Usinas Siderúrgicas de Minas Gerais (USIM5) Q1 2025 earnings summary

Executive summary

• Net revenue reached BRL 6.9 billion (R$6.857–6.86 billion), up 6% sequentially and 10% year-over-year, driven by higher steel and mining sales volumes and prices.

• Adjusted EBITDA rose 41% sequentially to BRL 773 million (R$733 million), with margin improving to 11%.

• Net income was BRL 337 million (R$336.999 million), a sharp increase from the previous quarter and year, reflecting operational improvements.

• Domestic steel sales rose 4% year-over-year and sequentially, reflecting resilient demand despite strong import pressures.

• Mining sales increased 11–13% year-over-year, supported by higher quality ore and stable export volumes.

Financial highlights

• Steel segment EBITDA margin improved to 9%, up 2.4 percentage points from the previous quarter.

• Mining segment EBITDA rose 34% sequentially to BRL 206 million, with a margin of 22%.

• Cost of goods sold (COGS) dropped 2% sequentially, aided by efficiency gains and lower raw material prices.

• Free cash flow was negative, impacted by higher working capital and interest payments.

• CapEx for the quarter was BRL 219 million, with a full-year plan of BRL 1.5 billion.

Outlook and guidance

• Expectation of stable consolidated results for the next quarter, with steel and mining volumes holding steady.

• Steel prices and volumes anticipated to remain stable, while mining may see lower results due to weaker ore prices.

• Cost reductions expected to continue, driven by efficiency and lower raw material prices.

• CapEx guidance maintained at BRL 1.5 billion, but may be revised if import pressures persist.

• Ongoing investments in steel (coking plant, PCI, photovoltaic energy) and mining (dam decharacterization) to support efficiency and sustainability.