
The lease liability is initially measured at the present value of the future minimum lease payments that
have not been paid at that date, using a discount rate that reflects the cost of obtaining funds for an
amount similar to the value of the lease payments, for the acquisition of the underlying asset, in the
same currency and for a similar period to the corresponding contract (incremental borrowing rate).
When lease payments contain non-lease components (services), the Company has chosen, for some
class of assets, not to separate them and measure all payments as a single lease component; however,
for the rest of the class of assets, the Company measures the lease liability only considering lease
payments, while all of the services implicit in the payments, are recognized directly in the consolidated
statement of income as operating expenses.
To determine the lease term, the Company considers the non-cancellable period, including the
probability to exercise any right to extend and/or terminate the lease term.
Subsequently, the lease liability is measured increasing the carrying amount to reflect interest on the
lease liability (using the effective interest method) and reducing the carrying amount to reflect the lease
payments made.
When there is a modification in future lease payments resulting from changes in an index or a rate used
to determine those payments, the Company remeasures the lease liability when the adjustment to the
lease payments takes effect, without reassessing the discount rate. However, if the modifications are
related to the lease term or exercising a purchase option, the Company reassesses the discount rate
during the liability’s remeasurement. Any increase or decrease in the value of the lease liability
subsequent to this remeasurement is recognized as an adjustment to the right-of-use asset to the same
extent.
Finally, the lease liability is derecognized when the Company fulfills all lease payments. When the
Company determines that it is probable that it will exercise an early termination of the contract that
leads to a cash disbursement, such disbursement is accounted as part of the liability’s remeasurement
mentioned in the previous paragraph; however, in cases in which the early termination does not involve
a cash disbursement, the Company cancels the lease liability and the corresponding right-of-use asset,
recognizing the difference immediately in the consolidated statement of income.
k)
Intangible assets
Intangible assets are recognized in the consolidated statement of financial position when they meet the
following conditions: they are identifiable, provide future economic benefits and the Company has
control over such benefits.
Intangible assets are classified as follows:
i.
Indefinite useful life
These intangible assets are not amortized and are subject to annual impairment assessment. As of
December 31, 2025, 2024 and 2023, no factors have been identified limiting the life of these
intangible assets.
23
ii. Finite useful life
These assets are recognized at cost less the accumulated amortization and impairment losses
recognized. They are amortized on a straight-line basis over their estimated useful life, determined
based on the expectation of generating future economic benefits, and are subject to impairment
tests when triggering events of impairment are identified.
Development costs
15.5 years
Non-compete agreements
5 to 10 years
Customer relationships
6 to 7 years
Patents
10 years
Software and licenses
3 to 7 years
Intellectual property
20 to 25 years
Defined life brands
5 to 22 years
Development costs
Research costs are recognized in income as incurred. Expenditures for development activities are
recognized as intangible assets when such costs can be reliably measured, the product or process is
technically and commercially feasible, potential future economic benefits are obtained and the
Company intends and also has sufficient resources to complete the development and to use or sell the
asset. Their amortization is recognized in income by the straight-line method over the estimated useful
life of the asset. Development expenditures that do not qualify for capitalization are recognized in
income as incurred.
Licenses
Licenses acquired in a separate transaction are recorded at acquisition cost, while those acquired in a
business combination are recognized at fair value at acquisition date.
Licenses that have a defined useful life are presented at cost less accumulated amortization.
Amortization is recorded by the straight-line method over its estimated useful life.
The acquisition of software licenses is capitalized based on the costs incurred to acquire and use the
specific software.
Software development
Costs associated with the maintenance of software are recorded as expenses as incurred.
Development costs directly related with the design and tests of unique and identifiable software
products controlled by the Company are recorded as intangible assets when they fulfill the following
criteria:
-
Technically, it is possible to complete the intangible asset so that it may be available for its use or
sale;
-
The intangible asset is to be completed for use or sale;
-
The ability to use or sell the intangible asset;
-
The way in which the intangible asset is to generate probable future economic benefits;
-
The availability of adequate technical, financial or other type of resources, to complete the
development and use or sell the intangible asset; and
-
The ability to reliably calculate the disbursement attributable to the intangible asset during its
development.
The amount initially recognized for an intangible asset generated internally will be the sum of
disbursements incurred from the moment the element fulfills the conditions for recording, as
established above. When no intangible asset internally generated may be recognized, the disbursements
for development are charged to income in the period they are incurred.
l)
Goodwill
Goodwill represents the excess of the acquisition cost of a subsidiary over the Company's equity in the
fair value of the identifiable net assets acquired, determined at the date of acquisition, and is not subject
to amortization. Goodwill is shown under goodwill and intangible assets and is recognized at cost less
accumulated impairment losses, which are not reversed. Gains or losses on the disposal of an entity
include the carrying amount of goodwill relating to the entity sold.
24
m) Impairment of non-financial assets
Assets that have an indefinite useful life, for example, goodwill, are not amortizable or depreciable and
are subject to annual impairment tests. Assets that are subject to amortization and depreciation are
reviewed for impairment when events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognized for the amount by which the asset's carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of the asset's fair value
less costs to sell and its value in use. For the purpose of assessing impairment, assets are grouped at
the lowest levels at which separately identifiable cash flows exist (cash generating units). Non-financial
long-term assets other than goodwill that have suffered impairment are reviewed for possible reversal
of the impairment at each reporting date.
When an impairment loss is reversed, the carrying amount of the asset or cash generating unit, is
increased to the revised estimated value of its recoverable amount, in such a way that the adjusted
carrying amount does not exceed the carrying amount that would have been determined if an
impairment loss had not been recognized for that asset or cash generating unit in previous years. The
reversal of an impairment loss is recognized immediately in the consolidated statement of income.
n) Income tax
The amount of income taxes in the consolidated statement of income represents the sum of the current
and deferred income taxes.
The amount of income taxes included in the consolidated statement of income represents the current
tax and the effects of deferred income tax assets determined in each subsidiary by the asset and liability
method, applying the rate established by the legislation enacted or substantially enacted at the
consolidated statement of financial position date, wherever the Company operates and generates
taxable income. The applicable rates are applied to the total temporary differences resulting from
comparing the accounting and tax bases of assets and liabilities, and that are expected to be applied
when the deferred tax asset is realized or the deferred tax liability is expected to be settled, considering,
when applicable, any tax-loss carryforwards, prior to the recovery analysis. The effect of the change in
current tax rates is recognized in current income of the period in which the rate change is determined.
Management periodically evaluates positions taken in tax returns with respect to situations in which
the applicable law is subject to interpretation. Provisions are recognized when appropriate, based on
the amounts expected to be paid to the tax authorities.
Deferred tax assets are recognized only when it is probable that future taxable profits will exist against
which the deductions for temporary differences can be taken.
The deferred income tax on temporary differences arising from investments in subsidiaries and
associates is recognized, unless the period of reversal of temporary differences is controlled by the
Company and it is probable that the temporary differences will not reverse in the near future.
Deferred tax assets and liabilities are offset when a legal right exists, and when the taxes are levied by
the same tax authority.
o)
Employee benefits
i.
Pension plans
Defined contribution plans:
A defined contribution plan is a pension plan under which the Company pays fixed contributions
into a separate entity. The Company has no legal or constructive obligations to pay further
contributions if the fund does not hold sufficient assets to pay all employees the benefits relating
to their service in the current and past periods. The contributions are recognized as employee
benefit expense on the date that is required the contribution.
Defined benefit plans:
A defined benefit plan is a plan, which specifies the amount of the pension an employee will
receive on retirement, usually dependent on one or more factors such as age, years of service and
compensation.
25
The liability recognized in the consolidated statement of financial position in respect of defined
benefit plans is the present value of the defined benefit obligation at the consolidated statement of
financial position date less the fair value of plan assets. The defined benefit obligation is calculated
annually by independent actuaries using the projected unit credit method. The present value of the
defined benefit obligation is determined by discounting the estimated future cash outflows using
discount rates in conformity with IAS 19, Employee Benefits, that are denominated in the currency
in which the benefits will be paid and have maturities that approximate the terms of the pension
liability.
Actuarial gains and losses from adjustments and changes in actuarial assumptions are recognized
directly in other items of the comprehensive income in the year they occur and will not be
reclassified to the results of the period.
The Company determines the net finance expense (income) by applying the discount rate to the
liabilities (assets) from net defined benefits.
Past-service costs are recognized immediately in the consolidated statement of income.
ii.
Post-employment medical benefits
The Company provides medical benefits to retired employees after termination of employment.
The right to access these benefits usually depends on the employee’s having worked until
retirement age and completing a minimum of years of service. The expected costs of these benefits
are accrued over the period of employment using the same criteria as those described for defined
benefit pension plans.
iii. Termination benefits
Termination benefits are payable when employment is terminated by the Company before the
normal retirement date or when an employee accepts voluntary termination of employment in
exchange for these benefits. The Company recognizes termination benefits in the first of the
following dates: (a) when the Company can no longer withdraw the offer of these benefits, and
(b) when the Company recognizes the costs from restructuring within the scope of the IAS 37 and
it involves the payment of termination benefits. If there is an offer that promotes the termination
of the employment relationship voluntarily by employees, termination benefits are valued based
on the number of employees expected to accept the offer. The benefits that will be paid in the long
term are discounted at their present value.
iv. Short-term benefits
The Company grants benefits to employees in the short term, which may include wages, salaries,
annual compensation and bonuses payable within 12 months. The Company recognizes an
undiscounted provision when it is contractually obligated or when past practice has created an
obligation.
v.
Employee participation in profit and bonuses
The Company recognizes a liability and an expense for bonuses and employee participation in
profits when it has a legal or assumed obligation to pay these benefits and determines the amount
to be recognized based on the profit for the year after certain adjustments.
p)
Provisions
Provisions represent a present legal obligation or a constructive obligation as a result of past events
where an outflow of resources to meet the obligation is likely and where the amount has been reliably
estimated. Provisions are not recognized for future operating losses.
Provisions are measured at the present value of the expenditures expected to be required to settle the
obligation using a pre-tax rate that reflects current market assessments of the value of money over time
and the risks specific to the obligation. The increase in the provision due to the passage of time is
recognized as interest expense.
When there are a number of similar obligations, the likelihood that an outflow will be required in
settlement is determined by considering the class of obligations as a whole. A provision is recognized
even if the likelihood of an outflow with respect to any one item included in the same class of
obligations may be small.
26
A restructuring provision is recorded when the Company has developed a formal detailed plan for the
restructure, and a valid expectation for the restructure has been created between the people affected,
possibly for having started the plan implementation or for having announced its main characteristics to
them.
q)
Share based payment
The Company's compensation plans are based 100% on the market value of the shares of Alpek SAB,
granted to certain senior executives of the Company and its subsidiaries. The conditions for granting
such compensation to the eligible executives include compliance with certain financial metrics such as
the level of profit achieved and remaining in the Company for up to 5 years, among other requirements.
The Board of Directors of the Company has appointed a technical committee to manage the plan, and
it reviews the estimated cash settlement of this compensation at the end of the year. The payment plan
is subject to the discretion of Alpek’s senior Management. Adjustments to this estimate are charged or
credited to the consolidated statement of income.
The fair value of the amount payable to employees in respect of share-based payments which are settled
in cash is recognized as an expense, with a corresponding increase in liabilities, over the period of
service required. The liability is included within other liabilities and is adjusted at each reporting date
and the settlement date. Any change in the fair value of the liability is recognized as compensation
expense in the consolidated statement of income.
r)
Capital stock
When treasury shares are repurchased, they are converted into treasury shares and the amount is
charged to stockholders' equity at their purchase price. These amounts are expressed at their historical
value.
Alpek SAB's common shares are classified as capital stock within stockholders’ equity. Incremental
costs directly attributable to the issuance of new shares are included in equity as a reduction from the
consideration received, net of tax.
s)
Revenue recognition
Revenues comprise the fair value of the consideration received or to receive for the sale of goods and
services in the ordinary course of the transactions, and are presented in the consolidated statement of
income, net of the amount of variable considerations, which comprise the estimated amount of returns
from customers, rebates and similar discounts and payments made to customers with the objective that
goods are accommodated in attractive and favorable spaces at their facilities.
To recognize revenues from contracts with customers, the comprehensive model for revenue
recognition is used, which is based on a five-step approach consisting of the following: (1) identify the
contract; (2) identify performance obligations in the contract; (3) determine the transaction price; (4)
allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue
when the Company satisfies a performance obligation.
i. Revenue from the sale of goods and products
Contracts with customers are formalized by commercial agreements complemented by purchase
orders, whose costs comprise the promises to produce, distribute and deliver goods based on the
contractual terms and conditions set forth, which do not imply a significant judgment to be determined.
When there are payments related to obtaining contracts, they are capitalized and amortized over the
term of the contract.
Performance obligations held by the Company are not separable, and are not partially satisfied, since
they are satisfied at a point in time, when the customer accepts the products. Moreover, the payment
terms identified in most sources of revenue are short-term, with variable considerations including
discounts given to customers, without financing components or guarantees. These discounts are
recognized as a reduction in revenue; therefore, the allocation of the price is directly on the performance
obligations of production, distribution and delivery, including the effects of variable consideration.
The Company recognizes revenue at a point in time, when control of sold goods has been transferred
to the customer, which is given upon delivery of the goods promised to the customer according to the
negotiated contractual terms. The Company recognizes an account receivable when the performance
obligations have been met, recognizing the corresponding revenue; moreover, the considerations
received before completing the performance obligations of production and distribution are recognized
as customer advances.
27
Dividend income from investments is recognized once the rights of stockholders to receive this
payment have been established (when it is probable that the economic benefits will flow to the
Company and the revenue can be reliably determined).
t)
Earnings per share
Earnings per share are calculated by dividing the profit attributable to the stockholders of the
controlling interest by the weighted average number of common shares outstanding during the year.
As of December 31, 2025, 2024 and 2023, there are no dilutive effects from financial instruments
potentially convertible into shares.
u) Changes in accounting policies and disclosures
i.
New standards and changes adopted
In the current year, the Company has applied a number of amendments to IFRS Accounting Standards
issued by the IASB that are mandatorily effective for an accounting period that begins on or after
January 1, 2025. The conclusions related to their adoption are described as follows:
Amendments to IAS 21 – Lack of Exchangeability
The amendments specify when a currency is exchangeable for another currency and when it is not. A
currency is exchangeable when an entity can convert that currency into another currency through
markets or exchange mechanisms that create enforceable rights and obligations without undue delay at
the measurement date and for a specific purpose. A currency is not exchangeable for another currency
if an entity can obtain only an insignificant amount of the other currency at the measurement date for
the intended purpose.
The amendments specify how an entity determines the exchange rate to apply when a currency is not
exchangeable.
The amendments require additional disclosures that allow users of the financial statements to assess
how the lack of exchangeability of a currency affects, or is expected to affect, the entity’s financial
performance, financial position, and cash flows.
The Company did not have any effects on its consolidated financial statements arising from these
amendments to IAS 21.
ii.
New, revised and issued IFRS, but not yet effective
As of the date of these consolidated financial statements, the Company had not applied the following
amendments to the IFRS that have been issued, but are not yet effective, and the adoption of these
amendments, except for IFRS 18, is not expected to have a material impact on the consolidated
financial statements in future periods, considering that they are not of significant applicability. The
amendments to the IFRS are included below:
•
Amendments to IFRS 7 and IFRS 9 - Classification and Measurement of Financial Instruments (1)
•
Amendments to IFRS 7 and IFRS 9 – Nature-dependent Electricity Contracts (1)
•
Annual Improvements to IFRS Accounting Standards – Volume 11 – Amendments to IFRS 1
First-time Adoption of International Financial Reporting Standards, IFRS 7 Financial
Instruments: Disclosures and its Implementation Guidance, IFRS 9 Financial Instruments, IFRS
10 Consolidated Financial Statements, and IAS 7 Statement of Cash Flows. (1)
•
IFRS 19 – Subsidiaries without Public Accountability: Disclosures (2)
•
IAS 21 – Translation to a Hyperinflationary Presentation Currency(2)
(1)
Effective for annual periods beginning on or after January 1, 2026.
(2)
Effective for annual periods beginning on or after January 1, 2027.
IFRS 18 – Presentation and Disclosure in Financial Statements
IFRS 18 replaces IAS 1, carrying forward many of the requirements in IAS 1 unchanged and
complementing them with new requirements. In addition, some IAS 1 paragraphs have been moved to
IAS 8 and IFRS 7. Furthermore, the IASB has made minor amendments to IAS 7 and IAS 33.
28
IFRS 18 introduces new requirements to:
•Present specified categories and defined subtotals in the statement of profit or loss
•Provide disclosures on management-defined performance measures (MPMs) in the notes to the
financial statements
•Improve aggregation and disaggregation
The IFRS 18 is effective for annual periods beginning on or after 1 January 2027. Early adoption is
permitted. The amendments to IAS 7, IAS 33, IAS 8 and IFRS 7 are effective when an entity first
adopts IFRS 18. An entity is required to apply IFRS 18 retrospectively by applying the temporary
specific terms.
The Company is conducting an analysis to determine the applicable amendments to the presentation of
the consolidated income statement and the consolidated statement of cash flows, and to identify the
MPMs to be disclosed within its consolidated financial statements.
4.
Financial instruments and risk management
The Company’s activities expose it to various financial risks: market risk (including exchange rate risk,
price risk and interest rate variation risk), credit risk and liquidity risk.
The Company has a general risk management program focused on the unpredictability of financial markets
and seeks to minimize the potential adverse effects on its financial performance.
The objective of the risk management program is to protect the financial health of its business, taking into
account the volatility associated with foreign exchange and interest rates. Sometimes, the Company uses
derivative financial instruments to hedge certain exposures to risks. In addition, due to the nature of the
industries in which it participates, the Company has performed hedges of input prices with derivative
financial instruments.
Alpek has a Risk Management Committee (“RMC”), comprised of the Board’s Chairman, the Chief
Executive Officer, Chief Financial Officer and a Risk Management Officer acting as technical secretary.
The RMC reviews derivative transactions proposed by the Company, in which a potential loss analysis
surpasses US$1 million. This Committee supports both the CEO and the President of Board of the
Company. All new derivative transactions which the Company proposes to enter into, as well as the renewal
or cancellation of derivative arrangements, must be approved by Alpek’s CEO, according to the following
schedule of authorizations:
Maximum possible loss US$1
Individual
transaction
Annual
cumulative
transactions
Chief Executive Officer of the Company
1
5
Risk Management Committee of the Company
30
100
Finance Committee
100
300
Board of Directors
>100
>300
The proposed transactions must meet certain criteria, including that the hedges are lower than established
risk parameters, that they are the result of a detailed analysis and are properly documented. In addition,
sensitivity analysis and other risk analyses should be performed and documented prior to the operation.
Alpek's risk management policy indicates that hedging positions should always be less than the projected
exposure to allow an acceptable margin of uncertainty. Exposed transactions are expressly prohibited. The
Company’s policy indicates that the further the exposure is, the lower the coverage, based on the
following table:
Maximum coverage (as a percentage of the projected exposure)
Current year
Commodities
100
Energy costs
75
Exchange rate for operating transactions
80
Exchange rate for financial transactions
100
Interest rates
100
29
Capital management
The Company’s objectives when managing capital is to safeguard its ability to continue as a going concern,
so that it can continue to provide returns to stockholders and benefits to other stakeholders, as well as
maintaining an optimal capital structure to reduce the cost of capital.
To maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to
stockholders, return equity to stockholders, issue new shares or sell assets to reduce debt.
Alpek reviews capital based on a leverage ratio. This percentage is calculated by dividing total liabilities
by total stockholders’ equity.
The financial ratio of total liabilities/total equity was 2.57, 2.48 and 2.09 as of December 31, 2025, 2024
and 2023, respectively, resulting in a leverage ratio that meets the Company’s management and risk policies.
Financial instruments by category
The following are the Company’s financial instruments by category.
As of December 31, 2025, 2024 and 2023, financial assets and liabilities consist of the following:
(1) The Company designated the derivative financial instruments that comprise this balance as accounting hedges, in accordance
with what is described later in this note.
Fair value of financial assets and liabilities valued at amortized cost
The amount of cash and cash equivalents, restricted cash, trade and other accounts receivable, other current
assets, trade and other accounts payable, current debt and other current liabilities approximate their fair
value, due to their short maturity. The net carrying amount of these accounts represents the expected cash
flows to be received as of December 31, 2025, 2024 and 2023.
The carrying amount and estimated fair value of assets and liabilities valued at amortized cost is presented
below:
As of December 31,
2025
As of December 31,
2024
As of December 31,
2023
Carrying
amount
Fair
value
Carrying
amount
Fair value
Carrying
amount
Fair value
Financial assets:
Non-current accounts receivable
$ 1,696
$ 1,696
$ 3,148
$ 3,148
$ 2,456
$ 2,453
Financial liabilities:
Non-current debt
35,580
33,241
38,956
36,277
32,702
30,484
As of December 31,
2025
2024
2023
Cash and cash equivalents
$ 8,043
$ 6,216
$ 7,391
Restricted cash
7
386
322
Financial assets measured at amortized cost:
Trade and other accounts receivable
10,742
14,481
13,236
Other non-current assets
2,051
3,763
3,140
Financial assets measured at fair value through profit or loss
Derivate financial instruments (1)
158
14
95
$ 21,001
$ 24,860
$ 24,184
Financial liabilities measured at amortized cost:
Debt
$ 37,680
$ 40,570
$ 33,337
Trade and other accounts payable
24,242
29,529
25,995
Lease liability
3,362
4,104
3,456
Financial liabilities measured at fair value:
Derivative financial instruments (1)
308
839
265
$ 65,592
$ 75,042
$ 63,053
30
The carrying amount of the debt, for the purpose of computing its fair value, is presented gross of interest
payable and issuance costs.
The estimated fair values as of December 31, 2025, 2024, and 2023, of the Senior Notes are based on quoted
prices (unadjusted) in active markets for identical assets or liabilities; therefore, they have been classified
within Level 1 of the fair value measurement hierarchy. On the other hand, the estimated fair value of bank
loans as of December 31, 2025, 2024, and 2023, was determined based on discounted cash flows, using the
Interbank Equilibrium Interest Rate (“TIIE”) for instruments in pesos, the Secured Overnight Financing
Rate (“SOFR”) for term instruments in U.S. dollars, and the Euro Interbank Offered Rate (“Euribor”) for
instruments in euros. The fair value measurement of bank loans is considered within Level 2 of the fair
value hierarchy. Measurement at fair value for non-current accounts receivable is deemed within Level 3
of the fair value hierarchy.
Market risks
(i)
Exchange rate risk
The Company is exposed to foreign exchange risk, primarily derived from the transactions and
balances that the subsidiaries conduct and have in foreign currency, respectively. A foreign currency
is that which is different from the functional currency of an entity. In addition, the Company is exposed
to changes in the value of foreign investments (subsidiary entities that have a functional currency
different from that of the ultimate holding company), which arise from changes in the exchange rates
between the functional currency of the foreign operation and the functional currency of the holding
company (pesos); therefore, the Company applies hedge accounting to mitigate this risk, designating
financial liabilities as hedging instruments, regardless of whether the foreign investment is directly or
indirectly maintained through a subholding.
The behavior of the exchange rates fluctuations between the Mexican peso, U.S. dollar and the euro
represents an important factor for the Company due to the effect that such currencies have on its
consolidated results, and because, in addition, Alpek has no interference in its determination.
Historically, in certain times when the Mexican peso has appreciated against other currencies, such as
the U.S. dollar, the Company’s profit margins have been reduced. On the other hand, when the Mexican
peso has lost value, Alpek’s profit margins have been increased. However, there is no assurance that
this correlation will be repeated in case the exchange rate between the Mexican peso and any other
currency fluctuates again, because these effects also depend on the balances in foreign currency that
the entities of the Company hold.
Accordingly, the Company sometimes enters into derivative financial instruments in order to keep
under control the integrated total cost of its financing and the volatility associated with exchange rates.
Additionally, as most of the Company’ revenues are in U.S. dollars, there is a natural hedge against its
obligations in U.S. dollars.
The Company has the following assets and liabilities in foreign currency in relation to the functional
currency of the subsidiary entities, translated to millions of Mexican pesos at the closing exchange rate
as of December 31, 2025:
MXN
USD
EUR
Financial assets
$22,154
$ 3,445
$ 381
Financial liabilities
(21,747)
(12,805)
(56)
Foreign exchange financial position
$ 407
$(9,360)
$ 325
The exchange rates used to translate the foreign currency financial positions to Mexican pesos are those
described in Note 3c.
Based on the financial positions in foreign currency maintained by the Company, a hypothetical
variation of 10% in the MXN/USD and MXN/EUR exchange rate and keeping all other variables
constant, would result in an effect of $863 on the consolidated statement of income and consolidated
stockholders' equity.
Financial instruments to hedge net investments in foreign transactions
The Company designated certain non-current debt instruments as hedging instruments to net
investments in foreign transactions, in order to mitigate the variations in exchange rates arising between
the functional currency for such transactions and the functional currency of the holding or sub-holding
company that maintains these investments.
31
The Company formally designated and documented each hedging relationship establishing objectives,
strategy to hedge the risk, the identification of the hedging instrument, the hedged item, the nature of
the risk to be hedged, and the methodology to assess the effectiveness. Given that the exchange rate
hedging relationship is clear, the method that the Company used to assess the effectiveness consisted
of a qualitative effectiveness test by comparing the critical terms between the hedging instruments and
the hedged items.
The hedge will be effective as long as the notional debt designated as a hedging instrument is equal to
or less than the value of the net assets of the covered foreign operation. On the other hand, when the
value of the net assets of the foreign operation is less than the notional value of the designated debt,
the Company rebalances the hedging relationship and recognizes the ineffectiveness in the income
statement.
As of December 31, 2025, 2024 and 2023, Alpek maintains the following hedging relationships:
As of December 31, 2025
Holding
Functional
Currency
Hedging Instrument
Notional Value
Hedged Item
Net assets of the
hedged item
Alpek SAB
MXN
Bank loan
US$ 200 Indelpro
US$ 217
Bank loan
110
Temex
(50)
Senior Notes 144A fixed rate
22
Alpek Polyester Ms
239
Senior Notes 144A fixed rate
100
Alpek Polyester México
52
Akra Polyester
81
US$ 432
US$ 539
As of December 31, 2024
Holding
Functional
Currency
Hedging Instrument
Notional Value
Hedged Item
Net assets of the
hedged item
Alpek SAB
MXN
Bank loan
US$ 200 Indelpro
US$ 214
Bank loan
96
Temex
82
Senior Notes 144A fixed rate
22
Alpek Polyester Ms
239
Senior Notes 144A fixed rate
100
Alpek Polyester México
12
Akra Polyester
107
US$ 418
US$ 654
As of December 31, 2023
Holding
Functional
Currency
Hedging Instrument
Notional Value
Hedged Item
Net assets of the
hedged item
Alpek SAB
MXN
Bank loan
US$ 200 Indelpro
US$ 254
Bank loan
100
Temex
22
Senior Notes 144A fixed rate
22
Alpek Polyester Ms
251
Senior Notes 144A fixed rate
100
Alpek Polyester México
95
Akra Polyester
120
US$ 422
US$ 742
For the years ended December 31, 2025, 2024 and 2023, the Company’s average hedging ratio
amounted to 74%, 57.9%, and 56.3%, respectively. Therefore, the exchange rate fluctuation generated
by the hedging instruments for the years ended December 31, 2025, 2024 and 2023 amounted to a net
(loss) gain of $(234), $(1,325), and $873, respectively, which was recognized in other comprehensive
income, offsetting the translation effect generated by each foreign investment. The hedging
effectiveness results confirm that the hedging relationships are highly effective due to the economic
relationship between the hedging instrument and the hedged items.
Derivative financial instruments to hedge exchange rate risks
As of December 31, 2023, the Company holds forwards (EUR/USD) and during 2023 contracted
forwards (GBP/USD), to hedge different needs. For 2023, these forwards are mirrored to an entity with
the functional currency of pound sterling (GBP), because part of its revenue is received in euros and
part of its purchases are made in US dollars. Therefore, a highly probable forecasted transaction related
to budgeted sales and purchases in each corresponding currency has been documented as a hedged
item. As of December 31, 2024, these hedges expired naturally.
32
For accounting purposes, the Company has designated such forwards as cash flow hedging
relationships to hedge the aforementioned items, and has formally documented these relationships,
setting the objectives, management's strategy to hedge the risk, identification of hedging instruments,
hedged items, the nature of the risk to be hedged and the methodology of the effectiveness assessment.
The conditions of the derivative financial instruments and the considerations of their valuation as
hedging instruments are mentioned below:
Forwards EUR/USD
Characteristics
2025
2023
2023
Currency
EUR
GBP
EUR
Notional amount
2
10
29
Strike (average)
1.1583
1.2639
1.0877
Maturity
Monthly
through
July 2026
Monthly
through
December 30,
2024
Monthly
through
December 30,
2024
Carrying amount
$(1)
$(0)
$(8)
Change in the fair value to measure ineffectiveness
$1
$(2)
$(10)
Reclassification from OCI to profit or loss
-
-
-
Recognized in OCI, net of reclassifications
$(1)
$(0)
$(8)
Change in the fair value of the hedged item to
measure ineffectiveness
$(1)
$2
$10
Change in the fair value of the forward
$(1)
$(0)
$(5.7)
As of December 31, 2023, the Company held EUR/USD forwards that were contracted with the
objective of reducing transaction costs; therefore, for accounting purposes and for hedge evaluation,
derivatives are divided into synthetic derivatives to hedge each hedged item individually (revenue in
euros and purchases in dollars). During 2023, the Company also contracted EUR/GBP forwards
directly for this same hedging relationship. The Company determined that they are highly effective
according to the characteristics and modeling of both hedged items, resulting in 99% effectiveness for
2023. Furthermore, both the credit profile of the Company and the counterparty are adequate and are
not expected to change in the medium term, so the credit risk component is not considered to dominate
the hedging relationship.
In accordance with the reference amounts described and the way in which the flows of the derivatives
are exchanged, the average coverage ratio for the EUR/USD and GBP/USD exchange rate for 2023 is
68%.
The source of ineffectiveness may be caused by the difference in the settlement date of the derivative
and the hedged item, and that the expected amount becomes a lower amount than the hedging
instruments, as well as the credit risk. For the years ended December 31, 2023, no ineffectiveness was
recognized in profit or loss.
(ii)
Price risk
In carrying out its activities, the Company depends on the supply of raw materials provided by its
suppliers, both in México and abroad, among which are intermediate petrochemicals, principally.
In recent years, the price of certain inputs has shown volatility, especially those related to oil and
natural gas.
In order to fix the selling prices of certain of its products, the Company has entered into agreements
with certain customers. At the same time, it has entered into transactions involving derivatives on
natural gas that seek to reduce price volatility of the prices of this input.
Additionally, the Company has entered into derivative financial instruments transactions to hedge
purchases of certain raw materials, since these inputs have a direct or indirect relationship with the
prices of its products.
The derivative financial operations have been privately contracted with various financial institutions,
whose financial strength was highly rated at the time by rating agencies. The documentation used to
formalize the contract operations is that based generally on the "Master Agreement", generated by the
"International Swaps & Derivatives Association" ("ISDA"), which is accompanied by various
accessory documents known in generic terms as "Schedule", "Credit Support Appendix" and
"Confirmation".
33
Regarding natural gas, Pemex is the only supplier in México. The selling price of natural gas is
determined based by the price of that product on the “spot” market in South Texas, USA, which has
experienced volatility. For its part, the Mexican Electric Commission is a decentralized public
company in charge of producing and distributing electricity in México. Electricity rates have also been
influenced by the volatility of natural gas, since most power plants are gas-based.
The Company entered into various derivative agreements with various counterparties to protect it
against increases in prices of natural gas and other raw materials. In the case of natural gas derivatives,
hedging strategies for products were designed to mitigate the impact of potential increases in prices.
The purpose is to protect the price from volatility by taking positions that provide stable cash flow
expectations, and thus avoid price uncertainty. The reference market price for natural gas is the Henry
Hub New York Mercantile Exchange (NYMEX).
The average price in US dollars per MMBTU for 2025, 2024 and 2023 was $2.4, $2.2, and $2.5,
respectively.
As of December 31, 2025, 2024 and 2023, the Company had hedges of natural gas prices for a portion
expected of consumption needs in México and the United States.
Derivative contracts to hedge adverse changes in commodity prices
The Company uses natural gas to operate, as well as some of its main raw materials are paraxylene,
ethylene and monoethylene glycol (MEG). Therefore, an increase in the prices of natural gas,
paraxylene, ethylene, monoethylene glycol (MEG), or propylene, would have negative effects on the
cash flow of the operation. The objective of the Company's designated hedge is to mitigate against
exposure to price increases of the aforementioned generic goods for future purchases, by contracting
swaps where a variable price is received and a fixed price is paid. In the case of PET, the Company
uses these derivatives to hedge sales related to this asset. The Company has implemented strategies
called roll-over, through which it analyzes monthly if more derivatives are contracted to expand the
time or amount of coverage; currently, coverage contracted until December 2026 is maintained.
Commodity derivatives are mirrored to Alpek Polyester USA, Alpek Polyester Mexico, Alpek
Polyester Brazil and Alpek Polyester UK, since the risk is in these entities and the derivative
instruments are contracted by Alpek Polyester; this process is carried out through the formalization of
internal derivatives in order to apply hedge accounting.
These derivative financial instruments have been classified as cash flow hedges for accounting
purposes. In this sense, management has documented, as a hedged item, a highly probable transaction
in relation to the budget for purchases of these commodities. The conditions of the derivative financial
instruments and the considerations of their valuation as hedging instruments are mentioned below:
As of December 31, 2025
Characteristics
Natural Gas
Swaps
Paraxylene
Swaps
MEG Swaps
Swaps
Propylene
Total notional
18,904,279
187,380
115,970
76,400,000
Units
MMBtu
MT
MT
LB
Price received
Market
Market
Market
Market
Price paid (average)
$2.4/MMBtu
$875/MT
$530/MT
$0.26/LB
Maturity (monthly)
December
2027
January
2027
January
2027
February
2026
Net position of the swap (1)
(187)
139
(104)
1
Ineffectiveness recognized in the statement of income
-
-
-
-
Change in the fair value to measure ineffectiveness
(187)
139
(104)
1
Reclassification from OCI to profit or loss
-
33
13
-
Balance recognized in OCI, net of reclassifications
(187)
172
(91)
0
Change in the fair value to measure ineffectiveness of hedge item
187
(139)
104
(1)
Effectiveness test results
99.87%
99.81%
99.81%
99.92%
34
As of December 31, 2024
Characteristics
Natural Gas Swaps
Paraxylene
Swaps
MEG Swaps
Total notional
29,262,179
308,220
63,157
Units
MMBtu
MT
MT
Price received
Market
Market
Market
Price paid (average)
$3.9/MMBtu
$1,019/MT
$520/MT
Maturity (monthly)
December 2026
January 2026
January
2026
Net position of the swap (1)
(204)
(634)
14
Ineffectiveness recognized in the statement of income
-
-
-
Change in the fair value to measure ineffectiveness
(180)
(655)
5
Reclassification from OCI to profit or loss
-
(78)
6
Balance recognized in OCI, net of reclassifications
(204)
(556)
8
Change in the fair value to measure ineffectiveness of hedge item
181
656
(6)
Effectiveness test results
99.74%
99.79%
99.80%
As of December 31, 2023
Characteristics
Natural Gas
Swaps
Paraxylene
Swaps
MEG
Swaps
Ethylene swaps
Propylene
swaps
Total notional
24,042,090
277,280
157,474
3,304,623
3,261,920
Units
MMBtu
MT
MT
LB
LB
Price received
Market
Market
Market
Market
Market
Price paid (average)
$3.9/MMBtu
$1,019/MT
$520/MT
$.19/LB
$.43/LB
Maturity (monthly)
January 2025
January 2025 January 2025 January 2024
August 2024
Net position of the swap (1)
$(200)
$28
$8
$1
$2
Ineffectiveness recognized in the statement of
income
-
-
-
-
-
Change in the fair value to measure ineffectiveness
(189)
36
26
-
-
Reclassification from OCI to profit or loss
-
4
(16)
1
-
Balance recognized in OCI, net of reclassifications
(200)
24
24
-
2
Change in the fair value to measure ineffectiveness
of hedge item
190
(36)
(26)
-
-
Effectiveness test results
99.92%
99.89%
99.89%
99.92%
99.93%
(1)Due to the high volume of operations, the net position of derivative financial instruments is presented; however, since these instruments do
not meet the criteria for the offsetting of financial instruments, they are presented in their gross amounts in the consolidated statement of
financial position.
The change in the fair value of the derivative financial instruments recognized in OCI for the year
ended December 31, 2025, 2024 and 2023 is $646, $(596), and $1,056, respectively.
The fair value of the derivate financial instruments according to their classification in the consolidated
statement of financial position is as follows:
As of December 31, 2025
Asset
Liability
Total
Natural Gas
$ -
$ (187)
$ (187)
Paraxylene
151
(12)
139
Propylene
7
(4)
1
MEG/Ethylene
-
(104)
(104)
Forward
-
(1)
(1)
Total
$158
$ (308)
$ (150)
As of December 31, 2024
Asset
Liability
Total
Natural Gas
$ -
$ (204)
$ (204)
Paraxylene
-
(634)
(634)
MEG/Ethylene
15
(1)
14
Total
$ 15
$ (839)
$ (824)
35
As of December 31, 2023
Asset
Liability
Total
Natural Gas
$ -
$ (200)
$ (200)
Paraxylene
54
(26)
28
Propylene
2
-
2
MEG/Ethylene
36
(27)
9
Forward
3
(12)
(9)
Total
$ 95
$ (265)
$ (170)
With the reference amounts of these derivative financial instruments, the Company offsets the
fluctuation of the prices of these commodities that are used as raw material in the production processes
of the entities.
For commodity hedging relationships, management is designating as a hedged item a specific risk,
which is defined by the underlying assets that are clearly determined that the risk component is
separable, it can be reliably measured and is also highly correlated.
On the other hand, in the measurement of the effectiveness of these hedges, the Company determined
that they are highly effective because the changes in the fair value and cash flows of each hedged item
are compensated within the range of effectiveness established by management. Due to the results
shown on the effectiveness tests, it is confirmed that there is an economic relationship between the
hedging instruments and the hedged item. The method used by the Company is to offset cash flows
using a hypothetical derivative, which consists of comparing the changes in the fair value of the
hedging instrument with the changes in the fair value of the hypothetical derivative that would result
in a perfect hedge.
As of December 31, 2025, according to the reference amounts described and the way in which the
flows of the derivatives are exchanged, the average coverage ratio for the natural gas, paraxylene,
ethylene and ethane, PTA and PET for 2025, 2024 and 2023 are shown below and, if necessary, a
rebalancing will be done to maintain this relationship for the strategy.
Average coverage ratio
2025
2024
2023
Natural gas
13%
20%
17%
Paraxylene
35%
61%
46%
Ethylene/MEG
39%
18%
32%
Propylene
30%
-
25%
The source of ineffectiveness can be caused mainly by the difference in the settlement date of the
hedging instruments and the hedged items, and that the budget becomes less than the hedging
instruments. For the years ended December 31, 2025, 2024 and 2023, there was no ineffectiveness
recognized in profit or loss.
(iii)
Interest rate risk
The Company is exposed to interest rate risk mainly for long-term loans bearing interest at variable
rates. Fixed-interest loans expose the Company to interest rate risk at fair value, which reflects that
Alpek might be paying interest at rates significantly different from those of an observable market.
As of December 31, 2025, 56% of the financing is denominated at a fixed rate, and 44% at a variable
rate.
As of December 31, 2025, if interest rates on variable rate loans are increased or decreased by 100
basis points in relation to the rate in effect, the income and stockholders’ equity of the Company would
change by $278.
Credit risk
Credit risk represents the potential loss due to non-compliance of counterparts in their payment
obligations. Credit risk is generated from cash and cash equivalents, derivative financial instruments
and deposits with banks and financial institutions as well as credit exposure to customers, including
receivables and committed transactions.
The Company determines, from a business standpoint and credit risk profile, the significant customers
with whom it maintains an account receivable, distinguishing those that require an individual credit
36
risk assessment. For the rest of the customers, the company carries out its classification according to
the type of market in which they operate (domestic or foreign), according with the business and internal
risk administration. Each subsidiary is responsible for managing and analyzing credit risk for each of
its new customers before setting the terms and conditions of payment. If wholesale customers are rated
independent, these are the ratings used. If there is no independent rating, the Company’s risk control
group evaluates the creditworthiness of the customer, taking into account their financial position, past
experience and other factors. The maximum exposure to credit risk is given by the balances of these
items as presented in the consolidated state of financial position.
Individual risk limits are determined based on internal and external ratings in accordance with limits
set by the Board of Directors. The use of credit risk is monitored regularly. Sales to retail customers
are in cash or by credit card. During the years ended December 31, 2025, 2024 and 2023, credit limits
were not exceeded.
In addition, the Company performs a qualitative evaluation of economic projections, with the purpose
of determining the possible impact on probabilities of default and the rate of recovery that it assigns to
its clients.
During the year ended December 31, 2025, there have been no changes in the techniques of estimation
or assumption.
Liquidity risk
Projected cash flows are determined at each operating entity of the Company and subsequently the
finance department consolidates this information. The finance department of the Company
continuously monitors the cash flow projections and liquidity requirements of the Company ensuring
that sufficient cash and highly liquid investments are maintained to meet operating needs, and it’s that
some flexibility is maintained through open and committed credit lines. The Company regularly
monitors and makes decisions ensuring that the limits or covenants set forth in debt contracts are not
violated. The projections consider the financing plans of the Company, compliance with covenants,
compliance with minimum liquidity ratios and internal legal or regulatory requirements.
The Company’s treasury department invests those funds in time deposits and marketable securities
whose maturities or liquidity allow flexibility to meet the cash needs of the Company.
The following table analyzes the derivative and non-derivative financial liabilities of the Company,
grouped according to their maturity, from the date of the consolidated statement of financial position
to the contractual maturity date. Derivative financial liabilities are included in the analysis if their
contractual maturities are required to understand the timing of the Company's cash flows. The amounts
disclosed in the table are contractual undiscounted cash flows.
Less
than
a year
From
1 to 5
years
More
than
5 years
As of December 31, 2025
Trade and other accounts payable
$ 24,242
$ -
$ -
Current and non-current debt (excluding debt issuance costs
and including non-accrued interest payable)
3,364
27,100
13,502
Derivative financial instruments
304
4
-
As of December 31, 2024
Trade and other accounts payable
$ 29,529
$ -
$ -
Current and non-current debt (excluding debt issuance costs
and including non-accrued interest payable)
3,029
31,417
12,863
Derivative financial instruments
802
37
-
As of December 31, 2023
Trade and other accounts payable
$ 25,996
$ -
$ -
Current and non-current debt (excluding debt issuance costs
and including non-accrued interest payable)
1,981
18,770
19,837
Derivative financial instruments
253
12
-
37
Supplier finance arrangements
In order to ensure easy access to credit for its suppliers and facilitate early settlement, the Company has
entered into supplier finance arrangements that permit the suppliers to obtain advance payment from the
banks, financing that they can access immediately after the issuance of their invoices. This program
generates a transactional discount cost, which is stipulated according to the currency and the term of the
invoice to be discounted, which are based on a variable reference rate with a margin. The Company repays
the banks the full invoice amount on the scheduled payment date as required by the invoice. As the
arrangements do not permit the Company to extend finance from the banks by paying them later than the
Company would have paid its suppliers, the Company considers amounts payable to the banks should be
presented as part of “Trade and other accounts payable”. As of December 31, 2025, 25% of the “Trade
accounts payable” line item, as detailed in Note 15, were amounts owed under these arrangements.
Below is a detailed account of supplier financing agreements and their presentation within the consolidated
statement of financial position:
December 31
2025
2024
Presented as part of Trade and other accounts payable, including:
$ 5,619
$ 8,442
Trade accounts payable for which suppliers have already received payment from
the financial institution
$ 5,619
$ 8,386
Below is a breakdown of the payment date ranges for supplier financing agreements as of December 31,
2025:
Days
For liabilities presented as part of Trade and other accounts payable:
Liabilities that are part of supplier finance arrangements
60-180
Comparable trade accounts payable that are not part of supplier finance arrangements
30-90
The changes in liabilities that are subject to supplier financing agreements are attributable primarily to
additions resulting from purchases of goods and services, and subsequent cash settlements. There were no
material non-monetary changes in these liabilities.
The Company does not face a significant liquidity risk as a result of its supplier financing arrangements
given the limited amount of liabilities subject to supplier financing arrangements and the Company´s
access to other sources of financing on similar terms.
Fair value hierarchy
The following is an analysis of financial instruments measured in accordance with the fair value
hierarchy. The 3 different levels used are presented below:
- Level 1: Quoted prices for identical instruments in active markets.
- Level 2: Other valuations including quoted prices for similar instruments in active markets that are
directly or indirectly observable.
- Level 3: Valuations made through techniques where one or more of their significant data inputs are
unobservable.
The derivative financial instruments of the Company that are measured at fair value as of December
31, 2025, 2024 and 2023, are located within Level 2 of the fair value hierarchy.
There were no transfers between levels of the fair value hierarchy during the period.
The specific valuation techniques used to value financial instruments include:
- Market quotations or trader quotations for similar instruments.
- The fair value of interest rate swaps is calculated as the present value of estimated future cash flows
based on observable yield curves.
- The fair value of forward exchange agreements is determined using exchange rates at the closing
balance date, with the resulting value discounted at present value.
- Other techniques such as the analysis of discounted cash flows, which are used to determine fair
value of the remaining financial instruments.
38
5.
Critical accounting estimates and judgments
Estimates and judgments are continually evaluated and are based on historical experience and other factors,
including expectations of future events that are believed to be reasonable under the circumstances.
5.1 Critical accounting estimates and assumptions.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates
will be, by definition, seldom equal to the related actual results. The estimates and assumptions that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the
next financial year are addressed below:
a)
Estimated impairment of goodwill and intangible assets with indefinite useful lives
The Company performs annual tests to determine whether goodwill and intangible assets with
indefinite useful lives have suffered any impairment (see Note 12). For impairment testing, goodwill
and intangible assets with indefinite lives are allocated to those groups
of
cash-generating
units
(“CGUs”) from which the Company has considered that economic and operational synergies of
business combinations are generated. The recoverable amounts of the CGUs have been determined
based on the calculations of their value in use, which require the use of estimates. The most significant
of these estimates are as follows:
- Estimates of future gross and operating margins, according with the historical performance and
industry expectations for each CGU group.
- Discount rate based on the weighted average cost of capital (“WACC”) of each CGU or group of
CGUs.
- Long-term growth rates.
b)
Recoverability of deferred tax assets
Alpek has tax loss carryforwards, which can be used in the following years until maturity expires.
Based on the projections of taxable income that Alpek will generate in the subsequent years through a
structured and robust business plan, management has determined that current tax losses will be used
before they expire and, therefore, it was considered probable that the deferred tax assets for such losses
will be recovered.
c)
Long-lived assets
The Company estimates the useful lives of long-lived assets in order to determine the depreciation and
amortization expenses to be recorded during the reporting period. The useful life of an asset is
calculated when the asset is acquired and is based on past experience with similar assets, considering
anticipated technological changes or any other type of changes; or in the case of the right-of-use assets,
based on the term of the lease agreement. Were technological changes to occur faster than estimated,
or differently than anticipated, the useful lives assigned to these assets could have to be reduced. This
would lead to the recognition of a greater depreciation and amortization expense in future periods.
Alternatively, these types of technological changes could result in the recognition of a charge for
impairment to reflect the reduction in the expected future economic benefits associated with the assets.
The Company reviews depreciable and amortizable assets on an annual basis for signs of impairment,
or when certain events or circumstances indicate that the book value may not be recovered during the
remaining useful life of the assets. For intangible assets with an indefinite useful life, the Company
performs impairment tests annually and at any time that there is an indication that the asset may be
impaired.
To test for impairment, the Company uses projected cash flows, which consider the estimates of future
transactions, including estimates of revenues, costs, operating expenses, capital expenses and debt
service. In accordance with IFRS, discounted future cash flows associated with an asset or CGU are
compared to the book value of the asset or CGU being tested to determine if impairment or a reversal
of impairment exist.
d)
Estimation of default probabilities and recovery rate to apply the model of expected losses in the
calculation of impairment of financial assets
The Company assigns to customers with whom it maintains an account receivable at each reporting
date, either individually or as a group, an estimate of the probability of default on the payment of
accounts receivable and the estimated recovery rate, with the purpose of reflecting the cash flows
expected to be received from the outstanding balances on such reporting date.
39
e)
Business combinations
When business combinations are concluded, the acquisition method is required to recognize the
identifiable net assets acquired at fair value, at the date of acquisition; any excess of the consideration
paid, which may include over the identified net assets, is recognized as goodwill, which is subject to
impairment tests at least once a year. On the other hand, any excess of the net assets acquired over the
consideration paid is recognized as a gain in profit or loss.
To estimate the fair value of the assets acquired and liabilities assumed, the Company uses observable
market data to the extent it is available. When the input data of Level 1 is not available, the Company
hires an independent qualified appraiser to perform the valuation. Management works closely with the
independent qualified appraiser to establish the valuation techniques, the premises, the appropriate
input data and the criteria to be used in the valuation models.
f)
Estimation of the discount rate to calculate the present value of future minimum lease payments
The Company estimates the discount rate to be used in determining the lease liability, based on the
incremental borrowing rate (“IBR”).
The Company uses a three-tier model, with which it determines the three elements that make up the
discount rate: (i) reference rate, (ii) credit risk component and (iii) adjustment for characteristics of the
underlying asset. In this model, management also considers its policies and practices to obtain
financing, distinguishing between that obtained at the corporate level (that is, by the parent), or at the
level of each subsidiary. Finally, for real estate leases, or, in which there is significant and observable
evidence of the residual value, the Company estimates and evaluates an adjustment for characteristics
of the underlying asset, taking into account the possibility that said asset is granted as collateral or
guarantee against the risk of default.
g)
Estimation of the lease term
The Company defines the lease term as the period for which there is a contractual payment
commitment, considering the non-cancelable period of the contract, as well as the renewal and early
termination options that are likely to be exercised. To measure the lease liability, the Company
estimates the term of the contracts considering their contractual rights and limitations, their business
plan, as well as management’s intentions for the use of the underlying asset.
Additionally, the Company considers the early termination clauses of its contracts and the probability
of exercising them, as part of its estimate of the lease term.
5.2 Critical judgments in applying the entity's accounting policies
a) Determination of exercise of control over certain investments in shares
The Company has evaluated critical control factors and has concluded that it should consolidate
the financial statements of its subsidiaries Polioles and Indelpro. The analysis performed by the
Company included the assessment of the substantive decision making rights of the respective
shareholders set forth in their bylaws, resulting in management’s conclusion that it has the power
to govern their relevant activities.
6.
Cash and cash equivalents and restricted cash
The cash and cash equivalents are comprised as follows:
As of December 31,
2025
2024
2023
Cash on hand and in banks
$6,312
$4,802
$5,898
Short-term bank deposits
1,731
1,414
1,493
Total cash and cash equivalents
$8,043
$6,216
$7,391
Restricted cash
The restricted cash balance is made up of cash whose restrictions cause the definition of cash and cash
equivalents not to be me tis classified as current and non-current assets in the consolidated statement of
financial position, based on the expiration date of the restriction.
40
7.
Trade and other receivables, net
Trade and other accounts receivable, net are comprised as follows:
As of December 31,
2025
2024
2023
Trade accounts receivable
$12,375
$16,060
$14,594
Trade and other accounts receivable from related parties (Note 28)
141
182
454
Recoverable taxes
3,682
3,950
4,237
Notes receivable
22
32
7
Interest receivable
21
10
4
Sundry debtors
383
502
264
Other investments
-
166
-
Allowance for impairment of trade and other accounts receivable
(2,200)
(2,471)
(2,087)
Total
$14,424
$18,431
$17,473
The changes in the impairment allowance for trade and other receivables in 2025, 2024 and 2023, with the
expected losses model used by the Company, are as follows:
For the year ended December 31, 2025:
Customers or
customer groups
Default
probability
range
Loss given
default range
Opening
balance –
Impairment
allowance
Increases in
the
allowance
Cancellations
in the
allowance
Translation
effect
Ending
balance –
Impairment
allowance
Alpek Polyester (1)
0%-100%
0%-100%
$ (2,440)
$ (147)
$ 160
$ 269
$ (2,158)
Grupo Styropek (1)
0%
0%-10%
(4)
(8)
4
-
(8)
Polioles
0%
0%-5%
(2)
(8)
-
-
(10)
Indelpro and other
(1)
0.87%-2%
2.45%-98%
(25)
(5)
6
-
(24)
Total
$ (2,471)
$ (168)
$ 170
$ 269
$ (2,200)
(1) The default probability range does not consider customers and groups of customers for which the probability is 100%.
For the year ended December 31, 2024:
Customers or
customer groups
Default
probability
range
Loss given
default range
Opening
balance –
Impairment
allowance
Increases in
the
allowance
Cancellations
in the
allowance
Translation
effect
Ending
balance –
Impairment
allowance
Alpek Polyester (1)
0%-100%
0%-100%
$ (2,061)
$ (101)
$ 91
$ (369)
$ (2,440)
Grupo Styropek (1)
0%
0%-10%
(4)
(2)
3
(1)
(4)
Polioles
0%
0%-5%
(6)
(2)
6
-
(2)
Indelpro and other
(1)
0.61%
4.56%
(16)
(10)
1
-
(25)
Total
$ (2,087)
$ (115)
$ 101
$ (370)
$ (2,471)
(1) The default probability range does not consider customers and groups of customers for which the probability is 100%.
For the year ended December 31, 2023:
Customers or
customer groups
Default
probability
range
Loss given
default range
Opening
balance –
Impairment
allowance
Increases in
the
allowance
Cancellations
in the
allowance
Translation
effect
Ending
balance –
Impairment
allowance
Alpek Polyester (1)
0%-100%
0%-100%
$ (2,362)
$ (165)
$ 63
$ 403
$ (2,061)
Grupo Styropek (1)
0%
0%-10%
(109)
(6)
102
9
(4)
Polioles
0%
0%-5%
(29)
(8)
28
3
(6)
Indelpro and other
(1)
0.65%
3.42%
(31)
(1)
16
-
(16)
Total
$ (2,531)
$ (180)
$ 209
$ 415
$ (2,087)
(1) The default probability range does not consider customers and groups of customers for which the probability is 100%.
41
As of December 31, 2025, 2024 and 2023, the Company has guaranteed accounts receivable of $1,561,
$1,761, and $1,540, respectively.
The net change in the allowance for impairment of trade and other receivables of $272 and $384 in the years
ended December 31, 2025 and 2024, was primarily due to the increase and decrease, respectively, in the
probability of default in certain customers compared to the beginning of the year, as well as the translation
effect.
The Company has long-term receivables that are guaranteed with the properties of M&G México’s PET
production plant in Altamira, México, which have been used by Management to mitigate the exposure to
credit risk of such financial assets, and therefore has not recognized an impairment in their carrying amount.
8.
Inventories
As of December 31,
2025
2024
2023
Finished good
$11,129
$13,542
$11,358
Raw material and other consumables
9,356
11,408
9,020
Materials and tools
2,355
2,609
2,383
Production in progress
594
685
561
$23,434
$28,244
$23,322
For the years ended December 31, 2025, 2024 and 2023, a provision amounting to $145, $23, and $125,
respectively, related to damaged, slow-moving and obsolete inventory was recognized in the consolidated
statement of income.
As of December 31, 2025, 2024 and 2023, there were no inventories pledged as collateral.
9.
Prepayments
The current portion and non-current portion of prepaid expenses is summarized as follows:
As of December 31,
2025
2024
2023
Current portion (1)
$ 993
$ 885
$ 744
Non-current portion
16
12
6
Total prepayments
$1,009
$ 897
$ 750
(1)
This item mainly consists of advance payments for raw materials and prepaid insurance.
42
10.
Property, plant and equipment, net
Land
Buildings and
constructions
Machinery
and
equipment
Vehicles
Furniture,
lab and
information
technology
equipment
Construction
in progress
Other
fixed
assets
Total
For the year ended December 31, 2023
Opening balance
$ 3,853
$ 9,356
$ 29,480
$ 131
$ 735
$ 3,258
$ 1,638
$ 48,451
Additions
-
-
15
1
7
2,881
162
3,066
Disposals
(8)
(10)
(72)
-
(1)
(16)
(179)
(286)
Impairment (1)
(56)
(93)
(831)
(3)
(26)
(404)
(35)
(1,448)
Restatement and translation effect
(338)
(844)
(3,791)
(18)
(88)
(384)
(190)
(5,653)
Depreciation charges recognized in the year
-
(370)
(2,689)
(18)
(112)
-
-
(3,189)
Transfers
-
(1,261)
3,548
31
101
(2,408)
-
11
Ending balance as of December 31, 2023
$ 3,451
$ 6,778
$ 25,660
$ 124
$ 616
$ 2,927
$ 1,396
$ 40,952
As of December 31, 2023
Cost
$ 3,451
$ 17,460
$ 76,364
$ 369
$ 2,233
$ 2,927
$ 1,396
$ 104,200
Accumulated depreciation and accumulated
impairment
-
(10,682)
(50,704)
(245)
(1,617)
-
-
(63,248)
Net carrying amount as of December 31, 2023
$ 3,451
$ 6,778
$ 25,660
$ 124
$ 616
$ 2,927
$ 1,396
$ 40,952
For the year ended December 31, 2024
Opening balance
$ 3,451
$ 6,778
$ 25,660
$ 124
$ 616
$ 2,927
$ 1,396
$ 40,952
Additions
-
-
855
3
1
1,983
341
3,183
Additions for business acquisitions
90
42
60
1
-
100
-
293
Disposals
-
(1)
(39)
(6)
(8)
1
(4)
(57)
Impairment (2)
-
(29)
(1,421)
(13)
(1)
(11)
(15)
(1,490)
Restatement and translation effect
406
952
4,660
23
121
327
181
6,670
Depreciation charges recognized in the year
-
(392)
(2,722)
(19)
(121)
-
-
(3,254)
Transfers
20
118
2,166
29
131
(2,529)
85
20
Ending balance as of December 31, 2024
$ 3,967
$ 7,468
$ 29,219
$ 142
$ 739
$ 2,798
$ 1,984
$ 46,317
As of December 31, 2024
Cost
$ 3,967
$ 20,398
$ 92,488
$ 463
$ 2,763
$ 2,798
$ 1,984
$ 124,861
Accumulated depreciation and accumulated
impairment
-
(12,930)
(63,269)
(321)
(2,024)
-
-
(78,544)
Net carrying amount as of December 31, 2024
$ 3,967
$ 7,468
$ 29,219
$ 142
$ 739
$ 2,798
$ 1,984
$ 46,317
43
Land
Buildings and
constructions
Machinery
and
equipment
Vehicles
Furniture,
lab and
information
technology
equipment
Construction
in progress
Other
fixed
assets
Total
For the year ended December 31, 2025
Opening balance
$ 3,967
$ 7,468
$ 29,219
$ 142
$ 739
$ 2,798
$ 1,984
$ 46,317
Additions
-
2
177
5
9
2,462
405
3,060
Additions for business acquisitions
56
68
59
10
19
71
-
283
Disposals
-
(3)
(72)
-
(1)
(26)
(112)
(214)
Impairment (3)
(10)
15
(521)
(1)
(8)
(163)
-
(688)
Restatement and translation effect
(293)
(675)
(3,020)
(15)
(77)
(209)
(177)
(4,466)
Depreciation charges recognized in the year
-
(410)
(2,861)
(20)
(123)
-
-
(3,414)
Transfers
-
294
2,152
12
118
(2,578)
(2)
Ending balance as of December 31, 2025
$ 3,720
$ 6,759
$ 25,133
$ 133
$ 676
$ 2,355
$ 2,100
$ 40,876
As of December 31, 2025
Cost
$ 3,720
$ 18,717
$ 82,958
$ 455
$ 2,635
$ 2,355
$ 2,100
$112,940
Accumulated depreciation and accumulated
impairment
-
(11,958)
(57,825)
(322)
(1,959)
-
-
(72,064)
Net carrying amount as of December 31, 2025
$ 3,720
$ 6,759
$ 25,133
$ 133
$ 676
$ 2,355
$ 2,100
$ 40,876
(1)
Mainly corresponds to $950 from the closure of the PET resin production operations at the Cooper River site, $409 from the closure of the filament
production plant and the remainder to the Company's normal operations.
(2)
Mainly corresponds to $1,191 from the suspension of EPS operations in Beaver Valley and the remainder to the Company's normal operation.
(3)
Mainly corresponds to $362 from the suspension of operations of PET in North Carolina, $138 from the closure of the filament production plant and
the remainder to the Company´s normal operations.
Depreciation expenses of $3,354, $3,195, and $3,134 were recorded in cost of sales, $27, $11, and $12, in selling expenses and $32, $48, and $43,
in administrative expenses in 2025, 2024 and 2023, respectively.
44
11.
Right-of-use asset, net
Alpek has leases of fixed assets including buildings, machinery and equipment, transportation equipment, and computer equipment. As of
December 31, 2025, the average term of the lease contracts is 8 years.
The right-of-use recognized in the consolidated statement of financial position as of December 31, 2025, 2024 and 2023, is integrated as follows:
Land
Buildings
Machinery
and
equipment
Rail cars
Ships and
other
leased
assets
Total
Net carrying amount:
Balance as of December 31, 2023
$ 294
$ 576
$ 472
$ 1,775
$ 53
$ 3,170
Balance as of December 31, 2024
$ 397
$ 499
$ 875
$ 1,877
$ 89
$ 3,737
Balance as of December 31, 2025
$ 375
$ 430
$ 700
$ 1,433
$ 67
$ 3,005
Depreciation for the year 2023
$ (31)
$ (85)
$ (294)
$ (436)
$ (150)
$ (996)
Depreciation for the year 2024
$ (88)
$ (68)
$ (267)
$ (457)
$ (190)
$ (1,070)
Depreciation for the year 2025
$ (158)
$ (74)
$ (326)
$ (508)
$ (211)
$ (1,277)
During the years ended December 31, 2025, 2024 and 2023, the Company recognized a lease expense of $858, $704, $559, respectively, related to
low value and short-term lease agreements.
Additions derived from business acquisitions, new contracts and modifications to the lease liability, reflected in the net book value of the right-of-
use asset as of December 31, 2025, 2024 and 2023 amounted to $871, $1,327, and $1,409, respectively.
As of December 31, 2025, 2024 and 2023, the Company does not have any commitments related to short-term lease agreements.
The Company has not signed lease contracts, which at the date of the consolidated financial statements have not started.
During the year, the Company did not execute significant extensions to the term of its lease contracts.
45
12.
Goodwill and intangible assets, net
Cost
Definite life
Indefinite life
Development
costs
Non-
compete
agreements
Customer
relationships
Patent
Software
and
licenses
Trademarks
with definite
life
Intellectual
property,
and others
Goodwill
Other
Total
As of January 1, 2023
$ 952
$ 74
$ 997
$1,608
$ 277
$ 198
$ 3,668
$ 387
$ 9
$ 8,170
Additions
7
-
-
-
24
-
-
-
-
31
Disposals
-
-
-
-
(1)
-
-
-
-
(1)
Transfers
2
-
-
-
9
-
-
-
-
11
Translation effect
(120)
(3)
(104)
(216)
(17)
(17)
(482)
(49)
(1)
(1,009)
As of December 31, 2023
841
71
893
1,392
292
181
3,186
338
8
7,202
Additions
7
3
-
-
8
-
-
-
-
18
Additions for business acquisitions
-
-
-
-
2
-
-
-
-
2
Disposals
-
-
-
-
(10)
-
-
-
-
(10)
Dispositions
-
-
(1)
-
-
-
-
-
-
(1)
Transfers
5
-
-
-
-
-
-
-
-
5
Translation effect
168
2
107
296
30
10
627
67
2
1,309
As of December 31, 2024
1,021
76
999
1,688
322
191
3,813
405
10
8,525
Additions
8
22
-
-
43
-
6
-
-
79
Additions for business acquisitions
-
-
-
-
3
-
-
-
-
3
Impairment
-
-
-
-
-
-
-
-
-
-
Disposals
-
-
-
(16)
-
-
-
-
-
(16)
Transfers
-
-
-
8
(18)
5
(2)
-
-
(7)
Translation effect
(115)
(16)
(84)
(201)
(37)
(11)
(426)
(46)
(1)
(937)
As of December 31, 2025
$ 914
$ 82
$ 915
$1,479
$ 313
$ 185
$ 3,391
$ 359
$ 9
$ 7,647
46
Amortization and Impairment
Definite life
Indefinite life
Development
costs
Non-
compete
agreements
Customer
relationships
Patent
Software
and
licenses
Trademarks
with definite
life
Intellectual
property,
and others
Goodwill
Other
Total
As of January 1, 2023
$ (619)
$ (74)
$ (657)
$ (93)
$ (186)
$ (125)
$ (1,991)
$ -
$ -
$ (3,745)
Amortization
(24)
-
(53)
(151)
(8)
(4)
(194)
-
(434)
Disposals
-
-
-
-
1
-
-
-
-
1
Translation effect
82
3
80
27
12
8
258
-
-
470
As of December 31, 2023
(561)
(71)
(630)
(217)
(181)
(121)
(1,927)
-
-
(3,708)
Amortization
(22)
-
(53)
(156)
(17)
(4)
(191)
-
-
(443)
Additions for business acquisitions
-
-
-
-
(2)
-
-
-
-
(2)
Impairment
-
-
-
-
9
-
-
-
-
9
Disposals
-
-
1
-
-
-
-
-
-
1
Translation effect
(113)
(2)
(107)
(72)
(17)
1
(397)
-
-
(707)
As of December 31, 2024
$ (696)
$ (73)
$ (789)
$ (445)
$ (208)
$ (124)
$ (2,515)
$ -
$ -
$ (4,850)
Amortization
(22)
(2)
(54)
(163)
(21)
(5)
(199)
-
-
(466)
Additions for business acquisitions
-
-
-
-
-
-
(6)
-
-
(6)
Impairment
-
-
-
-
-
-
-
-
-
-
Transfers
-
-
-
(4)
(4)
(5)
13
-
-
-
Disposals
-
-
-
13
-
-
-
-
-
13
Translation effect
82
14
82
68
14
4
292
-
-
556
As of December 31, 2025
$ (636)
$ (61)
$ (761)
$ (531)
$ (219)
$ (130)
$ (2,415)
$ -
$ -
$ (4,753)
Net carrying amount
Cost
$ 841
$ 71
$ 893
$ 1,392
$ 292
$ 181
$ 3,186
$ 338
$ 8
$ 7,202
Amortization and impairment
(561)
(71)
(630)
(217)
(181)
(121)
(1,927)
-
-
(3,708)
As of December 31, 2023
$ 280
$ -
$ 263
$ 1,175
$ 111
$ 60
$ 1,259
$ 338
$ 8
$ 3,494
Cost
$ 1,021
$ 76
$ 999
$ 1,688
$ 322
$ 191
$ 3,813
$ 405
$ 10
$8,525
Amortization
(696)
(73)
(789)
(445)
(208)
(124)
(2,515)
-
-
(4,850)
As of December 31, 2024
$ 325
$ 3
$ 210
$ 1,243
$ 114
$ 67
$ 1,298
$ 405
$ 10
$ 3,675
Cost
914
82
915
1,479
313
185
3,391
359
9
7,647
Amortization and impairment
(636)
(61)
(761)
(531)
(219)
(130)
(2,415)
-
-
(4,753)
As of December 31, 2025
$ 278
$ 21
$ 154
$ 948
$ 94
$ 55
$ 976
$ 359
$ 9
$ 2,894
47
Of the total amortization expense, $464, $438, and $425 have been recorded in cost of sales and $2, $5,
and $9 in administrative and selling expenses in 2025, 2024 and 2023, respectively.
Incurred research and development expenses that have been recorded in the 2025, 2024 and 2023
consolidated statements of income were $33, $52, and $68, respectively.
Impairment testing of goodwill and indefinite lived intangible assets
As mentioned in Note 5, goodwill is allocated to operating segments that are expected to benefit from the
synergies of the business combination, irrespective of whether other assets or liabilities of the acquirer
are assigned to those units or groups of units. As of December 31, 2025, 2024 and 2023, goodwill of $359,
$405, and $338, respectively, arises primarily from the Polyester segment.
The recoverable amount from each group of CGU has been determined based on calculations of values in
use, which are formed by after-tax cash flow projections based on financial budgets approved by
Management covering a period of 5 years.
The gross and operating margins included in the estimates of value in use have been estimated based on
the historical performance and the growth expectations of the market in which each group of CGUs
operates. The long-term growth rate used in estimating the value in use is consistent with the projections
included in industry reports. The present value of the cash flows was discounted using a specific discount
rate after taxes for each group of CGU and reflects the specific risks associated with each of them.
The key assumptions used in calculating the value in use in 2025, 2024 and 2023, were as follows:
2025
2024
2023
Estimated gross margin
8.0%
8.5%
8.3%
Growth rate
3.0%
2.6%
2%
Discount rate
9.0%
9.1%
9.1%
13.
Investments accounted for using the equity method and other non-current assets
As of December 31,
2025
2024
2023
Notes receivable (1)
$1,696
$1,970
$1,693
Due from related parties (Note 28)
-
1,178
763
Trade receivables related with business acquisitions
355
615
684
Total other non-current financial assets
2,051
3,763
3,140
Investment in associates and joint ventures
66
63
261
Recoverable taxes
698
753
886
Other
90
80
94
Total investments accounted for using the equity method and other
non-current assets
$2,905
$4,659
$4,381
(1)
As of December 31, 2025, 2024 and 2023, this item mainly consisted of the financing provided to M&G Polímeros
México, S.A. de C.V.
The Company’s account of investments in associates and joint ventures consists of the following:
Shareholding
%
2025
2024
2023
Terminal Petroquímica Altamira, S.A. de C.V.
42.04%
$ 66
$ 63
$ 61
Clear Path Recycling, LLC (1)
49.90%
-
-
105
Agua Industrial del Poniente, S.A. de C.V. (2)
47.59%
-
-
95
Investment in associates and joint ventures as of December
31
$ 66
$ 63
$261
(1) On September 1, 2024, the Company obtained control over this investment in associates, holding 100% of the shareholding as of December 31, 2024. The
shareholding as of December 31, 2023 was 49.9%. The acquisition was considered a staged business combination based on IFRS 3 requirements; fair value
adjustments to assets acquired and liabilities assumed, as well as required disclosures, were not considered significant.
(2) On June 13, 2024, the Company obtained control over this investment in associates, holding 55.6% of the shareholding as of December 31, 2024. The
shareholding as of December 31, 2023 was 47.6%. The acquisition was considered a staged business combination based on IFRS 3 requirements; fair value
adjustments to assets acquired and liabilities assumed, as well as required disclosures, were not considered significant.
48
Below is summarized the net loss of investments in associates and joint ventures, which are accounted
for by the equity method of the Company:
2025
2024
2023
Net comprehensive income (loss)
$ 10
$ 1
$ (557)
There are neither commitments nor contingent liabilities regarding the Company's investment in
associates and joint ventures as of December 31, 2025, 2024 or 2023.
14.
Subsidiaries with significant non-controlling interest
The significant non-controlling interest is integrated as follows:
Non-controlling
ownership
percentage
Non-controlling
net interest
income (loss) for the period
Non-controlling
interest as of December 31,
2025
2024
2023
2025
2024
2023
Indelpro, S. A. de C. V.
49%
$ 684
$ 371
$ 885
$3,753
$4,205
$3,887
Polioles, S. A. de C. V.
50%
139
65
145
651
624
487
Terza, S. A. de C. V. (1)
50%
(5)
-
-
234
-
-
Other
(260)
117
(149)
95
423
156
$ 558
$ 553
$ 881
$4,733
$5,252
$4,530
(1)
On November 1, 2025, the Company acquired a 50% equity interest in Terza, S.A. de C.V. The acquisition was accounted for as a business combination in
accordance with the requirements of IFRS 3; the fair value adjustments to the acquired assets and assumed liabilities, as well as the related disclosure
requirements, were not considered significant.
The summarized financial information as of December 31, 2025, 2024 and 2023, and for the years then
ended, corresponding to each subsidiary with a significant non-controlling interest is shown below:
Indelpro, S. A. de C. V.
Polioles, S. A. de C. V.
2025
2024
2023
2025
2024
2023
Statement of financial position
Current assets
$ 3,676
$ 4,461
$ 3,972
$ 1,094
$ 1,193
$ 962
Non-current assets
6,658
7,762
6,605
877
965
815
Current liabilities
1,240
1,811
1,211
542
670
508
Non-current liabilities
1,435
1,831
1,433
127
242
295
Stockholders’ equity
7,659
8,581
7,933
1,302
1,246
974
Statements of income
Revenues
9,623
11,660
10,442
2,803
3,055
3,023
Consolidated net income
1,396
757
1,807
279
131
289
Total comprehensive income of the year
384
2,321
636
111
328
152
Comprehensive income attributable to non-
controlling interest
188
1,137
312
55
164
76
Dividends paid to non-controlling interest
639
749
886
27
27
27
Statements of cash flows
Net cash flows generated by operating
activities
1,876
1,969
1,838
403
220
206
Net cash flows (used in) generated by
investing activities
(157)
(176)
(134)
(70)
(53)
(47)
Net cash flows used in financing activities
(1,620)
(1,819)
(2,057)
(120)
(150)
(351)
Net increase (decrease) in cash and cash
equivalents
20
100
(422)
207
16
(220)
49
15.
Trade and other accounts payable
As of December 31,
2025
2024
2023
Trade accounts payable
$ 22,553
$ 27,618
$ 24,650
Short-term employee benefits
651
1,094
709
Advances from customers
128
36
54
Taxes other than income taxes
395
677
371
Due to related parties (Note 28)
208
168
153
Other accrued accounts and expenses payable
1,481
1,743
1,192
$ 25,416
$ 31,336
$ 27,129
16.
Debt
As of December 31,
2025
2024
2023
Current:
Bank loans (1)
$ 1,779
$ 1,263
$ 343
Current portion of non-current debt
62
-
-
Interest payable
290
373
346
Current debt (2)
$ 2,131
$ 1,636
$ 689
As of December 31,
2025
2024
2023
Non-current:
Senior Notes
$19,885
$22,405
$18,648
Unsecured bank loans
15,875
16,729
14,177
Other loans
137
153
127
Total
35,897
39,287
32,952
Less: Current portion of non-current debt
(62)
-
-
Less: Interest generated by non-current debt
(286)
(353)
(304)
Non-current debt
$35,549
$38,934
$32,648
(1)
As of December 31, 2025, 2024 and 2023, short-term bank loans and notes payable incurred interest at an annual
average rate of 4.77%, 5.35%, and 9.56%, respectively.
(2)
The fair value of bank loans and notes payable approximates their current carrying amount because of their short
maturity.
50
The carrying amounts, terms and conditions of non-current debt are as follows:
Description
Currency
Outstanding
Balance
Debt
issuance
costs
Interest
payable
Balance as of
December
31, 2025(1)
Balance as of
December
31, 2024(1)
Balance as of
December
31, 2023(1)
Maturity
date
Interest
rate
Senior Notes 144A/Reg. S / fixed rate
USD
$ 8,974
$ (29)
$ 111
$ 9,056
$ 10,204
$ 8,493
18-sep-29
4.25%
Senior Notes 144A/Reg. S / fixed rate
USD
10,747
(41)
123
10,829
12,201
10,155
25-feb-31
3.25%
Total Senior Notes
19,721
(70)
234
19,885
22,405
18,648
Bank loan, SOFR + 1.00%
USD
-
-
-
-
2,332
2,112
01-may-26
4.57%
Bank loan, SOFR + 1.60%
USD
36
-
-
36
81
85
29-jun-27
5.30%
Bank loan, SOFR + 1.71%
USD
62
-
-
62
61
98
20-jun-26
5.41%
Bank loan, SOFR + 1.03%
USD
2,875
-
22
2,897
4,089
3,416
21-jul-28
4.92%
Bank loan, SOFR +1.00%
USD
-
-
-
-
2,032
1,692
6-apr-27
4.51%
Bank loan, SOFR +1.05%
USD
-
-
-
-
4,071
3,391
7-apr-27
4.52%
Bank loan, SOFR +1.00%
USD
-
-
-
-
2,031
1,691
6-may-27
4.51%
Bank loan, SOFR +1.00%
USD
-
-
-
-
2,032
1,692
6-apr-27
4.51%
Bancario, SOFR + 1.25%
USD
719
3
-
722
-
-
30-jun-30
4.94%
Bancario, SOFR + 1.25%
USD
900
-
-
900
-
-
30-jun-30
4.92%
Bancario, SOFR + 1.25%
USD
1,797
(12)
1
1,786
-
-
25-jun-30
4.94%
Bancario, SOFR + 1.65%
USD
2,695
(1)
2
2,696
-
-
26-jun-32
5.25%
Bancario, SOFR + 1.20%
USD
3,593
15
18
3,626
-
-
01-aug-30
5.04%
Bancario, SOFR + 1.10%
USD
1,976
-
3
1,979
-
-
28-feb-29
4.93%
Bancario, SOFR + 1.35%
USD
1,166
-
5
1,171
-
-
31-mar-28
5.79%
Total unsecured bank loans
15,819
5
51
15,875
16,729
14,177
Other loans
USD
136
-
1
137
153
127
Various
Various
Total
35,676
(65)
286
35,897
39,287
32,952
Less: current portion and interest of
non-current debt
(62)
-
(286)
(348)
(353)
(304)
Non-current debt
$ 35,614
$ (65)
$ -
$ 35,549
$ 38,934
$ 32,648
(1) As of December 31, 2025, 2024 and 2023, issuance costs of the debt pending amortization were $63, $118, and
$125, respectively.
As of December 31, 2025, the annual maturities of non-current debt, including current portion and interest
payable, and gross from issuance costs are as follows:
2026
2027
2028
2029 and
thereafter
Total
Senior Notes
$ 234
$ -
$ -
$19,721
$19,955
Bank loans
113
126
4,221
11,410
15,870
Other loans
1
-
-
136
137
$ 348
$ 126
$4,221
$31,267
$35,962
As of December 31, 2025, 2024 and 2023, the Company has committed unused lines of credit totaling
US$529, US$587, and US$584, respectively.
Covenants:
Loan contracts and debt agreements contain restrictions, primarily relating to compliance with financial
ratios, which include the following:
a)
Interest hedge ratio: it is calculated by dividing the profit before financial result, net, share of result
of associates and joint ventures, income taxes, depreciation and amortization (EBITDA) by the net
interest charges for the last four quarters of the analyzed period. This ratio cannot be less than 2.25
times.
51
b)
Leverage ratio: defined as the result of dividing the consolidated net debt (current and non-current
debt, excluding debt issuance costs less restricted and unrestricted cash and cash equivalents) by the
EBITDA of the last four quarters of the period analyzed. This ratio cannot be greater than 4.5 times.
Additionally, there are other restrictions in regards of incurring additional debt or making loans that
require mortgaging assets, dividend payments and submission of financial information, which if not met
or remedied within a specified period to the satisfaction of creditors may cause the debt to become payable
immediately. During 2025, 2024 and 2023, the financial ratios were calculated according with the
formulas set forth in the loan agreements. As of December 31, 2025 and the date of issuance of these
consolidated financial statements, the Company and its subsidiaries complied satisfactorily with such
covenants and restrictions.
17.
Lease liability
As of December 31,
2025
2024
2023
Current portion:
USD
$ 594
$ 623
$ 454
MXN
157
197
128
Other currencies
129
124
119
Current lease liability
$ 880
$ 944
$ 701
Non-current portion:
USD
$ 2,576
$ 3,090
$2,671
MXN
307
410
261
Other currencies
479
604
524
3,362
4,104
3,456
Less: Current portion of lease liability
(880)
(944)
(701)
Non-current lease liability
$ 2,482
$ 3,160
$2,755
As of December 31, 2025, 2024 and 2023, respectively, changes in the lease lability related to finance
activities in accordance with the consolidated statement of cash flow are integrated as follows:
2025
2024
2023
Beginning balance
$ 4,104
$ 3,456
$ 3,624
New contracts (1)
871
1,327
1,409
Write-offs
(16)
(30)
(251)
Adjustment to liability balance
42
(191)
51
Interest expense from lease liability
262
259
231
Lease payments
(1,516)
(1,269)
(1,170)
Exchange loss (gain), net
(385)
552
(438)
Ending balance
$ 3,362
$ 4,104
$ 3,456
(1) Includes lease liabilities assumed in business acquisitions.
The maturity of the lease liability is analyzed as follows:
As of December 31,
2025
2024
2023
Less than a year
$ 880
$ 944
$ 701
Over 1 year and less than 5 years
1,616
2,072
1,579
Over 5 years
866
1,088
1,176
Total
$ 3,362
$ 4,104
$ 3,456
52
18.
Provisions
Dismantling,
demolition and
environmental
remediation
Legal
contingencies
Other (1)
Total
As of January 1, 2023
$ 56
$ 605
$ 1,193
$ 1,854
Increases
379
138
241
758
Payments
(112)
-
(745)
(857)
Write-offs
(1)
(40)
(35)
(76)
Translation effect
(28)
(29)
(134)
(191)
As of December 31, 2023
294
674
520
1,488
Increases
844
87
196
1,127
Payments
(174)
-
(338)
(512)
Write-offs
(94)
(105)
(73)
(272)
Translation effect
32
(37)
24
19
As of December 31, 2024
$ 902
$ 619
$ 329
$ 1,850
Increases
162
108
207
477
Payments
(188)
(128)
(366)
(682)
Write-offs
(31)
(224)
(16)
(271)
Translation effect
(95)
3
(15)
(107)
As of December 31, 2025
$ 750
$ 378
$ 139
$ 1,267
(1)
As of December 31, 2023, the increases in "others" are mainly made up of the contingent consideration for the acquisition of Octal businesses for $904 (see
Note 2), as well as reimbursement for taxes to be recovered from Petrobras $215.
2025
2024
2023
Short-term provisions
$ 258
$ 199
$ 749
Long-term provisions
1,009
1,651
739
As of December 31
$1,267
$1,850
$1,488
As of December 31, 2025, 2024 and 2023, the provisions shown in the table above mainly include $42
(US$2), $43 (US$2), and $103 (US$6), respectively, related to the obligation to give back to Petrobras
certain tax credits, in case they are recovered by Alpek Polyester Pernambuco and Alpek Polyester Brasil,
as well as $378 (US$21). $605, (US$30), and $673 (US$40) for labor, civil and tax contingencies also
derived from the acquisition of Alpek Polyester Pernambuco and Alpek Polyester Brasil, for which the
Company holds an account receivable, included in other non-current assets, for $355 (US$20), $616,
(US$30), and $684 (US$40) as of December 31, 2025, 2024 and 2023, respectively.
Additionally, during the years ended December 31, 2025 and 2024, the Company made partial payments
related to the contingent consideration for the payment of future benefits (earn-out) related to the
acquisition of Octal for $72 (US$3.6) and $201 (US$11.6), respectively. As of December 31, 2025, the
contingent consideration had been fully paid.
19.
Employee benefits
The valuation of retirement plan employee benefits includes formal plans and constructive obligations
that covers all employees and is based primarily on their years of service, current age, and estimated salary
at retirement date.
The subsidiaries of the Company have established irrevocable trust funds for payment of pensions and
seniority premiums and health-care expenses.
53
Below is a summary of the main financial data of such employee benefits:
As of December 31,
2025
2024
2023
Employee benefit obligations:
Pension benefits
$ 217
$ 333
$ 439
Post-employment medical benefits
23
58
61
240
391
500
Defined contribution plans
592
463
380
Employee benefits in the consolidated statement of financial position
$ 832
$ 854
$ 880
Charge to the consolidated statement of income for:
Pension benefits
$ 105
$ 6
$ (271)
Post-employment medical benefits
(2)
(2)
(4)
$ 103
$ 4
$ (275)
Remeasurements of employee benefit obligations recognized in other
comprehensive income of the year
$ 62
$ 129
$ (5)
Remeasurements of accrued employee benefit obligations recognized
in other comprehensive income
$ 476
$ 414
$ 285
Pension and post-employment medical benefits
The Company operates defined benefit pension plans based on employees’ pensionable remuneration and
length of service. Most plans are externally funded. Plan assets are held in trusts, foundations or similar
entities, governed by local regulations and practice in each country, as is the nature of the relationship
between the Company and the respective trustees (or equivalent) and their composition. The Company
operates post-employment medical benefit schemes mainly in its subsidiary Alpek Polyester USA. The
method of accounting, assumptions and the frequency of valuations are similar to those used for defined
benefit pension schemes. Most of these plans are not being funded.
Amounts recognized in the consolidated statement of financial position are determined as follows:
As of December 31,
2025
2024
2023
Present value of defined benefit obligations
$ 2,060
$ 2,234
$ 2,535
Fair value of plan assets
(1,820)
(1,843)
(2,035)
Liability in the statement of financial position
$ 240
$ 391
$ 500
The movements of defined benefit obligations are as follows:
2025
2024
2023
As of January l,
$ 2,234
$ 2,535
$ 3,107
Service cost
(15)
8
44
Interest cost
115
129
147
Contributions from plan participants
5
36
3
Remeasurements:
(Gains) losses from changes in financial assumptions
(61)
(78)
78
Losses (gains) from changes in demographic assumptions and
experience adjustments
-
-
-
Liability acquired in business combination
53
-
-
Translation effect
(88)
434
(323)
Benefits paid
(210)
(823)
(501)
Plan curtailments
27
(7)
(20)
As of December 31,
$ 2,060
$ 2,234
$ 2,535
54
The movement in the fair value of plan assets for the year is as follows:
2025
2024
2023
As of January 1
$ (1,843)
$ (2,035)
$ (2,431)
Interest income
(176)
(97)
(104)
Remeasurements – return on plan assets, excluding interest
income
(1)
(51)
(83)
Translation effect
162
(340)
257
Contributions
(53)
(22)
(6)
Asset acquired in business combination
(82)
Benefits paid
173
702
332
As of December 31
$ (1,820)
$ (1,843)
$ (2,035)
The amounts recorded in the consolidated statement of income for the years ended December 31 are the
following:
2025
2024
2023
Service cost
$ 15
$ (8)
$ (43)
Interest cost, net
61
6
(251)
Effect of plan curtailments and/or settlements
27
6
19
Total included in personnel cost
$ 103
$ 4
$ (275)
The principal actuarial assumptions are as follows:
As of December 31,
2025
2024
2023
Discount rate Mexico
9.50%
10.50%
9.75%
Discount rate United States
5.21%
5.41%
4.83%
Inflation rate Mexico
3.75%
3.75%
3.50%
Wage increase rate Mexico
9.50%
6.00%
5.50%
Medical inflation rate Mexico
7.00%
7.00%
7.00%
The sensitivity analysis of the discount rate for defined benefit obligations is as follows:
Effect in defined benefit obligations
Change in
assumption
Increase in
assumption
Decrease in
assumption
Discount rate
MX 1%
Decrease by $28
Increase by $32
Sensibility analyses are based on a change in assumptions, while all the other assumptions remain
constant. In practice, this is slightly probable, and the changes in some assumptions may be correlated. In
calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions, the same
method (present value of calculated defined benefit obligation with the projected unit credit method at
reporting period) has been applied as in the calculation of liabilities for pensions recognized within the
consolidated statement of financial position.
Defined benefit plan assets
Plan assets are comprised as follows:
As of December 31,
2025
2024
2023
Equity instruments
$1,443
$1,488
$1,590
Fixed income
377
355
445
Fair value of plan assets
$1,820
$1,843
$2,035
55
20.
Income taxes
The Company is subject to income tax, whose rate is 30% in México. The statutory income tax rates
applicable to the main foreign subsidiaries were as follows:
2025
2024
2023
United States
21%
21%
21%
Brazil
34%
34%
34%
Argentina
35%
35%
35%
Chile
27%
27%
27%
Canada
26.5%
26.5%
26.5%
Spain
25%
25%
25%
United Kingdom
25%
25%
25%
Oman(1)
15%
15%
15%
(1) Octal's production facility (Octal SAOC FZC) is registered in the Salalah Free Zone; therefore, it is exempt from corporate tax until 2024. Starting in 2025,
Oman is amending its lax legislation through Royal Decree No. 70/2024 to align with the Pillar Two model rules published by OECD.
In 2023, the Company adopted the amendments to IAS 12, Income Taxes, applicable to income taxes
arising from tax laws enacted or substantively enacted to implement the Pillar Two model rules
published by the Organization for Economic Co-operation and Development (OECD), including tax
laws implementing qualified domestic minimum taxes described in those rules.
The Company continues to apply the temporary exception to the deferred tax accounting requirements
in IAS 12, and therefore does not recognize or disclose information about deferred tax assets and
liabilities related to Pillar Two income taxes.
As of December 31, 2025, the Company has significant effects related to income taxes under the Pillar
Two model in those jurisdictions in which the holding entities participate with subsidiaries where the
legislation is already in force, as the calculations performed in accordance with the OECD-issued Pillar
Two model rules resulted in significant tax impacts, which were recognized as a provision during the
year. Likewise, in those jurisdictions where the applicable legislation has not yet become effective, no
significant effects related to such legislation have been incurred; however, the Company will continue to
assess the impact of the Pillar Two income tax model on its future financial performance.
a.
Income taxes recognized in the consolidated statement of income are as follows:
2025
2024
2023
Current income tax
$(1,146)
$(1,237)
$(2,358)
Deferred income taxes
(734)
1,819
1,631
Income taxes expenses
$(1,880)
$ 582
$ (727)
b.
The reconciliation between the statutory and effective income tax rates is as follows:
2025
2024
2023
Loss before income taxes
$ (336)
$ (794)
$(9,306)
Income tax rate
30%
30%
30%
Statutory income tax rate expense
101
238
2,792
(Less) add income tax effect on:
Annual adjustment for inflation
(640)
(240)
(253)
Non-deductible expenses
(529)
(74)
(2,941)
Non-taxable income
46
159
164
Effect of different tax rates of other countries other than
Mexico
(201)
(261)
(128)
True up with respect to prior years’ current income tax
25
71
88
Translation effect from the functional currency
(681)
676
(388)
Investments in associates and joint ventures
(1)
13
(61)
Total income taxes
$(1,880)
$ 582
$ (727)
Effective tax rate
(560%)
(73%)
(8%)
56
c.
The breakdown of the deferred tax asset and deferred tax liability is as follows:
Asset (liability)
December 31,
2025
2024
2023
Property, plant and equipment
$(1,984)
$(1,983)
$ (708)
Intangible assets
(245)
(224)
(128)
Debt issuance costs
-
(5)
(1)
Provisions
709
371
237
Derivative financial instruments
(29)
237
2
Tax loss carryforwards
2,284
1,906
413
Non-deductible interests
511
1,874
-
Tax credits, impairment allowance and other
1,082
2,265
1,604
Effect of tax rates of other countries and changes in
tax rates
(339)
(301)
(85)
Deferred tax asset
$ 1,989
$ 4,140
$ 1,334
Inventories
$ (96)
$ (94)
$ 40
Property, plant and equipment, net
(2,635)
(3,721)
(3,557)
Intangible assets
(164)
(233)
(148)
Tax loss carryforwards
513
336
693
Non-deductible interest, provision allowance and
others
386
557
808
Effect of tax rates of other countries and changes in
tax rates
63
80
140
Deferred tax liability
$(1,933)
$(3,075)
$(2,024)
Deferred income tax assets are recognized on tax loss carryforwards to the extent the realization of
the related tax benefit through future tax income is probable. Tax losses amount to $30,903, $28,886
and $24,034 in 2025, 2024 and 2023, respectively.
Tax losses as of December 31, 2025 expire in the following years:
Loss for the year
incurred
Tax-loss
carryforwards
Expiration
year
2016
$ 153
2026
2017
15
2027
2018
14
2028
2019
30
2029
2020
39
2030
2021
106
2031
2022
47
2032
2023
45
2033
2024
999
2034
2025
3,753
2035
2026
4,112
2036 and thereafter
Other
21,590
No maturity
$ 30,903
As of December 31, 2025, the Company holds tax losses to be amortized in Brazil, through Suape
and Citepe, for an amount of $21,581, which have no expiration date. The Company has decided to
reserve the total amount of the tax losses, according to management's estimate of future reversals of
temporary differences; thus, as of December 31, 2025, they do not generate deferred tax assets.
57
d. Income tax related to other comprehensive income is as follows:
2025
2024
2023
Before
taxes
Tax
charged
After
taxes
Before
taxes
Tax
charged
After
taxes
Before
taxes
Tax
charged
After
taxes
Equity in other
comprehensive income
of associates and joint
ventures recognized
through the equity
method
$ (1)
$ -
$ (1)
$ 1
$ -
$ 1
$ (1)
$ -
$ (1)
Foreign currency
translation effect
(2,328)
-
(2,328)
4,345
-
4,345
(5,923)
-
(5,923)
Remeasurement of
employee benefit
obligations
64
(14)
50
129
(31)
98
5
-
5
Effect of derivative
financial instruments
designated as cash
flow hedges
648
(149)
499
(596)
144
(452)
1,056
(291)
765
Other comprehensive
income
$(1,617)
$ (163)
$(1,780)
$ 3,879
$ 113
$ 3,992
$(4,863)
(291)
(5,154)
e. Income tax payable consists of the following:
As of December 31,
2025
2024
2023
Current portion (1)
$ 238
$ 433
$ 390
21.
Other non-current liabilities
As of December 31,
2025
2024
2023
Advances from customers (1)
$ -
$ -
$ 62
Other (2)
123
151
431
Total other non-current liabilities
$123
$151
$493
(1) As of December 31, 2023, this item corresponds to revenues charged in advance and relates to the future delivery of goods.
(2) As of December 31, 2023, is mainly related to the amount pending of payment for the acquisition of Octal (see Note 2g).
22.
Stockholders' equity
As of December 31, 2025, capital stock is variable, with a fixed minimum of $5,955,706,376.05
represented by 2,084,502,837 outstanding, ordinary, nominative shares, "Class I" Series "A", with no par
value, fully subscribed and paid in. The variable capital entitled to withdrawal will be represented, if
issued, by registered "Class II" Series "A" shares without par value.
From February to November 2025, the Company purchased 13,927,329 shares in the amount of $152 and
sold 7,806,555 shares in the amount of $75 with a repurchase program that was approved by the
Company's stockholders and exercised discretionally by Management.
At the Extraordinary Shareholders’ Meeting held on November 25, 2025, the Shareholders approved the
cancellation of 33,660,798 shares of the Company, consisting of: (i) 17,573,509 treasury shares held by
the Company, and (ii) 16,087,289 fractional or residual shares resulting from the application of the
exchange ratio.
58
On September 9, 2024, the Company's Board of Director, through powers delegated at the Ordinary
General Meeting of stockholders held on March 6, 2024, approved the payment of a cash dividend per
share of US$0.0625, equivalent to the aggregate amount of $2,634 (US$132), approximately, which were
paid on September 19, 2024.
On March 7, 2023, the Company held an Ordinary General Meeting of stockholders, at which the payment
of a cash dividend per share of US$0.0755, equivalent to approximately $2,866 (US$159), was approved
in a single instalment, which was paid in a single instalment on March 16, 2023.
The net income of the year is subject to decisions made by the General Stockholders' Meeting, the
Company's by-laws and the General Law of Mercantile Corporations. In accordance with the General
Law of Mercantile Corporations, the legal reserve should be increased annually by 5% of the net annual
income until it reaches 20% of the fully paid in capital stock. As of December 31, 2025, 2024 and 2023,
the legal reserve amounts to $1,210.
On October 31, 2022, the Company’s Board of Director, through the powers delegated at the Ordinary
General Meeting of stockholders held on March 3, 2022, approved the payment of a cash dividend per
share of US$0.093, equivalent to the aggregate amount of $3,887 (US$196), approximately, which were
paid on November 9, 2022.
The Income Tax Law establishes a tax rate of 10% to the dividends paid to foreign residents and Mexican
individuals derived from the profits generated since 2014, also provides that for the years 2001-2013, the
net taxable profit will be determined in terms of the Income Tax Law in force in the fiscal year concerned.
Dividends paid are not subject to income tax if they derived from the Net Tax Profit Account (“CUFIN”),
for its acronym in Spanish). Any dividends paid in excess of this account will cause an income tax charge
based on the tax rate valid in the period in which they are paid. This tax is payable by the Company and
may be credited against its income tax in the same year or the following two years. Dividends paid from
profits which have previously paid income tax are not subject to tax withholding or to any additional tax
payment. As of December 31, 2025, the value of the Capital Contribution Account (“CUCA”), for its
acronym in Spanish) amounted to $7,494. The tax value of the CUFIN amounted to $16,856.
23.
Shared-based payments
Alpek has a stock-based compensation scheme referred to at 100% of the value of the shares of Alpek
SAB for directors of the Company and its subsidiaries. In accordance with the terms of the plan, the
eligible directors will obtain a cash payment contingent upon achieving both quantitative and qualitative
metrics derived from the following financial measures:
•
Improved share price
•
Permanence of the executives in the Company
The program consists in determining a number of shares which the executives will have a right to, that
will be paid in cash over the next five years; i.e., 20% every year and will be paid with reference at the
average price of the shares during the year. These payments are measured at the fair value of the
consideration, therefore, because they are based on the price of Alpek shares, the measurement is
considered to be within level 1 of the fair value hierarchy.
The average price of the shares in pesos considered for the measurement of the executive incentive is:
2025
2024
2023
Sigma Foods, S. A. B. de C. V. (1)
-
16.83
15.68
Alpek, S. A. B. de C. V.
9.41
13.54
12.89
(1) Until March, Sigma Foods, S.A.B. de C.V. served as Controladora Alpek’, and the share‑based compensation was referenced 50% to the value of its shares.
However, as of that date, as a result of the spin‑off process (see Note 2 c), Sigma Foods became an affiliate and ceased to be considered in the calculation
59
The short-term and long-term liabilities are comprised as follows:
As of December 31,
2025
2024
2023
Short term
$ 15
$ 17
$ 9
Long term
34
48
27
Total carrying amount
$ 49
$ 65
$ 36
24.
Expenses classified by their nature
The total cost of sales and selling and administrative expenses, classified by the nature of the expense, for
the years ended December 31, are comprised as follows:
2025
2024
2023
Raw material and other
$ (91,596) $(100,070)
$(101,752)
Freight expenses
(7,535)
(7,519)
(8,487)
Employee benefit expenses (Note 27)
(7,154)
(6,996)
(6,976)
Depreciation and amortization
(5,157)
(4,767)
(4,619)
Consumption of energy and fuel (gas, electricity, etc.)
(4,660)
(3,913)
(4,400)
Maintenance
(2,590)
(2,303)
(2,514)
Technical assistance, professional fees and administrative
services
(1,962)
(1,584)
(1,727)
Lease expenses
(681)
(704)
(583)
Travel expenses
(157)
(161)
(180)
Human resources
(126)
(146)
(193)
Advertising expenses
(7)
(5)
(12)
Other (insurance and bonds, water, containers and packing,
etc.)
(2,738)
(3,562)
(2,270)
Total
$(124,363) $(131,730)
$(133,713)
25.
Other income (expenses), net
Other income (expense) for the years ended December 31, are comprised as follows:
2025
2024
2023
Gain on business combination (2)
$ -
$ 47
$ -
Gain on sale of business
101
-
-
Other income, net (4)
368
1,235
195
Impairment long-lived assets (1) (3) (5)
(924)
(1,791)
(11,078)
Total
$ (455)
$ (509)
$ (10,883)
(1)
For the year ended December 31, 2023, it primarily includes impairment expense on investment in CCP's joint venture, and long-lived assets from the closure of
the filament plant and the closure of the PET resin production operation at the Cooper River site.
(2)
For the year ended December 31, 2024, primarily corresponds to the gain on the acquisition of Clear Path Recycling, LLC and Agua Industrial del Poniente, S.A.
de C.V.
(3)
For the year ended December 31, 2024, primarily includes impairment expense on the investment in Clear Path Recycling, LLC's joint venture business of $65,
based on IFRS 3 requirements for a staged business combination, supplemented by impairment expense related to the suspension of EPS operations in Beaver
Valley of $1,191, as well as the impairment expense of the investment in the joint venture of CCP of $251, and an impairment expense related to the fixed assets
of Selenis of $283.
(4)
For the year ended December 31, 2024, it primarily includes collateral-related income of $447, Brazil tax incentives and tax recovery of $412, and insurance
recovery of $258.
(5)
For the year ended December 31, 2025, primarily includes impairment expense on the investment in Clear Path Recycling, LLC's joint venture business of $138,
supplemented by impairment expense related to the suspension of EPS operations in North Carolina of $376, as well as the impairment expense of the
investment in the joint venture of CCP of $221,
60
26.
Finance income and costs
Financial result, net for the years ended December 31, are comprised as follows:
2025
2024
2023
Financial income:
Interest income on short-term bank deposits
$ 148
$ 332
$ 724
Interest income on loans from related parties
122
60
25
Other financial income
408
477
568
Total financial income
678
869
1,317
Financial expenses:
Interest expense on bank loans
(852)
(1,126)
(1,009)
Non-bank interest expense
(1,223)
(865)
(1,116)
Lease interest expense
(262)
(259)
(231)
Interest cost on employee benefits, net
(70)
(79)
(46)
Other financial expenses
(1,376)
(2,120)
(1,580)
Total financial expense
(3,783)
(4,449)
(3,982)
Loss in exchange fluctuation, net
Foreign exchange gain
12,253
15,682
23,168
Foreign exchange loss
(11,510)
(18,022)
(23,171)
Loss in exchange fluctuation, net
743
(2,340)
(3)
Financial result, net
$(2,362)
$(5,920)
$(2,668)
27.
Employee benefit expenses
Employee benefits expenses for the years ended December 31, are as follows:
2025
2024
2023
Salaries, wages and benefits
$(5,459)
$(5,702)
$(5,566)
Social security fees
(528)
(554)
(604)
Employee benefits
(102)
(43)
(73)
Other fees
(1,065)
(697)
(733)
Total
$(7,154)
$(6,996) $(6,976)
Labor Reform Related to Vacations
On December 27, 2022, a decree was published by means of which articles 76 and 78 of the Federal Labor
Law (“LFT” for its acronym in Spanish) for México were reformed, which will be effective on January
1, 2023. The main change resulting from this labor reform considers the increase in the minimum annual
vacation period for workers with more than one year of service.
The Company evaluated the accounting impacts generated by this labor reform and determined that the
increases in the vacation and vacation premium provision, as a result of the increase in vacation days,
were not significant as of December 31, 2025, 2024 and 2023.
61
28.
Related party transactions
Transactions with related parties during the years ended December 31, 2025, 2024 and 2023 were as
follows:
2025
2024
2023
Income
Income from sale of goods:
Stockholders with significant influence over subsidiaries
$ 1,208
$ 1,534
$ 1,522
Income from services:
Affiliates
-
1
12
Stockholders with significant influence over subsidiaries
61
197
171
Income from financial interest:
Sigma Foods
-
28
23
Affiliates
-
-
3
Associates
-
4
-
Income from leases:
Stockholders with significant influence over subsidiaries
21
40
34
Income from sale of energetic:
Affiliates
75
87
95
Stockholders with significant influence over subsidiaries
-
18
34
Other income:
Affiliates
24
22
1
Stockholders with significant influence over subsidiaries
61
18
2
Costs / expenses
Purchase of finished goods and raw materials:
Stockholders with significant influence over subsidiaries
(474)
(518)
(647)
Expenses from services:
Sigma Foods
(365)
(259)
(348)
Affiliates
(94)
(125)
(146)
Stockholders with significant influence over subsidiaries
(11)
(12)
(13)
Other expenses:
Affiliates
(32)
(31)
(49)
Associates and joint ventures
(60)
(94)
(71)
Stockholders with significant influence over subsidiaries
(5)
(9)
1
Dividends paid to Sigma Foods
-
(2,094)
(2,447)
Dividends of subsidiaries to shareholders with significant
influence
(668)
(1,219)
(1,474)
For the year ended December 31, 2025, 2024 and 2023, the remunerations and benefits received by the
top officers of the Company amounted to $473, $351 and $410, respectively, comprising of base salary
and social security benefits, and supplemented by a variable consideration program based on the
Company’s results and the market value of the shares thereof and of its holding company.
62
As of December 31, balances with related parties are as follows:
Nature of the transaction
As of December 31,
2025
2024
2023
Short-term accounts receivable:
Holding company
Sigma Foods, S. A. B. de C. V. (2)
Administrative services
$ -
$ 29
$ 87
Affiliates
Innovación y Desarrollo de Energía
Alfa Sustentable, S. A. de C. V.
Administrative services
-
-
115
Newpek, LLC
Administrative services
2
2
-
Terza, S. A. de C. V.
Sale of goods
-
1
-
Sigma Alimentos Lácteos, S.A. de C.V.
Energetics
3
3
3
Sigma Alimentos Centro, S.A. de C.V.
Energetics
-
5
4
Sigma Alimentos Noreste, S.A. de C.V.
Energetics
1
-
-
Alimentos Finos Occidente, S.A. de C.V.
Energetics
-
1
1
Carnes el Tangamanga S.A. de C.V.
Energetics
-
-
1
Associates
Clear Path Recycling, LLC
Financing and interest
-
-
63
Stockholders with significant influence on
subsidiaries
BASF
Sale of goods
118
120
120
Basell
Energetics
17
21
60
$ 141
$ 182
$ 454
Long-term accounts receivable:
Holding company
Sigma Foods, S. A. B. de C. V. (1) (2)
Financing and interest
$ -
$1,178
$ 763
$ -
$1,178
$ 763
Short-term accounts payable:
Holding Company
Sigma Foods, S. A. B. de C. V. (2)
Administrative services
$ -
$ 52
$ 37
Affiliates
Alliax, S. A. de C. V.
Administrative services
2
4
5
Axtel, S.A.B. de C.V.
Administrative services
1
3
4
Newpek, S. A. de C. V.
Administrative services
-
-
-
Servicios Empresariales del Norte, S. A. de
C. V.
Administrative services
3
5
2
Sigma Foods, S. A. B. de C. V. (2)
Administrative services
120
Associates
Tepeal
Administrative services
$ -
2
6
Stockholders with significant influence over
subsidiaries
BASF
Purchase of raw materials
39
102
87
Basell
Energetics
14
-
12
Shaw Industries
Purchase of raw materials
29
-
-
$ 208
$ 168
$ 153
(1)
As of December 31, 2024 and 2023, the loans granted bore interest at average fixed interest rate of 12.47%, and 5.34%,
respectively.
(2)
Until March 27, 2025, Sigma Foods, S.A.B. de C.V. was the parent company of Alpek; however, as of that date, as a result
of the spin-off process (see Note 2c), it became an affiliate
29.
Segment reporting
Segment reporting is presented consistently with the financial information provided to the Chief Executive
Officer, who is the highest authority in operational decision making, allocation of resources and
performance assessment of operating segments.
An operating segment is defined as a component of an entity on which separate financial information is
regularly evaluated.
63
Management controls and assesses its operations through two business segments: the Polyester business
and the Plastics and Chemicals business. These segments are managed separately since its products vary
and targeted markets are different. Their activities are performed through various subsidiaries.
The operations between operating segments are performed at market value and the accounting policies
with which the financial information by segments is prepared, are consistent with those described in Note
3.
The Company has defined Adjusted EBITDA as the calculation of adding operating income, depreciation,
amortization, and impairment of long-lived assets.
The Company evaluates the performance of each of the operating segments based on Adjusted EBITDA,
considering that this indicator is a good metric to evaluate operating performance and the ability to meet
principal and interest obligations with respect to indebtedness, and the ability to fund capital expenditures
and working capital requirements. Nevertheless, Adjusted EBITDA is not a measure of financial
performance under IFRS and should not be considered as an alternative to net income as a measure of
operating performance or cash flows as a measure of liquidity.
Following is the condensed financial information of the Company’s operating segments:
For the year ended December 31, 2025:
Polyester
Plastics
and
Chemicals
Other
Total
Statement of income:
Income by segment
$ 90,621
$ 25,379
$10,840
$126,840
Inter-segment income
(135)
-
135
-
Income from external customers
$ 90,486
25,379
$10,975
$126,840
Operating income
$ (896)
$ 2,705
$ 213
$ 2,022
Depreciation and amortization
4,175
952
31
5,158
Impairment of long-lived assets
923
1
-
924
Adjusted EBITDA
$ 4,202
$ 3,658
$ 244
$ 8,104
Investments in fixed and intangible assets
$ 2,061
$ 323
$ 23
$ 2,407
For the year ended December 31, 2024:
Polyester
Plastics
and
Chemicals
Other
Total
Statement of income:
Income by segment
$100,013
$ 29,501
$ 7,895
$ 137,409
Inter-segment income
(76)
-
76
-
Income from external customers
$ 99,937
$ 29,501
$ 7,971
$ 137,409
Operating (loss) income
$ 3,312
$ 1,636
$ 222
$ 5,170
Depreciation and amortization
3,796
956
15
4,767
Impairment of long-lived assets
599
1,192
-
1,791
Adjusted EBITDA
$ 7,707
$ 3,784
$ 237
$ 11,728
Investments in fixed and intangible assets
$ 1,512
$ 447
$ 14
$ 1,973
64
For the year ended December 31, 2023:
Polyester
Plastics
and
Chemicals
Other
Total
Statement of income:
Income by segment
$ 102,230
$ 27,729
$8,200
$ 138,159
Inter-segment income
(77)
(20)
97
-
Income from external customers
$ 102,153
$ 27,709
$8,297
$ 138,159
Operating income
$ (9,740)
$ 3,220
$ 83
$ (6,437)
Depreciation and amortization
3,725
886
8
4,619
Impairment of long-lived assets
11,077
1
-
11,078
Adjusted EBITDA
$ 5,062
$ 4,107
$ 91
$ 9,260
Investments in fixed and intangible assets
$ 2,149
$ 376
$ 3
$ 2,528
The reconciliation between adjusted EBITDA and income before taxes for the years ended December 31,
is as follows:
2025
2024
2023
Adjusted EBITDA
$ 8,104
$11,728
$ 9,260
Depreciation and amortization
(5,158)
(4,767)
(4,619)
Impairment of long-lived assets
(924)
(1,791)
(11,078)
Operating income (loss)
2,022
5,170
(6,437)
Financial result, net
(2,362)
(5,920)
(2,668)
Equity in loss of associates and joint ventures
4
(44)
(201)
(Loss) income before income taxes
$ (336)
$ (794)
$(9,306)
The Company's main customer generated revenues amounting to $10,297, $7,704, and $10,009, for the
years ended December 31, 2025, 2024 and 2023. These revenues are resulted from the polyester reporting
segment and represent 8.1%, 5.6%, and 7.2% of the consolidated revenues with external costumers for the
years ended December 31, 2025, 2024 and 2023.
Following is a summary of revenues per country of origin for the years ended December 31:
2025
2024
2023
México
$ 51,787
$ 52,948
$ 52,443
United States
37,614
41,361
44,991
Argentina
3,258
5,502
4,894
Brazil
14,036
15,863
13,681
Chile
1,466
886
941
Canada
865
1,781
2,317
United Kingdom
2,827
3,503
3,393
Oman
13,765
15,111
15,098
Saudi Arabia
1,222
454
401
Total revenues
$126,840
$137,409
$138,159
The following table shows the intangible assets and property, plant and equipment by country:
As of December 31,
2025
2024
2023
México
$ 932
$ 1,157
$ 1,083
United States
844
1,093
1,028
Canada
1
2
3
Brazil
154
168
194
Oman
963
1,255
1,186
Total intangible assets
$ 2,894
$ 3,675
$ 3,494
65
As of December 31,
2025
2024
2023
México
$18,846
$20,752
$17,831
United States
7,371
8,973
7,684
Canada
236
295
497
Argentina
360
674
281
Chile
262
280
237
Brazil
4,328
4,279
4,699
United Kingdom
653
722
624
Oman
8,541
10,030
8,830
Saudi Arabia
279
312
269
Total property, plant and equipment
$40,876
$46,317
$40,952
30.
Commitments and contingencies
As of December 31, 2025, the Company has the following commitments:
a.
As of December 31, 2025, 2024 and 2023, the Company’s subsidiaries had entered into various
agreements with suppliers and customers for purchases of raw materials used for production and the
sale of finished goods, respectively. These agreements are effective between one and five years and
generally contain price adjustment clauses.
b.
A subsidiary of the Company entered into agreements to cover the supply of propylene, which
establish the obligation to purchase the product at a priced referenced to market values for a specific
period.
As of December 31, 2025, the Company has the following contingencies:
a.
During the normal course of the business, the Company is involved in disputes and litigations. While
the results of these may not be predicted, the Company does not believe that there are actions pending
to apply, claims or legal proceedings against or affecting the Company which, if it were to result in
an adverse resolution to the Company, would negatively impact the results of its operations or its
financial position.
b.
Some of the Company’s subsidiaries use hazardous materials to manufacture polyester filaments,
polyethylene terephthalate (PET) and terephthalic acid (PTA) resin, polypropylene (PP) resin,
expandable polystyrene (EPS), chemical specialties and they generate and dispose of waste, such as
catalysts and glycols. These and other activities of the subsidiaries are subject to various federal, state
and local laws and regulations governing the generation, handling, storage, treatment and disposal of
hazardous substances and wastes. According to such laws, the owner or lessor of real estate property
may be liable for, among other things, (i) the costs of removal or remediation of certain hazardous or
toxic substances located on, in, or emanating from, such property, as well as the related cost of
investigation and property damage and substantial penalties for violations of such law, and (ii)
environmental contamination of facilities where its waste is or has been disposed of. Such laws
impose such liability without regard to whether the owner or lessee knew of, or was responsible for,
the presence of such hazardous or toxic substances.
Although the subsidiaries estimate that there are no existing material liabilities relating to
noncompliance with environmental laws and regulations, there can be no assurance that there are no
undiscovered potential liabilities related to historic or current operations that will require
investigation and/or remediation under environmental laws, or that future uses or conditions will not
result in the imposition of an environmental liability or expose them to third-party or related parties
actions, such as tort suits. Furthermore, there can be no assurance that changes in environmental
regulations in the future will not require the subsidiaries to make significant capital expenditures to
change methods of disposal of hazardous materials or otherwise alter aspects of their operations.
66
c.
As of December 31, 2025, the Company is in a process of fiscal litigation in one of its subsidiaries
in Brazil, in relation to the demand for payment of the Tax on the Circulation of Goods and Services
("ICMS") that the Ministry of Finance of the State of Sao Paulo ("SFSP", for its initials in Portuguese)
has raised against the Company, due to differences in the criteria for the calculation and crediting of
such tax. Considering all the circumstances and precedents of jurisprudence available at that date,
management and its advisors have determined that it is probable that the Superior Court of Justice of
Brazil will issue a judgment in favor of the Company for the amount related to differences in the
calculation, which would exempt it from paying $515 in taxes, fines and interest that the SFSP
demands; therefore, as of December 31, 2025, the Company has not recognized any provision related
to this concept.
On the other hand, for the concept of ICMS crediting, the demanded amount is $103, and
management and its advisors consider that it is not probable that the authorities will issue an
unfavorable resolution for the Company; thus, it has not recognized any provision related to this
concept as of December 31, 2025.
d.
Anti-Dumping of PET Resin
In March 2015, in response to petitions made by PET resin manufacturers in the United States of
America (“USA”), the International Trade Commission (“ITC”) and the Department of Commerce
of The United States (“USDOC”) initiated an Anti-Dumping investigation on imports of PET resin
from China, India, Oman and Canada, resulting in the imposition of an antidumping duty. The duty
has been reviewed annually during the month of May at the request of either Octal or the USA
manufacturers, the rate has fluctuated based on the annual reviews. Currently, the antidumping duty
applied is 0.00% following the Department of Commerce's seventh review and determination. During
the first semester of 2026, the final results of the eighth review and determination by the Department
of Commerce are expected. Based on those results, the applicable countervailing duty will be
adjusted.
31.
Subsequent significant events
In preparing the consolidated financial statements, the Company evaluated events and transactions for
recognition or disclosure subsequent to December 31, 2025 and through January 31, 2026 (the issuance
date of the consolidated financial statements), and no significant subsequent events were identified, with
the exception of the following: As part of its initiatives to reduce costs and improve competitiveness, the
Company plans to suspend operations at its recycling plant in Reading, Pennsylvania, in the second
quarter of 2026, shifting part of the capacity to its integrated complex in Richmond, Indiana.
32.
Authorization to issue the consolidated financial statements
On January 31, 2026, the issuance of the accompanying consolidated financial statements was authorized
by Jorge Pedro Young Cerecedo, General Director and José Carlos Pons de la Garza, Administration and
Finance Director.
These consolidated financial statements are subject to the approval of the Company’s ordinary
shareholders’ meeting.
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ABOUT
ALPEK
OUR
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NATURAL
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REVIEW
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CONSOLIDATED FINANCIAL
STATEMENTS
2025
PERFORMANCE
ALPEK’S
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IMPACT
2025
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ALPEK, S.A.B. DE C.V.
Av. Gómez Morín 1111 Sur
Col. Carrizalejo, San Pedro
Garza García Nuevo León,
CP. 66254, Mexico
WWW.ALPEK.COM
INVESTOR RELATIONS
Bárbara Amaya
Alejandra Bustamante
IR@ALPEK.COM