CSN Posts Wider Q2 Loss but Turns Cash Flow Positive; Steel Recovery Gains Traction

summarizeSummary

CSN reported a wider Q2 net loss of R$773.1 million but delivered positive free cash flow of R$808.1 million and a 4.8% QoQ increase in Adjusted EBITDA, driven by a steel segment recovery and record cement results.

check_boxKey Events · Earnings and Guidance · SID

• Q2 Net Loss Widens

  Net loss of R$773.1 million in 2Q26, up from R$555.0 million in 1Q26, driven by a 41% QoQ increase in financial expenses to R$1,843.0 million due to exchange-rate variation.

• Positive Free Cash Flow

  Free cash flow turned positive at R$808.1 million in 2Q26, a turnaround from negative results in recent periods, supported by working capital release and the bridge loan.

• Adjusted EBITDA Growth

  Adjusted EBITDA reached R$2,772.6 million, up 4.8% QoQ, with margin stable at 23.4%, driven by strong performance across steel, cement, and logistics segments.

• Steel Segment Recovery

  Steel Adjusted EBITDA surged 61.7% QoQ to R$636.3 million, with margin expanding 3.4 p.p. to 10.5%, reflecting antidumping measures and higher domestic sales volumes.

auto_awesomeAnalysis · SID · Manufacturing

CSN's 2Q26 results show a mixed picture: net loss widened to R$773.1 million from R$555.0 million in 1Q26, driven by higher financial expenses from exchange-rate variation, but operating performance improved significantly. Adjusted EBITDA rose 4.8% QoQ to R$2,772.6 million, and free cash flow turned positive at R$808.1 million — the first positive quarter in recent periods. Steel segment profitability returned to double-digit margins (10.5%) on antidumping measures and higher volumes, while cement hit a record EBITDA. However, net debt climbed to R$42.1 billion with leverage at 3.49x, and the company remains loss-making on a net basis. The positive cash flow and operational recovery are notable, but the wider loss and rising leverage keep this a high-importance event for investors.