Enka 1Q 2026 Profits Jump 66% Year-on-Year

Medellin-based textiles and plastics recycling special Enka announced May 14 a 66% year-on-year boost in first quarter (1Q) 2026 net income, hitting COP$1.56 billion (US$429,000), versus COP$956 million (US$262,000) in 1Q 2025.

The profits hike came despite a 24% drop operating income, at COP$88.6 billion (US$24 million) in 1Q 2026 versus COP$117 billion (US$32 million) in 1Q 2025.

The drop in operating income “is mainly due to lower international benchmark prices (including the price of the plastic bottle), which, although prices rebounded towards the end of March 2026, remained below the levels of the previous year, as well as the effect of a lower [U.S. dollar] exchange rate and the drop in demand for our [recycled] tire material business,” according to Enka.

Meanwhile, earnings before interest, taxes, depreciation and amortization (EBITDA) declined 14% year-on-year, to COP$6.2 billion (US$1.7 million) in 1Q 2026 , versus COP$7.2 billion (US$1.98 million) in 1Q 2025.

The EBITDA decline was entirely due to Colombia’s federal “wealth tax,” which took COP$1.8 billion (US$495,000) away from profits.

If excluding the wealth tax, then EBITDA margin for 1Q 2026 would have improved to 9% year-on-year, versus 6.1% in 1Q 2025, according to Enka.

“Despite the economic and geopolitical context during the first quarter of 2026, characterized by tensions in various markets and the escalation of the conflict in the Middle East, which resulted, at the end of the quarter, in increases in international oil prices, raw material costs, and international freight rates, at Enka we have managed to capitalize on these challenges and turn them into opportunities,” according to the company.

Despite the negative impacts of the wealth tax, “we maintained a strong financial position, ensuring a continuous supply of products to our customers and reinforcing our position as a reliable supplier with high quality standards,” according to Enka.

Assets increased by COP$7.48 billion (US$2 million) “due to higher cash and the positive valuation of hedges (financial instruments),” according to the company.

“Liabilities, which reached COP$143 billion [US$39 million], are COP$9.9 billion [US$2.7 million] higher than at the end of the previous year due to dividends declared for payment in 2026, totaling COP$6.35 billion [US$1.7 million] and taxes payable (wealth tax and value-added tax, VAT),” the company added.