Braskem, a global petrochemical company that develops sustainable chemical and plastic solutions to improve people's lives, reported recurring EBITDA of US$74 million (R$427 million) in the second quarter of the year, 67% lower than in 1Q25. The result was impacted by factors such as the decline in international PE and PVC spreads and inventory effects in segments due to raw materials purchased in previous periods when prices were higher.

In 2Q25, the company's operating cash flow was negative by R$175 million, representing a R$761 million reduction in consumption compared to 1Q25. This was due to lower working capital variation, mainly explained by reduced costs of finished products and raw materials, and efforts to optimize inventory levels during the quarter. "The results highlight the need to remain focused on resilience and financial soundness, as well as to implement tactical initiatives to mitigate the impacts of the current state of the chemical industry in Brazil and actions that help sustain our business," said Roberto Ramos, CEO of Braskem.

Another aspect of the period was the lower recurring cash consumption compared to 1Q25, totaling R$1 billion in 2Q25, due to reduced semiannual interest payments on debt securities issued in international markets, which are concentrated in the first and third quarters of the year. Braskem also reported a net loss of US$45 million (R$267 million) and a corporate gross debt balance of US$8.5 billion (R$49 billion), in line with the previous quarter. Additionally, the cash position stood at US$1.7 billion (R$10 billion), sufficient to cover the company's debt maturities for the next 30 months.

Regarding the industry outlook, the Brazilian chemical industry recorded a 38% idle capacity rate during the first quarter of 2025, the worst level in the past 30 years according to the Brazilian Chemical Industry Association (ABIQUIM). "The second quarter was very challenging. The chemical industry is a strategic and essential sector for the Brazilian economy, but it currently operates at the highest idle rate in history, challenged by its cost structure and increasing global competition," emphasized the CEO.

Petrochemical Market
PE and chemical spreads in the South American market in 1Q25 were higher compared to the previous quarter, mainly due to lower supply in the North American market and volatility in international raw material costs.

In Brazil, the PP spread was 17% higher than in 1Q25, driven mainly by lower naphtha prices - linked to falling oil prices. This can be explained by geopolitical instability and increased global supply due to the gradual recovery of production levels. Another highlight of the period was a 5% increase in chemical spreads compared to the previous quarter, due to a 14% drop in naphtha prices, which offset the decline in prices of key chemicals.

The PP spread in the U.S. remained in line with 1Q25, while in Europe it rose by 7% during the period. In Mexico, the PE spread fell by 12% due to lower product prices in the U.S., which can be attributed to reduced demand amid uncertainties surrounding import tariffs.

2Q25 also saw a 26% increase in sales volume of I'm GreenT bio-based resin compared to 1Q25, mainly due to higher demand from both new and existing customers.

Commercial Performance and Investments
The global scenario in 2Q25 was marked by trade tensions between the United States and China and tariff uncertainties, which affected trade flows and pressured international price benchmarks. However, Braskem's exports rose by 19% compared to 1Q25, driven by higher export volumes of PE and PP, especially to South America due to greater product availability. Regarding investments, Braskem Idesa has earmarked US$104 million (R$623 million) for this year, including US$23 million (R$132 million) for the completion of the ethane import terminal, Terminal Química Puerto México (TQPM).

Alagoas Updates
The company continues its efforts to understand the geological phenomenon in Maceió, ensure the stability of salt mine cavities, and implement precautionary and safety measures. The provision balance for the region in 2Q25 was R$4.7 billion, 8% lower than in 1Q25, due to the update of the present value adjustment - resulting from a revised estimate of disbursements.

By the end of June, key progress included: the Financial Compensation Program (PCF), which reached 99.9% (19,190) of proposals with approximately 99.4% paid; the closure plan for 35 cavities, with 6 already filled; and in terms of socio-urban measures, 11 urban mobility projects were defined, with 6 completed, 3 underway, and 2 in the planning phase.

About Braskem
Braskem is a global petrochemical company, human-oriented and future-focused, that fosters strong relationships and generates value for all. Offering sustainable chemical and plastic solutions to improve people's lives, the company has a comprehensive portfolio of plastic resins and chemical products for various segments, including food packaging, civil construction, industrial, automotive, agribusiness, health, and hygiene, among others. Braskem believes disruptive innovation is the only path to establishing a new relationship with the planet, choosing to act in the present by promoting plastic circularity and driving the revolution of bio-based materials. With 40 industrial units in Brazil, the U.S., Mexico, and Germany, the company exports its products to customers in over 71 countries through its 8,464 team members who operate globally under a management model that demonstrates its commitment to ethics, compliance with regulations in all countries, and respect for responsible competitiveness.
More information: https://www.braskem.com.br/