Unipar Carbocloro (UNIP6) Q3 2025 earnings summary

Executive summary

• Maintained operational and financial discipline amid challenging market conditions in Brazil and Argentina, focusing on execution, efficiency, and resilient results, with 92% of net revenue from local markets and 84% of sales from chemical products less exposed to petrochemical cycles.

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

• Debt profile was proactively managed and restructured, including a R$900 million debenture issuance, extending maturities and reducing costs, supporting financial resilience.

• Advanced major investment projects, including Cubatão modernization, Emulsion PVC capacity expansion, and strategic energy supply initiatives.

• Operating cash generation reached R$269 million in 3Q25, with a strong cash position of R$1.7 billion and net debt of R$1.59 billion.

Financial highlights

• Recurring Adjusted EBITDA reached R$266 million in 3Q25, up 14% year-over-year, with a 20% margin; 9M25 adjusted EBITDA totaled R$927 million, up 52% year-over-year.

• Net income was R$107 million for 3Q25, down 9% year-over-year; 9M25 net income was R$489 million, up 85% year-over-year, with a 13% net margin.

• Net revenue for 3Q25 was R$1,261 million, down 8% year-over-year; adjusted net revenue was R$1,310 million.

• Operating cash generation was R$269 million in 3Q25.

• Dividend distributions totaled R$650 million year-to-date, with R$63 million allocated to share buybacks.

Outlook and guidance

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

• Lower CapEx levels anticipated for 2026, following completion of major projects.

• Strategic focus on operational excellence, local market sales, and expanding chlorinated product sales, with CAPEX aligned to ESG and modernization.

• Company expects to benefit from completed investments and improved competitiveness over the next 2–3 years.

• IMF projects global GDP growth of 3.2% in 2025, with Brazil at 2.2% and Argentina at 4.5%.