CSN’s Earnings Call: Record Performance Amid Challenges

Companhia Siderúrgica Nacional ((SID)) has held its Q3 earnings call. Read on for the main highlights of the call.

CSN’s recent earnings call painted a picture of robust operational achievements across its various segments, contributing to a strong quarter despite some challenges. The company emphasized its strategic focus on operational efficiency and financial discipline, which led to record-breaking performances and a reduction in leverage. However, concerns remain regarding high financial expenses and competition in the steel market.

Record-Breaking Operational Performance

CSN achieved historical operational records, with a 26% growth in EBITDA reaching BRL 3.3 billion and a margin of 27%. This marks a quarter-on-quarter growth of 330 basis points, showcasing the company’s strong operational capabilities.

Mining Segment Milestone

The mining segment set a new record by shipping over 12 million tons of iron ore. This achievement led to a 5% increase in sales volume from the previous quarter and a 57% growth in EBITDA, highlighting the segment’s significant contribution to the company’s overall performance.

Cement Segment Achievements

CSN’s cement segment reached the second-highest sales volume in its history, with 3.6 million tons sold. This resulted in an EBITDA of BRL 388 million and a 29% margin, surpassing sector averages and demonstrating the segment’s strong market position.

Logistics Segment Success

The logistics segment recorded its highest-ever freight and cargo volume on the railway network, achieving an EBITDA of BRL 550 million with a margin above 35%. This success underscores the segment’s critical role in CSN’s operations.

Leverage Reduction

For the third consecutive quarter, CSN reduced its leverage ratio to 3.1x, down from 3.5x at the end of the previous year. This reduction reflects the company’s commitment to maintaining financial discipline and reducing debt levels.

Negative Cash Flow

Despite improvements, CSN reported a negative adjusted cash flow of BRL 815 million in Q3 2025, an improvement from the previous quarter’s negative BRL 1.4 billion. This remains a challenge that the company needs to address moving forward.

Steel Market Challenges

The steel segment faced increased competition from imported materials, prompting CSN to adopt a strategic shift towards competitive pricing to regain market share. This highlights the challenges the company faces in maintaining its position in the steel market.

High Financial Expenses

CSN experienced higher financial expenses due to elevated interest rates, impacting its overall cash position. This remains a concern for the company as it navigates the current financial landscape.

Forward-Looking Guidance

CSN provided forward-looking guidance that highlights its significant financial and operational achievements. The company reported a 26% year-over-year increase in EBITDA, reaching BRL 3.3 billion, with an EBITDA margin of 27%. The leverage ratio decreased to 3.1x, demonstrating robust financial discipline. The mining segment achieved record shipments, resulting in a 57% EBITDA growth, while the cement segment witnessed historic sales volumes. These outcomes underscore CSN’s operational excellence and strategic market adaptability.

In summary, CSN’s earnings call reflected a strong operational performance across its diverse segments, despite facing challenges in cash flow and the steel market. The company’s focus on operational efficiency and financial discipline has led to record-breaking achievements and a reduction in leverage. However, high financial expenses and competition in the steel market remain areas of concern that CSN will need to address moving forward.