Companhia Siderúrgica Nacional (CSN) reported a net loss of R$ 732 million for the first quarter of 2025, marking a significant 52.5% increase compared to the same period in 2024. Despite this setback, the company demonstrated operational improvements and revenue growth, with adjusted EBITDA reaching R$ 2.509 billion, reflecting a 12.3% increase from the previous year.
In terms of revenue, CSN reported a total of R$ 10.908 billion, which also represented a 12.3% growth year-on-year. The company's operational performance was bolstered by steel sales, which totaled 1.143 million tons—up 5.2% from the first quarter of 2024. Similarly, iron ore sales showed positive results, totaling 9.640 million tons, an increase of 5.4% on an annual basis.
However, CSN's adjusted net debt rose to R$ 35.830 billion, a 7.2% increase compared to the same period last year. This rise in debt has raised concerns among investors regarding the company's financial leverage, which reached 3.33 times its EBITDA, up from 3.13 times previously.
Moody's Local reaffirmed CSN's credit rating at "AA+.br," citing the company's competitiveness in iron ore and cement exports as a key factor. The agency's assessment comes at a critical time for the Brazilian steel market, which has been undergoing a transformation following significant investments and the introduction of anti-dumping measures against cheaper imports from China.
Despite the challenges, analysts are optimistic about CSN's future, particularly given the expected recovery in the steel sector. The company has shifted its focus towards a more prudent management strategy, especially in light of its strategic goals for deleveraging.
CSN's financial results, announced on May 8, 2025, also highlighted a decrease in general and administrative expenses, which dropped by 20.5% from the previous quarter, indicating a concerted effort to control costs amid fluctuating market conditions. Additionally, the cost of goods sold (CPV) rose slightly by 1.6% compared to the last quarter, reflecting the impact of currency fluctuations.
Investments during the first quarter totaled R$ 1.127 billion, a substantial 45.2% decrease from the previous quarter, aligning with CSN's historical pattern of concentrating capital expenditures towards the end of the year. However, this figure represented a 40.5% increase compared to the same quarter in 2024, driven by ongoing infrastructure developments in mining and modernization projects within the company's operations.
Looking ahead, CSN faces several debt maturities, including R$ 3 billion in 2025, R$ 7.3 billion in 2026, R$ 7.6 billion in 2027, and nearly R$ 11 billion in 2028. The company ended March 2025 with cash reserves of R$ 21.23 billion, a 32.3% increase compared to the same period last year, providing some cushion against its upcoming financial obligations.
As CSN navigates these financial challenges, its ability to balance operational growth with effective debt management will be crucial. The company's commitment to enhancing its competitive position in the market, coupled with a focus on cost control and strategic investments, will be key to its recovery and future profitability.
In summary, while CSN's first-quarter results reveal a steep loss, the underlying operational metrics indicate positive trends that could bode well for the company's future, provided it successfully addresses its financial leverage and debt management strategies.
