By Brazil Stock Guide – Companhia Siderúrgica Nacional (CSN) (CSNA3; SID) reported a net loss of R$721.2 million in the fourth quarter of 2025, reversing the profit recorded in the previous quarter as operational disruptions and financial expenses weighed on the result.
The steelmaker generated net revenue of R$11.4 billion in the quarter, down 3.3% from the third quarter and 5.2% from the same period a year earlier, reflecting the usual seasonal slowdown at the end of the year and weaker commercial activity in some segments.
Despite the negative bottom line, operating performance proved relatively resilient. Adjusted EBITDA reached R$3.3 billion in 4Q25, the strongest quarterly operating result of the year, supported mainly by strong performance in the mining division, higher cement prices and stable logistics activity.
The quarterly loss was largely driven by extraordinary effects in the steel segment and by the heavy financial burden on the balance sheet. Net financial expenses totaled R$1.3 billion, reflecting high interest rates and foreign-exchange impacts on the company’s debt.
Operationally, the steel business continued to face pressure. A maintenance shutdown of blast furnace No. 2 reduced production and generated idle-capacity costs and inventory losses during the quarter. Even so, the company managed to reduce steel production costs to their lowest level in four years, a move that management believes could restore margins once volumes recover.
The balance sheet remains the group’s main challenge. CSN ended 2025 with net debt of R$41.2 billion, pushing leverage to 3.47 times EBITDA — the first increase after three consecutive quarters of decline. The deterioration reflects a combination of heavy financial expenses, continued investments and lower cash availability at the end of the year.
High interest rates in Brazil have also amplified the burden of debt servicing, keeping pressure on the company’s financial results. In January, CSN announced a strategic plan that could raise up to R$18 billion through asset sales as part of an effort to reduce leverage, but no concrete transactions have been completed so far.
Mining company
The group’s mining business provided an important cushion to results. CSN Mineração (CMIN3) posted net income of about R$1.19 billion in the fourth quarter, benefiting from strong operational performance and favorable foreign-exchange effects on its dollar-denominated cash.
The subsidiary generated adjusted EBITDA of R$1.76 billion with a margin of 42.9%, maintaining one of the highest profitability levels in the iron-ore industry. Production and sales volumes remained near record levels, reinforcing the mining arm’s role as the main source of cash generation within the CSN group.