CSN(US:SID)2025-11-10 22:07Financial Performance - In Q3 2025, Companhia Siderúrgica Nacional (CSN) reported net revenue of R$ 11,794 million, a growth of 10.3% from Q2 2025 and 6.6% from Q3 2024, driven by increased iron ore prices and operational improvements in the mining segment[14]. - Gross profit for Q3 2025 reached R$ 3,467 million, reflecting a 27.2% increase from Q2 2025 and 26.8% from Q3 2024, resulting in a gross margin of 29.4%, up 3.9 percentage points quarter-over-quarter[14]. - Adjusted EBITDA for Q3 2025 was R$ 3,319 million, with an adjusted EBITDA margin of 26.8%, an increase of 3.3 percentage points from the previous quarter, supported by record production and sales in mining and cement[20]. - CSN achieved a net income of R$ 76 million in Q3 2025, marking a significant turnaround from a net loss of R$ 130 million in Q2 2025, attributed to operational improvements and favorable exchange rate impacts[16]. - The financial result for Q3 2025 was negative at R$ 1,443 million, a 24.1% improvement from Q2 2025, due to better returns on financial investments and lower interest rates on foreign currency borrowings[18]. - Selling, general, and administrative expenses totaled R$ 1,560 million in Q3 2025, a 4.2% increase from Q2 2025, but an 8.7% decrease compared to Q3 2024, reflecting better expense control[14]. - CSN's accumulated EBITDA for the first nine months of 2025 increased by 18.6% compared to the same period in 2024, totaling R$ 8,471 million, highlighting the benefits of a diversified operation[20]. Debt and Cash Flow - Consolidated net debt as of September 30, 2025, was R$ 37,545 million, with a Net Debt/EBITDA ratio of 3.14x, a reduction of 10 basis points from the previous quarter, indicating a commitment to debt reduction[26]. - Net cash flow from operating activities was $392,504, a significant improvement compared to a loss of $(245,577) in the previous year[98]. - The net profit attributable to controlling shareholders was a loss of $(137,063), while non-controlling shareholders saw a profit of $213,518[98]. - Charges on loans and financing raised amounted to $909,733, slightly down from $1,002,213 in the previous year[98]. - Cash flow from investing activities was $(1,870,732), reflecting increased investments compared to $(1,561,952) last year[98]. - Cash flow from financing activities showed a net outflow of $(323,223), contrasting with an inflow of $357,897 in the previous year[98]. - The company reported a decrease in cash and cash equivalents at the end of the period to $16,526,099 from $18,305,208[98]. Operational Highlights - Total investments in 3Q25 reached R$ 1,435 million, marking a 7.8% increase from the previous quarter, driven by infrastructure projects[35]. - Steel production at UPV decreased by 7.6% from 2Q25 to 726 thousand tons, and flat-rolled steel production fell by 3.2% from 2Q25[49]. - Total sales volume in 3Q25 was 1,058 thousand tons, a 4.4% increase from the previous quarter but a 9.9% decrease from 3Q24[52]. - The company continues to modernize operations at the UPV steel mill, contributing to efficiency improvements despite reduced Capex in the steel industry[35]. - In 3Q25, total sales volume in the civil construction segment increased by 2.9 percentage points, reaching 19.8% of total sales, while the automotive segment decreased by 1.3 percentage points to 12.9%[53]. - Crude steel production in the first nine months of 2025 reached 24.9 million tons, a 1.7% increase compared to the same period in 2024, while apparent consumption rose by 4.1% to 20.4 million tons[57]. - Iron ore production reached a record high of 11,928 thousand tons in 3Q25, representing a 2.8% increase from the previous quarter and a 4.3% increase year-over-year[68]. - Sales volume in mining reached 12,396 thousand tons in 3Q25, marking a 4.8% increase from the previous quarter and a 4.3% increase year-over-year, with adjusted net revenue totaling R$ 4,419 million[71]. - Adjusted EBITDA for mining in 3Q25 was R$ 1,939 million, with a margin of 43.9%, reflecting a significant increase in profitability due to higher iron ore prices[73]. - Net revenue in the logistics segment reached R$ 1,217 million in 3Q25, a 3.4% increase from the previous quarter, with adjusted EBITDA of R$ 550 million[81]. - In the cement sector, CSN recorded a 4.6% increase in sales volume in 3Q25 compared to the previous quarter, demonstrating effective market strategy[76]. Market Performance - CSN's market value reached R$ 10.48 billion in Q3 2025, with a closing share price of R$ 7.90[92]. - The average daily trading volume of CSN shares was R$ 62.36 million in Q3 2025, with a share price increase of 6.2% during the quarter[91]. - The company’s foreign market sales amounted to R$ 6.18 billion in Q3 2025, compared to R$ 4.98 billion in Q2 2025, indicating a strong recovery in international demand[95]. - Net revenue in the steel industry for 3Q25 was R$ 5,294 million, a 12.4% decrease compared to 3Q24, primarily due to price pressure from imported materials[59]. - Adjusted EBITDA in 3Q25 reached R$ 428 million, a 26.3% decrease from the previous quarter but a 10.2% increase year-over-year, with an adjusted EBITDA margin of 8.1%[62]. Future Outlook - The company anticipates future economic conditions and industry trends will impact financial results, with no guarantees on expected outcomes[100]. - The company is focused on implementing principal operating and financing strategies to enhance liquidity and operational efficiency[100]. - Management's forward-looking statements reflect current views and are subject to risks and uncertainties that could affect actual results[100]. - The company plans to continue monitoring market conditions to adjust its strategies accordingly[100].