Companhia Siderúrgica Nacional (CSNA3) Q1 2026 earnings summary

Executive summary

• EBITDA grew 5.5% year-over-year in Q1 2026, demonstrating operational resilience and benefits from a diversified portfolio despite heavy rainfall and import competition.

• Leverage ratio improved to 3.36×, supported by operational improvements, FX effects, and debt payments.

• Liquidity was enhanced with a US$1.2 billion bridge loan to support short- and medium-term operations and asset sales.

• Record own production in mining and shipment records at Tecar, despite adverse weather.

• Net loss for the quarter was R$555 million, an improvement from previous quarters, mainly due to deferred income tax effects.

Financial highlights

• Adjusted EBITDA grew 5.5% year-over-year to R$2.65 billion, with margin expansion of 1.8 percentage points.

• Cement segment achieved record EBITDA of nearly BRL 400 million and a margin above 30%.

• Logistics EBITDA margin remained above 40%, reflecting robust profitability.

• Energy segment EBITDA rose over 92% year-over-year, with a margin above 30%.

• Free cash flow was negative R$1.6 billion, impacted by seasonality, working capital consumption, high financial expenses, and debt amortization.

Outlook and guidance

• Operating indicators and cash conversion are expected to improve as seasonality fades and inventory levels normalize.

• Price adjustments in Steel and Cement segments implemented in April are expected to support future performance.

• Cement segment could potentially exceed BRL 2 billion EBITDA for the year, though not formal guidance.

• Asset sales, especially in cement and infrastructure, are progressing with binding offers expected in the coming months.