Braskem (BRKM5) Q1 2026 earnings summary

Executive summary

• Recurring EBITDA reached US$192 million in Q1 2026, up 76% from Q4 2025, driven by higher spreads, positive tax credits in Brazil, and 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.

• Operating cash consumption was US$603 million (R$3.2 billion), mainly due to negative working capital changes, inventory replenishment, and semiannual debt interest payments.

• Cash position ended at US$1.1 billion, including a $1 billion standby facility, but decreased 46% sequentially.

• Material uncertainty exists regarding going concern due to negative equity, high leverage, and Braskem Idesa's financial distress.

Financial highlights

• Net revenue was US$2.95 billion (R$15,488 million), down 1% sequentially and 12% year-over-year.

• Recurring EBITDA margin improved to 7% in Q1 2026, up from 4% in Q4 2025.

• Adjusted net debt was US$8.5 billion, with leverage at 16.81x and gross debt at US$12.05 billion.

• Net profit attributable to shareholders was R$1,446 million, up from R$698 million year-over-year, driven by positive financial results from derivatives and exchange rate variations.

• Cash and cash equivalents decreased to R$4,678 million from R$10,501 million at year-end.

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.

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

• Management expects continued pressure on liquidity due to industry downturn, high debt service, and obligations from the Alagoas geological event.

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