Unipar Carbocloro (UNIP6) Q1 2026 earnings summary

Executive summary

• Achieved all 2025 sustainability goals, including a 22% reduction in CO2 emissions and 79% renewable electricity usage, surpassing targets.

• Completed technological modernization at Cubatão, marking the end of the largest CapEx cycle and enhancing efficiency.

• Entered a 15-year solar energy contract with Casa dos Ventos, securing long-term clean energy supply and joint venture rights for up to 9.8% stake.

• Maintained strong operational cash generation and reversed previous quarter's net loss, with net income of R$37 million.

• Sustainability initiatives included achieving 100% certified supply chain and social impact projects reaching 13.5 million people.

Financial highlights

• Recurring (adjusted) EBITDA for Q1 2026 was R$174 million, down year-over-year, with a margin of 12–14%.

• Net profit reached R$37 million, reversing a loss from the previous quarter but down 75% from 1Q25.

• Operating cash generation was R$316 million; cash position at R$1.2 billion, covering 30 months of debt amortization.

• Net revenue dropped 10% year-over-year due to lower international prices for caustic soda (-11%) and PVC (-13%).

• Net debt/EBITDA ratio increased to 2.58x, with net debt at R$2,394 million.

Outlook and guidance

• Expectation of higher utilization rates in Brazil for the remainder of 2026, driven by strong demand for chlorinated products.

• Anticipate improved pricing and spreads for PVC and caustic soda in Q2 2026, with some lag due to contract structures.

• CapEx for 2026 projected to be about half of 2025 levels, focusing on maintenance and select strategic projects.

• Long-term renewable energy contract (33 MW) to begin in 2028, with a right to acquire 9.8% of the joint venture.

• Dividend policy remains at 25% of net income, with additional distributions dependent on leverage and liquidity.