Ferbasa (FESA4) Q1 2026 earnings summary

Executive summary

• Net loss of R$2.4 million in 1Q26, reversing a profit of R$99.8 million in 4Q25 and R$24.2 million in 1Q25, mainly due to lower sales, weaker dollar, and higher production costs.

• Adjusted EBITDA reached R$44.1 million, up 926% from 4Q25 but down 27.8% year-over-year, with an EBITDA margin of 8.7%.

• Net revenue was R$506.4 million, down 16% sequentially and 7.9% year-over-year, driven by lower sales volumes and a 10.3% decline in the average dollar exchange rate.

• Net cash position increased to R$731 million, up R$12.6 million from 4Q25.

• Sales volume declined 13.5% sequentially and 8% year-over-year, with exports and domestic shipments both down.

Financial highlights

• Cost of goods sold was R$458.6 million, down 15.2% sequentially and 3.6% year-over-year, reflecting lower sales but higher input costs.

• Adjusted EBITDA margin improved sequentially despite lower sales and revenue.

• Financial reserves totaled R$1.092 billion, with net cash of R$731 million after deducting consolidated debt.

• CAPEX for 1Q26 was R$40.6 million, down 4.5% year-over-year and 63.7% sequentially, focused on machinery, mining, forestry, and wind energy.

• Financial result decreased 52.9% sequentially, reflecting lower financial revenue and negative currency effects.

Outlook and guidance

• Ongoing global protectionist measures, tariffs, and commodity price volatility continue to impact exports and margins.

• Management remains focused on operational flexibility, cost discipline, and redirecting sales to alternative markets.

• R$140 million in dividends to be distributed in June 2026, reinforcing regular payout policy.