Brazilian Steelmaker Usiminas Doubles Profit to $210 Million; BlackRock Trims Stake
Brazil · Business
Key Facts
—Profit surges Usiminas net earnings hit R$896 million (about US$177 million) in Q1 2026, up 166% year-on-year, signaling a powerful cyclical rebound for the steelmaker.
—Steel division leads The steel unit’s EBITDA jumped 140% over the previous quarter to R$544 million (about US$107 million), driven by higher revenue per ton and lower production costs.
—BlackRock reduces exposure The world’s largest asset manager cut its preferred-share position in Usiminas to roughly 4.86–4.99%, crossing below the 5% disclosure threshold in early July 2026.
—Passive investment stance BlackRock classified its remaining stake as strictly for investment, stating it has no intention to alter the company’s control or management structure.
—Improving margins The company’s adjusted EBITDA margin expanded to 11.1%, supported by a 4.9% rise in net revenue per ton and a 1.8% drop in cost per ton in steel operations.
Usiminas first-quarter profit more than doubles to R$896 million (about US$177 million) even as a regulatory filing shows BlackRock cut its preferred-share stake below the key 5% disclosure threshold, mixing a strong operational rebound with a high-profile portfolio trim.
Earnings driven by steel prices and cost control
Usiminas (USIM5) posted a net profit of 896 million reais for the first quarter of 2026. The result represents a jump of 166% compared with the same period a year earlier and a massive 596% rise over the immediately preceding fourth quarter of 2025.
The steel division underpinned the gains. Its EBITDA climbed 140% sequentially to 544 million reais. Company data pointed to a 4.9% increase in net revenue per ton and a 1.8% reduction in cost per ton within the steel business. Overall adjusted EBITDA reached 653 million reais, expanding the margin to 11.1%—up 56% from the prior quarter.
BlackRock trims Usiminas stake below 5%
Reuters reported on 7 July 2026 that BlackRock had informed Usiminas of a reduced position. One communication cited holdings of 27,385,311 derivative instruments linked to preferred shares, about 4.999% of the class, alongside 28,838,407 preferred shares and ADRs combined, representing roughly 5.264%.
A subsequent update on 9 July showed BlackRock’s aggregate preferred-share and ADR total had fallen to 26,643,439 securities, or approximately 4.864% of preferred shares. Other Brazilian press reports placed the post-sale preferred-share stake at levels including 4.928%, 4.88%, and 4.8%. In all cases the position slipped beneath the 5% marker that requires public disclosure.
What the fund’s own filing signals
In the document to Usiminas, BlackRock characterized its holding as “estritamente de investimento”—strictly for investment. The firm explicitly stated it has no intention to change the company’s shareholding control or management structure.
The filing language is a routine declaration under Brazilian securities rules when an investor crosses a disclosure threshold without seeking strategic influence. Still, the timing on the heels of unusually strong quarterly results drew attention from local traders and made Usiminas shares dip more than 2% in the session following the news, according to market reports.
Why this matters for investors in Brazil
For expat investors and foreign portfolio watchers, the split picture is instructive. A steelmaker delivering triple-digit profit growth suggests domestic heavy industry is capturing margin improvement even in a complex global trade environment.
At the same time, BlackRock reducing exposure by a few tenths of a percentage point reminds the market that large global funds constantly rebalance. The reduced stake is small in absolute terms but symbolically significant because it crosses a widely tracked regulatory boundary. The key takeaway: Usiminas’ operating momentum is real, yet no stock moves in a straight line when major indexed investors adjust their books.
Frequently Asked Questions
How much did Usiminas’ first-quarter profit grow?
Usiminas reported a net profit of 896 million reais in Q1 2026. That is a 166% increase year-on-year and a 596% jump over the fourth quarter of 2025.
Why did BlackRock reduce its Usiminas position?
BlackRock’s filing said the position is strictly for investment purposes and does not aim to change the company’s control. The reduction appears to reflect routine portfolio rebalancing, though it pushed the stake just below the 5% regulatory disclosure threshold.
What is BlackRock’s current stake in Usiminas?
On 9 July 2026, BlackRock’s aggregate preferred-share and ADR holding stood at roughly 4.864% of Usiminas preferred shares, according to a Reuters report citing the company communication. Other disclosures have shown slightly different figures around the 4.8–4.99% range.
Sources: Brazil Stock Guide – Usiminas Q1 2026 Results, Reuters – BlackRock reduces Usiminas stake, Investing.com – Usiminas beats Q1 profit forecasts, Finimize – Usiminas profit jumped on better steel prices, MoneyTimes – BlackRock reduz participação na Usiminas
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