Usinas Siderúrgicas de Minas Gerais (USIM5) Q2 2026 earnings summary

Executive summary

• Net revenue rose 4% quarter-over-quarter to R$6.1 billion, driven by higher steel prices and increased mining sales volumes, with operational focus on efficiency, cost control, and value-added product mix.

• Adjusted consolidated EBITDA increased 17% from 1Q26 to R$761 million, with margin up to 12%.

• Net income fell 52% sequentially to R$428 million, mainly due to weaker financial results and lower deferred tax credits.

• Major shareholder change: Ternium acquired all common shares previously held by Nippon Steel and Mitsubishi, becoming the new controlling shareholder.

• Functional currency changed from BRL to USD as of January 1, 2026, with financial statements still presented in BRL.

Financial highlights

• Net revenue reached R$6,131 million in 2Q26, up from R$5,871 million in 1Q26.

• Adjusted consolidated EBITDA was R$761 million, a 17% increase quarter-over-quarter, with a 12% margin.

• Adjusted steel EBITDA margin improved to 13%, up 2.4 percentage points from 1Q26.

• Net cash position increased to R$499 million, with leverage at -0.22x Net Debt/EBITDA.

• Free cash flow was positive at R$35 million, despite higher CAPEX and working capital needs.

Outlook and guidance

• Steel unit operations expected to remain stable, with higher costs anticipated for coal, coke, and plates.

• CapEx guidance for 2026 reduced to BRL 1.2–1.4 billion, prioritizing high-value projects and operational efficiency.

• Full benefits of the PCI project expected in Q3 2026; gradual efficiency gains from Coke Battery and Gasometer projects.

• Decarbonization plan targets a 15% reduction in emissions intensity by 2030.

• No guidance provided for 2027, but Gasometer project completion expected mid-2027.