Braskem (BRKM5) Q1 2026 earnings summary

Executive summary

• Recurring EBITDA reached US$192 million in 1Q26, up 76% from 4Q25, driven by higher spreads, operational normalization, and positive tax credits in Brazil, with improved performance in the US and Europe, despite a negative result in Mexico.

• Net income attributable to shareholders was US$275 million, reversing a loss in the previous quarter, mainly due to positive exchange rate effects and tax asset write-offs.

• Cash position ended at US$1.1 billion, with operating cash consumption of US$603 million (R$3.2 billion), mainly due to negative working capital changes, inventory replenishment, and interest payments.

• Returned to ISE B3 Corporate Sustainability Index and became the first chemical company to receive Selo Verde Brasil for bio-based products.

• Significant progress in capital structure reorganization and negotiations with creditors.

Financial highlights

• Net revenue was US$2.95 billion, down 1% sequentially and 12% year-over-year.

• Recurring EBITDA margin improved to 7% in 1Q26, up from 4% in 4Q25.

• Adjusted net debt increased to US$8.5 billion, with corporate leverage at 16.81x.

• Gross debt stood at US$12.05 billion, with an average debt maturity of 7.4 years and 91% in foreign currency.

• Cash and cash equivalents decreased 46% sequentially to US$1.16 billion.

Outlook and guidance

• Priorities for 2026 include capital structure reorganization, liquidity preservation, competitiveness initiatives, and sustainability expansion.

• External consultancies expect material improvement in petrochemical spreads in Q2 2026, normalizing from Q3 as supply stabilizes.

• Complementary Law No. 228 increased the REIQ benefit for the chemical industry, providing significant tax credits through December 2026.

• Projections assume the Middle East conflict ends in May; prolonged conflict could further impact spreads and demand.

• The sector faces continued macroeconomic uncertainties, commodity price volatility, and evolving regulatory/tax environments.