Q2 2026 Braskem S.A. Earnings Call Transcript
Key Points
- Braskem SA (BAK) reported a strong consolidated recurring EBITDA of $1,043 million in Q2 2026, a significant increase driven by higher international spreads for resins and chemicals.
- The Brazil segment's recurring EBITDA surged 261% quarter-over-quarter to $869 million, benefiting from a 50% increase in spreads and $115 million in PIS/COFINS tax credits.
- Green polyethylene sales increased by 49% in Q2 2026, supported by stronger demand in Europe and renewed commercial partnerships, such as with New Balance.
- The company generated $385 million in operating cash flow and $210 million in recurring cash generation, despite a challenging market environment.
- Braskem SA (BAK) is advancing its transformation plan, focusing on operational excellence, cost discipline, and synergies to strengthen long-term competitiveness and cash generation.
- The improved spreads in Q2 2026 were driven by a temporary supply shock from the Middle East conflict, not a structural change, and are expected to normalize, with a projected 59% decrease in Brazilian PE-NAFTA spreads in Q3 2026.
- The global petrochemical industry remains structurally challenged due to overcapacity, particularly in Asia, and moderate demand, keeping operating rates under pressure.
- Braskem SA (BAK) is undergoing financial restructuring, with a need to rebalance its capital structure, and has been in discussions with creditors to address leverage.
- The Mexico segment's utilization rate dropped to 43% due to liquidity preservation measures, and ethane supply from Pemex declined, impacting polyethylene sales by 11%.
- Sales volumes in the Brazilian market decreased, with polyethylene down 6% and PVC down 1%, partly due to higher imports and competitive pressures from US producers.
Welcome to Braskin's second quarter of 2026 result conference call.
With us here today, we have Mr. Elsia Takeshi, Braskin CEO, Mr. Carlos Brendan, Braskin CFO, and Mrs. Rosana Vollio, Investor Relations, Strategic Planning, and Global Market Intelligence Director. We inform you that this event is being recorded. The presentation will be held in Portuguese with simultaneous translation into English.
Participants can choose which language to listen to and see the presentation using the show captions and view options button respectively.
After Bruskin remarks, there will be a Q&A session.
Please be advised that questions must be sent through the Q&A button.
I will now repeat the same instructions in which.
Formula that this event is being recorded. The presentation will be held in Portuguese. Simultaneously translation into English.
All participants can choose which language to listen to and see the presentation using the show captions and view options buttons respectively. After rescuing remarks, there will be a question-and-answer
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