Usinas Siderúrgicas de Minas Gerais (USIM5) investor relations material

Executive summary

• Consolidated adjusted EBITDA rose 56% quarter-over-quarter to R$653 million, driven by improved operational performance, especially in the steel unit, and net FX benefits.

• Net income surged 596% sequentially to R$896 million, reflecting significant operational and financial improvements.

• Net revenue for 1Q26 decreased by 5% compared to 4Q25, mainly due to lower sales volumes in both the steel and mining units.

• The Brazilian government imposed antidumping duties on steel imports, temporarily increasing inventories but expected to benefit domestic producers in coming quarters.

• The company maintained a strong balance sheet, ending the quarter with net cash of R$391 million and a leverage ratio of -0.20x.

Financial highlights

• Net revenue was R$5.87 billion, down 5% from 4Q25, reflecting lower steel and mining sales volumes.

• Adjusted EBITDA margin improved to 11.1% from 6.8% in 4Q25.

• Steel sales volume decreased by 7% quarter-over-quarter, but EBITDA improved due to a favorable product mix and higher profitability.

• Mining sales volume dropped 21% quarter-over-quarter, with net revenue per ton stable at BRL 87.

• Positive free cash flow of R$84 million, with net operating cash flow at R$370 million and CapEx of R$285 million (down 23% sequentially).

Outlook and guidance

• Expectation of stable consolidated results in coming quarters, with steel sales volumes to remain steady and cost increases to be offset by higher net revenue per ton.

• Ongoing investments in operational efficiency and environmental compliance, including major projects in coke production, PCI injection, and gas recovery.

• Decarbonization plan targets a 15% reduction in emissions intensity by 2030.

• Price increases of 5% implemented in April for spot and distribution sectors, with further adjustments possible depending on cost pressures.

• Anticipate normalization of steel inventories and improved domestic market opportunities in the second half of the year.