Summary of CSN Earnings Call - Q4 2025

1Key Financial Results and Metrics

Q4 2025 EBITDA: BRL 3.3 billion, with an adjusted EBITDA margin of nearly 28%.

Full Year EBITDA: BRL 11.8 billion, up 15% year-over-year.

Leverage Ratio: Increased to 3.47x, marking the first rise after three consecutive quarters of decline, attributed to higher investments and expenses.

Cash Flow: Negative cash flow of BRL 261 million, improved from previous quarters due to reduced cash burn and working capital release.

CapEx: Increased by 42.4% quarter-over-quarter, totaling BRL 5.9 billion for the year.

2Strategic Updates and Business Highlights

Mining: Achieved record production and sales volumes, exceeding 45 million tons for the year, reflecting operational efficiency.

Steel: Cost of production reached the lowest level since 2021, with a focus on profitability over volume. Antidumping measures are being supported to protect local producers.

Cement: Strong performance with the ability to pass through price increases despite weaker commercial activity.

Logistics and Energy: Record EBITDA in both segments, with logistics being a key growth vector for the company.

Strategic Asset Sales: Announced plans to raise up to BRL 18 billion through asset sales to improve capital structure and reduce leverage.

3Forward Guidance and Outlook

2026 Expectations: Anticipate growth in cement and steel segments, with continued operational efficiency in mining and logistics.

Price Increases: Expected price increases of 4.5% to 6% in steel due to reduced discounts and improved market conditions.

Inventory Management: Plans to reduce high inventory levels, currently at BRL 12 billion, to enhance cash flow.

4Bad News, Challenges, or Points of Concern

Increased Leverage: The rise in leverage is a concern, although management views it as a one-time effect.

Seasonal Impacts: Weaker performance in Q4 attributed to seasonal factors, including lower rainfall affecting mining operations.

Competitive Pressures: Ongoing challenges from imports and competitive pricing pressures, particularly in the steel market.

Cash Flow Concerns: Despite improvements, the negative cash flow indicates potential liquidity risks if not addressed.

5Notable Q&A Insights

Asset Sales Timeline: Management expects to finalize the sale of cement assets by Q3 2026, with several proposals already received.

Antidumping Measures: Ongoing discussions about expanding antidumping protections to other countries, particularly Korea and India, to mitigate import pressures.

Production Strategy: Plans to potentially restart Furnace 2 in the steel segment are contingent on market conditions and inventory management.

Liquidity Management: The company maintains a healthy cash position, with BRL 5.5 billion in the holding company, and is focused on managing upcoming debt maturities effectively. Overall, CSN reported strong operational results for Q4 2025 and the full year, with strategic initiatives aimed at improving capital structure and addressing competitive pressures. However, increased leverage and cash flow challenges remain key concerns moving forward.