Braskem Lifts 1Q26 EBITDA 76% as Brazil Tax Incentive and PP Spreads Offset Mexico Weakness

Braskem SA ( (BAK) ) has issued an update.

In the first quarter of 2026, Braskem S.A. reported consolidated recurring EBITDA of US$192 million, a 76% increase versus the fourth quarter of 2025, underscoring a recovery in its core petrochemical operations. The Brazil/South America unit drove performance with recurring EBITDA of US$241 million, up 69% quarter-on-quarter, helped by PIS/COFINS tax credits on feedstock under the REIQ regime and lower recurring expenses, partly offset by higher idle and maintenance shutdown costs.

Operations in the United States and Europe swung back to a positive recurring EBITDA of US$21 million from a US$32 million loss in late 2025, supported by a 6% rise in average polypropylene spreads and a 3% increase in sales volumes. Mexico remained a weak spot, with a 30 percentage-point drop in utilization due to reduced ethane supply from PEMEX and lower ethane imports, leading to a negative recurring EBITDA of US$15 million for the quarter.

Despite the earnings improvement, Braskem consumed R$3.2 billion in operating cash in 1Q26, driven mainly by adverse working-capital movements linked to fewer payment arrangements with banks and suppliers and inventory replenishment after 4Q25 optimization. Recurring cash consumption reached about R$4.6 billion, reflecting semiannual interest payments on international debt concentrated in the first and third quarters, which keeps leverage and liquidity in focus for investors.

A key policy development came in March 2026 with the approval of Complementary Law No. 228, which raised the REIQ benefit rate from 0.73% to 5.8% on PIS and Cofins credits for chemical and petrochemical feedstock purchases, within a sector budget cap of R$2 billion for 2026 and subject to a 10% reduction from April. The law also set a R$1.1 billion sectoral ceiling for an additional 1.5% investment-linked credit, enhancing tax support for the industry and contributing an estimated US$32 million positive impact on Braskem’s first-quarter cost of goods sold.

In parallel, Braskem is advancing a comprehensive capital structure reorganization, working with specialized legal and financial advisors to negotiate with creditors and address its debt profile. The company’s planned capital structure overhaul, combined with improved earnings but heavy cash outflows and dependence on incentives such as REIQ, will be closely watched by creditors and shareholders as the group navigates volatile energy markets and regional feedstock constraints.

The most recent analyst rating on (BAK) stock is a Sell with a $3.20 price target. To see the full list of analyst forecasts on Braskem SA stock, see the BAK Stock Forecast page.

Spark’s Take on BAK Stock

According to Spark, TipRanks’ AI Analyst, BAK is a Neutral.

The score is held down primarily by very weak financial performance (losses, negative cash flow, and a fragile balance sheet with negative equity and high debt). Earnings-call takeaways add material risk (downcycle, high leverage, restructuring uncertainty) but are partly mitigated by liquidity and demonstrated cost actions. Technicals are supportive of recent momentum but appear overbought, and valuation is constrained by negative earnings and no stated dividend yield.

To see Spark’s full report on BAK stock, click here.

More about Braskem SA

Braskem S.A., listed in Brazil, the U.S. and Spain, is the largest resin producer in the Americas and a global leader in biopolymers, supplying petrochemical resins and related products to industrial and consumer markets. The company operates major segments in Brazil/South America, the United States and Europe, and Mexico, with a portfolio closely tied to global energy, feedstock and chemical demand cycles.

Its results are sensitive to international spreads for polypropylene and other resins, domestic tax and incentive regimes such as Brazil’s Special Regime for the Chemical Industry (REIQ), and feedstock supply contracts, including ethane sourcing from PEMEX in Mexico. Braskem is also working on a reorganization of its capital structure with legal and financial advisors, reflecting efforts to bolster liquidity and manage debt across its global operations.

Average Trading Volume: 2,830,801

Technical Sentiment Signal: Buy

Current Market Cap: $1.64B

See more data about BAK stock on TipRanks’ Stock Analysis page.