steel mill Brazilian Green Steel (AVB) recorded a net profit of R$12.1 million in the third quarter of 2025. This was a decrease of 88.6% compared to the same period last year, when the company made a profit of R$106.9 million. This result reflects the decline in steel prices, especially due to the entry of imported products. China, To a lesser extent, this also includes volume loss due to equipment replacement.
Compared to the previous quarter, the company reversed a loss of R$900 million, supported by improved financial results and operating cash generation of R$166.8 million. AVB’s net revenue amounted to R$442 million in the July-September period, a decrease of 25.1% compared to the same period in 2024. The improvement compared to the previous quarter was driven by a 25% increase in laminate sales, particularly in the Northeast and Southeast regions.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was R$81.6 million, a decrease of 58.7% compared to the same period in 2024. Adjusted EBITDA margin was 18.5% (33.5% in the same quarter of 2024).
Civil engineering construction demand
fart value, president of the company, Silvia Nascimentosaid the sector is expected to improve in the second half, mainly due to increased demand from China. Civil engineering construction.
“The third quarter was better than the second quarter, and the fourth quarter is also very positive. October was a record month, with signs of price recovery between 2% and 4%, depending on the customer,” he explains.
Net leverage (net debt/EBITDA) remained at 1.3x, with net debt at R$563.9 million. The company had cash of 712 million reais at the end of September, 3.5 times its short-term debt. The executive said this provides financial security in the face of market fluctuations.
Competition with China
According to management, the steel sector is Brazilian Steel Associationhas been negotiating with the federal government for a solution to what it sees as unfair competition in the access of imported steel to the domestic market.
“The government has indicated that it will work on solutions. President Lula has expressed concern for the sector (…). Added to this is the fact that customers are replenishing stocks and are buying in the hope that prices may rise further,” he said.
“We get cheap money to pay off expensive debts.”
During the quarter, the company raised R$68.5 million from: Research and Project Investor (Finep) Invest in innovation and sustainability projects. Another highlight is green corporate bonds, It will start in 2024 and will be the first in the Japanese steel sector. “Cash flow increased because we raised cheap funds to pay off expensive debt.”
Green bonds account for 14.9% of the company’s total debt. Collectively, the five bond issues represent more than 70% of total debt, with an average cost of 103% of CDI and sufficient liquidity to cover 78% of maturities through 2028.
Election year and US tariffs
“2026 is going to be a strong year for spending, and in an election year there are a lot of incentives to spend. My home/my life programinfrastructure is functioning and civil construction is very strong, which will continue to drive continued recovery in long steel demand and prices. We are also confident that the government will take action against imported steel,” he added.
During the quarter, the company imported 11,000 tons of pig iron to Japan. big riverin America. The second shipment will occur in mid-November as the segment runs out of stock. 50% tariff from the US government.
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