CSN Mineração (CMIN3) Q4 2025 earnings summary

Executive summary

• Achieved record production and sales volumes in 2025, surpassing annual guidance by 4.6% and reaching the highest levels in company history, with annual sales exceeding 45 million tons and all-time highs in production and sales.

• 4Q25 marked the best fourth quarter for production and sales, with net income rising 72% sequentially to R$1.2 billion, though full-year net income declined 63.6% year-over-year to R$1.65 billion due to adverse FX impacts.

• Operational efficiency, logistics improvements, and drier weather drove performance, with production plus purchases up 7.3% year-over-year.

• Consolidated and individual financial statements for 2025 were audited with an unqualified opinion under Brazilian and IFRS standards.

• Management confirmed the company's ability to continue as a going concern.

Financial highlights

• Net revenue for 2025 reached R$18.0 billion, up from R$16.5 billion in 2024, with annual revenue growing 17.9% year-over-year and gross profit at R$8.17 billion (45.4% margin).

• Adjusted EBITDA for 2025 was R$6.448 billion, up 9.4% year-over-year, with a margin of 42.1%; Q4 EBITDA was R$1.76 billion, with a 42.9% margin.

• Net income for 2025 was R$1.65 billion, down 63% year-over-year due to FX impacts.

• COGS rose 23.3% in 2025, reflecting higher sales and third-party purchases; C1 cash cost was US$21.5/t, at the lower end of guidance.

• Cash and cash equivalents at year-end were R$8.9 billion, down 34.6% sequentially due to the MRS acquisition.

Outlook and guidance

• 2025 production and purchase guidance was exceeded by 4.6%, reaching 45.5 million tons; 2026 guidance is 45–47 million tons, with cost guidance of $22–$23.5/ton due to higher transportation and diesel costs.

• Management is monitoring Brazilian and international tax reforms, with no material effect on 2025 results; new IFRS sustainability standards will be adopted from 2026.

• Optimism for continued improvements in production, shipments, and cost control in 2026.

• Iron ore market outlook remains positive, supported by resilient Chinese demand and supply diversification.