Business · Companies · 1 hr ago
Usiminas CEO says margin recovery depends on efficiency and fairer competition
Usiminas is facing pressure on its profit margins as costs rise and it competes with imported steel in Brazil.
At a steel industry summit in Mexico City, CEO Marcelo Chara said recovery depends on companies improving their operations and on fairer competition.
The company made R$243 million in the third quarter of 2026, below market expectations and down from R$428 million in the previous quarter.
Its adjusted Ebitda, a measure of operating performance, also fell, from R$761 million to R$558 million.
Higher costs outweighed the benefit of producing more steel, adding to the pressure on margins.
Chara did not give a timeline for recovery and said Usiminas plans investments with a 10-to-20-year horizon.
A R$1.7 billion coke-battery rebuild in Ipatinga is moving ahead, with work contracts already advanced, while the company also plans upgrades to improve efficiency and reduce costs.
Usiminas CEO Marcelo Chara said margin recovery depends on efficiency gains, investment and fairer competition.
He said imported products entering under conditions he considers unfair make it harder for Brazil’s steel industry to recover profitability.
Usiminas reported net profit of R$243 million in the third quarter of 2026, below market expectations of R$300.1 million.
Its adjusted EBITDA fell about 27%, from R$761 million in the second quarter to R$558 million in the third.
The company plans long-term investments, including R$1.7 billion to rebuild a coke battery at its Ipatinga unit.
- Who
- Usiminas CEO Marcelo Chara.
- What
- He said margin recovery depends on efficiency, investment and fairer competition.
- When
- He spoke on Tuesday, November 10, 2026.
- Where
- At the Alacero Summit 2026 in Mexico City.
- Why
- High costs and international competition are pressuring the company’s margins.
This story does not have two clearly opposing sides.
Usiminas’ board approved the project to modernize and partially rebuild Battery 4 of Coke Plant 2.
Usiminas reported net profit of R$243 million and adjusted EBITDA of R$558 million.
Chara discussed margin recovery and investments at the Alacero Summit in Mexico City.
- Third-quarter net profit
- R$243 million
- Market expectation for net profit
- R$300.1 million
- Adjusted EBITDA, third quarter
- R$558 million
- Coke battery project investment
- R$1.7 billion
- Project location
- Ipatinga, Minas Gerais
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We cannot wait for solutions to come from outside. The future depends on us, on industrialists, businesspeople and governments. The future depends on all Brazilians.