Braskem (BRKM5) Q2 2026 earnings summary

Executive summary

• Q2 2026 saw recurring EBITDA reach $1.043 billion, driven by higher international spreads from Middle East supply shocks and positive tax credits in Brazil, with all segments showing improved results.

• Net revenue for 2Q2026 was R$21,715 million, up 21.6% year-over-year, and net profit was R$3,323 million, reversing a prior loss.

• The company focused on maintaining production, capturing market opportunities, and advancing Alagoas remediation, with 99.9% of relocations and compensation completed.

• Strategic priorities for H2 2026 include capital structure optimization, operational excellence, and disciplined capital allocation amid ongoing restructuring talks.

• Material uncertainty remains regarding going concern due to negative equity, high leverage, and ongoing debt restructuring.

Financial highlights

• Consolidated recurring EBITDA reached $1.043 billion (24% margin), up from $876 million in 1Q26 and $192 million in 2Q25.

• Net revenue was US$4.3 billion, up 46% sequentially and 37% year-over-year.

• Net income attributable to shareholders was US$664 million, a turnaround from a loss of US$45 million in 2Q25.

• Operating cash generation was $385 million, with recurring cash generation at $210 million; cash and cash equivalents at quarter-end were R$3,931 million.

• Positive impacts included $150 million in PIS/COFINS credits and recovery of vessel demurrage credits.

Outlook and guidance

• Consultants forecast normalization of spreads in H2 2026 and 2027, with potential volatility from ongoing geopolitical risks.

• The petrochemical cycle remains structurally challenged by global overcapacity and moderate demand.

• Management continues to pursue capital structure reorganization and liquidity restoration, but outcomes depend on negotiations.

• Regulatory measures, such as antidumping duties and sector incentives, are expected to partially mitigate competitive pressures.

• The company expects a recovery in sales before margin recovery, but visibility remains limited due to market volatility.