Braskem (BRKM5) Q2 2025 earnings summary

Executive summary

• Recurring EBITDA fell to US$74 million in 2Q25, down 67% from 1Q25 and 77% from 2Q24, reflecting lower spreads, scheduled shutdowns, and inventory effects across all segments.

• Net loss attributable to shareholders was US$45 million (R$267 million), mainly due to margin compression and reduced financial gains.

• Cash position at quarter-end was US$1.7 billion, sufficient for 30 months of debt maturities, with total liquidity at US$2.8 billion including a US$1 billion credit line.

• The company advanced its transformation and decarbonization strategies, including asset optimization, renewable energy investments, and logistics improvements.

• Net revenue for 2Q2025 was R$17,857 million, down from R$19,075 million in 2Q2024, with a consolidated net profit of R$431 million versus a loss of R$5,080 million in the prior year period.

Financial highlights

• Recurring EBITDA in Brazil segment was US$152 million, 24% lower than Q1, impacted by feedstock costs, currency effects, and lower spreads.

• US and Europe segment posted negative recurring EBITDA of US$8 million, despite higher PP sales, due to inventory effects and higher SG&A.

• Mexico segment recurring EBITDA was negative US$9 million, affected by lower sales, reduced ethane supply, and higher shutdown-related expenses.

• Gross profit dropped 72% from 1Q25 and 74% from 2Q24; gross margin fell to 2%.

• Adjusted net debt/recurring EBITDA rose to 10.59x from 7.98x in 1Q25 and 6.79x in 2Q24.

Outlook and guidance

• The global petrochemical industry faces continued challenges due to capacity additions, slow demand growth, and oversupply, with margin pressure expected through 2030.

• Company expects continued cash consumption in H2 2025, but at a lower rate, focusing on productivity and feedstock improvements to reduce cash burn.

• No significant improvement in spreads anticipated without government intervention (REIQ, PRESIQ, anti-dumping) before 2026.

• Emphasis on competitive parity measures in Brazil, such as the PRESIQ program, to support industry utilization and competitiveness.

• Strategic focus remains on resilience, transformation, and sustainability, with ongoing investments in renewables and operational efficiency.