Usiminas Profit Surges 166% Despite BlackRock Stake Cut
Usiminas delivered a 166% jump in first-quarter profit on stronger steel prices and cost cuts, but shares fell over 2% after BlackRock trimmed its holding below a key regulatory threshold.
Usiminas reported first-quarter net income of R$896 million, a 166% year-on-year increase and a 596% jump from the final quarter of 2025. The Brazilian steelmaker’s strong operational rebound was partially overshadowed after BlackRock trimmed its stake below a key regulatory threshold, sending shares down more than 2% in the subsequent trading session.
The earnings surge points to effective margin management rather than broader macroeconomic tailwinds. Usiminas achieved a 4.9% increase in net revenue per ton while simultaneously cutting costs per ton by 1.8%. This combination of pricing power and efficiency drove the core steel division’s EBITDA up 140% sequentially to R$544 million, pushing overall adjusted EBITDA to R$653 million and expanding the margin to 11.1%.
Routine rebalancing, outsized reaction
BlackRock’s portfolio adjustment is minimal in absolute terms but highly visible to the market. On July 7, the asset manager reported holding 27.38 million derivative instruments linked to preferred shares alongside 28.8 million preferred shares and ADRs. By July 9, that aggregate preferred-share and ADR position had fallen to 26.6 million securities, or about 4.864%.
Crossing below the 5% mark ends mandatory public disclosure requirements, a technical step that routinely draws outsized attention from local traders. In its regulatory filing, BlackRock described the remaining position as “estritamente de investimento,” explicitly stating it does not intend to alter Usiminas’ shareholding control or management structure.
For foreign portfolio managers watching Brazilian equities, the divergent market reaction is instructive. Usiminas’ triple-digit profit growth demonstrates that domestic heavy industry can still secure significant margin expansion despite a complex global trade environment. Yet the immediate share price dip underscores a persistent reality: even robust industrial fundamentals can be temporarily dented when major indexed investors simply rebalance their books.
