By Brazil Stock Guide – Unipar Carbocloro SA’s recurring adjusted Ebitda rose to R$402 million in the second quarter as international chemical prices strengthened, sales increased and the modernized Cubatão plant improved production. The figure was 177% above the previous quarter and 31% higher than a year earlier, according to the company’s earnings release.
The Brazilian chemical producer, listed on the B3 under UNIP3, UNIP5 and UNIP6, posted a 27% recurring adjusted Ebitda margin. That compared with 12% in the first quarter and 23% in the same period of 2025.
Prices and volumes drive revenue
Consolidated net revenue reached R$1.50 billion, advancing 21% sequentially and 17% year over year. Excluding hyperinflation accounting and currency-conversion effects in Argentina, adjusted revenue totaled R$1.49 billion.
The sequential increase reflected a 26% rise in the international caustic soda benchmark and a 53% gain in PVC prices. Sales volumes grew 7% for caustic soda and 19% for chlorinated products, with the company reporting monthly records in both categories.
PVC sales fell 11% from the previous quarter as Unipar adopted a more selective commercial strategy in Brazil amid pressure from imports. A 4% appreciation of the real against the dollar also limited the revenue benefit from international prices.
Compared with a year earlier, the company sold more products across its three main segments. Caustic soda volumes increased 9%, PVC rose 6% and chlorinated products gained 4%.
Cubatão upgrade raises utilization
Unipar’s average electrolysis utilization rate in Brazil climbed to 84%, an increase of 12 percentage points from the first quarter. The improvement followed the March start-up of new technology at the Cubatão unit in São Paulo state, which reached full capacity in April.
The project increased production efficiency and reliability while improving technical cost indicators. Unipar also completed a chlorine liquefaction and purification facility in Camaçari, Bahia, which began operating in July.
Capacity utilization in Argentina remained at 73%. The company attributed the result to stable operations at the Bahía Blanca plant and an integrated commercial strategy with its Brazilian business.
Production gains helped cushion higher input costs. The European ethylene benchmark increased 34% from the first quarter, while natural-gas prices rose by about 30%. Adjusted cost of goods sold consequently advanced 4% to R$974 million.
Profit rises while first-half results weaken
Net income reached R$123 million, more than triple the R$37 million recorded in the first quarter. Profit was still 47% lower than the R$232 million posted a year earlier, when the result benefited from an arbitration-related gain.
Reported Ebitda totaled R$386 million, compared with R$154 million in the previous quarter. The difference between reported and recurring adjusted Ebitda included currency and hyperinflation-accounting adjustments as well as a provision related to negative margins on PVC inventory.
The stronger quarterly performance was not enough to offset the weaker start to the year. Recurring adjusted Ebitda for the first half declined 17% to R$547 million, while net income fell 58% to R$160 million.
First-half adjusted revenue was broadly stable at R$2.72 billion. A stronger real and lower average caustic soda prices partly offset higher PVC prices and increased sales volumes.
Cash generation reduces net debt
Operating cash flow amounted to R$347 million in the quarter, supported by sales of caustic soda and chlorinated products. Unipar invested R$151 million in capital projects and paid R$81 million in interest and other financial charges.
Net debt declined to R$2.32 billion at the end of June from R$2.39 billion in March. The company had R$1.38 billion in cash and financial investments against gross debt of R$3.69 billion.
Net leverage eased to 2.50 times trailing Ebitda from 2.58 times three months earlier. The company’s liquidity was sufficient to cover 34 months of amortizations, while 90% of debt maturities were scheduled for 2029 or later.
Accelerated tax depreciation linked to the Cubatão modernization and the Camaçari project is expected to lower income and social contribution tax expenses over the next 30 months.
Shares lag Brazilian benchmark
Unipar’s common shares, UNIP3, ended June at R$57.74, virtually unchanged from the end of 2025. Class A preferred shares, UNIP5, declined 2% to R$60.51, while Class B preferred stock, UNIP6, gained 3% to R$59.51.
The company’s market value increased 2% to R$6.58 billion. Average daily trading volume across the three share classes rose 52% to R$18.3 million, compared with a 7% advance in the Ibovespa during the period.
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