Companhia Siderúrgica Nacional (CSNA3) Q1 2025 earnings summary

Executive summary

• Achieved strong annual recovery in 1Q25, with record sales and volume growth in steel and mining, supported by robust domestic demand and operational efficiency.

• Adjusted EBITDA grew 28% year-over-year to R$2.5 billion, with margin improving by 2.8 p.p. to 22.1%.

• Net loss of R$732 million, mainly due to higher financial expenses from exchange rate impacts, despite improved operational performance.

• Leverage reduced to 3.33x, or 3.27x excluding CEEE-G project finance, with net debt down R$3.6 billion.

• Completed key acquisitions, including Gramperfil S.A. and Tora Group, and advanced ESG initiatives.

Financial highlights

• Net revenue reached R$10.91 billion, up 12.3% year-over-year, with gross profit at R$2.53 billion.

• Adjusted EBITDA for Q1 2025 was R$2.5 billion, up 28% year-over-year, with margin at 22.1%.

• Adjusted cash flow was negative R$173 million, a significant improvement from negative R$1.7 billion in Q4 2024.

• Net loss attributable to controlling interests was R$619 million, versus a loss of R$590 million year-over-year.

• Gross margin improved to 23.2% from 22.6% year-over-year.

Outlook and guidance

• Focus remains on deleveraging, targeting leverage below 3x in the next two years, with assertive CapEx management prioritizing high-return projects.

• Operational improvements and deleveraging position the company for stronger performance in 2025.

• Mining segment aims for full-year production and purchase guidance of 42–43.5 million tons.

• Ongoing investments in mining infrastructure and steel modernization, with continued focus on cost control and efficiency.