Companhia Siderúrgica Nacional (CSNA3) Q1 2026 earnings summary

Executive summary

• EBITDA grew 5.5% year-over-year in Q1 2026, demonstrating operational resilience and portfolio diversification despite heavy rainfall and import competition.

• Leverage ratio improved to 3.36x, supported by operational improvements, FX effects, and debt payments.

• Liquidity was enhanced with a US$1.2 billion bridge loan to address short- and medium-term debt amortizations.

• Record mining production and shipments achieved despite adverse weather; steel sales rose 12% sequentially, with March accounting for half of the quarter's sales.

• Net loss for the quarter was R$555 million, an improvement from previous quarters, mainly due to deferred income tax effects.

Financial highlights

• EBITDA margin expanded by 1.8 percentage points year-over-year, reaching 31.2% in Q1 2026.

• Logistics EBITDA margin remained above 40%, with a 26% year-over-year growth.

• Energy segment EBITDA surged over 92% sequentially, with a margin of 31%.

• CapEx dropped 49% sequentially, with stable investments and increased mining disbursements for project P15.

• Free cash flow was negative R$1.6 billion, impacted by seasonality, working capital consumption, high financial expenses, and debt amortization.

Outlook and guidance

• Expecting improved financial and operating indicators in Q2 as seasonality fades and inventory levels normalize.

• Cement segment projected to potentially exceed BRL 2 billion EBITDA for the year, though not formal guidance.

• Asset sales and deleveraging initiatives progressing ahead of schedule, with strong market interest in cement assets.

• Price adjustments in Steel and Cement segments implemented in early April are expected to support future performance.