EALT3: quote, dividends and indicators for Electro Aço Altona

Electro Aço Altona S.A. is a Brazilian company in the metallurgy segment, focused on casting and machining steel and iron parts, whose shares are traded on B3 under the tickers EALT3 and EALT4. Founded on March 8, 1924, in Blumenau, Santa Catarina, the company originated from a partnership between German engineer Paul Werner and blacksmith Ernst Auerbach, initially under the corporate name Auerbach & Werner. In its early phase, its main activity was the manufacture of household utensils and agricultural implements, such as cast-iron pans, meat grinders, precision scales and equipment for farming. In 1933, with the acquisition of an electric arc melting furnace, the company began operating in steel casting, changed its name to Electro Aço Altona S.A., and became one of the pioneers in this type of operation in Santa Catarina and in Brazil. In the following decades, it expanded its industrial facilities, incorporated new technologies and diversified its product line, including initiatives such as the production of steel bells in the 1940s, replacing bronze bells. In 1950, it registered with the Brazilian Securities and Exchange Commission (CVM), consolidating its presence in the Brazilian capital markets, and in 2024 it completed 100 years of existence, reinforcing its relevance to the regional and national economy.

Electro Aço Altona’s main activity is the production of carbon steel and special alloy castings, covering low-, medium- and high-alloy parts, serving both made-to-order demands and series production for various industrial segments. The company offers a portfolio of components that includes rings and bearings, rotors, disintegrators, fittings, housings and pumps, as well as levers, bushings, ladles, cylinders, grinding tracks and rollers. It also produces accessories for anchors, eye bolts, connectors, bar links, teeth, cylinder bottoms, crosses, conveyor supports, arms, trestles and forks, in addition to specific items developed according to customers’ technical specifications. These parts primarily serve basic industries, construction companies, heavy construction firms, mining, power generation and other sectors that require highly complex metal components. The operation is supported by complementary services such as heat treatment, non-destructive testing, x-ray, precision machining and finishing, which allow it to deliver parts that are either finished or in an advanced stage of processing, according to the needs of each project.

Electro Aço Altona’s production process is structured into stages typical of the steel casting industry, with an emphasis on quality control and adherence to the technical specifications of each application. Production begins with the manufacture of patterns, which are replicas of the final part made from materials such as wood, plastic, polystyrene, aluminum, brass, cast iron or steel. These patterns are then used in molding, where special sand molds are created, with cavities and channels for pouring the metal alloys. The melting stage uses electric arc and induction furnaces, with varying capacities for the production of sophisticated alloys which, once melted, are poured into the molds. After solidification and cooling, shakeout takes place, followed by the removal of gating systems and an initial rough finishing. The parts then undergo heat treatment to adjust mechanical properties, non-destructive testing where applicable, and move on to precision machining, supported by more than 30 pieces of equipment and metrology laboratories. The main inputs include steel scrap and ferroalloys as raw materials, as well as secondary materials such as abrasives, resins, electrodes, binders, ceramic filters, inserts, gases and electricity.

The company operates with a corporate structure that includes subsidiaries focused both on international commercial expansion and on verticalization and operational support. Altona Europe, a representative office in Germany acquired in 2018, has the role of expanding commercial presence in Europe. In the United States, Altona North America was established in 2023 and began operating in 2024, replicating the sales office model for business development in North America. Domestically, Administradora de Bens Altona S.A., created in 2017, is responsible for managing non-operational real estate assets, focusing on the sale and acquisition of land and properties of interest to the group. The acquisition of Modelação Kimze in 2019 integrated pattern-making activities into the group, improving efficiency in manufacturing the patterns used in casting. In 2020, the full acquisition of Indústria Magayver incorporated the production of wooden case-type packaging, used to protect and transport the parts produced, helping to reduce logistics costs and improve packaging adequacy. In 2022, the creation of Altona Engenharia Industrial Ltda. added boiler shop services, product development and industrial services, operating in engineering, welding, cutting, molding and construction of heavy structures and machinery, both for the parent company and for other industrial demands.

Electro Aço Altona’s commercial operations are divided between the domestic and foreign markets, with a presence in more than 25 countries. Revenue from Brazil accounts for a significant portion of total sales, with steel castings sold to local customers on both repetitive and made-to-order lines. In the international market, sales are concentrated mainly in North America, followed by Europe, Asia, Africa and Latin America. In recent years, North America has accounted for most of foreign revenue, in both repetitive contracts and made-to-order projects, while Europe, Asia and Africa also represent a significant share, and Latin America contributes on a smaller scale. This geographic diversification exposes the company to specific regulatory and logistical requirements in each region, as well as to potential protectionist measures and exchange-rate fluctuations, which may affect the competitiveness and demand for its products.

From the standpoint of customers and segments served, Electro Aço Altona is characterized as a supplier of components for large industrial and infrastructure projects. In the construction and mining segment, the company has two large customers that individually account for more than 10% of net revenue, with an impact concentrated in the product line aimed at these sectors. These contracts include supplying custom-made parts, developed according to specifications for use in mining equipment, load-handling systems, metal structures and industrial systems. As a basic industry, the company belongs to a restricted group of foundries capable of serving large-scale projects, resulting in a competitive environment that involves both domestic and international players. At the same time, its dependence on raw materials tied to metal commodities, especially iron, means that global price fluctuations can influence production costs and margins.

The company operates under a broad regulatory framework, involving environmental, health and safety standards, as well as specific licenses for the use of certain inputs. Electro Aço Altona requires environmental operating licenses issued by the state environmental authority, as well as location permits, health permits for its infirmary and cafeteria, an inspection certificate from the Fire Department, and a Federal Police certificate for the use of controlled chemical products. Compliance with standards related to the emission and disposal of hazardous materials, waste management, handling of risky substances and protection of workers’ health is monitored by dedicated internal departments. Failure to meet these requirements can result in fines, operational restrictions or, in extreme cases, suspension of activities. In terms of supply, the company adopts a strategy of supplier diversification and does not have significant dependence on a small number of suppliers, although it is subject to price volatility in metal and chemical inputs due to global events.

Regarding environmental, social and corporate governance aspects, Electro Aço Altona prepares and publishes an annual sustainability report that compiles information on its ESG practices. This document is prepared based on specific criteria and standards defined by the company itself, without independent external auditing. The company states that it is in the process of aligning its ESG practices and disclosures with broader standards, still without the formal adoption of a materiality matrix, ESG key performance indicators or structured references to initiatives such as the United Nations Sustainable Development Goals or the TCFD recommendations. The “ALTONA” brand is protected and renewed periodically with the Brazilian National Institute of Industrial Property (INPI), reflecting its focus on managing intangible assets. In terms of institutional relations, the company reports that it does not make financial contributions to candidates, political parties or initiatives aimed at influencing public policy, maintaining its focus on regulatory compliance and the continuity of its industrial operations. In this context, Electro Aço Altona, through its EALT3 and EALT4 shares on B3, represents a case of a traditional metallurgical company with a strong industrial base, significant export activity and gradual development in governance and sustainability practices.