Braskem (NYSE:BAK) Posts Earnings Results

Braskem (NYSE:BAK) announced its earnings results on Friday. The company reported $1.61 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.68 by ($0.07), FiscalAI reports. The business had revenue of $4.20 billion during the quarter, compared to analyst estimates of $4.32 billion. Braskem had a negative net margin of 13.72% and a negative return on equity of 23.17%.

Here are the key takeaways from Braskem’s conference call:

• Recurring EBITDA rose to $1.043 billion in Q2, supported by substantially wider resin and chemical spreads and $150 million in PIS/COFINS feedstock credits. Operating cash generation was $385 million, although working-capital investment reduced recurring cash generation to approximately $210 million.
• The company emphasized that the improved spreads were driven by a temporary Middle East-related supply shock, not a structural recovery. Consultants expect spreads to normalize in the second half of 2026 amid excess global capacity, moderate demand and low industry utilization rates.
• Braskem is pursuing a consensual financial restructuring with bank creditors and bondholders to rebalance its capital structure. Management said preserving liquidity and optimizing capital allocation are short-term priorities.
• Braskem Idesa reduced Mexican polyethylene utilization to 43% to preserve liquidity, reflecting lower ethane supplies from imports and Pemex; polyethylene sales declined 11% sequentially. Brazilian resin sales also fell 2%, pressured by imports and weaker polyethylene and PVC volumes.
• Progress on the Alagoas geological-event response continued, with 99.9% of residence relocations and compensation proposals completed or submitted, while cavity closure work advanced. The remaining provision balance declined to approximately BRL 3.2 billion after BRL 14.6 billion of prior disbursements.

Braskem Trading Down 5.6%

Shares of NYSE BAK traded down $0.12 during midday trading on Friday, reaching $1.96. The company’s stock had a trading volume of 4,839,780 shares, compared to its average volume of 2,362,358. The company has a market cap of $779.26 million, a price-to-earnings ratio of -0.46, a price-to-earnings-growth ratio of 0.13 and a beta of 1.62. Braskem has a one year low of $1.83 and a one year high of $5.39. The company has a 50 day moving average price of $2.67 and a 200 day moving average price of $3.54.

Institutional Trading of Braskem

A number of hedge funds have recently bought and sold shares of the company. Quadrant Capital Group LLC grew its holdings in shares of Braskem by 222.1% during the fourth quarter. Quadrant Capital Group LLC now owns 12,809 shares of the company’s stock valued at $38,000 after buying an additional 8,832 shares in the last quarter. Brevan Howard Capital Management LP acquired a new stake in Braskem during the 3rd quarter worth about $64,000. Dark Forest Capital Management LP grew its stake in Braskem by 94.7% during the 3rd quarter. Dark Forest Capital Management LP now owns 32,127 shares of the company’s stock valued at $78,000 after acquiring an additional 15,630 shares in the last quarter. Squarepoint Ops LLC purchased a new position in Braskem during the 4th quarter valued at about $79,000. Finally, SmartHarvest Portfolios LLC acquired a new position in shares of Braskem in the 4th quarter valued at about $107,000.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on BAK. Citigroup lowered shares of Braskem from a “neutral” rating to a “sell” rating in a report on Thursday, June 25th. Zacks Research lowered Braskem from a “strong-buy” rating to a “hold” rating in a report on Monday, May 18th. JPMorgan Chase & Co. downgraded Braskem from an “overweight” rating to a “neutral” rating in a report on Tuesday, June 30th. Bradesco Corretora downgraded Braskem from an “outperform” rating to an “underperform” rating and set a $1.50 price target for the company. in a report on Tuesday, April 21st. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of Braskem in a research note on Friday, July 17th. Three equities research analysts have rated the stock with a Hold rating and five have issued a Sell rating to the stock. According to data from MarketBeat, Braskem has an average rating of “Strong Sell” and an average price target of $3.40.

Braskem Company Profile

Braskem (NYSE:BAK) is a leading integrated petrochemical company based in São Paulo, Brazil, and holds the distinction of being the largest thermoplastic resins producer in Latin America. The company operates across the entire value chain, from feedstock sourcing and polymer production to distribution and recycling. Braskem’s comprehensive approach to petrochemical manufacturing enables it to serve a diverse set of end markets with a broad portfolio of products.

Braskem’s core product lines include polypropylene, polyethylene and polyvinyl chloride (PVC), which are used in industries such as packaging, automotive, construction and electrical & electronics.