MTSA4: quote, dividends and indicators for Metisa

Metalúrgica Timboense S.A. – Metisa is a company in the metallurgical sector founded in 1942 in the city of Timbó, in Santa Catarina, initially focused on manufacturing hand tools for agriculture. Created by Richard Paul Junior, the company emerged in a context of growing demand for agricultural implements in Brazil and, a few years later, in 1948, became a corporation (sociedade anônima). A major milestone in its trajectory occurred in 1953, with the installation of the first hot rolling mill for steel plates, which reduced dependence on external suppliers of this raw material and strengthened in-house control over the steel transformation process. Throughout the 1960s and 1970s, the company expanded its industrial park and diversified its portfolio, incorporating components aimed at sectors such as infrastructure, mining, and transportation, which supported its entry into international markets and consolidated its presence beyond the agricultural segment.

Metisa’s development included industrial modernization and management professionalization initiatives. In 1966, the company began producing parts for tractors in a market that was still little explored at the time, with emphasis on blades for motor graders and track shoes for tractor tracks, products that began to replace imports. In 1985, all manufacturing operations were concentrated in the industrial area of Timbó, with the full transfer of administration and equipment to the new facility. The change in shareholding structure in 1987, with the entry of new partners, contributed to more professional management at different levels of the organization. From the 2000s onward, Metisa prioritized production verticalization and the improvement of quality management systems, obtaining ISO 9001 certification in 1997 and, later, ISO 14001 in 2022, which reinforces process standardization and environmental care in its operations. The company’s shares are traded on B3 under the tickers MTSA3 and MTSA4, placing the company in the Brazilian capital markets and expanding its investment and financing capacity.

Metisa’s main activity is the production of steel artifacts for multiple applications, focusing on ground-engaging tools, components for agricultural machinery and implements, and stone-cutting blades. The company operates as a single operating segment but organizes its products by line of use and market served. Among the items manufactured are blades for tractors, motor graders, wheel loaders, teeth for excavators and backhoe loaders, track shoes, track shoe recovery claws, discs for plows and harrows, other tools for agricultural machines, stone-cutting blades, hand tools such as shovels and diggers, railway accessories such as fishplates for rails, components for road implements including axles for trailers and semi-trailers, as well as high-carbon steel washers. This diversity of items is supported by versatile industrial facilities in Timbó, where the same sets of machines can be adapted for different product lines according to demand.

Metisa’s production process is based on hot steel transformation, involving rolling, forging, and stamping stages, followed or not by heat treatment and machining for finishing. The technology applied is in the public domain, but the management of plant capacity depends on the mix of products in each period, since the same equipment can serve different lines. The company maintains a structured preventive maintenance program, with collective vacations at the end and beginning of each year, a period used for interventions that require longer shutdowns, such as maintenance of heating furnaces. The main raw material is steel in the form of continuous casting billets and coil plates, in high-carbon, microalloyed, and low-carbon grades, classified as steels for mechanical construction. Relevant suppliers include domestic steel groups such as Gerdau, ArcelorMittal, Usiminas, and CSN, and the prices of this input are considered volatile, with adjustments at intervals of less than six months, which affects production costs and commercial negotiations.

Metisa’s market structure combines direct supply to original equipment manufacturers (OEMs) and service to the replacement market through distributors supported by a representative network. The products are mainly targeted at the agricultural, mining, infrastructure, rail, and road implement sectors. The customer base is diversified, with no significant concentration above 10% of net revenue in 2025, which reduces dependence on specific large buyers. There are no widely available statistics that allow measurement of Metisa’s market share in each niche, but competition is mainly in terms of product quality and prices, in an environment without signs of monopolies or oligopolies. Demand is seasonal according to product lines and equipment usage cycles, with periods of higher sales in certain months in both the domestic market and exports, especially for earthmoving parts, agricultural implements, hand tools, and stone-cutting blades.

Metisa’s geographic presence combines strong activity in the Brazilian market with a relevant share of exports. Revenue from customers in Brazil accounted for 79.8%, 77.3%, and 76.8% of total net revenue in 2023, 2024, and 2025, respectively, while revenue from foreign countries represented 20.2%, 22.7%, and 23.2% in the same periods. Exports are distributed across several regions, including Europe, the Middle East and North Africa, Africa, Asia, Oceania, North America, South America, and Central America and the Caribbean. North America, Europe, and South America concentrate a significant share of foreign sales, with emphasis on markets such as Mexico and the United States. To serve these destinations, the company must comply with international technical standards and quality requirements in the rail, agricultural, and heavy machinery sectors, as well as monitor changes in import tariffs, non-tariff barriers, and customs regimes that may affect the competitiveness of its steel products versus local and international competitors.

On the regulatory front, Metisa is subject to authorizations and licenses typical of industrial activities in Brazil. The operation of its facilities depends on environmental operating licenses issued by the state environmental authority, a municipal operating and location permit, the Fire Department Inspection Certificate, and health permits, among other general legal requirements. The company reports a track record of timely renewal of the necessary permits, without operational interruptions due to lack of licenses. Internationally, exports are subject to customs, tax, and technical regulations in each destination country, including possible protectionist measures, import quotas for processed steel products, and regulatory requirements from economic blocs. The company also conducts, through its wholly owned subsidiary Metisa Florestal e Energética S.A., reforestation and commercial exploitation of forest products, which is related to its supply strategy and environmental management. The “Metisa” brand is owned by the company itself, and there is no dependence on patents, licenses, or royalty contracts from third parties to conduct its main activity.

In terms of environmental, social, and governance practices, Metisa has some structured elements and others under development. Its environmental management system is certified under ISO 14001:2015 and includes initiatives such as reforestation of native species on the banks of the Rio Benedito Novo and monitored shipment of solid waste, such as mill scale, to licensed industrial landfills. On the social side, the company declares compliance with Brazilian labor laws and Occupational Health and Safety Regulatory Norms, with a focus on employee safety in the industrial environment. The company conducts an inventory of greenhouse gas emissions and makes this information available to commercial partners that require such reporting in contracts. In terms of governance, the company maintains a stance of political neutrality, without making financial contributions to candidates, parties, or initiatives aimed at influencing public policy. Metisa also reports being in the process of assessing adherence to best ESG practices, with the intention of defining material topics, key performance indicators, and, in the future, publishing a more comprehensive sustainability report, in line with evolving capital market expectations on these matters.