Usinas Siderúrgicas de Minas Gerais (USIM5) Q4 2025 earnings summary

Executive summary

• Adjusted consolidated EBITDA rose 24% to R$2.0 billion in 2025, with an 8% margin, driven by record iron ore sales of 9.6 Mt (+14% YoY) and steel sales of 4.4 Mt (+2% YoY), despite a challenging environment from unfair steel imports and market pressures.

• Net revenue reached R$26.3 billion (+1.5% YoY), mainly from mining, while steel faced pressure from imports and lower prices.

• Ended the year with net cash of R$444 million and negative leverage of -0.22x, reflecting strong financial discipline.

• Net loss of R$2.91 billion, mainly due to a R$2.23 billion asset impairment and R$2.14 billion deferred tax asset write-down; excluding these, net profit would have been R$702 million.

• Export growth and robust mining operations offset domestic steel margin pressures.

Financial highlights

• Adjusted consolidated EBITDA reached R$2.0 billion (+24% YoY), with margin up to 7.6% from 6.2%.

• Free cash flow for 2025 totaled R$989 million, supported by strong EBITDA and working capital management.

• Net cash position at year-end: R$444 million; leverage at -0.22x.

• Net income for 4Q25 was R$129 million; annual net loss due to non-cash impairment and deferred tax adjustments.

• Cash and equivalents at year-end were R$6.9 billion (+17% YoY).

Outlook and guidance

• Steel unit expects stable sales and a recovery in net revenue per ton, driven by a more premium sales mix and higher prices.

• Mining unit anticipates lower sales volumes in Q1 2026 due to rainy seasonality but will prioritize higher-margin areas.

• CapEx guidance for 2026 is R$1.6 billion, focused on cost, competitiveness, and environmental improvements.

• Ongoing investments in coke plant repairs, PCI plant, and new gasometer, totaling over R$3.5 billion, to enhance competitiveness and efficiency.

• Decarbonization plan targets a 15% reduction in CO₂ emissions intensity by 2030.