Braskem S.A. Q3 FY2025 earnings call

Industry Impact

• The industry faced a prolonged downturn with lower utilization at petrochemical plants globally, impacted by maintenance stoppages and global macroeconomic challenges like moderate growth, high inflation, and trade tensions.

Resilience and Transformation Programs

• Two pillars: initiatives impacting EBITDA and short-term cash generation, and actions to defend Brazilian chemical industry competitiveness. Three pillars: optimization of naphtha base, increasing gas base flexibility, and migrating to renewable products.

Specific Projects

• Transform Rio: Expansion of Rio de Janeiro plant's capacity approved, adding 220,000 tonnes per year of ethylene capacity. Transforma Alagoas: Chlorine-soda plant in Alagoas hibernated, importing EDC for PVC production. Transforma Sul: Study completed on importing LPG for feedstock.

In the third quarter of 2025, the Brazil segment had recurring EBITDA of $205 million, with lower utilization at petrochemical plants due to the Rio de Janeiro plant shutdown and optimization of naphtha-based plants; resin sales in Brazil were lower but key chemicals helped. The United States and Europe segment had higher utilization but lower sales due to weak industrial activity in Europe and US demand, with results negative. The Mexico segment had a 47% utilization rate due to maintenance, with recurring EBITDA negative $37 million, and ethane supply from Terminal Química Puerto México started in September 2025.

Consolidated recurring EBITDA was $150 million in the third quarter. The company continues with resilience initiatives, and strategic planning for the 2026-2030 cycle is ongoing, considering global petrochemical industry dynamics and challenges.

Prolonged industry downturn, excess installed capacity leading to low petrochemical spreads, geopolitical and trade tensions, and currency fluctuations (e.g., appreciation of real against dollar impacting results).

Q: When will decisions on capital structure be made?

A: Discussions are ongoing, and no definitive decision has been made yet.

Q: Could you provide an update on the PRESIQ?

A: The bill was approved by the Chamber of Deputies and sent to the Senate; EBDQUIM and Braskem are pushing for urgent voting to have an impact on 2026 results.

Q: What is the EBITDA capacity normalized for Braskem Idesa?

A: Focus is on increasing operating rate, with the terminal startup showing positive results, and contribution to consolidated leverage will depend on future dividend payments and operating performance.