Shares declined 2.9% following Q2 results as investors weighed the combination of volume softness in Brazil and maintenance-related headwinds in the U.S. and Europe, despite some margin improvement from favorable spreads and one-time credits. The market appears cautious amid mixed operational signals and currency pressures.
- Brazil segment's resale volumes declined (polyethylene down 6%, PVC down 1%, chemicals down 4%) despite a 1 percentage point gain in plant utilization; resin sales reduced by imports.
- Recurring EBITDA in Brazil surged 261% to $869 million, driven by a 50% increase in international spreads, $115 million in tax credits (PIS/COFINS), and $27 million from recovery and provision reversals.
- U.S. and Europe segment saw utilization drop 3 points to 76% due to scheduled maintenance downtime, with sales volume flat quarter-over-quarter but mixed by higher U.S. volumes and lower European sales. Reported EBITDA rose to $147 million, supported by higher polypropylene spreads.
- Green polyethylene sales spiked 49%, aided by normalization of demand post-Chinese New Year and expanded partnerships (e.g., New Balance).
- Currency headwinds compounded results, with a 4% appreciation of the Brazilian real versus the U.S. dollar partially offsetting margin gains.
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