CSN Mineração (CMIN3) Q2 2026 earnings summary

Executive summary

• Achieved the fourth highest sales volume in company history despite a 15-day maintenance shutdown, with record monthly production and sales in April and June, reflecting operational efficiency.

• Net income reached R$219.4 million in Q2 2026, up 89% year-over-year and stable sequentially, supported by operational efficiency, lower exchange rate impacts, and tax credit recovery.

• Adjusted free cash flow exceeded R$1.1 billion, reversing negative cash generation from the previous quarter due to strong working capital release.

• Share buyback program extended by 50 million shares after nearly completing the original volume, later expanded to 100 million shares.

Financial highlights

• Sales volume was 11.85 million tons in Q2 2026, up 23% sequentially and stable year-over-year.

• Adjusted net revenue was R$2.87 billion, down 9.4% sequentially and 15.8% year-over-year, impacted by exchange rate appreciation and higher freight costs.

• Adjusted EBITDA was R$1.018 billion with a margin of 35.5%, down from 44.9% in Q1 2026, mainly due to increased ocean freight and exchange rate pressures.

• Gross profit fell 32.6% sequentially and 25.9% year-over-year to R$761.6 million; gross margin dropped to 26.6%.

• Adjusted free cash flow was positive at R$1.1 billion, reversing the previous quarter's negative cash generation.

Outlook and guidance

• Freight costs expected to normalize in the second half of 2026; iron ore prices anticipated to remain at or above US$100/ton.

• C1 cost guidance maintained at US$22–25/ton, with expectations to reduce costs in H2 2026.

• P15 project on track, with plant startup expected end of 2027, ramp-up in 2028, and full operation in 2029; EBITDA incremental potential estimated at R$4 billion.

• Management maintains projections for production, cost, and CAPEX, with ongoing monitoring of market conditions.

• Production guidance for 2026 is 45.0–47.0 million tons of iron ore.