Business Context and Reporting Period
Company: Companhia Siderúrgica Nacional (CSN) / National Steel Company
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Fourth Quarter (4Q25) and Full Year 2025
Report Date: March 11, 2026
Currency: Brazilian Reais (BRL/R$)
CSN reported consolidated results for 4Q25 and 2025 in accordance with IFRS and Brazilian accounting standards. The company operates across Mining, Steel, Cement, Energy, and Logistics segments. The reporting period was characterized by record operational performance in Mining and Logistics, offset by challenges in the Steel segment due to import competition and a temporary blast furnace shutdown.
Key Financial Metrics
| Metric | 4Q25 (R$ Million) | Full Year 2025 (R$ Million) | YoY Change (Full Year) |
|---|---|---|---|
| Net Revenue | 11,403.2 | 44,797.9 | +2.5% |
| Cost of Goods Sold (COGS) | 7,735.0 | 32,404.2 | +1.3% |
| Gross Profit | 3,668.1 | 12,393.7 | N/A |
| Gross Margin | 32.2% | 27.7% | +0.9 p.p. |
| Adjusted EBITDA | 3,325.0 | 11,796.0 | +15.3% |
| Adjusted EBITDA Margin | 27.8% | 25.1% | +2.7 p.p. |
| Net Income (Loss) | (721.2) | N/A | Stable vs 2024 |
| Adjusted Cash Flow | (282.3) | N/A | N/A |
| Net Debt | 41,217.6 | 41,217.6 | N/A |
| Net Debt / LTM EBITDA | 3.47x | 3.47x | N/A |
| Cash & Equivalents | 16,000.0 | 16,000.0 | N/A |
Material Changes vs. Prior Period
- Revenue: 4Q25 revenue declined 3.3% quarter-over-quarter (QoQ) and 5.2% year-over-year (YoY) due to seasonality and lower iron ore prices in 4Q24. However, full-year 2025 revenue grew 2.5% YoY, driven by Mining and Logistics.
- Profitability: Gross margin expanded to 32.2% in 4Q25 (+2.8 p.p. QoQ) despite lower revenue, reflecting favorable cost dynamics. Full-year Adjusted EBITDA grew 15.3% YoY to R$ 11.8 billion.
- Net Loss: The company recorded a net loss of R$ 721.2 million in 4Q25, reversing the profit from 3Q25. This was primarily due to operational idleness from the Blast Furnace No. 2 (BF2) shutdown and inventory losses. Full-year net loss remained broadly stable compared to 2024.
- Other Operating Expenses: Increased significantly in 4Q25 (negative R$ 1.5 billion) due to BF2 shutdown costs and FX/hedging impacts.
- Debt: Net debt increased to R$ 41.2 billion, causing the leverage ratio to rise to 3.47x, the first increase after three quarters of decline, driven by debt servicing and investment acceleration.
Guidance, Outlook, and Risks
Management Commentary and Outlook
- Steel Segment: Outlook points to recovery in 2026 following the approval of protective measures against subsidized imports. Margins are expected to improve, particularly after 1Q26.
- Cash Flow: Outlook is favorable for upcoming periods due to expected operational improvements in 2026, lower inventory levels, and a declining interest rate curve.
- Strategic Plan: On January 15, 2026, CSN announced initiatives to improve liquidity, including the potential sale of control in the Cement segment, divestment of a minority stake in Infrastructure, and seeking strategic partnerships for the Steel segment.
Risks and Contingencies
- Operational Idleness: Temporary shutdown of Blast Furnace No. 2 impacted 4Q25 results with non-recurring costs of R$ 314 million.
- Energy Segment: Commercial operation of the Jacuí Hydroelectric Power Plant was suspended in October 2025 and reinstated via court injunction in December 2025. Results are currently recorded as a contingent asset until the physical guarantee issue is resolved.
- Market Competition: High levels of imported steel in Brazil continue to pressure domestic prices and volumes. Trade restrictions in the US and Europe impacted port logistics volumes.
- FX Exposure: Net foreign exchange exposure was negative US$ 372.7 million in 4Q25. The company uses hedge accounting to correlate dollar exports with debt maturities.
Investor Verification Checklist
- Steel Segment Recovery: Verify the timeline and impact of the Blast Furnace No. 2 restart and the effectiveness of new anti-dumping measures on domestic pricing.
- Debt Reduction Strategy: Monitor progress on the announced strategic plan, specifically the potential sale of the Cement segment and Infrastructure stake, to confirm leverage reduction targets.
- Energy Contingency: Track the resolution of the Jacuí Hydroelectric Power Plant physical guarantee issue to determine when contingent assets will be recognized in earnings.
- Mining Volumes: Confirm sustainability of record production and sales volumes in the Mining segment given global supply dynamics and Chinese demand.
- Cash Flow Conversion: Assess whether the projected improvement in working capital and interest rate environment materializes to reverse the negative adjusted cash flow trend.