Usinas Siderúrgicas de Minas Gerais (USIM5) investor relations material

Executive summary

• Adjusted consolidated EBITDA rose 24% year-over-year to BRL 2.0 billion in 2025, with an 8% margin, driven by record iron ore sales of 9.6 million tons (+14% YoY) and steel sales of 4.4 million tons (+2% YoY), despite challenging conditions from unfair steel imports.

• Net revenue for 2025 was BRL 26.3 billion (+1.5% YoY), mainly from mining, while the steel unit faced pressure from imports and lower prices.

• Ended the year with a net cash position of BRL 444 million and negative leverage of -0.22x, reflecting strong financial discipline.

• Net loss of BRL 2.9 billion was mainly due to a BRL 2.2 billion asset impairment and BRL 1.4 billion deferred tax adjustment; excluding these, net profit would have been BRL 702 million.

Financial highlights

• Adjusted consolidated EBITDA reached BRL 2.0 billion (+24% YoY), with margin up to 7.6% from 6.2%.

• Free cash flow for 2025 totaled BRL 989 million, with a record quarterly figure of BRL 744 million in 4Q25.

• Annual CapEx was BRL 1.2 billion (+10% YoY), with 2026 guidance at BRL 1.6 billion.

• Net income for 4Q25 was BRL 129 million; annual net loss due to non-cash impairment and deferred tax adjustments in 3Q25.

• Cash and equivalents at year-end were BRL 6.9 billion (+17% YoY).

Outlook and guidance

• Steel unit expects stable sales and a recovery in net revenue per ton, driven by a more premium sales mix and higher prices.

• Mining unit anticipates lower sales volumes in 1Q26 due to rainy seasonality but will prioritize higher-margin areas.

• CapEx guidance for 2026 is BRL 1.6 billion, focused on cost, competitiveness, and environmental improvements.

• Ongoing investments in coke plant repairs, PCI plant, and new gasometer, totaling over BRL 3.5 billion, to enhance competitiveness and efficiency.

• Decarbonization plan targets a 15% reduction in CO₂ emissions intensity by 2030.