Companhia Siderúrgica Nacional (CSNA3) Q2 2026 earnings summary

Executive summary

• Adjusted EBITDA grew 4.8% quarter-over-quarter and 4.9% to 5% year-over-year, reaching R$2.77 billion, with margin at 23.4%, driven by operational improvements and strong segment results despite cost pressures.

• Net revenue increased 6.6% sequentially and 5.7% year-over-year to R$11.3 billion, with all segments except mining contributing to growth.

• Net loss was R$773 million, mainly due to higher financial expenses from currency fluctuations and increased debt.

• Free cash flow was positive at R$808 million, reversing previous negative quarters, supported by working capital release and inventory reduction.

• Deleveraging advanced through asset sales, liability management, and successful bond issuance, extending debt maturities.

Financial highlights

• Adjusted EBITDA margin was 23.4% in 2Q26, with consolidated EBITDA up 4.8% QoQ and 4.9% YoY.

• Net debt/EBITDA leverage rose to 3.49x from 3.36x in 1Q26, reflecting FX impacts and prepayment amortizations.

• CapEx increased 6.2% QoQ to R$1.41 billion, focused on mining and cement projects.

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

• Free cash flow reached R$808 million, driven by inventory reduction and improved working capital.

Outlook and guidance

• Management targets leverage around 3.0x by year-end 2026 and 1.0x long-term, with continued focus on asset divestments, liability management, and operational improvements.

• Consolidated CAPEX for 2026 projected at R$13.2 billion, with major investments in mining and cement.

• Expectation of stronger second half in steel, cement, and mining, with further margin recovery and volume growth.

• Ongoing focus on cost control, price increases, and operational excellence to maintain or improve margins.