Chemicals, Paper & Packaging Weekly Update: Rating Change - Credit

Research evidence excerpt

Chemicals, Paper & Packaging Weekly Update: Rating Change - Credit

ted Q1:26 Earnings Performance 8 - 9

notes to D from C. Relative Value 10 - 11

Fitch downgraded Braskem’s Issuer Default Rating to C from CC. Bond Comps 12 - 21

June 26 Evonik expects Q2:26 EBITDA of €600–€650 mm (vs. Street of €567 mm; and Q2:25 EBITDA of €509 mm), Equity Comps 22 - 28

driven by higher volumes, higher prices, and cost reductions; with its Advanced Technologies segment

specifically benefitting from raw material supply limitations at its Asian competitors. Q2:26 FCF to be BofA GLOBAL RESEARCH

significantly higher vs. Q2:25 FCF of minus €(211) mm.

Evonik is raising its 2026 EBITDA to €2.0–€2.2 bn (vs. prior guidance of €1.7–€2.0 bn; and 2019 EBITDA of

~€1.9 bn).

The Advanced Technologies segment includes fumed silicas, precipitated silicas, silanes, peroxides,

isophorone, epoxy curing agents, nylon-12, PEEK polymers, membranes, D-L- methionine, and lysine.

June 26 Weyerhaeuser lower its Q2;26 Wood Products segment EBITDA to down ~$20 mm vs. Q1:26 (vs.

comparable to Q1:26), excluding effect of changes in average sales realizations for lumber and oriented

strandboard (“OSB”), driven by lower lumber volumes, and higher-than-expected manufacturing costs (from

unfavorable fixed cost absorption from lower production volumes arising from transportation constraints).

Weyerhaeuser’s Q2:26 guidance for its Timberlands and Strategic Land Solutions segments remain

unchanged from prior guidance.

June 26 International Paper will close its Aurora, IL sheet plant, and its converting plants in Elk Grove, CA and

Barrington, NJ, and will cease its Richwood, KY preprint operations, all by end of Q3:26.

June 26 OCI N.V. published a letter from Oceanwood Capital that says that the NNH Holding cash offer of