Ferbasa (FESA4) Q4 2025 earnings summary

Executive summary

• Adjusted EBITDA for Q4 2025 was BRL 4.3 million, down 91.5% from Q3 2025, while consolidated net income reached nearly BRL 100 million, up 117% sequentially, driven by higher sales and tax credit recoveries.

• Ferroligas/ferroalloy sales volume rose 14.8% quarter-over-quarter, with exports up 34.5% and domestic sales up 1.2%.

• Cash consumption for 2025 totaled BRL 48.3 million, with significant CAPEX and dividend distributions.

• The company distributed BRL 240 million in interest on equity/dividends, with BRL 100 million paid in 2025 and BRL 140 million scheduled for June 2026.

• Celebrated 50 years of the José Carvalho Foundation, emphasizing social responsibility and educational impact.

Financial highlights

• Net revenue for Q4 2025 was BRL 602.6 million, up 11.1% from Q3, driven by a 14.2% increase in ferroligas revenue.

• Financial result for Q4 2025 grew 65% sequentially, with financial income up 29.7% and financial expenses down 43.1%.

• Cash and equivalents at year-end were BRL 1,085 million; net cash position was BRL 718 million.

• Investments in Q4 2025 reached BRL 111.8 million, a 51.7% increase over Q3 2025.

• COGS increased 12.3% year-over-year, mainly from higher electricity and chromium ore costs.

Outlook and guidance

• The company is preparing for new strategic investments in metallurgy, forestry, and mining, with announcements expected once plans are finalized.

• Dividend distribution of BRL 100 million (JCP) scheduled until December 2025, with a total payout of 127% of net profit for the year.

• Ongoing legal and regulatory developments in the US and Europe are expected to impact future export conditions.

• 2026 global GDP projected to grow 3.3%; Brazil's GDP expected to rise 1.8%.

• Company to focus on geographic diversification, cost management, and new investments in mining and bioreductant production.