The main factor behind the profit decline was the intense competitive pressure created by low-cost steel imports, particularly from China, in the Brazilian domestic market. The company's operating profit (EBITDA) fell from BRL 733 million in the first quarter to BRL 408 million in the second quarter, while the profit margin dropped from 11% to 6%.
Usiminas' total revenue recorded a slight decline on a quarterly basis, reaching BRL 6.6 billion. However, this figure represents a 4% increase compared to the same period last year.
Iron ore sales provided support
The company maintained steel sales at 1.08 million tons since the beginning of 2025, while increasing iron ore sales by 11% on a quarterly basis to 2.46 million tons. This represents a 22% increase on an annual basis and indicates that demand for its products remains resilient.
Strong recovery in cash flow
Financially, Usiminas achieved a significant success by generating BRL 281 million in free cash flow during the quarter. Thanks to this cash surplus, the company reduced its net debt by approximately a quarter to BRL 1.05 billion. This resulted in a significant improvement in the balance sheet structure.
Risks are growing for the future
However, company executives point out that cheap imported steel combined with high interest rates in Brazil threaten future profitability and investments. The ineffectiveness of current trade measures is putting pressure on domestic producers to reduce costs and postpone investments.
Usiminas continues to strengthen its financial structure despite challenging market conditions. However, structural risks across the sector remain critically important for the future of Brazil's industrial policy. Economic and trade decisions will shape not only individual companies but also the country's production capacity and investment environment.
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