Summary of Braskem's Q2 2026 Earnings Call

1Key Financial Results and Metrics

Consolidated Recurring EBITDA: $1.043 billion, with an EBITDA margin of 24%, reflecting a significant increase from the previous quarter.

Brazil Segment EBITDA: $869 million, up 261% quarter-over-quarter, driven by higher international spreads for resins and chemicals.

U.S. and Europe Segment EBITDA: $147 million, increased due to higher polypropylene spreads.

Mexico Segment EBITDA: $57 million, improved due to increased polyethylene spreads despite lower utilization rates.

Operating Cash Generation: $385 million, with recurring cash generation of approximately $210 million.

Cash Consumption: Approximately $15 million when factoring in disbursements related to Alagoas and lease agreements.

2Strategic Updates and Business Highlights

Market Environment: The conflict in the Middle East has led to volatility in feedstock supply and increased international prices, positively impacting resin and chemical prices.

Production Strategy: Maintained production levels in Brazil despite high feedstock price volatility, resulting in a slight increase in utilization rates.

Green Ethylene Sales: Increased by 49% due to greater demand in Europe and normalization post-Chinese New Year.

Operational Excellence Program: Ongoing efforts to optimize capital structures and improve competitiveness.

Geological Event in Alagoas: Progress reported with a 99.9% completion rate in relocation and compensation efforts.

3Forward Guidance and Outlook

Market Expectations: Analysts predict a normalization of spreads in the second half of 2026, with potential decreases in polyethylene and polypropylene prices due to oversupply.

Strategic Priorities: Focus on financial restructuring, optimizing capital structure, and enhancing operational efficiency.

Long-term Vision: Emphasis on sustainable capital structure and competitiveness, with a commitment to maintaining reliable operations.

4Bad News, Challenges, or Points of Concern

Declining Sales Volumes: Notable decreases in resin and chemical sales volumes in Brazil (2% and 4%, respectively) and an 11% drop in polyethylene sales in Mexico.

Utilization Rates: Lower utilization rates in Mexico (43%) due to liquidity preservation measures.

Market Volatility: Ongoing geopolitical risks and supply chain disruptions could impact future performance.

Structural Challenges: The petrochemical industry faces long-term issues such as overcapacity and moderate demand, which could hinder recovery.

5Notable Q&A Insights

Financial Restructuring: CFO Carlos Brandao emphasized ongoing discussions with creditors aimed at achieving a consensual restructuring of the company's capital structure.

Inventory and Demand Dynamics: There has been a balanced inventory level, but demand recovery in Brazil is uncertain, with expectations of lower demand than initially projected.

Antidumping Measures: Braskem is actively engaging with Brazilian authorities regarding antidumping measures against U.S. polyethylene, which could impact the domestic market.

Long-term Strategy: CEO Helcio Tokeshi highlighted the importance of a long-term perspective in navigating industry challenges, focusing on operational excellence and sustainable value generation. Overall, Braskem's Q2 2026 results reflect a strong operational performance amidst a volatile market, but challenges remain regarding sales volumes, market dynamics, and the need for financial restructuring. The company is focused on long-term strategies to enhance competitiveness and navigate the current landscape.