Braskem S.A.

Consolidated recurring EBITDA in Q2 2026 was $1.043 billion with an EBITDA margin of 24%, up versus the prior quarter. Brazil recurring EBITDA was $869 million, up 261% quarter over quarter; U.S. and Europe recurring EBITDA was $147 million; Mexico recurring EBITDA was $57 million. Operating cash generation was $385 million, recurring cash generation was about $210 million, and the company reported about $15 million of cash consumption after Alagoas disbursements and lease-purchase payments. Management said the quarter benefited from roughly 50% higher resin and major chemical spreads in Brazil/South America, a 28% higher polypropylene spread in the U.S./Europe, a 73% higher polyethylene spread in Mexico, and $115 million from PIS/COFINS credits. Guidance-wise, management said external consultants expect moderate spreads and possible occasional upside in 2H 2026 and 2027, but also said Brazilian PE naphtha spreads could fall 59% from Q2 to Q3 2026 as arbitrage normalizes. The company also said its 2026 global asset CapEx, excluding Idesa, is $485 million and that it had spent 35% of that amount by midyear.

Helcio Tokeshi framed the quarter as operationally strong but not a sign of a new cycle, saying the company benefited from the conflict-driven spread spike and that Braskem is entering a new phase focused on a stronger capital structure and long-term value creation. He repeatedly stressed discipline, resilience, and a long-term view, linking the transformation plan to cash generation, EBITDA improvement, and competitiveness. His tone was cautiously optimistic but sober, emphasizing volatility, restructuring, and the need to build a more financially solid company.

Carlos Brandao said restructuring is a top short-term priority and that Braskem is in dialogue with major creditor groups, including banks and bondholders, aiming for a consensual restructuring that will rebalance the capital structure over the long term. In the Q&A, management also said the company had spent 35% of its 2026 global asset CapEx plan of $485 million by the end of the first half, which was in line with last year’s timing, and that the year still tends to see heavier disbursement in the second half. On liquidity and operations, management said Braskem Idesa reduced utilization to preserve liquidity, but that there is no indication of a change in demand or in operational rates elsewhere; they also said working-capital impacts had been significantly better in the quarter and should be neutral going forward.

Analysts focused on the status of the financial restructuring, 2026 CapEx phasing, Braskem Idesa’s reduced utilization, inventory trends, working capital, and the new shareholder/governance setup. Management said restructuring discussions are ongoing with creditors and are intended to be consensual, while CapEx was tracking to plan at 35% spent by midyear on a $485 million global asset budget excluding Idesa. On operations, management said inventories in Brazil were balanced, imports remain competitive, and demand may be weaker than originally expected; they also said working-capital pressure from earlier in the year had improved materially. On antidumping, management said the current U.S. polyethylene measure in Brazil is under review and that Braskem is seeking stronger protection, while acknowledging the government’s technical process.