CSN Mineração (CMIN3) Q1 2026 earnings summary

Executive summary

• Achieved record own iron ore production for Q1 2026, up 6.7% year-over-year, despite intense rainfall and seasonality impacts, demonstrating operational resilience.

• Net income reached R$222 million in Q1 2026, reversing a loss from Q1 2025, supported by higher own production and stable iron ore prices, though down from Q4 2025 due to seasonality and higher financial expenses.

• Adjusted EBITDA was R$1.42 billion with a 44.9% margin, reflecting cost control, improved sales mix, and strong profitability amid cost pressures.

• Shareholders approved R$768.6 million in dividends, with total remuneration for the period reaching R$1.19 billion.

• Strong ESG performance: 33% reduction in third-party accidents, 10% increase in female leadership, zero fatalities, and significant reductions in GHG and water intensity since 2020.

Financial highlights

• Net revenue for Q1 2026 was R$3.17 billion, down year-over-year mainly due to exchange rate effects, while sales volume and prices remained stable.

• Adjusted EBITDA margin improved to 44.9% in Q1 2026, up from 41.8% in Q4 2025.

• Net income was R$222 million, reversing a loss from Q1 2025.

• COGS ex-depreciation dropped both annually and sequentially, reflecting lower third-party purchase volumes.

• Adjusted free cash flow was negative R$520 million, impacted by seasonality and higher working capital consumption.

Outlook and guidance

• Production guidance for 2026 is 45–47 million tons, with third-party purchases expected to exceed 25% of sales.

• CapEx for 2026 projected above R$3 billion, with significant spending in Q2 and Q3 for P15 expansion.

• Cash cost (C1) guidance for 2026: US$22–23.5/ton.

• Maintain aggressive dividend payout, targeting 85% of net profit.

• Ongoing investments in infrastructure and operational efficiency are anticipated to support future growth.