Braskem (NYSE:BAK) Announces Quarterly Earnings Results, Misses Estimates By $0.07 EPS

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

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 Stock Performance

Shares of NYSE BAK traded down $0.12 during midday trading on Friday, hitting $1.96. 4,839,363 shares of the stock traded hands, compared to its average volume of 2,362,347. The company has a market cap of $779.26 million, a PE ratio of -0.46, a P/E/G 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 business has a 50 day moving average price of $2.67 and a two-hundred day moving average price of $3.54.

Analysts Set New Price Targets

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

Institutional Trading of Braskem

Hedge funds have recently bought and sold shares of the business. Millennium Management LLC acquired a new position in Braskem during the fourth quarter worth $112,000. Schonfeld Strategic Advisors LLC acquired a new position in shares of Braskem during the fourth quarter valued at about $232,000. Squarepoint Ops LLC bought a new stake in shares of Braskem during the fourth quarter worth about $79,000. Marshall Wace LLP bought a new stake in shares of Braskem during the fourth quarter worth about $477,000. Finally, State Street Corp raised its holdings in shares of Braskem by 7.2% in the 4th quarter. State Street Corp now owns 311,507 shares of the company’s stock worth $919,000 after acquiring an additional 20,805 shares during the last quarter.

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.