BAK · Braskem S.A.

Braskem delivered robust 1Q26 results with recurring EBITDA of US$192 million, a 76% increase from 4Q25's US$109 million, marking the strongest first-quarter performance in a decade. This improvement stemmed primarily from expanded petrochemical spreads across key products and positive PIS/COFINS credits via REIQ in Brazil, offsetting higher idleness and shutdown impacts. The Brazil segment led with US$241 million EBITDA, up 69% QoQ, fueled by 5% higher PE/PVC sales volumes amid geopolitical-driven domestic demand, 10pp utilization rate expansion to 69%, and normalized operations post-Bahia shutdown. U.S. & Europe rebounded to US$21 million from a US$32 million loss, supported by 8pp utilization gains to 79%, 6% higher PP spreads, and 3% sales volume growth. Mexico posted a US$15 million loss, worsened by 30pp utilization drop to 55% from ethane supply constraints by PEMEX and terminal import limits, though PE-ethane spreads rose 32%. Consolidated dynamics included exchange rate headwinds from BRL appreciation and elevated ECL/idleness costs, partially mitigated by favorable OIE. Cash flow reflected US$603 million recurring consumption, driven by negative working capital shifts (supplier balances), inventory rebuilds, and concentrated Q1 interest payments on international debt. Liquidity stood at US$1.1 billion cash, with adjusted net debt climbing to US$8.5 billion and leverage at 16.81x. Indebtedness profile remains extended at 7.4 years average maturity, 61% post-2030. Alagoas provisions ticked down to R$3.4 billion after R$14.4 billion disbursements, with 99.9% resident relocations complete. Management highlights return to ISE B3 sustainability index and first chemical firm Selo Verde Brasil certification for I’m Green bio-based portfolio, positioning for value capture amid Middle East conflict-induced supply tightness and naphtha cost pressures.