Summary of CSN Earnings Call - Q2 2026

1Key Financial Results and Metrics

Consolidated EBITDA: increased by 5% year-over-year, reflecting improved operational performance across all segments.

Free Cash Flow: was positive at BRL 808 million, a significant turnaround from previous quarters, driven by working capital release and fundraising efforts.

Net Debt: rose slightly from 3.36x to 3.49x due to amortization of prepayments and exchange rate impacts, though management emphasized this is not indicative of a negative trend.

Cement Segment: achieved record EBITDA for the second consecutive quarter, surpassing BRL 420 million with margins above 30%.

Steel Segment: saw a 17% increase in sales, with margins recovering to double digits (10.5%).

2Strategic Updates and Business Highlights

Successful completion of a new bond issuance with a leverage of over 77%, enhancing the company's credibility and financial flexibility.

The mining segment recorded the fourth-best sales results in its history despite a 15-day operational shutdown, showcasing resilience and efficiency.

The company is pursuing asset divestments, with binding offers received for its cement unit, expected to contribute significantly to deleveraging efforts.

Strong performance in logistics and energy segments, with logistics achieving the second-best EBITDA in history.

3Forward Guidance and Outlook

Management expects continued operational improvements and cash generation in the second half of the year, particularly in steel and cement.

The company aims to further reduce inventory levels, projecting an additional BRL 1 billion in cash release by year-end.

Anticipation of a favorable commercial environment with price increases in steel and cement, driven by improved demand dynamics and reduced import competition.

4Bad News, Challenges, or Points of Concern

The mining segment's EBITDA was impacted by higher logistics costs and foreign exchange pressures due to geopolitical tensions, particularly related to the Middle East.

Concerns over rising imports from Vietnam and other Asian countries, which could undermine domestic pricing and market share, were highlighted.

The company faces ongoing challenges related to high interest rates and the need for continued deleveraging amidst a competitive landscape.

5Notable Q&A Insights

Management emphasized the importance of antidumping measures to protect the domestic steel market from unfair competition, particularly from Asian imports.

The company is considering strategic partnerships in the steel segment to enhance profitability and cash generation.

Discussions around the sale of the cement unit are ongoing, with management indicating a competitive bidding process and strong interest from multiple parties.

Future debt management strategies were discussed, with a focus on extending maturities and reducing financial pressure through asset sales and operational improvements. Overall, CSN demonstrated a strong operational performance in Q2 2026, with positive cash flow and strategic initiatives aimed at enhancing financial stability, despite facing challenges from external market pressures and competitive dynamics.