Brazil · Delayed Price · Currency is BRL Braskem Earnings Call Transcripts
Fiscal Year 2025
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2025 saw a sharp decline in profitability and cash flow due to a prolonged industry down cycle, lower spreads, and weaker demand across all regions. Strategic initiatives focused on liquidity, operational efficiency, and capital structure reorganization, while geopolitical risks and high leverage remain key uncertainties.
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Q3 2025 saw improved EBITDA and liquidity despite ongoing industry headwinds, with resilience and transformation initiatives partially offsetting weak demand and high leverage. Strategic projects and regulatory actions aim to enhance competitiveness amid a challenging global outlook.
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Q2 2025 saw a sharp EBITDA decline and negative results in key segments due to global oversupply, weak spreads, and operational challenges. Liquidity remains strong, but leverage is high, and the outlook depends on transformation initiatives and government support.
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Q1 2025 saw a 121% sequential EBITDA increase to $224M and net profit of $113M, driven by higher spreads and improved plant utilization. Cash position remains strong, while new projects and feedstock flexibility support future growth amid ongoing industry and geopolitical challenges.
Fiscal Year 2024
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Recurring EBITDA rose 46% to $1.1B in 2024, driven by higher spreads and sales in Brazil and Mexico. Liquidity remains strong, with $2.4B in cash and leverage reduced to 7.42x. Strategic focus is on green growth, asset optimization, and expanding ethane-based capacity.
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Three growth avenues—traditional, renewables, and recycling—drive the strategy, with ambitious 2030 targets for bio-based and recycled products. Financial discipline, cost optimization, and regulatory support are key to restoring cash generation and enabling selective expansion, while industry cycles are expected to lengthen due to global overcapacity.
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Recurring EBITDA surged 35% sequentially and 130% year-over-year to $432 million, driven by higher international spreads and operational improvements. Cash position remains strong, leverage improved, and major strategic projects advanced, though Q4 is expected to see lower spreads and volumes due to seasonality.
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Recurring EBITDA surged 39% sequentially to $320 million, driven by improved spreads and cost controls, while liquidity and leverage improved. Segment results were mixed, with Brazil and Mexico showing EBITDA growth, and decarbonization and strategic partnerships advancing.