Unipar Carbocloro (UNIP6) Q2 2025 earnings summary

Executive summary

• Recurring Adjusted EBITDA reached R$306 million in 2Q25, up 110% year-over-year but down 14% sequentially; net income was R$232 million, up 161% year-over-year and 55% from 1Q25.

• Operational resilience was demonstrated through cost reduction, full ramp-up of the Camaçari plant, and recovery in Argentina after weather disruptions.

• Strategic investments in modernization and capacity expansion, with a long-term agenda focused on competitiveness, sustainability, and value creation.

• Fixed cost reduction initiatives and increased clean energy self-generation contributed to improved margins and technical coefficients.

• Strategic focus on chemicals over PVC and domestic market sales supported performance.

Financial highlights

• Recurring Adjusted EBITDA for 2Q25 reached R$306 million, up 110% year-over-year; net income was R$232 million, up 161% year-over-year.

• Operating cash generation in 2Q25 was R$526 million, up from R$158 million in 2Q24.

• Net revenue in 2Q25 was R$1,274 million, up 2% year-over-year but down 7% sequentially; adjusted net revenue was R$1,313 million, up 13% year-over-year.

• CapEx in the quarter totaled R$237 million, with R$208 million allocated to Cubatão modernization.

• Cash position was R$1.8 billion, providing 39 months of debt coverage.

Outlook and guidance

• Modernization of the Cubatão plant is on schedule, with operations expected to start by end-2025 and minimal production disruption.

• Anti-dumping measures on PVC imports expected to partially mitigate import pressure, but high inventory levels may delay price effects.

• Focus remains on operational excellence, expanding chlorinated product sales, and technological modernization.

• Management emphasizes cautious and flexible operations amid volatile industry outlook and compressed spreads.

• Dividend of R$400 million approved, to be paid from August 21, 2025.