Unipar Carbocloro (UNIP6) Q1 2025 earnings summary

Executive summary

• Adjusted recurring EBITDA reached R$355 million, up 53% year-over-year, with a margin of 26%, and net income totaled R$150 million, up 168% year-over-year, despite persistent low petrochemical cycle and severe weather in Argentina.

• Consolidated net revenue was R$1.37 billion in 1Q25, up 18% year-over-year but down 16% sequentially, mainly due to lower caustic soda prices and currency effects.

• Maintained 20 consecutive quarters of positive net results, consistent dividend payouts, and share buybacks totaling R$25 million in 1Q25.

• Operations were impacted by an 8-day plant shutdown in Bahía Blanca, Argentina, due to severe rainfall, causing supply chain disruptions.

• Self-generation of clean energy in Brazil averaged 55% in 1Q25, reaching 64% in March.

Financial highlights

• Operating cash generation was R$156 million in 1Q25, up from R$25 million year-over-year.

• Adjusted net revenue (excluding IAS 29 effects) was R$1.36 billion, up 20% year-over-year and down 5% sequentially.

• Net debt stood at R$959 million, with a net debt/EBITDA ratio of 0.88x.

• Cash and equivalents plus financial investments totaled R$1.48 billion at quarter-end, covering 36 months of debt amortization.

• Maintenance CapEx for the quarter was R$23 million.

Outlook and guidance

• Continued pressure on soda and PVC prices is expected due to the prolonged low petrochemical cycle and global trade tensions.

• Operations at the new Camaçari plant began in December 2024, with official inauguration in April 2025; Cubatão modernization is progressing, with operations expected to start by end of 2025.

• Projected self-produced energy in Brazil to reach 80% by year-end after Cubatão modernization.

• SG&A reductions expected to be sustained, barring unforeseen circumstances.

• Strategic CAPEX cycle continues, aligned with ESG best practices.