Companhia Siderurgica Nacional (SID) Q4 2025 Earnings Call Highlights: Record EBITDA Growth ...

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EBITDA Growth: 15% increase in EBITDA due to record volumes in mining and logistics, and lower costs in steel. EBITDA Margin: Reached 28% for 2025, with a total EBITDA of 3.3 million reais. Mining Sales Volume: Exceeded 45 million tons, surpassing guidance by 5%. CapEx Growth: 42.4% increase compared to the previous quarter, totaling BRL5.9 billion for the year. Adjusted Cash Flow: Negative 261 million reais, showing improvement from the previous quarter. Leverage Indicator: Increased to 3.47 times due to concentrated investments. Steel Production Cost: Reached the lowest level since 2021. Net Revenue Growth in Mining: 18% increase for the year. EBITDA Margin in Energy: 54% with a 79% growth in EBITDA for 2025. Logistics EBITDA: Reached almost BRL2 billion with a margin of 44%. Cement EBITDA Margin: Close to 30% in the second half of the year.

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Release Date: March 12, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Companhia Siderurgica Nacional (NYSE:SID) achieved a 15% increase in EBITDA due to record volumes in mining and logistics, lower steel costs, and price recovery in the cement market. The company reported the second-largest volume of production and sales in its history, surpassing guidance by 5% and demonstrating strong operational efficiency. Significant cost reductions in steel production were achieved, reaching the lowest level since 2021, contributing to maintaining margins. The logistics and energy segments reported record EBITDA for 2025, with energy showing a 79% growth in EBITDA, highlighting the company's vertical integration strategy. The company has a strategic plan to improve its capital structure by raising up to BRL18 billion through asset sales to reduce leverage and support growth.

Negative Points

Companhia Siderurgica Nacional (NYSE:SID) experienced an increase in leverage due to concentrated investments and other expenses, marking the first rise in leverage for the year. The cement segment faced price pressure from raw material costs in the first half of the year, impacting profitability. The steel segment was pressured by high levels of imports, affecting local market dynamics and necessitating anti-dumping measures. The company's adjusted cash flow was negative, although it showed improvement compared to the previous quarter. There was a significant increase in net debt, attributed to exchange rate variations and the non-renewal of prepayment contracts for mining.

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Q & A Highlights

Q: Can you provide details on the disinvestment plan and the timing for operations? A: Antonio Marco Campos Rabello, Executive Officer - Finance, Investor Relations Officer, explained that the signing of processes is expected in the third quarter of this year. The sale of the control of the cement segment is progressing well, with several proposals received from potential buyers across different geographies. Morgan Stanley is leading this operation, and the process is advancing swiftly.

Q: What is your view on the steel plant's pricing dynamics and the effectiveness of recent market protection measures? A: Luis Fernando Barbosa Martinez, Executive Officer, noted that CSN is focusing on reducing discounts rather than increasing prices immediately. The anti-dumping measures against China are expected to extend for five years, which should stabilize the market and improve competitiveness.

Q: Are there strategic alternatives if market conditions affect your plans? A: Antonio Marco Campos Rabello stated that CSN has multiple financial strategies to manage liquidity and debt. The company is close to concluding a significant operation involving the sale of cement assets, which will provide financial benefits and support deleveraging efforts.

Q: How is CSN addressing the issue of imports impacting the steel market? A: Luis Fernando Barbosa Martinez highlighted that the government has been supportive in implementing anti-dumping measures. CSN is also monitoring imports from other countries like Korea and India to ensure fair competition and is working with the government to address these issues.

Q: Can you clarify the increase in net debt and its impact on cash flow? A: Antonio Marco Campos Rabello explained that the increase in net debt was primarily due to exchange rate variations and the timing of prepayment operations for iron ore. These are expected to normalize in the first half of 2026, with no long-term concerns.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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