Braskem (BRKM5) Q1 2025 earnings summary

Executive summary

• Recurring EBITDA reached US$224 million in Q1 2025, up 121% from Q4 2024, with net income of US$113 million and net profit attributable to shareholders of R$698 million, reversing prior losses.

• Operations improved across all petrochemical plants, with higher utilization rates in all regions and a global accident frequency rate of 0.92 per million hours worked.

• Strategic milestones included the inauguration of the ethane import terminal in Mexico and a capacity review for the green ethylene plant.

• Net revenue was R$19,460 million, up 8.6% year-over-year, with gross profit at R$1,310 million.

• Announced new investments in production capacity and transformation strategy in Brazil.

Financial highlights

• Recurring EBITDA: US$224 million, up 121% quarter-over-quarter; EBITDA margin improved to 11%.

• Net profit: US$113 million attributable to shareholders; net income at R$698 million.

• Cash position: US$2 billion, covering debt maturities for the next 33 months, plus a US$1 billion undrawn credit line.

• Corporate leverage at 7.92x at Q1 2025 end; net debt at US$6.6 billion, average maturity 9 years, 68% maturing from 2030.

• Operating cash consumption: R$936 million, mainly due to working capital changes and scheduled shutdowns.

Outlook and guidance

• Mixed scenario expected in Q2 2025: higher utilization in Brazil and US, stable US/Europe, lower production in Mexico due to a 45-day shutdown.

• International spreads remain challenging; lower nafta prices may benefit resin spreads in Brazil, while higher ethane prices could pressure gas-based PE spreads.

• Strategic investments include capacity expansions and sustainability projects, with R$614 million in new projects announced.

• Company focuses on resilience, financial health, and transformation, with ongoing cost reductions and asset optimization.