Ferbasa (FESA4) Q3 2025 earnings summary

Executive summary

• Net revenue in 3Q25 was R$542.6 million, down 15.2% sequentially due to lower sales volume and a weaker dollar, but up 6.3% year-over-year for 9M25, driven by higher domestic sales and a stronger average dollar.

• Adjusted EBITDA for 3Q25 was R$50.8 million (margin 9.4%), down 24.9% from 2Q25; 9M25 EBITDA was R$179.5 million (margin 10.4%), a 41.1% decrease year-over-year, mainly due to lower ferroalloy prices and higher costs.

• Net income in 3Q25 reached R$46.0 million, up 146% from 2Q25, but 9M25 net income fell 55.9% year-over-year to R$88.9 million, reflecting margin compression and increased costs.

• Operations span 18 municipalities in Bahia, with 4,800 jobs created and a vertically integrated production chain from mining to metallurgy and energy generation.

Financial highlights

• 3Q25 net revenue: R$542.6 million; 9M25: R$1,731.9 million (+6.3% YoY).

• 3Q25 adjusted EBITDA: R$50.8 million (margin 9.4%); 9M25: R$179.5 million (margin 10.4%).

• 3Q25 net income: R$46.0 million (margin 8.5%); 9M25: R$88.9 million (margin 5.1%).

• COGS in 3Q25: R$499.3 million (-9.4% QoQ); 9M25 COGS: R$1,526.2 million (+16.2% YoY).

• Net cash position at 9M25: R$801.8 million, up R$91.9 million from year-end 2024.

Outlook and guidance

• Management expects continued pressure from international protectionist measures, especially US tariffs, and ongoing cost challenges from electricity and chrome ore.

• The company is seeking alternative export markets and cost reduction initiatives.

• Announced R$213 million in dividends in October 2025, reflecting confidence in future cash flows.

• The company is monitoring potential safeguard measures in the EU and remains cautious about global market conditions.