Ferbasa (FESA4) Q2 2025 earnings summary

Executive summary

• Net revenue in 2Q25 reached R$639.5 million, up 16.3% sequentially, driven by higher ferroalloy prices and sales volume, despite a weaker dollar.

• Adjusted EBITDA for 2Q25 was R$67.6 million, up 10.6% sequentially but down 32.1% year-over-year, with a margin of 10.6%.

• Net income for 2Q25 was R$18.7 million, down 22.7% from 1Q25 and 67.1% year-over-year, mainly due to increased costs and lower alloy prices.

• Sales volume rose 13.6% sequentially, with exports up 29.2% and domestic shipments up 1.1%.

• CAPEX reached R$72.1 million in 2Q25, a 69.6% increase over 1Q25.

Financial highlights

• Net revenue increased 16.3% to R$639.5 million in 2Q25, with 54% from domestic and 46% from foreign markets.

• Cost of goods sold in 2Q25 was R$551.3 million, up 15.9% sequentially and 36.9% year-over-year.

• Adjusted EBITDA 2Q25: R$67.6 million (+10.6% QoQ, -32.1% YoY); 1H25: R$128.7 million (-27.7% YoY).

• Net income 2Q25: R$18.7 million (-22.7% QoQ, -67.1% YoY); 1H25: R$42.9 million (-56.2% YoY).

• Cash consumption in 1H25 was R$69.6 million, with operational results of R$163.3 million and CAPEX of R$114.6 million.

Outlook and guidance

• Protectionist measures in the US and Europe are expected to impact exports and domestic steel production.

• Company expects continued volatility in alloy prices and input costs, with a focus on cost control and operational efficiency.

• Strategic focus remains on competitive energy, bioreducer supply, and vertical integration of operations.