Ferbasa (FESA4) Q3 2025 earnings summary

Executive summary

• Main supplier of ferroalloys in Brazil and only producer of ferrochrome in the Americas reported 3Q25 results under Brazilian and international standards.

• Net revenue in 3Q25 was R$542.6 million, down 15.2% sequentially, mainly due to lower sales volume and a weaker US dollar, but up 6.3% year-over-year for 9M25.

• Operations span 18 municipalities in Bahia, with 4,800 jobs created and a vertically integrated production chain from mining to metallurgy and energy generation.

Financial highlights

• Adjusted EBITDA for 3Q25 was R$50.8 million (margin 9.4%), down 24.9% sequentially; 9M25 EBITDA was R$179.5 million, a 41.1% drop year-over-year.

• Consolidated net income reached R$46.0 million in 3Q25, up 146% from 2Q25, but 9M25 net income fell 55.9% year-over-year to R$88.9 million.

• Net revenue for 3Q25 totaled R$542.6 million, a 15.2% decrease from 2Q25, reflecting lower sales volume and a weaker dollar.

• COGS in 3Q25 was R$499.3 million, down 9.4% sequentially, but up 16.2% year-over-year for 9M25 due to higher sales volume and increased electricity and chrome ore costs.

• Financial result for 3Q25 was stable at R$24 million, with financial expenses rising 19.5% due to ACC operations.

Outlook and guidance

• Market caution persists due to global protectionist measures and trade barriers, especially in the US and EU.

• U.S. protectionist tariffs have significantly impacted exports, especially ferrosilicon and ferrochrome, prompting efforts to diversify export destinations.

• Announced R$213 million in dividends in October 2025, reflecting confidence in future cash flows.