National Steel Co. Reports 4Q25 Net Loss Amidst Rising Leverage, Plans Major Asset Sales for Deleveraging

summarizeSummary

National Steel Co. reported a 4Q25 net loss and increased leverage, but achieved strong full-year Adjusted EBITDA driven by record mining and cement performance, while reiterating a strategic plan to raise up to R$18 billion through asset sales to reduce debt.

check_boxKey Events

• 4Q25 Net Loss Reported

  The company recorded a Net Loss of R$ 721.2 million in 4Q25, reversing the net profit observed in the previous quarter, mainly due to operational idleness and inventory losses associated with a blast furnace shutdown.

• Strong Full-Year Adjusted EBITDA Growth

  Adjusted EBITDA for full-year 2025 totaled R$ 11,796.0 million, representing a 15.3% increase compared to 2024, driven by record operational results in the Mining and Logistics segments.

• Increased Leverage Ratio

  The Net Debt to LTM EBITDA ratio reached 3.47x as of December 31, 2025, marking the first increase after three consecutive quarters of decline, reflecting debt servicing and increased investment activities.

• Major Deleveraging Plan Reiterated

  The company reiterated its strategic plan, announced on January 15, 2026, to potentially sell control in the Cement segment, a minority stake in the Infrastructure segment, and seek strategic partnerships for the Steel segment, aiming to raise up to R$18 billion to significantly reduce leverage.

auto_awesomeAnalysis

This 6-K filing details National Steel Company's 4Q25 and full-year 2025 financial and operational results, presenting a mixed picture. While the company achieved strong full-year Adjusted EBITDA growth and record operational performance in its Mining and Cement segments, it reported a net loss in 4Q25 due to non-recurring events in its Steel segment. Critically, the company's net debt to LTM EBITDA ratio increased to 3.47x, highlighting a rising leverage concern. To address this, the company is pursuing a substantial strategic plan, previously announced, to divest assets and raise up to R$18 billion. This plan, if executed, represents a significant restructuring of the company's capital structure and is crucial for its long-term financial health. Investors should monitor the progress of these asset sales and the company's ability to reduce its debt burden, as well as the expected recovery in the Steel segment in 2026.