By Brazil Stock Guide – Unipar (B3: UNIP3, UNIP5, UNIP6) reported a net loss of R$ 7 million in the fourth quarter of 2025, reversing a profit of R$ 107 million in the previous quarter, as a prolonged global petrochemical downturn and non-recurring effects weighed on earnings.
Recurring adjusted EBITDA totaled R$ 182 million in the quarter, down 32% sequentially and 47% year-on-year, with margins compressing to 16%. The decline reflects weaker international prices for PVC and caustic soda, alongside lower volumes due to typical fourth-quarter seasonality.
Price pressure intensifies
Adjusted net revenue reached R$ 1.17 billion, down 11% quarter-on-quarter, impacted by falling global prices and rising competition from imports — particularly in PVC, where external supply continued to pressure domestic markets. The global backdrop remains defined by supply-demand imbalance, with PVC export prices declining further during the quarter.
The quarter was also affected by non-recurring items, including provisions related to PVC inventory and costs tied to the technological transition at the Cubatão plant, which directly contributed to the negative bottom line.
Full-year resilience
Despite a weak quarter, full-year performance showed greater resilience. Recurring EBITDA reached R$ 1.1 billion in 2025, up 16% year-on-year, with margins at 22%, supported by cost discipline, higher chlorine derivatives output and operational gains.
Operating cash generation totaled R$ 1.2 billion in the year, a significant increase versus 2024, reflecting improved efficiency and working capital management. The company also increased its share of self-generated renewable energy to 60%, reinforcing structural competitiveness.
Leverage rises
At the same time, the balance sheet became more leveraged. Net debt rose to R$ 2.4 billion, with leverage reaching 2.2x EBITDA, up from 0.76x a year earlier, reflecting an intense investment cycle and funding needs.
Unipar extended its debt profile through a R$ 900 million debenture issuance, improving its maturity structure, with an average duration of 73 months and 90% of obligations due from 2029 onwards.
Technology shift
Beyond pricing pressures, the quarter also marked a structural turning point in operations. Unipar completed the phase-out of mercury-based technology at its Cubatão plant in December 2025, replacing it with more modern and efficient processes. The transition generated short-term costs — including equipment write-offs and shutdown-related expenses — but is expected to deliver long-term gains in efficiency and environmental performance.
The move is part of the company’s largest investment cycle to date, with CAPEX of roughly R$ 1.1 billion in 2025 focused on industrial modernization, capacity expansion and higher value-added products. While the investments weigh on short-term results and leverage, they reshape Unipar’s cost base and competitive positioning in a still challenging petrochemical cycle.
Leave a Reply