Braskem (BRKM5) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw strong operational and financial performance, with recurring EBITDA reaching US$1.043 billion, driven by higher international spreads from Middle East disruptions and positive tax credits in Brazil.

• Net revenue for 2Q2026 was R$21,715 million, up 21.6% year-over-year, and net profit reached R$3,323 million, reversing a prior-year loss.

• The company prioritized capital structure optimization, operational excellence, and long-term competitiveness, while advancing restructuring talks amid liquidity pressures.

• Segment performance varied: Brazil/South America and US/Europe benefited from spread increases, while Mexico faced lower sales due to liquidity measures.

• Material uncertainty remains regarding going concern due to negative equity, high leverage, and ongoing debt restructuring.

Financial highlights

• Consolidated recurring EBITDA reached US$1.043 billion (24% margin), up from US$192 million in 1Q26; net income attributable to shareholders was US$664 million.

• Net revenue was US$4.3 billion, up 46% sequentially and 37% year-over-year.

• Operating cash generation was R$1,928 million, with recurring cash generation at R$1,048 million, partially offset by negative working capital variation.

• Cash and cash equivalents at June 30, 2026, were R$3,931 million, down from R$10,501 million at year-end 2025.

• Earnings per share (basic and diluted) for common shares reached R$5.99 for the half-year.

Outlook and guidance

• Consultants and management expect normalization of spreads in H2 2026 and 2027 as product flows stabilize, but volatility may persist due to geopolitical and logistical risks.

• The industry remains structurally challenged by global overcapacity, moderate demand, and ongoing macroeconomic volatility.

• Regulatory measures, such as antidumping duties and sector incentives, are expected to partially mitigate competitive pressures in Brazil.

• The company is prepared to capture tactical opportunities but does not expect a structural change in the industry cycle.