Braskem S.A.

Braskem posted recurring consolidated EBITDA of $109 million in Q4 2025 and $557 million for full-year 2025, with full-year EBITDA down 49% versus 2024. Operating cash generation was approximately $13 million in the quarter, while full-year operating cash consumption was $246 million; including Alagoas disbursements, total cash consumption reached about BRL 7.3 billion. Year-end corporate cash was approximately $2.1 billion, adjusted net debt was $7.5 billion excluding Braskem Idesa, and corporate leverage was 14.74x. By segment, Brazil recurring EBITDA was $698 million in 2025, down 22% year over year; U.S./Europe EBITDA was negative $52 million; and Mexico EBITDA was $2 million. Management did not provide formal numerical next-quarter or full-year financial guidance, but said any geopolitical upside is hypothetical and that 2026 focus areas are capital structure reorganization, liquidity preservation, and financing for strategic projects.

Roberto Ramos emphasized that Braskem’s core response to the downturn is to reduce dependence on naphtha, protect liquidity, and keep pushing the transformation agenda. He said the company’s strategy aims to shift the feedstock mix from roughly 80% naphtha today toward 60% naphtha and 40% ethanol and gas by 2030, while also using propane and imported ethane where possible. His tone was defensive but constructive: he repeatedly framed the current environment as severe, yet described the company’s projects and restructuring as essential to competitiveness and long-term survival.

Felipe Jens focused on balance-sheet stress, saying year-end corporate leverage was 14.74x and adjusted net debt was $7.5 billion excluding Braskem Idesa. He pointed to $2.1 billion of available cash, including the $1 billion standby facility due in December 2026, and noted the company’s ongoing work with financial and legal advisers on capital structure reorganization. On Alagoas, he reiterated the remaining provision of BRL 3.5 billion at year-end 2025, after total provisioning of about BRL 18 billion and disbursements of roughly BRL 13.9 billion.

Analysts pressed management on the impact of Middle East conflict on spreads and EBITDA, whether Braskem could see something like $1 billion of EBITDA, the reliability of feedstock sourcing, and the risk of Braskem Idesa or a Chapter 11-type restructuring. Management said Braskem’s naphtha supply is not at risk because it buys heavily from the U.S., but prices are under pressure; they also said the conflict could support spreads, though the effects are only hypothetical and timing is uncertain. On Braskem Idesa, management said they would not speculate on restructuring outcomes but that liquidity and the reorganization process are top priorities, and on control changes they said Braskem is not a party to those talks and would disclose material updates when notified.