CIA de Ferro Ligas da Bahia - Ferbasa (BSP:FESA3)

Q2 2026 Companhia de Ferro Ligas da Bahia Ferbasa Earnings Call Transcript

Aug 12, 2026 / 06:00 PM GMT

Release Date Price: R$10.52 (+0.96%)

Transcript

Key Points

Positve

CIA de Ferro Ligas da Bahia - Ferbasa (BSP:FESA3) reported a consolidated net profit of R$45 million in Q2 2026, a positive swing of R$9 million compared to the R$24 million loss in the previous quarter.
The company achieved a 4.1% increase in sales volume of ferro alloys in Q2 2026, driven by a 4.0% rise in domestic market sales, despite a slight decline in prices.
Production costs for ferro alloys decreased by 2.0% in the first half of 2026, primarily due to lower expenses on chrome ore and reduced costs for high-carbon ferrochrome production.
The company is advancing its strategic project to convert two furnaces to use eucalyptus charcoal, which is expected to reduce costs and improve sustainability, with completion targeted for 2026.
Ferbasa is actively exploring new mineral assets, including chrome, quartz, and other critical minerals, to diversify its portfolio and secure long-term raw material supply.
The company maintains a strong competitive position in the Brazilian ferro alloy market, supported by its verticalized production model and self-generation of renewable energy.

Negative

CIA de Ferro Ligas da Bahia - Ferbasa (BSP:FESA3) faced significant logistical difficulties in exporting products due to port congestion, which negatively impacted sales volumes in Q2 2026.
The company's margins remained compressed due to historically low ferro alloy prices, despite improvements in production costs.
Ferbasa experienced a significant cash consumption of R$134 million in the first half of 2026, driven by operational cash flow shortfalls and dividend payments, reducing its cash position to R$1.1 billion.
The company decided to postpone the implementation of two new furnaces at the Maracas unit to 2027, deferring investments to preserve cash amid challenging market conditions.
The ferrochrome market remains under pressure due to oversupply and weak demand, particularly in Asia, with prices expected to stay depressed in the short term.
The company is facing uncertainties related to trade barriers and tariffs in the US and Europe, which could impact its export competitiveness and market access.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

FESA4.SA - Companhia de Ferro Ligas da Bahia Ferbasa
Q2 2026 Companhia de Ferro Ligas da Bahia Ferbasa Earnings Call
Aug 12, 2026 / 06:00PM GMT

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Presentation
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Boa Taja Todos, sejo mundo mendindo sa conferenci ti resortadis du secondo trimes tidas nu vinti cesar verbaza.

Taran participanto kono scoroj.

Silvon Andrade, Director of Presidente, Financiero, Tirrealas Fence Convicidoris. Carlos Enrique Temporal, Tirrealas Fence Convicidoris. Allende te keep Sharin, accountabilidadi.

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