Companhia Siderúrgica Nacional (CSNA3) Q2 2025 earnings summary

Executive summary

• Adjusted EBITDA reached R$2.6 billion in 2Q25, up 5.3% quarter-over-quarter, with a margin of 23.5%, driven by strong steel and logistics segments, while mining posted record production but was impacted by lower iron ore prices.

• Business diversification and a value-over-volume strategy supported resilience amid strong import competition and tariff tensions.

• Net revenue for H1 2025 was BRL 21.6 billion, up from BRL 20.6 billion year-over-year, but the period ended with a net loss of BRL 861.9 million due to higher financial expenses and non-operating items.

• Operational excellence led to record production and sales volumes in mining and logistics, with the integration of Tora and Estrela Group expanding multimodal operations.

• The company is actively pursuing deleveraging through asset sales, capital recycling, and infrastructure partnerships.

Financial highlights

• Adjusted EBITDA grew 5% sequentially to R$2.6 billion in 2Q25, with a margin of 23.5% (+1.4 p.p. vs 1Q25).

• Net revenue for the six months ended June 30, 2025, was BRL 21.6 billion, up 10% year-over-year.

• Steel segment EBITDA rose 79% year-over-year, with a margin of 10.8%, driven by price increases and cost control.

• Logistics achieved record EBITDA of R$519 million and a margin of 44.1%, boosted by Tora acquisition and higher rail shipments.

• Adjusted cash flow was negative by R$1.47 billion, reflecting higher investments and working capital consumption.

Outlook and guidance

• The company targets net debt/EBITDA below 3.0x by year-end and 2.0x in the long term, with continued deleveraging and operational efficiency.

• Expansion projects, especially P15 in mining, are prioritized, with delivery expected in Q4 2027.

• Management expects to appoint a partner for the CSN Infrastructure capital recycling project by year-end.

• Ongoing investments in capacity expansion, logistics, and energy self-sufficiency are expected to support future growth.