RSUL4: quote, dividends and indicators for Riosulense

Metalúrgica Riosulense S.A., commercially known as RIO, is a publicly traded corporation founded in January 1946 in the city of Rio do Sul, in the state of Santa Catarina. Headquartered in the Barra do Trombudo neighborhood, the company has built a track record of more than eight decades in the metallurgical industry, with continuous operations in casting and machining focused on the automotive sector and adjacent segments. The company’s shares have been traded on B3 since 1988, under the tickers RSUL3 (common) and RSUL4 (preferred), and have been part of the group of companies listed in the “A” category since 2010. Throughout its history, Riosulense has invested in technical specialization and certifications, including international recognition in the Transportation and Power Generation program, obtained in 2014, becoming the first foundry in Brazil to receive this certificate for supplying the railway sector.

Riosulense’s business model is based mainly on the manufacture and sale of components for vehicle and machinery engines, with a strong emphasis on casting special iron and steel alloys combined with high-precision machining. The company supplies both automakers and the replacement market, serving light vehicles, utility vehicles, trucks, agricultural machinery, motorcycles, and railway and naval applications. In addition to its own production, it participates in the resale market for automotive products, complementing its portfolio with engine items purchased from third parties. In terms of revenue, the sale of products manufactured in-house accounts for most of net revenue, while resale represents a smaller but growing share in the composition of operating results, indicating a diversification strategy within the auto parts value chain.

Riosulense’s product structure consists of a broad catalog of machined metal components and technical parts. Among the main items manufactured are valve guides and seats, valve tappets, engine mounts, cylinder liners and steel shoulders, used in internal combustion engines and in systems for fastening and supporting components. In its resale activities, the company sells a complete line of engine items, such as pistons, valves, connecting rods, head bolts, bearings, camshafts, timing kits, rings, reamers and gasket sets, among others. The production process integrates casting, machining and finishing stages, supported by melting furnaces, mixers, pouring machines, deburring equipment, conventional and CNC lathes and milling machines, as well as machining centers. The company also invests in development technology, notably the Prototype Factory inaugurated in 2019, which uses 3D printing to improve part design and accelerate the engineering cycle.

Riosulense’s target markets are segmented into five main fronts: auto parts replacement, vehicle manufacturers, exports, the railway sector and the agricultural segment. Replacement is the most relevant market, accounting for more than half of sales in 2025, reflecting the importance of the automotive aftermarket in the demand for the company’s components. Automakers represent the second largest share, with a significant contribution to revenue, evidencing its capacity to supply original parts to large global manufacturers. In this context, Mercedes-Benz is the main individual customer, with a share of more than 10% of total net revenue in recent years within the automaker segment. The railway and agricultural markets, although smaller in share, are strategic for diversification, supported by technical certifications and the development of specific alloys and geometries for more severe applications.

Geographically, Riosulense operates in all Brazilian states, with a higher concentration of sales in markets such as São Paulo, Minas Gerais, Paraná, Rio de Janeiro, Rio Grande do Sul, Goiás and Santa Catarina. National distribution occurs mainly through commercial representatives, with direct sales in strategic regions such as Greater São Paulo, Santa Catarina, Rio Grande do Sul, Sergipe and Triângulo Mineiro. In the foreign market, the company exports to more than 28 countries, with relevant revenue in markets such as the United States, Germany, China, United Arab Emirates, Bolivia, Paraguay and Peru, in addition to other destinations in the Americas, Europe, Asia and Africa. In 2025, foreign revenue accounted for around one-tenth of total net revenue, demonstrating a consolidated international presence. The opening of the subsidiary Riosulense Smart Parts Ltda. in Guarulhos, in Greater São Paulo, at the end of 2025, reinforces its wholesale commercial strategy and its proximity to major distribution and consumption centers.

The company’s operations involve a supply chain based on metallic inputs and auxiliary materials typical of the casting and machining industry. The main raw materials include steel scrap, pig iron and various specific metal alloys, as well as silicon brass tubes and auxiliary inputs such as sand, resins, electrodes, LPG gas, oils and cutting tools. Riosulense adopts a policy of developing and approving multiple suppliers to mitigate concentrated dependence, although some specific inputs are still purchased from a single supplier due to limited availability in the market. The prices of these materials follow the typical volatility of metal commodities and industrial inputs, and are continuously monitored and negotiated by the procurement department. Seasonality in sales is more noticeable between the second half of December and the first half of January, a period in which key customers reduce production due to collective vacations, temporarily affecting demand.

Riosulense, issuer of the RSUL3 and RSUL4 shares on B3, is subject to a broad set of rules and licenses at different government levels, covering tax, labor, environmental, safety and product issues. For its operation, the company maintains a business location and operating permit, a sanitary permit for the cafeteria, a fire department inspection report, an environmental license from the competent state body in Santa Catarina, and a Federal Police certificate related to the use of controlled chemicals. The company is also affected by structural changes in the regulatory environment, such as the Tax Reform, which tends to require process adaptations, systems review and investments in tax compliance. In the international environment, Riosulense monitors the technical and regulatory requirements of each destination country, including possible changes in tariffs, market protection policies and quality standards, factors that may influence the feasibility and continuity of certain export flows.

In the environmental, social and governance (ESG) field, Riosulense maintains a management system aligned with ISO 14001, with policies aimed at reducing adverse environmental impacts, preventing pollution, properly managing waste and complying with applicable environmental laws. The company has internal structures dedicated to quality, environment, and health and safety at work, responsible for the safe storage and disposal of hazardous materials, as well as for compliance with labor and occupational safety standards. In 2025, the company published its first Sustainability/ESG Report for fiscal year 2024, prepared based on the Global Reporting Initiative (GRI) guidelines, in which it disclosed a materiality matrix and key performance indicators related to environmental, social, governance, health and safety and ethics topics. Riosulense carries out greenhouse gas emissions inventories, covering the scopes applicable to its operations, and states its intention to advance in the integration of additional international references, such as IFRS S1 and S2 standards and TCFD climate recommendations, in future reporting cycles, in line with the evolution of regulatory requirements and climate risk management.