Braskem (BRKM5) Q2 2025 earnings summary

Executive summary

• Recurring EBITDA fell to US$74 million in Q2 2025, down 67% from Q1 and 77% year-over-year, reflecting a prolonged industry downcycle, lower spreads, scheduled shutdowns, and inventory effects.

• 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.

Financial highlights

• Net revenue was US$3.15 billion, down 5% sequentially and 14% year-over-year; gross profit dropped 72% from Q1 2025.

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

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

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

• Operational cash generation was negative at US$31 million, with total cash consumption of R$1.4 billion including Alagoas-related disbursements.

Outlook and guidance

• The global petrochemical industry faces continued challenges from oversupply, slow demand growth, and high idleness, with margin pressure expected through 2030.

• The company expects continued cash consumption in H2 2025, but at a lower rate, focusing on productivity and feedstock improvements.

• No significant improvement in spreads is 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.