CSN's Q2 2025 Earnings Call: Key Contradictions in Steel Pricing, Dividends, and Antidumping Strategies

Steel pricing strategy and market competition, dividend payment and cash flow strategy, antidumping measures and market strategy are the key contradictions discussed in Companhia Siderúrgica Nacional's latest 2025Q2 earnings call.



Strong Financial Performance and Deleveraging:
- CSN reported an EBITDA of BRL 2.6 billion with a margin of 23.5%, showing a 5% increase and 1.4 percentage points higher than the previous quarter.
- The company reduced gross debt by BRL 5.7 billion, with a net leverage reduction from 3.33x to 3.24x.
- This improvement was driven by enhanced cost management and cash efficiencies, as well as strategic asset acquisitions like Tora, aiming to increase operational synergy.

Steel Segment Challenges and Strategy:
- The steel segment experienced a 79% increase in EBITDA year-on-year, with a margin of 10.8%, despite intense competition and flooding of imported materials.
- CSN prioritized value over volume, focusing on high-profit products to offset lower sales volumes.
- The challenges were attributed to the impact of imported materials and trade disputes, however, cost control measures allowed for margin expansion.

Mining Segment and Operational Efficiency:
- CSN's mining segment faced a 36% drop in EBITDA despite record production and sales of 11.8 million tons.
- The decline was due to a drop in iron ore prices, as the demand in China and tariff disputes affected pricing.
- Despite these challenges, the segment maintained operational efficiency with costs reaching less than $21 per ton.

Cement Segment Growth and Market Dynamics:
- The cement segment experienced an 8% increase in sales volume and an 10% expansion in net revenue, leading to a 2.3 percentage point increase in profitability.
- Growth was driven by favorable seasonality and a strong performance in new launches, offsetting cost pressures in raw materials.
- The favorable market conditions, including robust demand in the construction sector, contributed to the positive results.