National Steel Co. Reports Q1 Net Loss, Negative Free Cash Flow Amid Debt Reduction Efforts
SID sits 15% above its 52-week low of $1.11.
Summary
National Steel Co. reported a net loss and negative free cash flow in Q1 2026, but highlighted operational improvements in its cement segment and ongoing efforts to reduce its substantial debt.
Key Events · Earnings and Guidance · SID
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Q1 Net Loss Reported
The company reported a net loss of R$555 million for the first quarter of 2026, an improvement compared to the losses in 4Q25 and 1Q25.
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Negative Free Cash Flow
Free Cash Flow was negative R$1,597.7 million in Q1 2026, deteriorating from the previous quarter, primarily due to seasonality, working capital consumption, and financial expenses.
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Adjusted EBITDA Growth
Consolidated Adjusted EBITDA reached R$2,646.0 million, representing a 5.5% year-over-year growth, driven by the cement and logistics segments.
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Record Cement Segment Performance
The cement segment achieved its highest quarterly EBITDA in the company's history, reaching R$392.5 million with a 31.2% adjusted EBITDA margin.
Analysis · SID · Manufacturing
National Steel Co. reported a net loss of R$555 million and negative free cash flow of R$1.6 billion for Q1 2026, indicating continued financial challenges. Despite this, the company achieved a 5.5% year-over-year increase in Adjusted EBITDA and saw its cement segment reach a record high EBITDA. Leverage slightly improved to 3.36x Net Debt/LTM EBITDA. The company reiterated its ongoing asset sale plan and the previously announced US$1.2 billion bridge loan, which is intended to reduce short- and medium-term debt and improve its capital structure.
At the time of this filing, SID was trading at $1.28 on NYSE in the Manufacturing sector, with a market capitalization of approximately $1.7B. The 52-week trading range was $1.11 to $2.20. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.