Cia de Ferro Ligas da Bahia FERBASA (FESA4) Q2 2025 earnings summary

Executive summary

• Net revenue in 2Q25 reached R$639.5 million, up 16.3% sequentially and 22.5% year-over-year, driven by higher sales volume and improved alloy prices, despite a weaker dollar.

• Adjusted EBITDA for 2Q25 was R$67.6 million (margin 10.6%), up 10.6% sequentially but down 32.1% year-over-year.

• Consolidated net income for 2Q25 was R$18.7 million, down 22.7% sequentially and 67.1% year-over-year, mainly due to increased costs and lower alloy prices.

• Sales volume in 2Q25 rose 13.6% sequentially, with exports up 29.2% and domestic shipments up 1.1%.

• CAPEX in 1H25 totaled R$114.6 million, focused on machinery, mining, and forestry assets.

Financial highlights

• 2Q25 net revenue: R$639.5 million (+16.3% QoQ, +22.5% YoY); 1H25: R$1,189.3 million (+15.3% YoY).

• 2Q25 cost of goods sold: R$551.3 million (+15.9% QoQ, +36.9% YoY); 1H25: R$1,026.9 million (+26% YoY).

• Adjusted EBITDA 2Q25: R$67.6 million (+10.6% QoQ, -32.1% YoY); 1H25: R$128.7 million (-27.7% YoY).

• Net income 2Q25: R$18.7 million (-22.7% QoQ, -67.1% YoY); 1H25: R$42.9 million (-56.2% YoY).

• Net cash position at 2Q25: R$763.4 million, up R$53.5 million from 4Q24.

Outlook and guidance

• Ongoing monitoring of global protectionist measures, especially US and EU tariffs, with potential impacts on exports and domestic steel demand.

• Strategic focus remains on competitive energy, bioreducer supply, and vertical integration of operations.

• Company expects continued volatility in alloy prices and input costs, with a focus on cost control and operational efficiency.