Usinas Siderúrgicas (XUSIO) | News Based Sentiment Analysis

• Usiminas demonstrated a strong recovery in the first half of 2025, with net income reaching 337 million reais ($59.08 million) in Q1, an 845% increase year-over-year, reported on April 24, 2025. This was driven by a 13% rise in iron ore sales and a 5% increase in steel sales, but the company cautioned about challenges in the second half of the year.
• Building on the Q1 success, Usiminas reported a net profit recovery to BRL 128 million ($23.1 million) in Q2 2025, as announced on July 25th, compared to a net loss of BRL 100 million in Q2 2024. Net sales revenues increased by 4% to BRL 6.626 billion, and gross profit jumped 50% to BRL 492.2 million, showcasing improved operational efficiency.
• Usiminas proactively managed its debt, announcing an optional early redemption of the 1st Series of its 9th Debenture Issuance on August 21, 2025, and completing the redemption on August 28, 2025, involving R$160,190,000.00. This aligns with the company’s strategy to reduce liabilities.
• On September 10, 2025, Usiminas announced a strategic repositioning focused on cost-cutting and operational efficiency to compete in the growing Brazilian steel sector, projected to reach $80 billion by 2035. The company reduced its 2025 net debt by 24% and lowered capital expenditures to BRL 1.2–1.4 billion.
• Usiminas is investing heavily in future sustainability, committing BRL 1.7 billion to a new coke battery to improve fuel efficiency and lower energy costs, as reported on September 10, 2025. They are also advancing emissions controls and reforestation programs, preparing for hydrogen-based production in line with COP30 decarbonization trends.
• As of September 5, 2025, Usiminas’s closing share price was 0.7250, with a year-to-date difference of -8.81% and a market capitalization of €511.31 million.

The Investment Story: Usiminas continues to demonstrate a strong turnaround, driven by improved financial performance and proactive debt management, while simultaneously investing in long-term sustainability and operational efficiency. However, the share price reflects ongoing market concerns.

What It Means for Investors: The positive financial results and strategic initiatives suggest Usiminas is well-positioned for future growth, but the negative year-to-date share price performance indicates investors remain cautious. Monitoring the impact of cost-cutting measures and sustainability investments will be crucial.

Looking Ahead: Investors should watch for further updates on the impact of the debt redemption, the progress of the new coke battery project, and any developments regarding government policies on steel imports. The company’s ability to navigate the competitive landscape and maintain profitability will be key.

The Bottom Line: Usiminas presents a compelling investment case with a recovering business and a clear strategic direction, but investors should remain aware of the market’s cautious sentiment and the ongoing challenges in the steel industry.