Unipar Carbocloro (UNIP6) Q3 2025 earnings summary

Executive summary

• Maintained operational and financial discipline amid challenging conditions in Brazil and Argentina, focusing on execution, efficiency, and resilient results.

• Persistent downcycle in the petrochemical sector, with international PVC prices down 5% and caustic soda down 11% sequentially, impacting revenue and margins.

• Sales portfolio focused on chemicals (60% of net revenue, 84% of sales volume), with 92% of revenue from Brazil and Argentina.

• Debt restructuring extended maturities and reduced costs, supporting financial resilience.

• Advanced strategic investment projects, including technology modernization in Cubatão and capacity expansions in Santander.

Financial highlights

• Recurring Adjusted EBITDA reached R$266 million in 3Q25, up 14% year-over-year, with a 20% margin.

• Net income was R$107 million for the quarter, down 9–10% year-over-year; 9M25 net income rose 85% to R$489 million, with a 13% net margin.

• Year-to-date EBITDA totaled R$927 million, a 52% increase over the same period last year.

• Net revenue for 3Q25 was R$1,261 million, down 8% year-over-year; higher volumes in caustic soda (+7%) and PVC (+4%) offset price declines.

• Operating cash generation in 3Q25 was R$269 million, with a strong cash position of R$1.7 billion.

Outlook and guidance

• No structural improvement expected for PVC and caustic soda prices or demand in Q4 2025 and 2026; stable demand anticipated for Chlor-alkali derivatives.

• Lower CapEx expected in 2026 after completion of major projects, supporting stronger cash generation and lower leverage.

• Strategic CAPEX aligned with ESG best practices and ongoing modernization projects to increase competitiveness.

• The IMF projects global GDP growth of 3.2% in 2025, with Brazil's GDP expected to grow 2.2% and Argentina's 4.5%.