Unipar Carbocloro (UNIP6) Q4 2025 earnings summary

Executive summary

• Achieved record operational excellence in 2025, with electrolysis utilization at 79–80% and record sales of sodium hypochlorite (+10%) and caustic soda (+3%), supported by full-capacity operations at Santo André and the new Camaçari plant.

• Completed the largest Capex cycle in company history, including new chlor-alkali plant in Bahia, modernization in Cubatão, and sustainability initiatives.

• Maintained resilience amid external challenges, including a weak petrochemical cycle, record PVC imports in Brazil, and a subdued Argentine PVC market.

• Focused on local markets (93% of net revenue from Brazil and Argentina) and maximizing chlorine sales to reduce exposure to petrochemical cycles.

• Demonstrated a resilient business model with a recurring EBITDA margin of 22% and strong operating cash generation.

Financial highlights

• Recurring adjusted EBITDA for 2025 reached R$1.109 billion, up 16% year-over-year, with a margin of 22%.

• Net income for 2025 was R$482 million, down 13% from 2024; operational cash generation totaled R$1.248 billion.

• Year-end cash position was R$1.1 billion, covering 26 months of debt amortization; net debt/EBITDA at 2.20x.

• Fourth quarter recurring EBITDA was R$182 million (16% margin), down 32% sequentially, mainly due to lower international prices for soda and PVC.

• Annual net revenue increased 1% year-over-year, with higher sales of chlorinated products and caustic soda offsetting lower PVC sales.

Outlook and guidance

• Capex for 2026 will be substantially lower than 2025, as major projects are completed.

• Full benefits from the new membrane electrolysis technology at Cubatão expected over the next nine months, with operations starting March 2026.

• Capacity expansion projects in Santo André and Camaçari expected to be operational in the second half of 2026.

• Renewable energy contract with Casa dos Ventos to begin in 2028, enhancing competitiveness and targeting 68% self-generation in 4Q25.

• Continued focus on cost reduction, operational efficiency, and capturing opportunities in sanitation and agribusiness.