v3.26.1
IMPAIRMENT (Tables)
 12 Months Ended
Dec. 31, 2025
Impairment  
Schedule of impairment test of goodwill and other assets
 
  12/31/2025 12/31/2024
Accounting value with VUI  170,163 170,163
Cash flow period 2026 to 2035 + perpetuity 2025 to 2034 + perpetuity
gross margin Gross margin update based on historical data, incorporation of business restructuring impacts and market trends
Update costs Update of costs based on historical data of each product and incorporation of the impacts of the business restructuring
Perpetual growth rate No growth No growth
Discount rate, in real terms 9.42% 11.89%
Measurement of recoverable value VIU VIU
Projected price range R$ / t Market-based data Market-based data
Sensitivity of key assumptions A 3.31% reduction in volume or a 0.48% reduction in price would result in the estimated recoverable amount being equal to the carrying amount of this CGU A 2% reduction in volume or a 3% reduction in price would result in the estimated recoverable amount being equal to the carrying amount of this CGU
Test result The recoverable amount of the asset is higher than its carrying amount, and no impairment loss is recognized

 

b.Goodwill and Brands subject to an indefinite service life allocated to Long Steel operations – SWT

 

  12/31/2025 12/31/2024
Accounting value assets with VUI 454,209  453,133
Cash flow period 2026 to 2035 + perpetuity 2025 to 2034 + perpetuity
gross margin Gross margin update based on historical data and market trends
Updatecosts Updating costs based on historical data and market trends
Perpetual growth rate No growth No growth
Discount rate, in real terms 4.00 %, in Euro 4.14 %, in Euro
Measurement of recoverable value VIU VIU
Projected price range € / t Market-based data Market-based data
Sensitivity of key assumptions A reduction of 23% in volume or 4.7% in price would result in the estimated recoverable amount being equal to the carrying amount of this CGU A 24% reduction in volume or a 4% reduction in price would result in the estimated recoverable amount being equal to the carrying amount of this CGU
Test result The recoverable amount of the asset is higher than its carrying amount, and no impairment loss is recognized

 

 

 

Impairment test of Mining assets

 

(ii)Recoverability test (excluding goodwill):

 

During the fiscal years ended December 31, 2025, and 2024, the Company did not identify changes in circumstances or any indications that could result in a reduction in the recoverable value of Iron Ore and Tin CGU’s. However, it proceeded to carry out the annual impairment test of allocated goodwill, as shown below:

 

(iii)Goodwill Allocated to Mining Operations

 

  12/31/2025 12/31/2024
Accounting value assets with VUI  3,236,402 3,236,402
Cash Flow Period (end of the mine's useful life) 2026 to 2066 2025 to 2066
gross margin Reflects cost projection based on the progress of the mining plan as well as project startup and operational ramp-up. Prices and exchange rates projected according to sector reports
Update costs Update of costs based on historical data, advancement of the mining plan as well as startup and ramp-up of projects
Perpetual growth rate Without perpetuity Without perpetuity
Discount rate, in real terms 8.69% 11.10%
Measurement of recoverable value FVLCD FVLCD
Projected price range R$ / t Market-based data Market-based data
Sensitivity of key assumptions A 23% reduction in volume or an 11% reduction in price would result in the estimated recoverable amount being equal to the carrying amount of this CGU A 20% reduction in volume or a 9% reduction in price would result in the estimated recoverable amount being equal to the carrying amount of this CGU
Test result The recoverable amount of the asset is higher than its carrying amount, and no impairment loss is recognized
Schedule of impairment test
 
  12/31/2025 12/31/2024
Accounting value assets with VUI 503,692 503,692
Cash flow period 2026 to 2035 + perpetuity 2025 to 2034 + perpetuity
gross margin Gross margin update based on historical data and market trends
Updatecosts Costs based on historical data and market trends
Perpetual growth rate Growth in line with inflation Growth in line with inflation
Discount rate, in nominal terms 11.80% 12.95%
Measurement of recoverable value VIU VIU
Projected price range R$ / t Market-based data Market-based data
Sensitivity of key assumptions A reduction of 36.97% in volume or 13% in price would result in the estimated recoverable amount being equal to the carrying amount of this CGU A 27% reduction in volume or 13% in price would result in the estimated recoverable amount being equal to the carrying amount of this CGU
Test result The recoverable amount of the asset is higher than its carrying amount, and no impairment loss is recognized
Schedule of recoverability test
 
  12/31/2025 12/31/2024
Accounting value assets with VUI  15,225 15,225
Cash flow period 2026 to 2035 + perpetuity 2025 to 2034 + perpetuity
gross margin Gross margin update based on historical data and market trends
Update costs Updating costs based on historical data and market trends
Perpetual growth rate No growth No growth
Discount rate, in real terms 9.42% 11.89%
Measurement of recoverable value VIU VIU
Projected price range R$ / t Market-based data Market-based data
Sensitivity of key assumptions A 2.13% decrease in revenue would result in the estimated recoverable amount being equal to the carrying amount of this CGU A 10% reduction in revenue would result in the estimated recoverable amount being equal to the carrying amount of this CGU
Test result The recoverable amount of the asset is higher than its carrying amount, and no impairment loss is recognized
Schedule of investment impairment test
 
  12/31/2025 12/31/2024
Accounting Value - Equity 3,575,588  1,796,451
Cash flow period 2025 to 2057 (end of concession) 2025 to 2057 (end of concession)
gross margin Estimated based on a market study for cargo capture and operational costs according to market trend studies
Cost estimate Costs based on studies and market trends, as well as simulations in which costs of diesel (principal operating cost) was calculated
Perpetual growth rate No growth rate was considered due to the projected model until the end of the concession in 2057
Discount rate, in real terms It ranges from 5.51% to 7.23% Varies from between 5.56% and 6.68%
Measurement of recoverable value VIU
Projected price range for rail transport Market-based data
Sensitivity of key assumptions: A 9.20% reduction in sales volume would result in the estimated recoverable amount being equal to the carrying amount of this asset An 18% reduction in sales volume would result in the estimated recoverable amount being equal to the carrying amount of this asset
Test result The recoverable amount of the investment is higher than its carrying amounts, and no impairment loss is recognized