Ferbasa (FESA4) Q4 2025 earnings summary

Executive summary

• Adjusted EBITDA for Q4 2025 was BRL 4.3 million, down 91.5% from Q3 2025, while consolidated net income reached nearly BRL 100 million, up 117% sequentially, driven by higher sales and tax credit recoveries.

• Ferroligas/ferroalloy sales volume rose 14.8% quarter-over-quarter, with exports up 34.5% and domestic sales up 1.2%.

• Distributed BRL 240 million in dividends/interest on equity, with BRL 100 million paid in 2025 and BRL 140 million scheduled for June 2026.

• Celebrated 50 years of the José Carvalho Foundation, emphasizing social responsibility and educational impact.

Financial highlights

• Net revenue for Q4 2025 was BRL 602.6 million, up 11.1% from Q3, driven by a 14.2% increase in ferroligas revenue.

• Financial result for Q4 2025 grew 65% sequentially, with financial income up 29.7% and financial expenses down 43.1%.

• Cash consumption for 2025 totaled BRL 48.3 million; year-end cash reserves were BRL 1,085 million, with net cash of BRL 718 million.

• Investments in Q4 2025 reached BRL 111.8 million, a 51.7% increase over Q3 2025.

• CAPEX for 2025 totaled BRL 300.1 million, focused on metallurgy, mining, and forestry.

Outlook and guidance

• The company is preparing for new strategic investments in metallurgy, forestry, and mining, with announcements expected once plans are finalized.

• Dividend payout ratio for 2025 reached 127%, with BRL 240 million in dividends distributed.

• 2026 global GDP projected to grow 3.3%; Brazil's GDP expected to rise 1.8%.

• Steel demand forecast to expand 1.3% globally, but Brazil's crude steel output may contract 2.2%.

• Company to focus on geographic diversification, cost management, and new investments in mining and bioreductant production.