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, 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, with 50 million shares repurchased and later expanded to 100 million shares.

Financial highlights

• 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 the previous quarter due to increased logistics costs and maintenance shutdown.

• Net income of R$219 million, up 89% year-over-year, stable sequentially.

• Net debt stood at R$1.4 billion, with leverage rising to 0.23x LTM EBITDA.

• Cash and cash equivalents at R$7.9 billion, down 10.4% sequentially.

Outlook and guidance

• Freight costs expected to normalize in the second half of 2026 as war-related pressures ease.

• 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 the second half.

• P15 project on track, with startup of dry plant in late 2027, ramp-up in 2028, and full operation in 2029.

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