Companhia Siderúrgica Nacional ((SID)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call of Companhia Siderúrgica Nacional (CSN) presented a mixed sentiment, highlighting both positive developments and significant challenges. On the positive side, the company reported growth in EBITDA, debt reduction, and strong performance in key segments like steel and cement. However, the call also addressed challenges such as a decline in mining EBITDA, negative cash flow, and pressure from imported steel products, which the company is actively strategizing to overcome.
EBITDA Growth in All Segments Except Mining
CSN reported an impressive EBITDA of BRL 2.6 billion with a margin of 23.5%, reflecting a 5% increase and a 1.4 percentage point improvement compared to the first quarter of 2025. This growth was observed across all segments except mining, showcasing the company’s operational efficiency and strategic focus.
Debt Reduction Achievements
A significant highlight from the earnings call was CSN’s achievement in reducing its gross debt by BRL 5.7 billion during the quarter. This reduction has brought the company’s leverage below 7 points year-over-year, demonstrating a strong commitment to financial stability.
Record Sales in Mining
The mining segment of CSN achieved its second-highest sales in history, with 11.8 million tons sold. This record sales volume underscores the segment’s robust demand and operational capability, despite facing challenges in EBITDA.
Strong Steel Performance
Despite facing intense competition, CSN’s steel segment reported a 4.5% increase in prices compared to the second quarter of 2024. This led to a remarkable 79% year-on-year increase in EBITDA, highlighting the segment’s resilience and market strength.
Cement Segment Growth
CSN’s cement segment witnessed an 8% growth in sales volume, accompanied by a 10% increase in net revenue compared to the first quarter of 2025. This growth contributed to a 2.3 percentage point rise in profitability, reflecting the segment’s expanding market presence.
Logistics Segment Record
The logistics segment of CSN achieved a new record with an EBITDA of BRL 519 million and a margin of 44.1%. This success was driven by strong rail performance and strategic acquisitions, such as the Tora acquisition.
Energy Segment Surge
The energy segment experienced a significant surge, with EBITDA increasing fivefold compared to the same period in 2024. This growth highlights the segment’s strategic importance and potential for future contributions to the company’s overall performance.
Decline in Mining EBITDA
Despite achieving high sales volumes, the mining segment faced a 36% drop in EBITDA due to declining iron ore prices. This highlights the segment’s vulnerability to market fluctuations and the need for strategic adjustments.
Negative Cash Flow
CSN reported a negative adjusted cash flow of BRL 1.4 million, impacted by increased investments and financial expenses. This presents a challenge for the company, necessitating careful financial management to maintain liquidity.
Challenges with Imported Steel
The market faced intense competition from imported steel products, impacting CSN’s domestic sales and market share. This challenge underscores the need for strategic measures to protect and enhance the company’s market position.
Operational Challenges in Long Steel
Sales of long steel fell by 12% due to aggressive pricing in the market. This decline highlights the competitive pressures faced by the segment and the need for strategic pricing and operational adjustments.
Forward-Looking Guidance
Looking ahead, CSN remains optimistic about its financial performance, with expectations of continued growth driven by its diversified operations and strategic investments. The company aims to leverage its strong EBITDA growth and debt reduction achievements to navigate market challenges and position itself for future success.
In summary, CSN’s earnings call reflected a balanced sentiment, with notable achievements in EBITDA growth and debt reduction, alongside challenges in mining and cash flow. The company’s strategic focus on diversification and investment positions it well for future growth, despite the competitive and market pressures it faces.