BRAZIL · STEEL, COMPANY NEWS
Key Facts
- The country Brazil, where steelmaker Usiminas makes steel and also mines iron ore.
- What happened Usiminas shares fell 8.59% to R$5.00 (US$0.93) on Friday 30 October 2026, the day of its results.
- The results Third-quarter net profit was R$243 million (US$45 million), down 43% from the second quarter.
- The warning The company expects a modest decline in steel earnings and lower iron ore sales in the fourth quarter.
- The US angle US investors hold it through over-the-counter ADRs; the company lists a US$500 million bond due 2032.
- Power Index Brazil ranks 1st of 14 in The Rio Times Latin America Power Index, with 75.0 points (October 2026 edition).
Usiminas shares fell 8.59% on Friday 30 October 2026, even though the Brazilian steelmaker had just swung back to a profit. The stock closed at R$5.00 (US$0.93) on B3, Brazil’s stock exchange, after R$5.47 (US$1.01) the day before.
The company published third-quarter net profit of R$243 million (US$45 million) the same day, a sharp turnaround from a loss a year earlier. But profit fell 43% from the second quarter, and the company warned of a softer end to 2026.
Why Usiminas Shares Fell on Friday
Usiminas shares did not fall from a calm start. The stock closed at R$6.63 (US$1.23) on Friday 23 October 2026, so Friday’s close of R$5.00 (US$0.93) is about 25% lower in a single week.
The results landed in the middle of that slide for Usiminas shares. The company’s own numbers show profit, margins and mining income all weaker than in the previous quarter.
All local-currency amounts here are converted at about R$5.40 per US dollar. Figures come from the company’s earnings release and results presentation, both dated 30 October 2026.
What the Company Reported
Net revenue was R$6.2 billion (US$1.15 billion), up 1% from the second quarter and down 6% from a year earlier. Net profit was R$243 million (US$45 million), against R$428 million (US$79 million) in the second quarter.
A year earlier the company lost R$3.5 billion (US$649 million). That loss included a one-off write-down of R$2.2 billion (US$413 million) on non-financial assets, so the swing back to profit is partly an accounting effect.
Adjusted EBITDA was R$558 million (US$103 million), down 27% from the second quarter and up 29% from a year earlier. The adjusted EBITDA margin fell to 9.0% from 12.4% in the second quarter.
The steel business sold 1.03 million tons, up 5% from the second quarter, and its adjusted EBITDA was R$538 million (US$100 million). Mining earned only R$19 million (US$4 million), down from R$71 million (US$13 million).
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167,921.80
-0.75%
69,779.20
-0.01%
10,254.15
-2.76%
92,079
-2.59%
2,490.92
+0.04%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 167,921.80 | -0.75% | +19.56% | 169,186.42 | 178,526 | 175,157 | — |
| USD/BRL | 5.34 | -1.32% | -0.84% | 5.42 | 5.42 | 5.30 | — |
| SELIC | 13.75% | — | — | — | — | — | |
| PETR4 | 53.31 | -1.06% | +77.70% | 53.88 | 53.70 | 52.83 | 43,239,500 |
| VALE3 | 62.88 | -2.33% | +1.98% | 64.38 | 64.43 | 62.80 | 24,652,300 |
| ITUB4 | 41.42 | -0.67% | +11.30% | 41.70 | 42.60 | 41.15 | 28,160,700 |
| BBDC4 | 15.69 | -1.63% | -13.88% | 15.95 | 16.30 | 15.67 | 65,766,400 |
| BBAS3 | 17.59 | +0.69% | -15.59% | 17.47 | 18.31 | 17.51 | 67,844,600 |
| B3SA3 | 15.27 | +1.33% | +21.71% | 15.07 | 15.78 | 15.20 | 75,282,000 |
| ABEV3 | 15.40 | +0.20% | +26.75% | 15.37 | 15.68 | 15.31 | 27,307,400 |
| WEGE3 | 45.78 | +2.81% | +10.06% | 44.53 | 47.08 | 45.06 | 9,823,200 |
| PRIO3 | 69.21 | -2.71% | +87.14% | 71.14 | 70.98 | 69.15 | 6,663,200 |
| SUZB3 | 47.14 | -0.55% | -3.79% | 47.40 | 47.84 | 46.10 | 7,151,800 |
| RENT3 | 31.14 | -1.67% | -20.73% | 31.67 | 32.68 | 31.02 | 19,092,400 |
| AZZA3 | 16.72 | +1.15% | -42.24% | 16.53 | 17.42 | 16.72 | 4,875,400 |
| CSNA3 | 4.76 | -4.99% | -47.09% | 5.01 | 5.14 | 4.76 | 14,327,900 |
| GGBR4 | 24.87 | -2.28% | +36.28% | 25.45 | 26.20 | 24.79 | 7,507,900 |
| ENEV3 | 26.79 | +0.45% | +49.78% | 26.67 | 27.35 | 26.30 | 12,263,000 |
What Worries Investors in Usiminas Shares
Three pressure points stand out in the release. Steel cost per ton rose 2.4% to R$4,849 (US$898) while net revenue per ton was flat, which squeezes the margin.
Mining was hit by an iron ore benchmark price that fell 7.9% and by high shipping costs. The company temporarily halted operations at one of its plants, and iron ore sales fell 18% to 2.0 million tons.
The outlook is also cautious, which is the third worry for Usiminas shares. For the fourth quarter the company expects higher raw material and energy costs, lower revenue per ton and a modest decline in steel earnings.
The company also pointed to cheaper steel and steel-containing goods arriving in Brazil, including vehicles built abroad. It says continued trade defense measures are essential to protect Brazilian industry.
ADRs, Bonds and Tariffs for US Investors
US investors reach Usiminas mainly through ADRs, which the release lists as USNZY and USDMY on the US over-the-counter market. They do not trade on the New York Stock Exchange.
On credit, the company lists a US$500 million bond with a 7.5% coupon due in 2032. It ended September with cash and investments of R$6.75 billion (US$1.25 billion) against gross debt of R$6.28 billion (US$1.16 billion).
That leaves net cash of R$471 million (US$87 million), so the net debt to EBITDA ratio is minus 0.20. Only R$31 million (US$6 million) of debt principal falls due before 2028.
US steel tariffs matter less here than the share price move suggests. Washington taxes steel products at 50% under Section 232, a trade law that lets the president tax imports on national-security grounds.
Usiminas exported just 55,000 tons in the quarter, about 5% of its steel sales, and 81% of that went to Argentina. The release names no US sales figure, so the bigger risks for Usiminas shares are cheap imports into Brazil and weak iron ore prices.
What It Means for You
For a US investor holding Usiminas ADRs, the price now reflects falling margins, weaker mining and a cautious outlook. The balance sheet is the counterweight, because cash exceeds debt and the bond does not mature until 2032.
The company paid no dividends or interest on equity in the quarter, so the return depends on the share price. For context, read our guides on Brazil in South America and Brazil’s role in Latin America, and our page on São Paulo.
What Is Not Known
The release does not say how much Usiminas sells in the United States, if anything, or which markets make up the 18% listed as other. It also does not say which plant was halted or when it will restart.
The release announces no dividend, so it is unclear what could lift Usiminas shares soon. How the results compared with what analysts expected is not stated in its documents.
More: Brazil news in English, every day from The Rio Times.
Frequently Asked Questions
Why did Usiminas shares fall after a profit?
Profit of R$243 million (US$45 million) was 43% lower than in the second quarter, and the EBITDA margin fell to 9.0% from 12.4%. The company also expects weaker steel earnings in the fourth quarter.
How much did Usiminas earn in the third quarter of 2026?
Net profit was R$243 million (US$45 million) on net revenue of R$6.2 billion (US$1.15 billion). A year earlier it lost R$3.5 billion (US$649 million), after a large asset write-down.
Can US investors buy Usiminas?
The company lists American depositary receipts under the codes USNZY and USDMY on the US over-the-counter market. Its main shares trade on B3 in São Paulo under USIM3, USIM5 and USIM6.
Do US steel tariffs hit Usiminas directly?
Only a little, on the company’s own numbers: exports were 55,000 tons, about 5% of steel sales, and 81% of them went to Argentina. The release gives no US sales figure.
Is Usiminas heavily in debt?
No, it holds more cash than debt, with net cash of R$471 million (US$87 million). Its debt includes a US$500 million bond at 7.5% due in 2032.
Sources: Usiminas, 3Q26 Earnings Release, 30 October 2026; Usiminas, 3Q26 Results presentation, 30 October 2026; Usiminas, investor relations results center, 1 November 2026; B3 (Brazil’s stock exchange), USIM5 closing prices, 30 October 2026; US President, Proclamation 11032, Federal Register Vol. 91, No. 107 (steel, aluminum and copper tariffs), 4 June 2026.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error
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