Companhia Siderúrgica Nacional

CSN said consolidated EBITDA increased 5% versus both the prior quarter and the same quarter last year. Free cash flow was positive at BRL 808 million, after several negative quarters, and working capital improved on lower inventory. Leverage rose from 3.36x to 3.49x, mainly because of prepayment amortization, FX, and an AFAC of BRL 500 million in Transnordestina. In mining, EBITDA margin remained above 30% despite freight and FX pressure; in logistics, margin stayed above 45%; and cement margin stayed above 30% with a second consecutive EBITDA record. Management did not give companywide revenue or EPS figures in the portions provided. Forward, the company expects continued working-capital release, additional cash generation in coming quarters, a better third quarter for mining, stronger second-half performance in steel and cement, and a more stable energy contribution after the Jacuí one-off. It also said P15 remains on track for delivery by end-2027, ramp-up in 2028, and full operation in 2029, with about BRL 4 billion still to be spent.

CEO Benjamin Steinbruch framed the quarter as evidence that CSN’s diversified asset base is working, especially in an environment of freight and raw-material pressure. He was upbeat on steel recovery after antidumping actions, calling for continued protection against Asian imports and saying the second half should be stronger on volumes and prices. He also stressed that cement, logistics, and energy are all delivering strategic value, and that the company is focused on raising production, improving prices, and sustaining margins.

Management emphasized cash and balance-sheet progress, including positive free cash flow of BRL 808 million and a clear push to reduce inventories and working capital. They said leverage moved to 3.49x from 3.36x because debt amortization, FX, and an AFAC more than offset cash generation, but the increase was described as minor and not a trend. They also highlighted the new 2030 bond exchange/rolling of debt, the use of bridge-loan proceeds only for debt repayment and buybacks, and said more cash release of up to BRL 1 billion could come by year-end if inventory reduction targets are met.

Analysts focused on whether steel’s margin recovery is sustainable and whether antidumping benefits are structural or temporary; management said the mix shift toward domestic, higher-value products is real, and it sees room for margins to improve further if prices rise and imports remain contained. Questions on the cement asset sale and broader deleveraging led management to confirm binding offers were received, but it would not discuss pricing; it said the process is competitive and aimed at getting the best valuation for creditors and the company. Analysts also asked about the bridge loan, debt rolling, and P15; management said the bridge loan has been fully drawn but not fully used, debt maturity extension talks are productive, and P15 still needs about BRL 4 billion in CapEx.