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- **Transformation Strategy**: Shifting to gas-based feedstocks and green production, with $4 billion invested in Transforma Rio and green polyethylene expansion.
- **Financial Challenges**: Q2 EBITDA down 67% to $74 million; cash burn of BRL 175 million amid global petrochemical oversupply.
- **Government Support Critical**: Presiq approval and antidumping measures needed to counter subsidized international competition.
- **Debt Management**: Leverage at 10.59x, targeting deleverage through EBITDA growth and asset optimization, no core asset sales planned.


**【CEO Summary Section】**
- CEO Roberto Ramos emphasized Braskem's transformation strategy, focusing on switching to gas-based feedstocks and expanding green production. Key initiatives include the Transforma Rio project (BRL 4 billion investment) and green polyethylene expansion in Brazil and Thailand.
- The company faces challenges from global oversupply and low spreads, with EBITDA down 67% YoY to $74 million in Q2 2025. Mexico segment EBITDA was negative due to ethane supply constraints.
- Braskem is pursuing government support through Presiq and antidumping measures to improve competitiveness against subsidized international competitors.

**【CFO Financial Commentary】**
- CFO Felipe Jens highlighted cash burn of BRL 175 million in Q2, driven by lower EBITDA and higher fixed costs. Total liquidity stands at $2.8 billion, with $1.7 billion in cash and a $1 billion credit line.
- Debt leverage reached 10.59x, primarily due to lower EBITDA. The company aims to deleverage through EBITDA growth from transformation projects and potential asset monetization.
- Brazil's naphtha-based plants operated at 95% utilization, while U.S. and Europe plants remained at 74% due to global market weakness.

**【Q&A Highlights】**
- **Leverage Concerns**: CFO acknowledged high leverage (10.59x) but emphasized focus on EBITDA growth through transformation and cost control. No plans to sell core assets like U.S. plants, which are critical for green tech development.
- **Government Support**: CEO stressed need for Presiq approval to restore tax credits and support REIQ Investments for projects like Transforma Rio. Antidumping cases are expected to resolve by Q2 2026.
- **Cash Flow Outlook**: CFO projects reduced cash burn in H2 2025 through operational efficiency and green business expansion, but warns against relying on debt restructuring.
- **Mexico Operations**: Despite challenges, Braskem Idesa's EBITDA margin is higher than Brazil due to modern infrastructure, but ethane supply constraints limit performance.


Braskem S.A. (BAK) Q2 2025 Earnings Call Transcript

Revenue

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Financing Services Revenue

Other Revenue

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Cost of Financing Services

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Other Operating Income

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Selling, General and Administrative Expenses

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BAK

BAK fundamentals

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