Dura-Line's HDPE conduit sales jump 47% on US data centre and telecom demand

Orbia, the Mexico-based parent of HDPE conduit maker Dura-Line, reported third-quarter 2026 results on 27 October. Its Connectivity Solutions group, which trades as Dura-Line, was the standout: revenue rose 47% to $373 million, from $253 million a year earlier.

The numbers

Connectivity Solutions' operating income nearly doubled, up 99% to $55 million, and EBITDA rose 68% to $71 million. EBITDA margin reached 19.1%, up 234 basis points. Orbia put the growth down to volume from strong demand across US telecoms and data centre markets, plus price rises to offset higher raw material costs. It said a better product mix and high plant utilisation helped margins.

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Across the group, revenue rose 12% to $2,196 million and EBITDA rose 12% to $332 million. North American revenue grew 26% to $895 million, or 41% of the total.

"Connectivity Solutions captured strong demand from AI data center, telecom, power and electrification investments in the U.S." Sameer Bharadwaj, CEO, Orbia

A tale of two pipe businesses

Orbia's building and infrastructure arm, Wavin, which is being renamed Orbia Water & Climate Solutions, had a much flatter quarter. Revenue rose 2% to $660 million, with growth in Latin America partly offset by soft demand in Europe. Orbia expects that business to stay challenging, especially in Europe, and is focusing on footprint optimisation and cost discipline. Bharadwaj said higher costs weighed most on rate-sensitive construction and housing markets.

For Dura-Line, management expects demand to keep growing on the back of telecom network expansion and US investment in AI and data centre infrastructure. It is counting on pricing discipline, higher-value applications and better plant utilisation to lift margins further.

Elsewhere in the group, Bharadwaj said the Fluor & Energy Materials business benefited from fluorine chain fundamentals, and that Orbia is making progress on non-core asset sales. The release did not say which assets are for sale, and it made no mention of selling or separating Dura-Line.

The bigger picture

Dura-Line describes its role as building HDPE conduit pathways that connect data centres. Last week we covered a forecast for data centre piping. Orbia's results are hard evidence for that trend: real revenue and margin growth in a US HDPE conduit business this quarter. For a polyethylene pipe sector that has leaned on municipal and energy work, this gives producers with conduit lines another market to sell into.

What it means for hiring

High plant utilisation plus volume growth usually means capacity decisions follow. In our view, conduit producers will be hiring plant and operations leaders who can add shifts or lines without hurting quality.
Selling to hyperscalers, telecom carriers and their contractors is a different skill set from municipal waterworks sales. We expect demand for key account and national account managers with data centre or telecom relationships.
Pricing to offset resin costs is part of the story. Commercial leaders who can hold margin through raw material swings are worth more to pipe makers right now.

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