National Steel (NYSE:SID) executives highlighted what they described as a strong finish to 2025, pointing to higher consolidated profitability, record volumes in mining and logistics, and improving conditions in cement, while also acknowledging a quarter-end increase in leverage tied to investments and other one-time factors.
Consolidated performance and leverage
Chief Financial Officer and Investor Relations Officer Marco Rabello said fourth-quarter results were achieved despite typical rain-season headwinds, describing the period as CSN’s “stronger results for the year.” Management reported a 15% increase in EBITDA, attributing the improvement to record volumes in mining and logistics, lower steel costs, and a price environment that “began to recover” in cement.
On cash flow, Rabello said adjusted cash flow was negative BRL 261 million, an improvement versus the prior quarter that he attributed to a slowdown in investments and working capital release. He added that management expects a “more favorable” cash outlook in 2026, citing anticipated inventory reductions and a gradual decline in interest rates.
Mining: record annual sales volume and cost focus
In mining, management emphasized record annual performance. Rabello said CSN posted the second-largest quarterly production and sales volumes in its history during the fourth quarter, while annual sales volume surpassed 45 million tons for the first time, exceeding guidance by 5%. He added that since the mining IPO in 2021, volumes have grown at an average annual rate of 8.4% without capacity investments during that period, which he said reflects logistics and operational efficiency.
For the year, Rabello said mining EBITDA rose 9% and highlighted what he described as continued strength in pricing and operational execution. He noted fourth-quarter performance was affected by seasonality and also cited higher freight costs, increased purchases from third parties, and the impact of cargoes exposed to future quotation periods.
Chief Executive Officer Benjamin Steinbruch echoed the focus on cost discipline, saying the company remained within the lower range of its cost guidance and that investments—including the P-15 project—were progressing according to schedule. He also linked iron ore price strength to geopolitical and China-related factors, saying prices were higher than the market expected and supportive of performance into 2026.
Steel: cost reductions, trade defense, and pricing actions
CSN’s steel business remained a key focus of analyst questions, particularly around imports, pricing, and production strategy. Rabello said the company achieved another reduction in steel production costs, reaching the lowest levels since 2021, which he attributed to operational improvements and optimized raw-material use. He said the company was also working to support anti-dumping measures introduced in recent months, which management expects to benefit local producers and contribute to results in 2026.
Executives described a strategy of prioritizing profitability over volume. Rabello said fourth-quarter sales declined 6% sequentially due to seasonality and elevated distributor inventories, with much of the reduction coming from the foreign market. He also said the annual average realized price increased 2.6% despite competition from imported material.
In Q&A, executives provided a more detailed view on pricing and trade protection. Martinez (an executive who spoke on steel during the Q&A) said CSN’s forecast for the first quarter included an improvement equivalent to roughly 4.5% to 6%, driven by mix improvements and a reduction in discounts rather than a broad price hike. He also said the company expected an increase in value-added product volumes in the second quarter, noting that these products represent about half of CSN’s output.
On trade defense, Martinez said anti-dumping measures were expected to last five years for certain coated products and described the government’s role as “decisive,” citing the involvement of officials including Minister Alckmin. He also said CSN and the broader industry were monitoring circumvention risks and flows through other countries. During the call, management referenced concerns about imports and investigations involving multiple origins, including Korea and India, and also raised the risk of products transiting through Paraguay.
Regarding production configuration, Martinez said CSN was operating with a strategy that includes purchasing slabs and other inputs to complement production while a furnace remains offline. He cited prior-year slab purchases and said the company expects to continue using imported and potentially domestic sources in 2026 depending on market conditions.
Cement, logistics, and energy: margins and records
In cement, Rabello said the company was able to pass through pricing even amid weaker seasonal volumes, and he described a strategy that prioritizes results over volume. He reported an EBITDA margin of 30% in the fourth quarter. For the full year, executives said cement revenue reached the highest level recorded for the company, although EBITDA was pressured earlier in the year by higher raw-material costs that later normalized.
Logistics and energy were described as major contributors to consolidated resilience. Rabello said CSN posted record EBITDA for 2025 in both segments. In logistics, he referenced record cargo volumes at MRS and said CSN added a new railroad-related logistics sub-segment involving truck freight to trimodal ports. He said logistics EBITDA approached BRL 2 billion with a 44% margin, slightly below 2024 due to a lower port contribution and lower margins from Grupo Tora.
In energy, Rabello said the segment achieved record annual performance, citing a 79% increase in EBITDA driven by improved prices. He also said energy posted an adjusted EBITDA margin of 54% in 2025.
Deleveraging plan, asset sales process, and liquidity
CSN’s deleveraging strategy was a central theme of the call. Rabello reiterated management’s intent to use asset-related initiatives to improve liquidity and reduce leverage. In response to analyst questions, he said CSN was targeting the third quarter for signing key transactions.
- Cement asset: Rabello said CSN received multiple proposals following the January presentation, including interest from Asia, Europe, and Brazil. He said Morgan Stanley has a mandate to lead the process and that preparatory materials were well advanced, with expectations for a competitive process and a third-quarter signing.
- Infrastructure platform: Rabello said discussions with potential buyers were progressing, supported by Bradesco and Citibank, though he noted the structure is more complex and includes regulatory steps involving agencies such as CADE.
Rabello also discussed a financing structure related to the cement asset, saying CSN was “very close” to concluding an operation but paused amid market noise tied to negative events involving other companies and broader credit market disruption. He said the company returned to the market with the same banking group and expected the transaction to be signed and closed “in a matter of days,” after which CSN would formally disclose it.
On liquidity, management said consolidated cash was BRL 16 billion, with BRL 5.5 billion at the holding level (excluding cash at mining, cement, and smaller entities). Rabello said the company could honor short-term banking debt and described efforts to extend maturities and reduce gross debt using proceeds from asset sales. He also addressed a $1 billion bond maturity at the end of April and said the 2028 bond was a primary focus for reduction through cash and liability management.
In closing remarks, Steinbruch said the company was committed to deleveraging “in the shortest term possible,” highlighted efforts to reduce inventories beginning in March, and said the quarter-end debt increase was a one-time effect that management expects to reverse in the first half of the year, potentially extending into the second quarter depending on prepayment timing.
About National Steel (NYSE:SID)
Companhia Siderúrgica Nacional operates as an integrated steel producer in Brazil and Latin America. It operates through five segments: Steel Industry, Mining, Logistics, Energy, and Cement. The company offers flat steel products, such as hot and cold rolled, galvanized, galvalume, pre-painted, and metal sheets products; coil, sheets, and derivatives; tiles and derivatives, pipes, and profiles; long steel products; steel packaging solutions for the food industry; chemical packaging solution; and carbochemical products.
