Braskem S.A. (BAK): Business Model Canvas [Dec-2025 Updated]

You're looking at a chemical giant navigating a serious pivot, and honestly, the numbers from late 2025 tell a compelling story of survival and strategic realignment. Braskem S.A. is balancing the massive overhang of the R$4.7 billion provision for the Alagoas geological event while aggressively pushing its future in sustainability, evidenced by a 26% jump in bio-based resin sales volume in Q2 2025. This resilience is starting to pay off, showing a recurring EBITDA of R$818 million in Q3 2025, suggesting their transformation plan is gaining traction against volatile feedstock costs. Dive into the full Business Model Canvas below to see exactly how Braskem S.A. is structuring its operations-from key partnerships in recycling to its global distribution channels-to secure its leadership in the green materials space.

Braskem S.A. (BAK) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships Braskem S.A. maintains to keep its complex operations running and drive its sustainability agenda as of late 2025. These aren't just vendors; they are structural components of the business.

Strategic Joint Ventures and Circular Economy Alliances

The joint venture in Mexico, Braskem Idesa, remains a cornerstone for North American production, though its operational stability has been a focus. Braskem holds a 75% stake in this entity. The Ethylene XXI complex has the capacity to produce 1.05 million tonnes/year of ethylene, with downstream capacities of 750,000 tonnes/year for high density PE (HDPE) and 300,000 tonnes/year for low density polyethylene (LDPE). The ethane import terminal, Terminal Quimica Puerto Mexico (TQPM), became fully operational in May 2025, with capacity to store 80,000 b/d of ethane. Braskem (ex-Braskem Idesa) earmarked an estimated investment of US$484 million (R$2.2 billion) for 2025.

In the circular economy space, the acquisition of Wise Plásticos S.A. is key for mechanical recycling. Braskem acquired a 61.1% equity interest for an estimated outlay of R$121 million. This partnership supports a plan to double Wise's recycling capacity to around 50,000 tons/year by 2026.

For advanced recycling, Braskem signed a definitive 10-year commercial agreement with Nexus Circular for the supply of circular raw materials derived from chemical recycling.

Technology and Decarbonization Partners

The partnership with ComBio is a clear action point for decarbonization at the Paulínia unit. This collaboration is structured under a 15-year contract and involves installing an electric boiler with a capacity of 12 t/h of steam production. This initiative is projected to cut approximately 65% of CO2 emissions-Scopes 1 and 2-at the PP 3 PLN unit, directly supporting Braskem's goal of reducing its carbon emissions by 15% by 2030.

Feedstock Suppliers

Feedstock supply is a major competitive factor, especially given the high cost of naphtha in Brazil compared to ethane used by international peers. Petrobras is a primary supplier, with a contract for naphtha that requires a minimum utilization rate of 70% in Braskem's plants for supply maintenance. Braskem is actively increasing its use of ethane, aiming to expand the share from the actual 10% to 20% in its Brazilian crackers, sourcing this from Petrobras' pre-salt fields. The company is also building a fleet of ethane carriers, having received its second vessel, the Brave Future (capacity 36,000 cubic meters), in July 2025, with four more slated for delivery in 2026.

Financial Institutions and Debt Management

Managing liquidity involves key relationships with financial institutions. Braskem drew the full US$1 billion available under its stand-by credit facility in October 2025, which matures in December 2026. This facility was originally hired in December 2021 with a syndicate of 11 global banks. As of 2Q25, corporate gross debt stood at approximately US$8.5 billion.

For past debt refinancing activities, the following institutions acted as offer managers in a transaction around October 2024:

In September 2025, Braskem engaged financial and legal advisors to evaluate economic-financial alternatives to optimize its capital structure, with analysts suggesting a potential upsizing of the existing US$1 billion revolver with participation from banks and bondholders.

Braskem S.A. (BAK) - Canvas Business Model: Key Activities

You're looking at the core operational engine of Braskem S.A. as of late 2025, which is all about making things, moving feedstock, managing big liabilities, and driving a transformation plan. Here's the quick math on what they are actively doing.

Manufacturing and operating large-scale petrochemical complexes globally

Braskem S.A. is focused on optimizing its existing footprint while planning major expansions. The Braskem Idesa Petrochemical Complex XXI in Mexico has an ethane cracker with a capacity of 1.05 million tonnes per annum (mtpa) of polyethylene, which includes 750,000t of high-density polyethylene (HDPE) and 300,000t of low-density polyethylene (LDPE). In Brazil, the Board approved a R$4.2 billion investment to expand the Rio de Janeiro complex, targeting an addition of 220,000 tons per year of ethylene and equivalent polyethylene capacity by the end of 2028.

Operational utilization rates show the current environment. For instance, the utilization rate of the green ethylene plant was 40% in the third quarter of 2025. In the second quarter of 2025, the average utilization rate for PE plants was lower compared to the previous quarter by 35 percentage points (p.p.).

Key operational metrics for manufacturing include:

• Expansion of green ethylene capacity in Triunfo from 200 kta to 260 kta using sugarcane ethanol.
• The company supports brand owners in over 40 countries with its portfolio.
• The goal is to reach 1.0 million tons of green PE production capacity by 2030.

Research and development (R&D) focused on biopolymers and chemical recycling

R&D is heavily weighted toward sustainability goals, particularly biopolymers and circularity. Braskem aims to commercialize 1.0 million tons of resins and chemicals with recycled content by 2030. For the near term, the goal for products with recycled content by 2025 is 300,000 tons.

Specific R&D funding and projects include:

The company is also advancing a project for the construction of the first advanced recycling unit in Brazil.

Optimizing feedstock logistics, including operating the new ethane import terminal (TQPM) in Mexico

The inauguration of the Terminal Química Puerto México (TQPM) in May 2025 was a major activity to secure feedstock for the Braskem Idesa complex. The terminal is designed to import up to 80,000 barrels per day (bpd) of ethane. This project had a reported cost of $400 million or US$500 million, and includes a storage capacity of 100,000 cubic meters (cbm), which equates to 54,000 tonnes.

This terminal directly addresses prior supply issues, as domestic deliveries from Pemex declined from 66 kbpd in 2010 to just 26 kbpd by mid-2024, forcing the complex to operate at only 60-80% of capacity. To support logistics, Braskem Group acquired two specialized ethane carriers, the Brilliant Future (delivered January 2025) and Brave Future (scheduled June 2025).

Managing the R$4.7 billion provision for the geological event in Alagoas

Managing the liability from the geological event in Alagoas remains a key activity. The provision balance fell to R$3.8 billion by the end of the third quarter of 2025. This followed a provision balance of R$4.7 billion reported in the second quarter of 2025.

A significant step was the R$1.2 billion State Agreement with Alagoas, subject to judicial ratification. Of this total, R$139 million had already been paid as of November 2025. The remaining balance is structured into 10 adjusted variable annual installments, mainly after 2030. Separately, Braskem had provisioned R$467 million as of September 2025 for property damage compensation to the State. Furthermore, an additional provision of approximately R$1.3 billion was noted for the backfilling of salt cavities.

Executing the resilience and transformation plan to maximize cash generation

The resilience and transformation plan is focused on financial preservation and competitiveness. Initiatives under this plan are targeted to capture $400 million in potential EBITDA and generate $500 million in cash. Year-to-date 2025 (through Q3), these combined efforts generated a positive impact of approximately $240,000,000 in EBITDA and about $330,000,000 in cash versus the budget.

Key financial positions as of Q3 2025 reflect this focus:

• Consolidated recurring EBITDA: $150 million (up 104% from 2Q25).
• Corporate gross debt: ~US$8.4 billion with an average term of 9 years.
• Cash position (excluding Braskem Idesa): US$1.3 billion.
• Corporate leverage ratio: 14.7x.
• Total liquidity: $2.3 billion, including a $1.0 billion revolving line drawn in October 2025.

The approved Transform Rio project is estimated to require an investment of R$4.2 billion and is projected to generate $200 million/year in EBITDA starting from 2027.

Braskem S.A. (BAK) - Canvas Business Model: Key Resources

You're looking at the core assets that keep Braskem S.A. running and competing in the global petrochemical space as of late 2025. These aren't just line items; they are the physical and intellectual foundations of their operations.

Extensive global manufacturing base across the Americas and Europe is a major resource. Braskem America operates five industrial units, primarily for polypropylene, across Texas, Pennsylvania, and West Virginia. Over in Europe, Braskem Europe has two plants located in Germany (Schkopau and Wesseling). Overall, Braskem maintains operations across 10 countries, including 40 industrial units in Brazil, the US, Mexico, and Germany.

The proprietary technology for I'm Green™ bio-based resins is a key differentiator. Braskem is the world leader in biopolymers. Their current production capacity for I'm green™ bio-based polyethylene stands at 275,000 tons/year. This capacity was recently boosted by a 30% increase following an $87 million investment at the Triunfo plant, bringing its capacity from 200,000 to 260,000 tons/year. The company has a stated ambition to reach 1 million tons of bio-based plastics per year by 2030.

For liquidity, Braskem S.A. reported a cash position of approximately $1.3 billion as of the end of Q3 2025. This amount is noted as sufficient to cover debt maturities over the next 27 months. Total liquidity, including a $1 billion standby revolving credit line, reached $2.3 billion. Honestly, that's a solid buffer given the industry downturn.

The logistics and feedstock security are underpinned by several agreements. Braskem's Board approved a major R$4.2 billion investment to expand its Rio de Janeiro plant, which is contingent on securing additional ethane via a long-term contract with Petrobras. Furthermore, Braskem signed a 10-year definitive commercial agreement with Nexus Circular for circular feedstocks. More recently, on November 11, 2025, the company executed a long-term supply agreement with Olin Corporation for ethylene dichloride (EDC).

The final critical resource involves the people behind the processes. Braskem maintains specialized centers that support its innovation pipeline:

• Innovation & Technology Center in Pittsburgh, Pennsylvania.
• Renewable Innovation Center in Lexington, Massachusetts.
• Innovation & Technology Center in Campinas, Brazil.

The company's commitment to this talent base is reflected in its ongoing projects, like the Transform Rio expansion, expected to be complete by the end of 2028. That's a defintely long-term commitment to operational excellence.

Braskem S.A. (BAK) - Canvas Business Model: Value Propositions

You're looking at the core offerings Braskem S.A. puts on the table for its customers as of late 2025. It's a mix of established petrochemical scale and aggressive sustainability leadership. Here's the breakdown of what Braskem S.A. is delivering.

Global leadership in biopolymers, offering a renewable and sustainable plastic alternative

Braskem S.A. is the world's leading biopolymers producer, centered on its I'm green™ bio-based brand, made from sugarcane ethanol. This offering is positioned to help customers reduce their carbon footprint significantly.

• The current green ethylene production capacity stands at 275,000 tonnes per year, which is 37% above the initial 2010 project capacity.
• This expanded biopolymer production capacity is projected to capture approximately 159,000 tons of CO2 per year.
• The company has a firm goal to reach 1 million tons of annual production capacity for bioproducts and bioattributed products by 2030.
• Sales of Green PE were 38,000 kton in the first quarter of 2025 (1Q25).
• In the second quarter of 2025 (2Q25), sales of Green PE reached 48,000 kton, marking a 24% increase compared to 2Q24.
• The long-term commitment is to achieve carbon neutrality by 2050.

Diversified portfolio of thermoplastic resins (PE, PP, PVC) for various industries

Beyond bio-based materials, Braskem S.A. provides a broad base of conventional resins, making it a comprehensive supplier across many sectors. The company is the Americas' top thermoplastic resin producer.

You'll find their products are used in everything from food packaging and civil construction to automotive components and health/hygiene products.

Reliable, large-volume supply capacity across three continents

Braskem S.A. backs up its portfolio with a significant global manufacturing footprint, ensuring supply security for international customers. This scale is a key differentiator against smaller competitors.

• Braskem S.A. operates 41 industrial units across four countries: Brazil, the United States, Mexico, and Germany.
• The company serves clients in over 71 countries spanning 5 continents.
• The integrated petrochemical complex in Mexico is set to have a combined annual polyethylene capacity of 1.05 million tons.
• A major investment approved in late 2025 will add 220,000 tons per year of ethylene and equivalent polyethylene capacity at the Rio de Janeiro facility by the end of 2028.

Technical Service and Development (TS&D) support for customer product applications

The value proposition isn't just the material; it's the expertise to use it effectively. Braskem S.A. backs its sales with dedicated innovation and development support.

• The company operates a network of seven-site innovation centers globally.
• The newest addition is the $20 million Renewable Innovation Center in Lexington, Massachusetts, which opened in 2024.
• This center focuses on early-stage research in areas like biotechnology, catalysis, and process engineering to develop new sustainable materials.

Circular economy solutions through recycled and bio-circular products

The Wenew™ ecosystem represents Braskem S.A.'s commitment to closing the loop on plastic waste, offering both mechanically and chemically recycled content.

• Braskem S.A. has a stated objective to increase sales of products with recycled content to 1 million tons by 2030.
• The target for 2025 was to include 300,000 tons of resins and chemical products with recycled content.
• By the end of 2024, the Wenew catalog featured over 55 product types, with sales exceeding 85,000 tons-a growth of over 35 times since 2019.
• In 2Q25, the company completed its first sale of chemically recycled circular PE.
• A project with Unilever utilizes 100% post-consumer recycled resin (rHDPE) supplied by Braskem Idesa, with a production potential up to 2,000 tons per year.

Braskem S.A. (BAK) - Canvas Business Model: Customer Relationships

You're looking at how Braskem S.A. (BAK) manages its connections with the industrial clients that buy its resins and chemical products. The core is a shift toward relational, value-driven engagement, especially as sustainability becomes a key purchasing criterion for large B2B buyers.

Braskem S.A. supports brand owners and manufacturers in over 40 countries, exporting products to customers in over 71 countries. This global footprint necessitates dedicated support structures, moving beyond simple transactions to deep partnerships. The company's sustainable portfolio, including I'm green^TM bio-based products, is now trusted by over 200 brands worldwide.

The relationship with industrial clients is heavily focused on co-creation, particularly around the Braskem Transforms strategy. This is evident in the work done through Cazoolo, Braskem's circular packaging design lab in Brazil. Cazoolo utilizes Design for Environment (DfE) methodology combined with Life Cycle Assessment (LCA) to ensure sustainability from the start.

Here's a look at the scale of this collaborative innovation:

• Companies Engaged with Cazoolo (Total): Over 400 companies have been received for project development.
• Cazoolo Monthly Visits (Average up to May 2025): Approximately 75 visitors per month.
• Digital Client Interaction: Launch of the Ready Packaging digital platform in late 2024 to democratize access to sustainable packaging options for small and medium-sized enterprises.
• Sustainable Product Adoption: The Wenew portfolio of products with recycled content features over 55 grades and has sold over 85,000+ tons globally.

For major industrial consumers, relationships are cemented through long-term supply agreements that often tie into energy and operational stability. While specific polymer contract terms aren't public, the energy transition strategy shows a commitment to securing long-term, competitive supply for its own operations, which indirectly supports customer supply reliability. For instance, Braskem S.A. is migrating industrial plants to the free natural gas market, with its trading company, Voqen, signing contracts with six suppliers and expecting to reach 1 million m³/day traded with free consumers by October 2025.

The focus on transparency is critical, especially when the company is navigating financial restructuring and industry challenges, such as the Brazilian chemical industry's 38% idle capacity rate in Q1 2025. Investor Relations (IR) acts as a formal channel for high-level stakeholder communication.

Key IR activities and data points from late 2025 include:

The IR department, including the Investor Relations Manager Rosana Avolio and the CFO Felipe Jens, ensures that participants can submit questions for the IR department to answer after the conference call, maintaining a clear line of communication. This level of disclosure is defintely crucial during periods of operational focus, such as the resilience program initiatives.

Braskem S.A. (BAK) - Canvas Business Model: Channels

Braskem S.A. serves customers across more than 70 countries. The global operations are supported by approximately 8,500 team members operating under a management model committed to ethics and compliance.

The global network of distributors is in charge of storing, distributing, and meeting specific product demands across all continents. Braskem exports its products to customers in over 71 countries.

• Distributors are present in: Brazil, Argentina, Bolivia, Chile, Colombia, Ecuador, Peru, Paraguay, and Uruguay.

The company strengthens its global logistics autonomy and aims to reduce maritime transport costs through company-owned assets. A strategic asset, the vessel Brave Future, began operations in July 2025. This ethane carrier has a capacity of 36,000 m³ and operates on the route between the United States, Mexico, and Brazil. The approximate cost of this ship was R$ 500 million.

Braskem operates with regional sales offices and industrial units across key geographies. Braskem America is headquartered in Philadelphia, Pennsylvania, and operates five industrial units in the United States. The head offices for Europe are located in Rotterdam, in the Netherlands, serving European, Asian, and African customers. The company has a total of 40 industrial units across Brazil, the U.S., Mexico, and Germany.

Here are some key operational and financial metrics related to Braskem S.A.'s scale as of late 2025:

The company's strategy involves prioritizing higher value-added sales, which contributed to Brazil's EBITDA reaching R$ 1,115 million in Q3 2025, a 29% increase compared to the previous quarter.

Braskem S.A. (BAK) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Braskem S.A.'s output as of late 2025. Honestly, the customer base is segmented by geography and end-use application, which drives how they approach sales.

Large-scale industrial converters and plastic transformers (B2B) form the backbone of the domestic business. These are the firms taking Braskem S.A.'s base resins-polyethylene (PE), polypropylene (PP), and PVC-and turning them into finished goods. The overall demand for resins in the Brazilian market grew by a solid 7% compared to the first quarter of 2025, showing strong underlying industrial activity.

For consumer goods companies focused on sustainability, the push toward renewables is clear. The I'm GreenT bio-based resin business saw its sales volume increase by 26% in the second quarter of 2025 compared to the first quarter of 2025. Furthermore, the revenue for this green polyethylene business was 18% higher when paired with the company's ETBE business.

The specialized resin demand from key industrial sectors is also telling. In the domestic market during 2Q25, demand growth was sector-specific:

• Demand for PE saw an 8% higher pull, with emphasis on the hygiene, cleaning, logistics, and transport sectors.
• Demand for PP was up by 7%, driven by the automotive and packaging sectors.
• Demand for PVC saw a 6% increase, supported by the pipes, automotive, and pharmaceutical sectors.

Geographically, the focus is split between the core domestic base and international opportunities. The global export markets are showing significant recovery in volume terms. For the second quarter of 2025, Braskem S.A.'s resin sales in exports increased by 19%.

The domestic Brazilian market remains central, with its resin sales volume increasing by 3% in 2Q25 compared to the preceding quarter. This domestic volume reached 829,000t in 2Q25.

Here's a quick look at the recent resin sales performance metrics for the Brazil/South America segment:

Braskem S.A. (BAK) - Canvas Business Model: Cost Structure

You're looking at the cost side of Braskem S.A.'s operations, and honestly, it's dominated by a few heavy hitters that keep management focused on financial discipline.

The most immediate pressure point is the high and volatile feedstock costs, primarily naphtha and ethane. While specific 2025 feedstock spend isn't itemized in the latest reports, the impact is clear: results in Q2 2025 were negatively impacted by the mismatch between the cost of feedstock and the sales price, stemming from raw materials purchased when prices were higher. This reliance on global chains means cost control is a constant battle.

Next up are the significant capital expenditures (CAPEX). For 2025, Braskem (ex-Braskem Idesa) has planned an investment of US$484 million. This figure is approximately 28% lower than the historical average of the last six years (US$672 million), reflecting a prioritization of investments. Separately, Braskem Idesa has earmarked US$104 million for 2025, which includes US$23 million for the completion of the ethane import terminal, Terminal Química Puerto México (TQPM).

The financial burden from the Alagoas geological event provision remains a major cost item. As of Q2 2025, the provision balance stood at R$4.7 billion, which was 8% lower than the Q1 2025 balance due to a present value adjustment. More recently, in November 2025, Braskem signed a settlement with the State of Alagoas for a total payment of R$1.2 billion, of which R$139 million had already been paid, with the remainder structured in 10 annual installments, mainly after 2030. This follows a civil action filed in July 2025 seeking R$4 billion in compensation.

The company bears the fixed costs of operating large, complex petrochemical plants. These costs necessitate high utilization to be absorbed efficiently. In Q3 2025, the plant efficiency fell to 65%, hampered by maintenance halts and deliberate output cuts to match sluggish demand, which puts direct pressure on the fixed cost absorption rate.

Finally, the high interest expense on the corporate gross debt is a critical component. The corporate gross debt balance at the end of Q2 2025 was US$8.5 billion (or R$49 billion), closing Q3 2025 slightly lower at approximately R$44.8 billion. The interest burden over the last twelve months reached R$4.45 billion (around US$840 million), which exceeded the company's EBITDA for that period. This strain is reflected in the Q3 2025 cash interest coverage, which deteriorated to 0.70x.

Here's a quick look at the key financial metrics impacting the cost base:

The company is actively implementing measures to mitigate these costs, including:

• Reducing fixed and variable costs, such as in logistics and supplies.
• Optimizing working capital.
• Prioritizing projects within the CAPEX budget.

The high leverage, noted at approximately 14.7x corporate leverage at the end of Q3 2025, directly translates to significant interest expense, which is a non-operational cost consuming cash flow.

Braskem S.A. (BAK) - Canvas Business Model: Revenue Streams

You're looking at the core ways Braskem S.A. (BAK) brings in money, focusing on the latest figures available as of late 2025. This is where the rubber meets the road for their operations, translating production into cash flow.

The primary revenue driver remains the Sales of Polyethylene (PE), Polypropylene (PP), and Polyvinyl Chloride (PVC) resins. In the Brazilian market during the third quarter of 2025, domestic resin sales volume was 787,000 metric tonnes (t), representing a sequential fall of 5% compared to the second quarter of 2025. This dip was attributed to lower PE sales volume because of increased imports in July and August, and weaker PP sales amid reduced demand in the Brazilian market.

The revenue from Sales of main chemicals (e.g., ethylene, propylene, benzene) showed strength in specific areas during 3Q25. Domestic chemical sales volume reached 700,000t, which was an 11% increase sequentially over 2Q25. This domestic growth was supported by higher sales volumes of benzene and propylene, plus increased demand for ethylene and propylene due to resumed customer operations.

Braskem S.A. (BAK) is clearly pushing its sustainable portfolio, with Revenue from I'm Green™ bio-based and recycled resins being a key area. The sales volume for Green PE (I'm green™ biobased) saw a significant jump of 26% in the second quarter of 2025 compared to the first quarter of 2025, driven by demand from both new and existing customers. This highlights a growing, albeit smaller, revenue stream.

Export sales are definitely a major component of the net revenue, even when domestic demand softens. For instance, in 2Q25, Braskem's exports rose by 19% compared to 1Q25, driven by higher export volumes of PE and PP, especially to South America. For main chemicals in 3Q25, export sales volume growth was reported at 10%.

While not a direct revenue stream, the underlying operational performance that supports revenue generation is reflected in profitability metrics. Braskem posted a Recurring EBITDA of R$818 million in 3Q25, showing a strong sequential recovery of 91% compared to 2Q25. This sequential improvement reflects the prioritization of higher value-added sales and the execution of resilience initiatives.

Here is a quick look at some of the key volume and performance indicators that feed into Braskem S.A. (BAK)'s revenue streams:

• Total Net Revenue in 3Q25: R$17.30 billion
• Domestic Resin Sales Volume (3Q25): 787,000 metric tonnes (t)
• Domestic Chemical Sales Volume (3Q25): 700,000t
• I'm Green™ Bio-based Resin Sales Volume Growth (2Q25 vs 1Q25): +26%
• Chemical Export Sales Volume Growth (3Q25 vs prior period): 10%

To give you a clearer picture of the recent performance trends impacting revenue generation, here's a comparison of the sequential chemical sales performance in the domestic market: