Ferbasa (FESA4) Q4 2024 earnings summary

Executive summary

• 2024 was marked by global geopolitical conflicts, logistics bottlenecks, protectionist trade actions, and inflationary pressures, impacting sales, costs, and pricing.

• Despite adverse conditions, the company prioritized cost control, productivity, and strategic projects, including new plant construction and lime plant commissioning.

• Social investments exceeded R$17 million, benefiting over 100,000 people, and the company celebrated the 30th anniversary of the SILBASA joint venture.

Financial highlights

• Net revenue for 2024 was R$2,236.7 million, down 8.1% year-over-year; 4Q24 net revenue rose 1.6% sequentially to R$607.5 million.

• Adjusted EBITDA for 2024 was R$352.0 million (margin 15.7%), a 22.5% decrease from 2023; 4Q24 Adjusted EBITDA was R$47.0 million, down 63% from 3Q24.

• Net income for 2024 was R$327.8 million (margin 14.7%), a 14.4% decrease year-over-year; 4Q24 net profit rose 21.9% sequentially to R$126.3 million.

• Cash consumption totaled R$39.0 million in 2024, ending with a net cash position of R$709.9 million.

• CAPEX was R$288.7 million, 8% lower than 2023, focused on machinery, equipment, and forest assets.

Outlook and guidance

• Global GDP growth for 2025 is projected at 2.7%, with developing economies facing the weakest growth in 25 years.

• World steel production is forecast to recover by 1% in 2025, mainly driven by India, while Brazil may see a slight decline.

• The company will focus on cost management, process optimization, and strategic expansion, including a new chromium ferroalloy plant and technological upgrades.