Cia de Ferro Ligas da Bahia – FERBASA (FESA3, FESA4) reported consolidated net income of R$ 4.5 million in the second quarter of 2026 (2Q26), with a margin of 0.9%, versus a loss of R$ 2.4 million in 1Q26. In the first half of 2026 (1H26), net income totaled R$ 2.1 million, a decrease of 95.1% compared to the R$ 42.9 million in 1H25.
In 2Q26, consolidated net revenue reached R$ 523.5 million, an increase of 3.4% compared to 1Q26, supported by a 4.1% increase in sales volume and a 0.9% rise in the average price in dollars, despite a 4.3% depreciation in the average dollar rate. On a half-year comparison, net revenue in 1H26 was R$ 1,029.9 million, a decline of 13.4% versus 1H25, reflecting a 14% drop in ferroalloy revenue, with a lower volume sold (-12.1%) and an average dollar 10.7% lower, partially offset by a 9.7% increase in average prices in dollars.
Consolidated cost of goods sold totaled R$ 465.2 million in 2Q26, practically flat compared to 1Q26 (+1.4%), while in 1H26 it fell 10% versus 1H25, in line with the 10.2% decrease in ferroalloy costs. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was R$ 50.3 million in 2Q26, with a margin of 9.6%, growth of 14.1% over 1Q26. In the half-year, adjusted EBITDA amounted to R$ 94.4 million, with a margin of 9.2%, a drop of 26.7% versus 1H25, in a market environment the company described as still adverse.
In 1H26, FERBASA used R$ 191.6 million in cash, cash equivalents and financial investments, ending the period with a consolidated financial reserve of R$ 893.7 million. After deducting consolidated debt of R$ 355.7 million, the net cash position was R$ 538.0 million at the end of 2Q26, R$ 180.4 million below the amount recorded on 12/31/2025. The company also invested R$ 104.6 million in CAPEX in the half-year, 8.7% less than in 1H25, mainly in forestry resources and mining.
Financial result was positive at R$ 22.1 million in 2Q26, 19.5% above 1Q26, influenced by a positive net foreign exchange effect of R$ 5.8 million. In 1H26, however, financial result was R$ 40.6 million, down 35.1% compared to 1H25, impacted by a negative net FX effect of R$ 21.4 million and an 8.8% reduction in financial income, partially offset by a 19.5% drop in financial expenses.
In corporate and capital markets matters, FERBASA reported that in May 2026 it renewed its Share Buyback Program, with the possibility of acquiring up to 3.2 million preferred shares FESA4 through May 2027, of which 1,519,200 had already been repurchased by the end of 1H26. In 2Q26, the preferred shares FESA4 had a market value of R$ 2.65 billion, a volume-weighted average price of R$ 6.83 and average daily trading volume of R$ 5.5 million, with free float representing 45.1% of capital.
