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Braskem SA
(NYSE:BAK)
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Rating:43Neutral
Price Target:
$2.00
▼(-18.70% Downside)
Action:Reiterated
Date:08/18/26
The score is held down primarily by weak financial performance (losses, cash burn, high leverage and negative equity), reinforced by bearish technicals with the price below major moving averages. The earnings call adds some near-term offset via improved Q2 profitability and execution, but guidance and commentary highlight meaningful downside risk from expected spread normalization and structural industry headwinds; valuation is difficult to assess due to negative earnings and no stated dividend yield.
Positive Factors
Operating recovery
The quarter shows Braskem can generate meaningful operating cash when spreads and execution improve. This provides evidence of operating leverage and recovery capacity, although sustainability depends on market conditions and is not yet proven across the cycle.
Negative Factors
High leverage and negative equity
High debt combined with negative equity leaves Braskem financially inflexible and more exposed to refinancing, covenant and creditor risks. This can constrain investment, increase financing costs and limit the company’s ability to absorb another petrochemical downturn.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating recovery
The quarter shows Braskem can generate meaningful operating cash when spreads and execution improve. This provides evidence of operating leverage and recovery capacity, although sustainability depends on market conditions and is not yet proven across the cycle.
Read all positive factors
Braskem SA (BAK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$700.24M
Dividend YieldN/A
Average Volume (3M)2.35M
Price to Earnings (P/E)―
Beta (1Y)0.66
Revenue Growth-1.40%
EPS Growth2.39%
CountryUS
Employees8,233
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)-14.27
Shares Outstanding172,530,200
10 Day Avg. Volume1,480,956
30 Day Avg. Volume2,352,741
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)-0.40
Price to Sales (P/S)0.09
P/FCF Ratio-0.90
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Sell
Number of Analyst Covering2
EPS Forecast (FY)0.32
Revenue Forecast (FY)$15.04B
Braskem SA Business Overview & Revenue Model
Company Description
Braskem S.A., along with its affiliated companies, specializes in the production and global distribution of thermoplastic resins. The enterprise structures its operations into three primary geographical divisions: Brazil; the United States and Eur...
How the Company Makes Money
Braskem primarily makes money by producing and selling petrochemicals and thermoplastic resins. Its revenue model is largely volume-and-spread driven: it buys hydrocarbon feedstocks (such as naphtha, ethane, propane, and other petrochemical raw ma...
Braskem SA Earnings Call Summary
Earnings Call Date:Aug 13, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Neutral
The quarter delivered materially stronger profitability driven by temporary international spread improvements and several one-off benefits (tax credits, demurrage recoveries), with solid operational achievements (green PE growth, high remediation completion). However, management emphasized that the spread improvement is largely tactical and external consultants expect a pronounced normalization in H2'26. Sales volumes declined in key domestic and Mexican markets, the industry faces structural overcapacity and moderate demand, and Braskem continues to pursue a capital-structure restructuring and liquidity preservation measures. Given the mix of strong near-term financials but significant medium-term and structural risks, the tone of the call is balanced between positive execution and important challenges ahead.Positive Updates
Consolidated EBITDA and Margin Expansion
Consolidated recurring EBITDA of $1.043 billion in Q2'26 with an EBITDA margin of 24%, driven by higher international spreads (resins and chemicals) and positive one-off effects. Operating cash generation totaled $385 million and recurring cash generation was approximately $210 million; net cash consumption around $15 million after Alagoas disbursements and lease purchase payments.
Negative Updates
Market Volatility from Middle East Conflict and Feedstock Constraints
Geopolitical conflict restricted feedstock supply (oil/naphtha), raising costs and creating on-off spread spikes. Management emphasized the spike is tactical (supply shock) rather than structural, leaving results exposed to reversion if trade flows normalize.
Read all updates
Q2-2026 Updates
Positive
Negative
Consolidated EBITDA and Margin Expansion
Consolidated recurring EBITDA of $1.043 billion in Q2'26 with an EBITDA margin of 24%, driven by higher international spreads (resins and chemicals) and positive one-off effects. Operating cash generation totaled $385 million and recurring cash generation was approximately $210 million; net cash consumption around $15 million after Alagoas disbursements and lease purchase payments.
Read all positive updates
Company Guidance
The call’s forward guidance emphasized disciplined cash and capital management and readiness to capture tactical market opportunities while recognizing structural headwinds: Q2 consolidated recurring EBITDA was $1.043 billion (24% margin) with operating cash generation of $385 million and recurring cash generation of ≈$210 million (net cash consumption ≈$15 million after Alagoas and lease outflows); FY‑2026 global asset CapEx (ex‑Idesa) is $485 million with 35% spent year‑to‑date; Brazil segment recurring EBITDA was $869 million (↑261% QoQ) as resin volumes in Brazil fell 2% (PE ‑6%, PVC ‑1%, PP +3%) and chemicals volumes fell 4%, green PE sales rose 49%, U.S./Europe EBITDA was $147 million (utilization 76%, ‑3 ppt) and Mexico EBITDA $57 million (PE utilization 43%, ‑12 ppt) with ethane imports at ~14,700 bpd (‑3,000 bpd) and PEMEX supply ~11,800 bpd (‑3,000 bpd); international spreads surged (≈+50% in Brazil resins/chemicals, +28% PP in U.S./Europe, +73% PE for Mexico, U.S. PE ≈40% above 2016–2025 avg), but consultants expect normalization (Brazilian PE naphtha spread potentially down ~59% Q2→Q3) amid a structurally challenged market (≈20 Mt polyethylene oversupply, ~15% of capacity), so priorities for H2‑26 are capital‑structure restructuring, liquidity preservation, operational excellence, synergies and execution of the Alagoas commitments.Braskem SA Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
12
Very Negative
Cash Flow
18
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 70.60B | 69.33B | 77.41B | 70.57B | 96.52B | 105.63B |
| Gross Profit | 6.30B | 1.53B | 6.00B | 3.02B | 11.36B | 32.06B |
| EBITDA | 10.01B | 631.35M | 2.70B | 3.26B | 8.11B | 25.33B |
| Net Income | -5.54B | -9.69B | -11.32B | -4.58B | -336.00M | 13.98B |
Balance Sheet | ||||||
| Total Assets | 79.24B | 81.84B | 101.58B | 91.74B | 88.05B | 92.56B |
| Cash, Cash Equivalents and Short-Term Investments | 5.93B | 11.83B | 16.77B | 19.14B | 14.76B | 12.17B |
| Total Debt | 68.30B | 71.28B | 73.72B | 59.91B | 53.83B | 54.21B |
| Total Liabilities | 92.33B | 98.33B | 105.85B | 88.46B | 81.94B | 86.36B |
| Stockholders Equity | -12.59B | -16.14B | -4.78B | 3.99B | 7.32B | 7.87B |
Cash Flow | ||||||
| Free Cash Flow | -8.80B | -7.16B | -1.33B | -6.80B | 4.10B | 11.37B |
| Operating Cash Flow | -5.72B | -4.09B | 2.44B | -2.27B | 8.95B | 14.79B |
| Investing Cash Flow | -3.46B | -2.94B | -3.48B | -4.53B | -4.95B | -3.38B |
| Financing Cash Flow | 4.07B | 3.13B | 469.00M | 8.87B | 225.00M | -16.97B |
Braskem SA Technical Analysis
Negative
2.46
Price Trends
2.58
Negative
3.27
Negative
3.33
Negative
Market Momentum
-0.18
Positive
33.71
Neutral
28.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAK, the sentiment is Negative. The current price of 2.46 is above the 20-day moving average (MA) of 2.24, below the 50-day MA of 2.58, and below the 200-day MA of 3.33, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 33.71 is Neutral, neither overbought nor oversold. The STOCH value of 28.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BAK.
Braskem SA Risk Analysis
Braskem SA disclosed 74 risk factors in its most recent earnings report. Braskem SA reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Braskem SA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
53 Neutral | $22.93B | -18.22 | -6.58% | 4.69% | -1.20% | -30.03% | |
51 Neutral | $5.08B | -4.40 | -28.81% | 0.26% | -2.28% | 27.94% | |
50 Neutral | $460.37M | -26.26 | -2.20% | 3.04% | 2.96% | -122.83% | |
49 Neutral | $915.08M | -1.62 | -40.45% | 3.21% | 3.53% | -118.53% | |
46 Neutral | $1.79B | -10.21 | -6.28% | 4.00% | 0.65% | 45.36% | |
43 Neutral | $700.24M | -0.69 | 142.56% | ― | -1.40% | 2.39% |
* Basic Materials Sector Average
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Braskem SA Corporate Events
Braskem Benefits from 2Q26 Petrochemical Spread Surge Despite Regional Demand and Feedstock Constraints
Aug 14, 2026
In its second-quarter 2026 earnings presentation, Braskem reported that disruptions in Middle East trade flows for naphtha and petrochemicals tightened regional supply and pushed up international spreads, boosting margins for chemicals and resins....
Braskem Posts Strong 2Q26 EBITDA Amid Volatile Petrochemical Markets, Advances Capital Structure Talks
Aug 14, 2026
In the second quarter of 2026, Braskem reported consolidated recurring EBITDA of about US$1.0 billion, largely driven by wider chemical and petrochemical spreads as Middle East conflict-related supply restrictions pushed up oil and naphtha prices ...
Braskem’s Q2 2026 Review Flags Material Going-Concern Uncertainty
Aug 14, 2026
Braskem S.A. released its reviewed interim financial information for the quarter ended June 30, 2026, accompanied by an independent review report from KPMG Auditores Independentes. KPMG concluded that Braskem’s individual and consolidated qu...
Braskem Details July 2026 Insider and Related-Party Securities Positions in Form 6-K Filing
Aug 11, 2026
In July 2026, Braskem S.A. reported on securities holdings and trading activities by its management, board members, fiscal council, technical or advisory bodies, and related persons, in line with Brazilian securities regulator CVM Instruction/Reso...
Braskem Details July 2026 Treasury Share Activity in August Form 6-K Filing
Aug 11, 2026
In a Form 6-K filed for August 2026, Braskem S.A. reported its trading activity and holdings of its own securities for July 2026, in line with Brazilian securities regulation. The company disclosed movements and balances of Class “A” p...
Braskem Posts Mixed 2Q26 Volumes Amid Higher Global Petrochemical Prices
Jul 31, 2026
Braskem reported preliminary production and sales figures for the second quarter of 2026, noting that global petrochemical markets were shaped by Middle East conflict-driven feedstock constraints and higher oil and naphtha prices. This price envir...
Braskem Clarifies Status of Debt Talks and Court-Backed Mediation
Jul 29, 2026
On July 28, 2026, Braskem responded to a request from the Brazilian Securities and Exchange Commission for clarification about a press report alleging creditor demands for collateral over all company assets. The company stated that negotiations wi...
Braskem Details Ongoing Debt Talks and Court-Backed Mediation in Response to B3 Inquiry
Jul 22, 2026
On July 21, 2026, Braskem responded to a request from B3 and Brazil’s securities regulator for clarification on press reports about negotiations with foreign bondholders. The company confirmed that, since at least September 26, 2025, it has ...
Braskem Hit With Fitch and S&P Downgrades After Precautionary Court Move
Jun 30, 2026
On June 29, 2026, Braskem disclosed that Fitch Ratings and SP Global Ratings downgraded its global-scale corporate credit ratings to C and D, respectively. The rating actions were triggered by a precautionary injunctive relief proceeding initiated...
Braskem Wins 60-Day Court Stay on Creditor Actions in São Paulo
Jun 26, 2026
On June 26, 2026, Braskem S.A. reported that the 2nd Bankruptcy and Judicial Reorganization Court of São Paulo granted precautionary injunctive relief requested by the company and certain subsidiaries under Brazil’s restructuring law. T...
Braskem Board Approves Judicial Protective Measures and Potential Chapter 15 Filing
Jun 26, 2026
On June 24, 2026, Braskem’s board of directors held an extraordinary meeting in a non-presential format with full attendance to address the company’s financial situation and creditor relations. The board unanimously approved a plan cov...
Braskem Seeks Court-Backed Mediation to Restructure Financial Debt
Jun 25, 2026
On June 25, 2026, Braskem announced that it and certain subsidiaries have begun a mediation process at the Wind Mediation Chamber and requested precautionary injunctive relief from the 2nd Bankruptcy and Judicial Reorganization Court in São P...
Braskem Publishes Restructuring Talks Details After Rejecting Investor Proposal
Jun 25, 2026
On June 25, 2026, Braskem disclosed that it had shared non-public information with certain holders and managers of its senior securities and debentures as part of talks over a potential capital structure reorganization. The company released these ...
Braskem Defends Disclosure Approach in CVM Query Over Alagoas Subsidence Probe
Jun 24, 2026
On June 23, 2026, Braskem responded to a June 22 request from Brazil’s securities regulator CVM seeking clarification about media reports on a Federal Police investigation into rock salt mining-related ground subsidence in Maceió. The n...
Braskem Overhauls Board Leadership and Executive Team in June 8 Governance Shake-Up
Jun 18, 2026
On June 8, 2026, Braskem’s board met remotely and elected Magda Maria de Regina Chambriard as chairperson and Hélio Baptista Novaes as vice-chairperson for a unified term running until the annual meeting that will approve the 2027 finan...
Braskem Tightens Governance With New Compliance and Audit Committee Rules
Jun 16, 2026
Braskem S.A. has formalized detailed internal regulations for its Compliance and Audit Committee, defining it as a permanent advisory body to the board with operational autonomy and its own budget. The framework places the committee under Brazilia...
Braskem Updates Internal Governance Rules for Executive Board
Jun 16, 2026
Braskem S.A. has formalized updated internal rules for its Executive Board, defining an eight-member structure that includes a CEO and chiefs for finance, corporate affairs, engineering and innovation, transformation, consumer market and logistics...
Braskem Reshapes Advisory Committees After New Shareholders’ Agreement and Board
Jun 15, 2026
On June 15, 2026, Braskem announced that its board approved the election and re-election of members to its Statutory Compliance and Audit Committee, appointing independent expert Maria Helena Pettersson as coordinator alongside a mix of independen...
Braskem Details May 2026 Treasury Share Activity in Form 6-K Filing
Jun 10, 2026
On June 9, 2026, Braskem S.A. filed a Form 6-K with the U.S. Securities and Exchange Commission detailing its activities in May 2026 related to its own securities. The company reported that the only operations with securities and derivatives in th...
Braskem Discloses May 2026 Insider and Related-Party Trading Activity in Form 6-K
Jun 10, 2026
In a Form 6-K dated June 9, 2026, Braskem S.A. reported trading activity in May 2026 involving securities issued by the company and held by management, related parties, the fiscal council, and technical or advisory bodies. The disclosure, made und...
Braskem Overhauls Board and Executive Leadership in June 2026 Governance Reset
Jun 9, 2026
At an Extraordinary General Meeting on June 8, 2026, Braskem shareholders approved a new Board of Directors to serve until the 2028 annual meeting, later choosing Magda Maria de Regina Chambriard as chair and Hélio Baptista Novaes as vice cha...
Braskem Shareholders Approve Governance-Focused Bylaw Overhaul at June 8 Meetings
Jun 9, 2026
On June 8, 2026, Braskem held its Ordinary and Extraordinary General Meetings in São Paulo, where shareholders voted on a comprehensive overhaul of the company’s bylaws. The detailed final voting map, now disclosed to the market, shows ...
Braskem Updates Bylaws, Clarifies Capital Structure and Shareholder Rights
Jun 9, 2026
Braskem S.A., a Brazilian petrochemical and plastics producer listed on B3’s Level 1 segment, has updated and restated its corporate bylaws, detailing its broad operating mandate across chemicals, thermoplastics, fuels, utilities, electricit...
Braskem Overhauls Bylaws and Governance Structure at June 8 Extraordinary Meeting
Jun 9, 2026
Braskem S.A. held an extraordinary general meeting on June 8, 2026, conducted entirely in digital format from its headquarters in Camaçari, Bahia, with high shareholder participation across common and preferred shares. The meeting followed a ...
Braskem Shareholders Approve Broad Bylaw Overhaul and Governance Changes at June 8 Meeting
Jun 9, 2026
On June 8, 2026, Braskem shareholders met in an Ordinary and Extraordinary General Meeting and approved extensive amendments to the company’s bylaws, largely to refine wording, align provisions with a new shareholders’ agreement disclo...
Braskem Updates Bylaws and Board Slate After Petrobras-Backed Shareholder Pact Revision
Jun 8, 2026
Braskem S.A. informed shareholders that, at an extraordinary general meeting held in June 2026, proposed amendments to its bylaws were adjusted to align with a recently executed first amendment to its shareholders’ agreement involving Petrob...
Braskem Publishes Remote Voting Results Ahead of June 8 Extraordinary Shareholders’ Meeting
Jun 8, 2026
On June 7, 2026, Braskem released a consolidated remote voting report for an extraordinary general meeting originally convened for May 28 and postponed to June 8, 2026. The report aggregates electronic voting instructions from the bookkeeper, the ...
Braskem and Petrobras Revise Governance Under Amended Shareholders’ Agreement
Jun 8, 2026
In April 2026, Braskem disclosed that an investment fund known as Shine I Multi-Strategy Equity Investment Fund agreed to acquire a substantial block of Braskem common and Class A preferred shares from NSP Investimentos S.A., and shortly thereafte...
Braskem Announces June 2026 Transfer of Controlling Stake to Shine I Private Equity Fund
Jun 5, 2026
On June 5, 2026, Braskem reported that private equity fund SHINE I Fundo de Investimento em Participações, managed by Vórtx Capital, acquired from NSP Investimentos a controlling stake of 226,334,622 common shares and 47,294,173 Cla...
Braskem Announces Closing of Novonor Stake Sale and New Controlling Shareholder Structure
Jun 4, 2026
On June 2026, Braskem disclosed that a long-negotiated share transaction involving Novonor, NSP Investimentos and Shine I Fundo de Investimento em Participações had been closed, following the fulfillment of all precedent conditions in a ...
Braskem Calls June 8 Extraordinary Meeting to Overhaul Governance Amid Shareholding Transaction
Jun 1, 2026
Braskem has called an extraordinary general meeting for June 8, 2026, to be held exclusively in digital format, with voting rights extended to both class A and B preferred shares alongside common shares. The move aims to lower participation costs ...
Braskem Files 2025 Reference Form with Brazilian Securities Regulator
May 28, 2026
On May 27, 2026, Braskem S.A. informed investors that it has filed its Reference Form for the year ended December 31, 2025 with the Brazilian Securities and Exchange Commission, formalizing the company’s latest comprehensive regulatory and f...
Braskem Publishes Remote Voting Results Ahead of Postponed June 8 EGM
May 27, 2026
On May 27, 2026, Braskem released the consolidated remote voting results for its Extraordinary General Meeting, originally called for May 28 and postponed to June 8, 2026. The report aggregates instructions collected via the bookkeeper, central de...
Braskem Reschedules June 8 EGM to Overhaul Bylaws and Governance Structure
May 27, 2026
Braskem S.A. has postponed its Extraordinary General Meeting (EGM), originally scheduled for May 28, 2026, and reconvened it for June 8, 2026, at 3 p.m., to be held exclusively in digital format via Webex. The rescheduled meeting is part of a broa...
Braskem Postpones Extraordinary Meeting to June 8 Amid Governance Shake-Up
May 27, 2026
Braskem has notified shareholders that its Extraordinary General Meeting, originally convened for May 28, 2026, in the context of a pending shareholding transaction involving Petrobras and Shine I FIP, has been postponed to June 8, 2026, to be hel...
Braskem Revamps Compliance and Audit Committee With New Mandate Through 2028
May 22, 2026
On May 21, 2026, Braskem’s board approved a new composition for its Statutory Compliance and Audit Committee (CCAE), electing and re-electing members with mandates running until the first board meeting following the 2028 annual shareholders&...
Braskem Details Ongoing Restructuring Talks at Mexican Subsidiary Braskem Idesa
May 19, 2026
On May 18, 2026, Braskem informed Brazilian and U.S. regulators that its Mexican subsidiary Braskem Idesa continues to face severe capital structure challenges, driven by global petrochemical market pressures and external factors such as reduced e...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.