The EBITDA improvement is largely non-recurring (REIQ credit) and does not offset the severe liquidity crisis. With Braskem Idesa heading toward Chapter 11 and the parent's own leverage at 16.81x, monitor for a potential distressed exchange or broader restructuring. The 20-F going-concern warning makes this a high-risk name — avoid the equity and watch bond prices for further deterioration.
Price Chart
Executive Summary
Braskem reported Q1 2026 Recurring EBITDA of US$192 million, up 76% QoQ, driven by a US$32 million REIQ tax credit benefit and improved spreads in Brazil and US/Europe segments. However, the company burned R$3.2 billion in operating cash, adjusted net debt rose 13% to US$8.5 billion, and leverage hit 16.81x. The 20-F filed 24 days ago confirmed substantial doubt about going concern, and Braskem Idesa is in default on its bonds with potential Chapter 11 restructuring.
Key Facts
- Consolidated Recurring EBITDA of US$192 million in Q1 2026, +76% vs Q4 2025
- Operating cash consumption of R$3.2 billion in Q1 2026
- Adjusted net debt of US$8.5 billion, up 13% QoQ; leverage at 16.81x
- Corporate gross debt of US$9.4 billion; cash and equivalents fell 46% to US$1.16 billion
- Braskem Idesa missed interest payments on 2029 and 2032 notes; exploring Chapter 11 restructuring
- Fitch rates Braskem CC, S&P rates CCC- with negative outlook; Braskem Idesa rated RD/D
- Net income of US$275 million driven by FX gains and deferred tax write-off, not operations
- Alagoas geological event provision stands at R$3.4 billion; R$278 million paid in Q1
- REIQ tax credit increased from 0.73% to 5.8% via Complementary Law 228, budget capped at R$2 billion for 2026
- PEMEX ethane supply commitment ended Feb 2026; Braskem Idesa now relies on terminal imports
Financial Impact
Recurring EBITDA of US$192M vs US$109M in Q4 2025; operating cash burn of R$3.2B; adjusted net debt US$8.5B; leverage 16.81x
Risk Factors
- Braskem Idesa Chapter 11 filing could trigger cross-defaults at the parent level
- Cash burn continues with only US$1.16 billion in cash against US$9.4 billion gross debt
- Alagoas liabilities remain open-ended with potential for additional provisions
- Credit ratings at CC/CCC- suggest high risk of default
- PEMEX ethane supply termination adds structural cost pressure to Mexico operations
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001292814-26-003029 |
| Document: 0001292814-26-003029-index-headers.html | 0001292814-26-003029 |
| Document: 0001292814-26-003029-index.html | 0001292814-26-003029 |
| Document: 0001292814-26-003029.txt | 0001292814-26-003029 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | 6-K | $1.12 | awaiting T+60 | — | $1.10 (+1.79%) |
Oct 21, 2026 5d ago | 6-K | $1.60 | awaiting T+60 | — | $1.10 (−31.25%) |
Oct 21, 2026 5d ago | 6-K | $1.60 | awaiting T+60 | — | $1.10 (+31.25%) |
Oct 9, 2026 17d ago | 6-K | $1.78 | awaiting T+60 | — | $1.10 (−38.20%) |
Oct 9, 2026 17d ago | 6-K | $1.78 | awaiting T+60 | — | $1.10 (−38.20%) |
Sep 25, 2026 4w ago | 6-K | $1.49 | awaiting T+60 | — | $1.10 (+26.17%) |
Sep 25, 2026 4w ago | 6-K | $1.54 | awaiting T+60 | — | $1.10 (+28.57%) |
Aug 28, 2026 8w ago | 6-K | $1.68 | awaiting T+60 | — | $1.10 (+34.52%) |
Aug 26, 2026 8w ago | 6-K | $1.64 | awaiting T+60 | — | $1.10 (+32.93%) |
Aug 25, 2026 8w ago | 6-K | $1.48 | awaiting T+60 | — | $1.10 (+25.68%) |
US Market Status
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