Braskem (BRKM5) Q1 2025 earnings summary

Executive summary

• Recurring EBITDA reached $224 million in Q1 2025, up 121% from Q4 2024, with net profit attributable to shareholders of $113 million, marking a significant turnaround and the highest net income since Q1 2023.

• Operational improvements included higher utilization rates across all petrochemical plants and regions, with Brazil/South America up 4 p.p. and US/Europe up 13 p.p., and a global accident frequency rate of 0.92 per million hours worked.

• Performance was driven by higher international spreads for PE and chemicals, increased chemical sales abroad, and strong PP sales in the US and Europe.

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

Financial highlights

• Consolidated recurring EBITDA of $224 million, up 121% from Q4 2024, with EBITDA margin improving to 11%.

• Net profit attributable to shareholders was $113 million, reversing a loss in Q4 2024.

• Cash position at quarter-end was $2 billion, covering debt maturities for the next 33 months, excluding a $1 billion revolving credit line.

• Corporate leverage stood at 7.92x at the end of Q1 2025; average debt maturity is 9 years, with 68% maturing after 2030.

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

Outlook and guidance

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

• International spreads remain challenging due to prolonged shutdowns and new tariffs; lower nafta prices may benefit resin spreads in Brazil, while higher ethane prices could pressure gas-based PE spreads.

• Company focuses on resilience, financial health, and transformation, with ongoing asset and investment prioritization.

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