Braskem: Higher Petrochemical Margins Drive Second-Quarter Earnings

Brazilian petrochemical group Braskem significantly improved its earnings in the second quarter of 2026. The main driver was a substantial increase in margins between international selling prices for plastics and the respective feedstock costs. This was due to disruptions in feedstock and petrochemical markets resulting from the conflict in the Middle East, which temporarily led to higher prices and margins.

Net revenue reached BRL 21.72 billion in the second quarter. This was equivalent to around EUR 3.7 billion, an increase of 37% compared with the same quarter of the previous year. Recurring EBITDA rose to BRL 5.25 billion, or around EUR 890 million. The corresponding EBITDA margin was approximately 24%. In the second quarter of 2025, Braskem had generated recurring EBITDA of just BRL 427 million.

Advert

Market conditions improved particularly strongly in the Brazil and South America business. Compared with the first quarter of 2026, average margins between selling prices for resins and the respective feedstock costs increased by 82%, while margins for key chemicals rose by 98%. In the USA and Europe business, the corresponding polypropylene margin increased by 28%. In Mexico, the polyethylene margin rose by 73%.

Braskem also benefited in Brazil from tax credits related to feedstock purchases under the REIQ program. This resulted in a positive earnings impact of BRL 578 million, or around EUR 98 million. Offsetting factors included the appreciation of the Brazilian real against the US dollar and lower sales volumes. In Brazil, resin sales declined by 2% compared with the previous quarter, while sales of key chemicals fell by 4%. In Mexico, PE sales volumes decreased by 11%.

Braskem reported a net profit of BRL 3.33 billion for the second quarter. In the corresponding period of the previous year, the company had posted a loss of BRL 267 million. Operating cash flow during the reporting period amounted to the equivalent of around EUR 328 million.

Despite the significant improvement in earnings, the financial situation remains strained. Adjusted net debt increased by 3% compared with the previous quarter to the equivalent of around EUR 8.0 billion. However, due to the higher EBITDA, the leverage ratio fell from 18.18 to 6.74. At the same time, Braskem continues to work on restructuring its financial liabilities.

More information: www.braskem.com

Braskem, São Paulo, Brasilien

back to news list