Usiminas Profit Jumps 236% But Faces Slower Quarter Ahead
Usiminas posted net profit of R$ 428.2 million (about US$84 million) in 2Q26, up 236% year-on-year but down 52% sequentially. Adjusted EBITDA beat expectations at R$ 761.3 million, yet management warns of pressure ahead. The post Usiminas Profit Jumps 236% But Faces Slower Quarter Ahead appeared first on The Rio Times .
Brazil's Usiminas profit jumped 236% in the second quarter of 2026, surpassing the R$ 428.2 million (approximately US$84 million) mark, but faces a slower quarter ahead due to weakening demand and cautious guidance. The profit increase, while impressive, was partly driven by the lower base from the previous year, which was affected by low steel prices and high costs.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 17% from R$ 653.2 million in the first quarter to R$ 761.3 million in the second quarter, showing genuine operational improvement and beating market expectations. However, a sequential drop of 52% in net profit highlights non-operational factors, such as higher depreciation and financial expenses, rather than a decline in the steel business itself.
Management cautioned about potential challenges in the coming quarter due to market instability, softer steel prices, and aggressive imported competition, as well as Brazil's economic environment with elevated interest rates and potential slowdowns in construction activity. Investors should monitor steel prices and the Brazilian real exchange rate, as these factors could impact future earnings and share price volatility.
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