National Steel Q4 Earnings Beat Estimates, Revenues Inch Up Y/Y

Core Viewpoint - National Steel (SID) reported a narrower loss per share in Q4 2024 compared to estimates, but overall financial performance showed significant challenges, including a net loss for the year and declining revenues in key segments [1][7]. Financial Performance - Q4 2024 loss per share was 8 cents, better than the Zacks Consensus Estimate of 9 cents, and down from earnings of 13 cents in the prior-year quarter [1]. - Net revenues for Q4 2024 were R$12 billion ($2.06 billion), a slight increase of 0.2% year over year, while the company incurred a net loss of R$85 million ($14.95 million) [2]. - For the full year 2024, National Steel reported revenues of R$43.68 billion ($7.69 billion), down 3.9% year over year, but exceeded the Zacks Consensus Estimate of $7.44 billion [7]. Segment Performance - Steel segment revenues increased by 13% year over year to R$6.16 billion ($1.08 billion), with steel sales rising to 1,175 thousand tons, up 10.4% from the previous year [3]. - The mining segment saw a significant revenue decline of 21.8% year over year, generating R$3.93 billion ($0.69 billion) [4]. - The energy segment experienced a robust growth of 30.4% year over year, with revenues totaling R$163 million ($28.6 million) [4]. Margins and Costs - Cost of sales decreased by 1.1% year over year to R$8.24 billion ($1.45 billion), while gross profit increased by 3.1% to R$3.78 billion ($0.67 billion), resulting in a gross margin of 31.5% compared to 30.6% in the prior year [5]. - Adjusted EBITDA improved by 16.1% year over year to R$3.33 billion ($0.58 billion), with an EBITDA margin of 26.8%, down from 29.1% in the previous year [6]. Cash Position - At the end of 2024, the company had cash and cash equivalents of R$23.31 billion ($4.10 billion), an increase from R$16.04 billion at the end of 2023 [8]. Stock Performance - National Steel's shares have declined by 36.4% over the past year, compared to a 16.4% decline in the industry [9].