Usinas Siderurgicas de Minas Gerais SA USIMINAS
BOVESPA:USIM3
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Usinas Siderurgicas de Minas Gerais SA USIMINAS
Usinas Siderúrgicas de Minas Gerais SA, commonly known as USIMINAS, stands as one of Brazil's most significant steel manufacturers, nestled in a region rich in the very resources that feed its voracious industrial appetite. With roots stretching back to the mid-20th century, USIMINAS was born out of a strategic need to boost the country's industrial capabilities. The lush hills of Minas Gerais provide an ample supply of iron ore, which acts as the lifeblood for the firm’s numerous blast furnaces. These towering giants turn raw materials into a wide array of steel products that are further processed into high-quality flat steel sheets. Through comprehensive mining operations and efficient steel production techniques, USIMINAS ensures a continuous supply of material to satiate both local and international demand.
Operational prowess aside, USIMINAS crafts its revenue streams largely by serving sectors that form the backbone of modern economies: automotive, construction, and general manufacturing. By supplying the steel that becomes the frame of a car, the structure of a skyscraper, or the underpinnings of machinery, the company embeds itself deeply into the infrastructure of growth across South America and beyond. Despite the cyclical nature of the steel industry, USIMINAS has maintained resilience by innovating its production methods, tapping into eco-friendly practices, and shifting gears to meet evolving market demands. Through strategic partnerships and an adaptive business model, USIMINAS not only sustains its profitability but also fortifies its position as a stalwart of industrial progress in Brazil.
Usinas Siderúrgicas de Minas Gerais SA, commonly known as USIMINAS, stands as one of Brazil's most significant steel manufacturers, nestled in a region rich in the very resources that feed its voracious industrial appetite. With roots stretching back to the mid-20th century, USIMINAS was born out of a strategic need to boost the country's industrial capabilities. The lush hills of Minas Gerais provide an ample supply of iron ore, which acts as the lifeblood for the firm’s numerous blast furnaces. These towering giants turn raw materials into a wide array of steel products that are further processed into high-quality flat steel sheets. Through comprehensive mining operations and efficient steel production techniques, USIMINAS ensures a continuous supply of material to satiate both local and international demand.
Operational prowess aside, USIMINAS crafts its revenue streams largely by serving sectors that form the backbone of modern economies: automotive, construction, and general manufacturing. By supplying the steel that becomes the frame of a car, the structure of a skyscraper, or the underpinnings of machinery, the company embeds itself deeply into the infrastructure of growth across South America and beyond. Despite the cyclical nature of the steel industry, USIMINAS has maintained resilience by innovating its production methods, tapping into eco-friendly practices, and shifting gears to meet evolving market demands. Through strategic partnerships and an adaptive business model, USIMINAS not only sustains its profitability but also fortifies its position as a stalwart of industrial progress in Brazil.
EBITDA Growth: Usiminas delivered adjusted EBITDA of BRL 434 million with a 7% margin, up from the previous quarter thanks to cost and efficiency improvements.
Strong Cash Generation: Free cash flow reached BRL 613 million, helping to reduce net debt and leverage to 0.16x.
Sales Volume Increase: Steel sales volumes and mining volumes both increased, despite headwinds from rising imports.
Pricing Actions: Usiminas implemented steel price hikes of 4–7% in October to offset unsustainable spot price declines, aiming to restore positive margins.
Imports & Antidumping: Management remains confident in the implementation of antidumping measures, but expects final decisions only by February–March 2026, and notes continued severe pressure from subsidized imports.
Cost Reductions: A 3% reduction in COGS per ton in the steel business supported results, with further cost reductions expected in the next quarter.
Mining Performance: Mining unit saw higher volumes and revenues, but costs were pressured by increased international freight; similar cost levels expected next quarter.
Outlook: Q4 expected to see lower volumes due to seasonal factors, continued cost focus, and stable net revenue per ton; positive working capital generation is likely to continue.