Usiminas, one of Brazil’s top steelmakers, reported a second quarter 2025 net profit of R$128 million—62% less than the prior three months.
This fall comes as a flood of cheap steel imports, mostly from China, put heavy pressure on Brazil’s steel industry. Last year, Usiminas had actually lost money in this same period, so the shift back to profit shows some recovery, but the market remains tough.
The company’s operating profit (EBITDA) fell to R$408 million, down sharply from R$733 million in the previous quarter, as profit margins dropped to 6% from 11%. Usiminas’ total revenues stood at R$6.6 billion, slightly down from the quarter before but 4% higher than last year.
Still, Usiminas made gains elsewhere. It sold 1.08 million tons of steel, almost unchanged from early 2025, and boosted iron ore sales by 11% quarter-on-quarter to 2.46 million tons—up 22% compared to last year.
These numbers show that demand for its products remains solid even with stiffer competition. A bright spot came from a big cash flow turnaround.
Usiminas Strengthens Finances Amid Rising Steel Imports
Usiminas generated R$281 million in free cash, reversing a big outflow last quarter. The company used this positive cash to shrink its net debt by nearly a quarter, to R$1.05 billion. Its financial position is now much stronger.
However, company leaders warn that rising imports of low-cost steel, combined with high interest rates at home, threaten future profits and investment.
Current trade barriers have not solved this problem, leaving Usiminas and other local producers under growing pressure to cut costs and delay new projects.
The story here is simple but serious: Usiminas is holding on through a wave of foreign competition while improving its finances, but risks to Brazil’s industrial sector remain high.
Decisions made now about trade, credit, and investment will affect not just one company, but the country’s larger manufacturing future.
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