BAK · Braskem S.A.

Braskem S.A. posted consolidated net profit of R$1,246 million for the quarter ended March 31, 2026, a substantial increase from R$632 million in the prior-year quarter, driven primarily by net financial results of R$1,342 million, including significant gains from derivatives and exchange rate variations of R$2,870 million. Net revenue declined to R$15,488 million from R$19,460 million year-over-year, with gross profit falling to R$1,100 million due to higher cost of products sold at R$14,388 million. Operating expenses remained pressured, with selling, general, administrative, and research costs totaling around R$1,317 million. The profit before tax rose to R$953 million, bolstered by income tax benefits of R$293 million. Earnings per basic and diluted common share improved to R$1.8141 from R$0.8759. However, balance sheet pressures intensified, with current liabilities exceeding current assets by R$10,718 million consolidated and equity deeply negative at R$16,233 million, up slightly from R$16,502 million at year-end. Parent company shows even starker metrics, with current liabilities exceeding assets by R$2,714 million and equity at negative R$15,736 million. KPMG's review report emphasizes a material uncertainty related to going concern, citing these liquidity and solvency indicators, though management's plans are noted in Note 1 without modification to the unqualified conclusion. Cash position weakened significantly, with cash and equivalents dropping R$5,823 million to R$4,678 million, reflecting net operating cash outflow of R$4,249 million amid inventory buildup and working capital changes. Investors should monitor management's going concern mitigation strategies closely given the highlighted risks.