Companhia Siderúrgica Nacional (CSNA3) Q4 2024 earnings summary

Executive summary

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

• 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, despite negative seasonality.

• Net loss of R$85 million in 4Q24, a significant improvement from 3Q24; full-year net loss of R$1.5 billion, reversing a profit in 2023.

Financial highlights

• Adjusted EBITDA for Q4 2024 was R$3.3 billion (+46% vs 3Q24), with margin at 26.8%; full-year EBITDA R$10.2 billion, margin 22.4%.

• Mining segment achieved a 35% price increase quarter-over-quarter, with EBITDA margin above 50%.

• Steel sales rose 10.4% year-over-year in Q4, with EBITDA margin reaching double digits for the first time in 2024.

• Cement segment posted its highest-ever EBITDA margin at 32.8% in Q4, with annual EBITDA up 39.5%.

• Logistics EBITDA margin exceeded 40% in Q4, with annual revenue up over 11%.

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.

• Price environment improvements and new price increases at the start of 2025 set the stage for better results.

• Investments in capacity expansion to dominate upcoming quarters, replacing lower maintenance capex needs.