National Steel Co Flags Wider H1 Loss and Rising Leverage, Secures Bridge Loan, and Pursues Cement Unit Sale
SID is trading near its 52-week low of $0.889 (15% above the low).
Summary
National Steel Co posted a narrower Q1 loss but guided for a much wider H1 loss, higher debt, and rising leverage. A US$1.2 billion bridge loan and a potential cement unit sale are underway to shore up liquidity.
Key Events · Earnings and Guidance · SID
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Q1 Loss Narrows, But H1 Loss to Widen
The Q1 2026 net loss improved to R$555.0M from R$731.6M a year ago, yet preliminary H1 2026 estimates show a net loss of R$1.3–1.4 billion, nearly double the R$861.9M loss in H1 2025.
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Debt and Leverage Rising
Gross Debt is expected to reach up to R$54.0B by June 30, 2026, up from R$50.4B at March 31. The leverage ratio (Adjusted Net Debt/LTM EBITDA) is seen moderately higher, not above 3.5x, versus 3.36x at Q1-end.
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US$1.2B Bridge Loan Secured
On April 13, 2026, CSN Inova Ventures obtained a US$1.2 billion senior secured bridge loan, guaranteed by CSN and CSN Cimentos, to refinance debt maturing through 2028. The facility is secured by pledges over equity in subsidiaries, including CSN Cimentos.
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Cement Unit Sale Process Underway
Non-binding offers for CSN Cimentos were received in May 2026. The divestment is part of a broader plan to improve liquidity and is expected to close by end-2026, though no binding agreement exists.
Analysis · SID · Manufacturing
National Steel Co reported a Q1 2026 net loss of R$555 million, an improvement from the R$731.6 million loss a year ago, but preliminary H1 2026 estimates point to a widening loss of R$1.3–1.4 billion — nearly double the prior-year period. Gross debt is expected to climb to as much as R$54 billion, pushing leverage toward 3.5x. To manage near-term maturities, the company secured a US$1.2 billion bridge loan in April, and it is reviewing non-binding offers for its cement subsidiary, CSN Cimentos, with a deal targeted by year-end. The combination of rising losses, mounting debt, and a rushed refinancing signals intensifying financial strain, even as the cement sale could provide a lifeline.
At the time of this filing, SID was trading at $1.02 on NYSE in the Manufacturing sector, with a market capitalization of approximately $1.3B. The 52-week trading range was $0.89 to $2.20. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.