Brazil · Delayed Price · Currency is BRL Usinas Siderúrgicas de Minas Gerais Earnings Call Transcripts
Fiscal Year 2026
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EBITDA and margins improved quarter-over-quarter, driven by higher steel prices and a better sales mix, despite a 52% drop in net income due to weaker financial results. CapEx guidance was reduced, with focus on high-value projects and operational efficiency gains from the PCI plant.
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Q1 2026 saw a 56% sequential EBIT increase, driven by a better sales mix and cost reductions, despite lower steel and mining volumes. The outlook remains stable, with price hikes offsetting rising costs and ongoing efficiency projects supporting margins.
Fiscal Year 2025
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Adjusted EBITDA rose 24% to BRL 2B in 2025, driven by cost reductions and record mining sales. Anti-dumping measures and higher tariffs are expected to support margins and domestic market share in 2026, with CapEx focused on efficiency and environmental upgrades.
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Adjusted EBITDA rose to BRL 434 million with a 7% margin, driven by cost reductions and operational gains, while net income was impacted by a BRL 3.6 billion impairment. Steel and mining volumes grew, leverage dropped to 0.16x, and strong cash generation supported ongoing CapEx projects.
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Record quarter with 13% sales growth, 95% NOI margin, and 96.1% occupancy. Robust performance across segments, strong residential sales, and over BRL 7 billion returned to shareholders. Ongoing expansions and digital initiatives support continued growth.
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Net revenue grew 10% year-over-year to BRL 6.9 billion, with strong EBITDA and net income performance. Steel and mining segments saw volume and margin improvements, but high import pressures and lack of effective trade defense remain key risks. CapEx guidance is maintained, but may be revised if import challenges persist.
Fiscal Year 2024
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Second highest crude steel production since 2015, with 31% EBITDA growth in steel and strong cost reductions. Imports from China and high interest rates pose risks, but 2025 guidance anticipates higher domestic sales, stable mining, and increased CapEx.
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Operational efficiency and cost reductions drove a strong Q3, with net revenue up 7% and EBITDA margin at 6%. Domestic steel sales rose 10% year-over-year, and leverage improved to 0.38, despite ongoing challenges from imports and volatile iron ore prices.
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Blast Furnace 3 ramp-up drove record production and efficiency, but FX and raw material costs pressured margins. Domestic steel demand and mining revenues rose, while imports and currency volatility remain key risks. Capex to accelerate in H2.