Ferbasa (FESA4) Q2 2026 earnings summary

Executive summary

• Net profit was R$4.5 million in Q2 2026, reversing a Q1 loss, but H1 2026 profit was R$2.1 million, down 95.1% year-over-year due to lower sales and adverse market conditions.

• Net revenue in Q2 2026 reached R$523.5 million, up 3.4% sequentially, but H1 2026 revenue fell 13.4% year-over-year, mainly from a 14% drop in ferroalloy revenue.

• Ferroalloy production increased 10.8% quarter-over-quarter to 80,400 tons, while sales volume rose 4.1% sequentially but was down 12.1% year-over-year.

• Metallurgical operations ran at 85.5% capacity, with domestic market expansion offsetting export declines due to logistical challenges.

Financial highlights

• Adjusted EBITDA in Q2 2026 was R$50.3 million (9.6% margin), up 14.1% from Q1, but H1 EBITDA fell 26.7% year-over-year to R$94.4 million.

• Net cash position at end of H1 2026 was R$538.0 million, down R$180.4 million from year-end 2025, with consolidated cash, cash equivalents, and financial investments totaling R$893.7 million.

• Cost of goods sold in Q2 2026 was R$465.2 million, stable sequentially; H1 COGS fell 10% year-over-year, mainly due to lower sales volume.

• CAPEX in H1 2026 totaled R$104.6 million, down 8.7% year-over-year, with major investments in forestry (41%), mining (36%), and machinery.

• BW Guirapá wind complex reported a loss of R$13.2 million in H1 2026.

Outlook and guidance

• Ongoing protectionist measures in the US and EU, regulatory uncertainty, and global logistics challenges are expected to continue impacting exports, especially silicon alloys.

• The company expects continued volatility in steel and ferroalloy markets, with cost pressures from energy and raw materials.

• No material financial impact from ESG or climate change issues as of June 2026.