Companhia Siderúrgica Nacional (CSNA3) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 was the strongest of the year, marked by operational excellence, cost control, and price improvements across all segments, despite seasonal weakness.

• Record cash and cash equivalents of R$24.9 billion at year-end, supporting deleveraging and financial flexibility.

• Strategic focus on capital recycling, organic growth, and disciplined investment, with no dividends distributed in Q1/Q2 2025 to prioritize deleveraging.

• Operational records and sales volume growth achieved in all segments, overcoming negative seasonality.

• Audit confirmed financial statements present fairly the company's position as of December 31, 2024, in accordance with Brazilian and IFRS standards.

Financial highlights

• Adjusted EBITDA in 4Q24 was R$3.3 billion (+46% vs 3Q24), margin at 26.8%; full-year EBITDA R$10.2 billion, margin 22.4%.

• Net revenue for 2024 was R$43.7 billion, down from R$45.4 billion in 2023.

• Net loss of R$2.6 billion in 2024, compared to a net profit of R$1.05 billion in 2023, driven by higher costs and financial expenses.

• Adjusted EBITDA margin reached 29.1% in 4Q24, up from 19.3% in 4Q23.

• Capex rose 22.2% year-over-year to R$5.525 billion, focused on growth projects in mining and steel.

Outlook and guidance

• 2025 CapEx will focus on priority growth projects, especially mining (P15) and steel plant reorganization.

• EBITDA guidance for 2025 is higher than 2024, with expectations of continued operational efficiency and cost control.

• Deleveraging target is to reduce leverage below 3x by year-end, supported by operational results and potential asset sales.

• Management is monitoring impacts of Brazilian tax reform and international tax changes, with no immediate effect on 2024 financials.

• Company expects to maintain compliance with new IFRS standards on sustainability and financial disclosures.