Aug 13, 2026 earnings call — Results, deleveraging and operational recovery
Consolidated EBITDA rose 5% this quarter while free cash flow was a positive BRL 808 million.
Revenue $2.2B (est $2.1B) · EPS $-0.12 (est $-0.12)
Key quotes
"In terms of the sale of the asset last Friday, as informed in a material fact, we have received binding offers that are unique for the Brazilian market and should lead to a very interesting valuation."
"In the second quarter, we reached the fourth best sales result in the history of the segment. This is very relevant when we see that the operation was in shutdown for 15 days for work in the mine."
"On the part of EBITDA, we are very satisfied to announce a second consecutive record going beyond BRL 420,000 (sic) [ BRL 420 million ] and a margin of more than 30%."
Analyst Q&A 5
Steel margins and cement sale plan
Q (Daniel Sasson · Itau BBA): Analyst asked which part of the steel margin recovery is structural and sustainable, outlook for second half, and details on the cement sale process and whether they will sell all or keep a minority.
A: Management said domestic market share has recovered from imports, they raised margins from 7% to 11% and aim for 15%–17% in the second half by recovering volume, raising prices and cutting inventory. On cement, they received binding proposals but cannot disclose details yet; the sale is part of deleveraging and may be combined with operational cash generation and other strategic moves.
"From the first quarter, we went from 7%. We got to 11% in the second quarter, and we are working in a scenario of reaching 15% or 17% in the second half of the year, recovering volume and margins, we can reduce some discounts, align some prices from 5% to 7% now in September." — Luis Martinez
Imports from Vietnam and future asset sales
Q (Marcio Farid Filho · Goldman Sachs): Analyst asked if Vietnam hot-coil imports are one-off or circumvention, and whether pace of asset sales will slow after cement sale or continue to deleverage.
A: Management said the Asian import wave is a big concern and may involve circumvention; they are pushing for antidumping and monitoring inventory and shipments. On liabilities, they extended $1 billion of maturities and will continue liability management and parallel processes for cement and infrastructure without changing the overall speed of deleveraging.
"By communicating vessels, what they stop sending to Europe, the only outlet from China that is open is Brazil." — Luis Martinez
Working capital and mining cash flow
Q (Matheus Moreira · Bradesco BBI): Analyst asked if more working-capital releases are expected and whether mining (iron ore) cash will be pressured, plus whether they will sell more assets beyond the plan.
A: Management said most working-capital release came from steel inventory reductions and they forecast an additional BRL 1 billion cash release by year-end if goals are met. They expect better mining results in Q3 as shutdowns end and weather/exchange rates improve, and they may sell more noncore assets if the Board decides, while focusing now on cement and infrastructure processes.
"And we can get to an additional BRL 1 billion of cash release until the end of the year if we comply with our goals." — Unknown Executive
Steel unit costs and bridge loan use
Q (Gabriel Coelho Barra · Citi): Analyst asked the expected trajectory for steel cost per ton in H2 and about liquidity/plan for the bridge loan and how that cash will be used.
A: Management said slab fixed costs would be close to BRL 3,100–BRL 3,150 if raw-material prices had stayed steady, and they pursue operational excellence and price increases to reach 15%–17% margins. On capital allocation, they are using bridge loan resources to buy back bonds and will manage remaining funds while negotiating bank debt rolls; the main focus remains deleveraging via announced asset sales.
"If we had maintained the price of raw material, coke and coal, it would be close to BRL 3,100, BRL 3,150." — Unknown Executive
Debt roll and P15 project update
Q (Jefferies): Analyst asked about rolling 2026/2028 debt toward 2029 and any update on the P15 project CapEx and EBITDA plan.
A: Management said the recent exchange moved $1 billion of maturities forward, enabling longer discussions with creditors and they have creditor support to roll bank debt. For P15, they expect delivery by end-2027, ramp in 2028 and full operation in 2029, and they still need BRL 4 billion in CapEx funded by a long-term credit line.
"We're still missing BRL 4 billion in CapEx to make in the plant." — Unknown Executive