Usinas Siderúrgicas de Minas Gerais (USIM5) Q1 2025 earnings summary

Executive summary

• Net revenue reached BRL 6.9 billion in Q1 2025, up 6% sequentially and 10% year-over-year, driven by higher steel and mining sales volumes and prices.

• Adjusted EBITDA rose 41% from the previous quarter to BRL 733 million, with margin improving to 11%.

• Net income was BRL 337 million, reversing a prior quarter loss and reflecting operational improvements.

• Domestic steel sales increased 4% sequentially and year-over-year, with mining sales up 13% year-over-year.

• Management remains focused on operational efficiency, cost reduction, and maintaining competitiveness amid high import pressures.

Financial highlights

• Steel sales volume grew 3% sequentially and 5% year-over-year; mining sales volume reached 2.2 million tons, up 13% year-over-year.

• Adjusted EBITDA margin improved to 11% from 8% in 4Q24; mining segment EBITDA margin reached 22%.

• Net revenue per ton in steel increased modestly, while mining revenue grew 20% year-over-year due to higher volumes and improved product mix.

• Temporary working capital increase of BRL 778 million, mainly from higher sales and raw material inventory, expected to normalize in Q2.

• CapEx for the quarter was BRL 219 million, with a full-year investment plan of BRL 1.5 billion maintained.

Outlook and guidance

• Steel and mining volumes expected to remain stable in Q2 2025, with further cost reductions anticipated.

• Steel prices projected to remain stable, with potential spot price adjustments due to import pressures and currency appreciation.

• Mining segment may see lower results in Q2 due to declining ore prices, despite stable volumes and improved product mix.

• Investment plan remains at BRL 1.5 billion for the year, but may be revised if import pressures persist and market conditions worsen in H2 2025.