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: Third Quarter 2025 (ended September 30, 2025)
Announcement Date: November 4, 2025
Currency: Brazilian Reais (BRL), with USD exchange rate at R$ 5.32 as of 09/30/2025.
Key Financial Metrics
| Metric | 3Q25 Value | Comparison (QoQ) | Comparison (YoY) |
|---|---|---|---|
| Net Revenue | R$ 11,794 million | +10.3% | +6.6% |
| Gross Profit | R$ 3,467 million | +27.2% | +26.8% |
| Gross Margin | 29.4% | +3.9 p.p. | +4.7 p.p. |
| Adjusted EBITDA | R$ 3,319 million | +3.3 p.p. margin | N/A (Margin 26.8%) |
| Net Income | R$ 76 million | Turnaround from R$ 130m loss | N/A |
| Adjusted Cash Flow | (R$ 815 million) | Improved 44.7% (still negative) | N/A |
| Net Debt | R$ 37,545 million | N/A | N/A |
| Leverage (Net Debt/EBITDA) | 3.14x | -10 bps | N/A |
| Cash & Equivalents | R$ 18.8 billion | N/A | N/A |
Material Changes vs. Prior Periods
- Profitability Recovery: The company returned to profitability with a Net Income of R$ 76 million, reversing a R$ 130 million loss in 2Q25. This was driven by operational improvements, favorable exchange rate impacts on financial expenses, and tax reversals.
- Revenue Growth: Net revenue grew 10.3% quarter-over-quarter, primarily driven by the Mining segment (higher iron ore prices and volumes), Cement (best quarter of the year), and Logistics (seasonal cargo increase).
- Cost Dynamics: Cost of Goods Sold (COGS) rose 4.5% QoQ due to higher sales volumes. However, Gross Margin expanded significantly to 29.4% due to price increases in mining and cement outpacing cost inflation.
- Financial Result: The negative financial result improved by 24.1% QoQ to R$ 1,443 million, aided by better investment returns and lower interest rates on foreign currency borrowings.
- Steel Segment Pressure: The Steel segment faced price pressure from imported materials, resulting in a 12.4% revenue decline YoY and a 7.6% drop in average domestic prices. However, slab production costs reached a 4-year low.
Guidance, Outlook, and Risks
- Production Guidance: Management expects to meet annual production guidance for iron ore, targeting the upper end of the 42 to 43.5 million tons estimate.
- Steel Outlook: Price adjustments were implemented at the start of 4Q25 to counter imported competition. Management sees signs of an inflection point in the steel price environment, though the market remains impacted by imports.
- Debt Management: CSN is actively extending amortization periods, with new refinancing extending flows until 2030. The company maintains a policy of high cash levels (R$ 18.8 billion).
- Key Risks:
- Import Competition: Continued pressure on domestic steel prices due to imported materials and tariff disputes.
- Geopolitics: Trade wars (US-China) and potential sanctions impacting freight and commodity prices.
- Macroeconomics: Interest rate levels, exchange rate volatility, and protectionist measures in Brazil and the US.
Investor Verification Checklist
- Steel Margin Sustainability: Verify if the price adjustments in 4Q25 successfully offset the impact of imported steel on domestic margins.
- Cash Flow Turnaround: Monitor the trajectory of Adjusted Cash Flow, which remains negative (R$ 815 million) despite EBITDA growth, due to working capital consumption and investments.
- Iron Ore Volume Targets: Confirm if the record Q3 production (11.9M tons) is sustainable to meet the upper end of the 42-43.5M ton annual guidance.
- Debt Maturity Profile: Review the specific terms of the refinancing extending amortization to 2030 to assess long-term liquidity stability.
- FX Exposure: Assess the impact of the R$ 5.32 exchange rate on the US$ 945 million net foreign exchange exposure.