On Thursday, July 30, 2026, Paranapanema (PMAM3) released its first-quarter 2026 (1Q26) earnings presentation, reporting a negative EBITDA (earnings before interest, taxes, depreciation and amortization) of R$ 31 million, a result 33% better than in the same period of the previous year, reflecting higher sales revenue and lower idle costs. Net revenue totaled R$ 142 million in 1Q26, 6% higher than in 1Q25, driven by growth in full-price sales at the Eluma unit.
In the quarter, the company’s consolidated sales volume was 7,615 tons, down 26% compared to 1Q25, impacted by the hibernation of the Caraíba unit and by market contraction at the Eluma unit. Fixed costs were 23% below those recorded in the same period of the previous year, mainly due to the resizing of costs at the Dias d’Ávila (BA) unit to the current level of activity.
Paranapanema reported negative operating cash flow of R$ 21 million in 1Q26, impacted by a higher need to purchase raw materials to meet sales volumes in the full-price modality. Within the scope of the court-supervised reorganization, the company opened the 8th and 9th windows for requests to convert credits into shares, launched the 11th issuance of debentures convertible into shares, and had an increase in capital stock approved by the Board of Directors through the issuance of new common shares.
Since the last quarterly earnings report (ITR) was released, the company has disclosed material facts related to the financial restructuring, including a partial settlement agreement of the Global Agreement, with a small remaining liability for the next three years; execution of the 2nd amendment to the DIP contract with Fundo BS and other parties, which formalized the full settlement of financing agreements totaling R$ 850 million through the transfer in lieu of payment of 4.5 million tons of the byproduct iron silicate; and a binding proposal from HW Holding Ltd., based in Dubai, for a US$ 40 million investment.
The court-supervised reorganization plan, available on the Investor Relations website, provides for the resumption of operations, granting of extended terms and special conditions for the payment of claims, partial sale of Grupo Paranapanema’s assets, and obtaining new financing. The list of creditors amounts to R$ 292.970 million, distributed among labor claims, secured claims, unsecured claims, and micro and small enterprises, while debt under renegotiation has been reclassified to current liabilities since 4Q22, totaling R$ 2,078.8 million on the 1Q26 balance sheet, with 99% of the total maturing in the short term.
