Usinas Siderúrgicas de Minas Gerais (USIM5) Q3 2025 earnings summary

Executive summary

• Adjusted EBITDA reached R$434 million (7% margin), up 6% sequentially and 45% year-over-year, driven by operational stability, cost reduction, and higher mining sales.

• Net income was impacted by a R$3.6 billion non-cash impairment and deferred tax effects, resulting in a net loss of R$3.5 billion for the quarter.

• Free cash flow reached R$613 million, the highest in two years, and net debt dropped 69% to R$327 million, with leverage at 0.16x.

• Steel and mining sales volumes grew, with steel sales up 2% sequentially and mining volumes at multi-year highs.

• Operations span steel production, iron ore extraction, and logistics, with ongoing monitoring of U.S. tariffs and global supply chain impacts.

Financial highlights

• Net revenue was R$6.6 billion for the quarter, stable sequentially and up year-over-year, mainly from mining; nine-month net revenue reached R$20.1 billion.

• Accumulated nine-month EBITDA was R$1.6 billion, up 45% year-over-year.

• Gross margin held at 7%, with gross profit at R$447 million.

• Free cash flow for the quarter was R$630–613 million.

• CAPEX for the quarter was R$266 million, down 20% from 2Q25.

Outlook and guidance

• Continued cost reductions expected in Q4 2025, with stable net revenue per ton and lower volumes due to seasonality.

• Mining volumes projected slightly lower in Q4 but higher for full-year 2025 versus 2024.

• Ongoing investments in steel and mining operations, including coke plant renovation, new PCI plant, and dam decharacterization, to enhance efficiency and sustainability.

• CapEx guidance remains near the lower limit of R$1.2 billion, with Q4 CapEx expected between R$400–500 million.

• Management continues to monitor U.S. tariffs and global economic activity for operational impacts.