Companhia Siderúrgica Nacional (CSNA3) Q1 2025 earnings summary

Executive summary

• Achieved strong annual recovery in 1Q25, with record sales and robust volume growth across all sectors, driven by higher prices and domestic demand in steel and mining.

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

• Net debt reduced by BRL 3.6 billion, with leverage at 3.33x, further lowered to 3.27x excluding project finance for CEEE-G.

• Net loss of BRL 619 million to BRL 732 million, mainly due to higher financial expenses from exchange rate impacts.

• Maintained business diversification and operational continuity across steel, mining, cement, energy, and logistics.

Financial highlights

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

• Adjusted EBITDA for Q1 2025 was BRL 2.5 billion, up 28% year-over-year, with a 300 basis point margin improvement.

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

• Net debt/EBITDA at 3.33x, improved from 3.49x in 4Q24; further reduced to 3.27x excluding CEEE-G project finance.

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

Outlook and guidance

• Confident in maintaining leverage below 3x in 2025 and beyond, with transformational infrastructure projects expected to further improve leverage.

• Mining segment remains confident in achieving full-year production and purchase guidance of 42–43.5 million tons.

• Continued focus on operational efficiency, cost control, and debt reduction, with ongoing investments in mining infrastructure and steel modernization.