Braskem (BRKM5) Q3 2025 earnings summary

Executive summary

• Recurring EBITDA reached US$150 million in Q3 2025, up 104% sequentially but down 65% year-over-year, driven by higher sales in Brazil and resilience initiatives amid a prolonged industry downturn and global oversupply.

• Net loss attributable to shareholders was US$1 million, mainly due to Alagoas provisions and plant hibernation, a significant improvement from prior quarters.

• Operating cash flow was negative, with cash consumption of approximately US$61–62 million, despite improved EBITDA.

• Cash position at quarter-end was US$1.3 billion, with total liquidity of US$2.3 billion, sufficient to cover debt maturities for the next 27 months.

• The company advanced its Resilience and Transformation Program, focusing on cost reduction, asset optimization, and regulatory actions to support competitiveness.

Financial highlights

• Recurring EBITDA for Q3 2025 was US$150 million, up 104% sequentially but down 65% year-over-year; EBITDA margin improved to 11.3% sequentially.

• Brazil-South America segment recurring EBITDA was US$205 million, up 35% sequentially.

• Mexico segment recurring EBITDA was negative US$37 million, impacted by maintenance and lower ethane supply.

• Net revenue was US$3.18 billion, up 1% sequentially but down 17% year-over-year.

• Adjusted net debt/recurring EBITDA rose to 14.76x, with gross debt at US$8.4 billion.

Outlook and guidance

• The prolonged petrochemical downcycle is expected to persist until at least 2030, with only modest recovery after 2029.

• Strategic focus remains on resilience, transformation, and regulatory measures to support competitiveness and mitigate cash consumption.

• The Transforma Rio project, with a R$4.2 billion investment, aims to expand ethylene and PE capacity by 2028.

• PVC demand in Brazil is expected to grow 3% in 2025 and 2026, supported by the sanitation law.