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Braskem SA
(NYSE:BAK)
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Rating:42Neutral
Price Target:
$1.50
â–²(1.35% Upside)
Action:Reiterated
Date:08/28/26
The score is held down primarily by poor financial performance—persistent losses, renewed cash burn in the latest periods, and a balance sheet with high debt and negative equity. Technicals also remain bearish with the stock trading below key moving averages, despite oversold signals. Earnings call commentary highlights a near-term earnings rebound, but guidance points to likely spread normalization and ongoing restructuring needs, limiting confidence. Valuation signals are weak given a negative P/E and no stated dividend yield.
Positive Factors
Diversified petrochemical portfolio and international footprint
A broad product portfolio serving multiple industrial end markets reduces reliance on any single application and gives Braskem several channels for volume recovery. Its Brazilian and international commercial footprint also supports geographic diversification and the ability to redirect products as regional demand and spreads change.
Negative Factors
Severe leverage and unresolved debt restructuring
The restructuring filing confirms that Braskem’s capital structure is a central business constraint rather than a temporary earnings issue. Negotiated maturity extensions, possible debt conversion and shareholder support could alter ownership and financing costs, while unresolved terms keep liquidity and operating flexibility under pressure.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified petrochemical portfolio and international footprint
A broad product portfolio serving multiple industrial end markets reduces reliance on any single application and gives Braskem several channels for volume recovery. Its Brazilian and international commercial footprint also supports geographic diversification and the ability to redirect products as regional demand and spreads change.
Read all positive factors
Braskem SA (BAK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$699.68M
Dividend Yield18.42%
Average Volume (3M)1.80M
Price to Earnings (P/E)―
Beta (1Y)0.73
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. Volume2,149,558
30 Day Avg. Volume1,803,333
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 Cap18.47
Enterprise Value/Revenue0.18
Enterprise Value/Gross Profit2.05
Enterprise Value/Ebitda1.39
Forecast
1Y Price Target
$1.50Price Target Upside1.35% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)0.95
Revenue Forecast (FY)$14.45B
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 | 9.30B | 631.35M | 3.89B | 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
Neutral
1.48
Price Trends
1.85
Negative
2.49
Negative
3.13
Negative
Market Momentum
-0.04
Negative
52.22
Neutral
83.37
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAK, the sentiment is Neutral. The current price of 1.48 is below the 20-day moving average (MA) of 1.66, below the 50-day MA of 1.85, and below the 200-day MA of 3.13, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 52.22 is Neutral, neither overbought nor oversold. The STOCH value of 83.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $742.98M | 12.93 | 13.12% | 8.90% | 12.06% | 9.40% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
57 Neutral | $20.31B | -15.57 | -6.58% | 4.93% | -1.20% | -30.03% | |
56 Neutral | $4.89B | -4.17 | -28.81% | 0.27% | -2.28% | 27.94% | |
49 Neutral | $1.42B | -8.11 | -6.28% | 4.30% | 0.65% | 45.36% | |
47 Neutral | $1.68B | -11.96 | -7.67% | 5.37% | 0.60% | -920.33% | |
42 Neutral | $699.68M | -0.63 | 46.16% | 18.42% | -1.40% | 2.39% |
* Basic Materials Sector Average
BAK
Braskem SA
1.78
-0.68
-27.64%
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WLKP
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Braskem SA Corporate Events
Braskem Reports August 2026 Insider and Related-Party Securities Trading
Sep 11, 2026
In a Form 6-K filed for September 2026, Braskem S.A. disclosed detailed information on trading of its securities and certain related instruments by management, controlling shareholders, fiscal council members, technical advisory bodies, and relate...
Braskem Details August 2026 Treasury Share Activity in New SEC Filing
Sep 11, 2026
Braskem S.A., the Brazilian petrochemical producer headquartered in Camaçari, Bahia, reported its August 2026 activity in a Form 6-K filed with the U.S. Securities and Exchange Commission. The filing reconfirmed Braskem’s status as a fo...
Braskem Extends BRL 1.85 Billion Gas Supply Deal with Petrobras to 2029
Sep 10, 2026
On August 28, 2026, Braskem’s subsidiary Voqen Energia amended a natural gas supply agreement with Petrobras, extending the contract’s term from December 31, 2026 to December 31, 2029. The contract, under a firm and non‑flexible ...
Braskem Secures R$ 2.35 Billion Petrobras Credit Line for Feedstock Purchases
Aug 27, 2026
On August 24, 2026, Braskem entered into a related-party transaction with co-controlling shareholder Petrobras to sharply increase its commercial credit limit for feedstock purchases from R$ 350 million to R$ 2.35 billion. The facility, effective ...
Braskem Files for Extrajudicial Reorganization with Creditor Support to Advance Debt Restructuring
Aug 26, 2026
On August 24–25, 2026, Braskem moved to stabilize its balance sheet by filing for an extrajudicial reorganization in the São Paulo courts, seeking a protected legal environment to renegotiate its unsecured financial obligations. The com...
Braskem Details Intensified Debt Talks and Court Protections Amid Restructuring Discussions
Aug 21, 2026
On August 20, 2026, Braskem responded to a request from Brazil’s stock exchange B3 and securities regulator CVM for clarification on a media report suggesting it would file for out-of-court reorganization to restructure about US$10.3 billion...
Braskem Taps Deloitte as New Auditor Amid Governance Shift
Aug 19, 2026
On August 10, 2026, Braskem announced that its Board approved the appointment of Deloitte Touche Tohmatsu as the new independent auditor for consolidated financial statements and quarterly reports for fiscal years 2026 through 2028. Deloitte will ...
Braskem Backs Braskem Idesa in US$2.5 Billion Debt Restructuring via Prepackaged Chapter 11
Aug 18, 2026
On August 18, 2026, Braskem announced that its Mexican subsidiary Braskem Idesa reached a comprehensive, consensual restructuring agreement with key stakeholders, including Braskem, Grupo Idesa’s ETILENO XXI, a substantial majority of noteho...
Braskem Hit With Fitch RD Rating After Debt Non-Payment, Court Grants 60-Day Creditor Stay
Aug 18, 2026
On August 17, 2026, Braskem disclosed that Fitch Ratings cut the company’s global corporate credit rating to RD, following the non-payment of certain financial obligations after the expiry of the contractual cure period. The downgrade height...
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 ...
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.