Companhia Siderúrgica Nacional (CSNA3) Q2 2026 earnings summary

Executive summary

• Adjusted EBITDA grew 4.8% quarter-over-quarter and 4.9% year-over-year to R$2.77 billion, with a margin of 23.4%, driven by operational improvements and strong segment results in steel, cement, logistics, and energy, despite cost pressures and currency impacts.

• Net revenue reached R$11.3 billion in 2Q26, up 6.6% sequentially and 5.7% year-over-year, with all segments contributing except mining, which faced higher freight and currency headwinds.

• Net loss was R$773 million, mainly due to higher financial expenses from currency fluctuations, despite operational improvements.

• Positive free cash flow of R$808 million, reversing previous negative quarters, supported by working capital release and inventory reduction.

• Successful bond issuance and exchange extended debt maturities, supporting deleveraging and financial flexibility.

Financial highlights

• Adjusted EBITDA reached R$2.77 billion in 2Q26, up 4.8% QoQ and 4.9% YoY, with a margin of 23.4%.

• Free cash flow was positive at R$808 million, reversing previous negative trends.

• Net debt reached R$42.1 billion, leverage (Net Debt/EBITDA LTM) at 3.49x, up from 3.36x in 1Q26.

• Capex rose to R$1.41 billion (+25.6% QoQ, +6.2% YoY), focused on mining and cement projects.

• Gross profit for 2Q26 was R$2.93 billion, margin 25.9%, up 2.1 p.p. from 1Q26.

Outlook and guidance

• Management targets leverage around 3.0x by year-end 2026, with a long-term goal of 1.0x.

• Continued focus on asset divestments, liability management, and extending debt maturities to enhance capital structure.

• Commercial strategies prioritizing value over volume expected to sustain profitability in cement and steel.

• The company expects to double EBITDA within 8 years, driven by asset sales and growth projects.

• Operational efficiency and cost control initiatives to support consistent performance.