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 BRL 222 million in Q1 2026, reversing a loss from Q1 2025, though down from Q4 2025 due to seasonality and higher financial expenses.

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

• Shareholders approved BRL 768.6 million in dividends, with total remuneration for the period reaching BRL 1.19 billion to be paid by year-end.

• 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 declined year-over-year, mainly due to exchange rate fluctuations and seasonality, while sales volume and prices remained stable.

• Adjusted EBITDA margin improved to 44.9% in Q1 2026, up from 41.8% in Q1 2025 and 42.9% in Q4 2025.

• COGS ex-depreciation dropped 26% sequentially and 13% year-over-year, reflecting lower third-party purchase volumes.

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

• Gross profit was BRL 1.13 billion, down 25.6% sequentially and 3.7% year-over-year; gross margin was 35.7%.

Outlook and guidance

• Expect increased purchases from third parties in coming quarters as supplier conditions improve.

• CapEx for 2026 projected above BRL 3 billion, with significant spend in Q2 and Q3, mainly for P15 expansion.

• P15 project remains on track for end-2027 completion, with no material delays expected.

• Quality of product expected to remain stable until P15 comes online, after which a material improvement is anticipated.

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