Companhia Siderúrgica Nacional (CSNA3) Q1 2026 earnings summary

Executive summary

• Adjusted EBITDA rose 5.5% year-over-year to R$2.65 billion in Q1 2026, with a margin of 23.9%, driven by strong cement and logistics segments despite heavy rainfall, import competition, and challenging steel market conditions.

• Net revenue was R$10.6 billion, down 2.8% year-over-year, reflecting seasonality, adverse weather, and exchange-rate impacts.

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

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

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

Financial highlights

• Adjusted EBITDA margin improved 1.8 p.p. year-over-year but declined sequentially; cement segment achieved record EBITDA of R$392.5 million (31.2% margin).

• Logistics EBITDA margin remained above 40%, with EBITDA of R$447.7 million.

• 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.

• Cash and cash equivalents at quarter-end were R$14.6 billion, covering short-term obligations.

Outlook and guidance

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

• Price adjustments in steel and cement segments implemented in April are expected to support future performance.

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

• Management asserts adequate resources to continue operations and maintains a going concern basis.