Braskem (BRKM5) Q4 2025 earnings summary

Executive summary

• 2025 was marked by a prolonged global petrochemical downcycle, with spreads below historical averages due to oversupply, weak demand, macroeconomic volatility, and geopolitical tensions, including tariff wars.

• Recurring consolidated EBITDA for 2025 was US$557 million, down 49% from 2024; 4Q25 EBITDA was US$109 million, down 27% sequentially.

• Corporate leverage rose to 14.74x at year-end, with gross debt at US$9.4 billion and adjusted net debt at US$7.5 billion.

• Cash position at year-end was US$2.1 billion, including a US$1 billion standby facility drawn in October 2025.

• Net loss attributable to shareholders was US$1.9 billion, mainly due to a deferred tax asset write-off.

Financial highlights

• Net revenue for 2025 was R$70.7 billion, down 9% year-over-year; 4Q25 net revenue was R$16.1 billion.

• Recurring EBITDA margin for 2025 was 4.4%, down from 7.5% in 2024; 4Q25 margin was 4%.

• Operating cash consumption for 2025 was US$246 million; Q4 operating cash generation was US$13 million.

• Total debt at year-end was US$9.4 billion; 75% of debt matures from 2030 onwards, average term 8 years, cost at FX+6.2% p.a.

• Share price at year-end: R$7.89 (BRKM5), US$2.95 (ADR BAK).

Outlook and guidance

• Strategic focus for 2026–2028 includes capital structure reorganization, resilience, transformation, and bio-based growth initiatives.

• 2026 priorities: capital structure reorganization, resilience plan, transformation financing, green portfolio growth, and compliance with Alagoas agreements.

• 2026 investments projected at US$465 million, 31% below six-year average.

• No formal EBITDA guidance; external consultancies expect spreads to recover if geopolitical risks subside.