Unipar Carbocloro (UNIP6) Q2 2025 earnings summary

Executive summary

• Second quarter 2025 marked by persistent industry challenges, including a down petrochemical cycle, tight margins, and high import pressure on PVC, partially offset by new anti-dumping measures in Brazil.

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

• Strategic focus on chemicals over PVC and domestic market sales, with investments in modernization and capacity expansion.

• Fixed cost reduction initiatives and increased clean energy self-generation contributed to operational resilience.

• 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.

Financial highlights

• Recurring EBITDA reached R$306 million, more than double the second quarter of 2024, with a margin of 23% versus 13% year-over-year.

• Net income for 2Q25 was R$232 million, up 161% year-over-year and 55% from 1Q25.

• Operating cash flow was R$526 million, compared to R$158 million in Q2 2024.

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

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

Outlook and guidance

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

• Cubatão modernization project on track for completion in Q4 2025, with minimal production disruption expected.

• Strategic CAPEX aligned with ESG best practices and future competitiveness.

• 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.