CSN Mineração (CMIN3) Q1 2025 earnings summary

Executive summary

• Achieved 27.1% year-over-year EBITDA growth, setting a new sales record for the first quarter with a 5.4% increase in sales volume and an 11.5% rise in production, despite a net loss of R$357 million due to a R$1.0–1.05 billion negative exchange rate impact on dollar-denominated cash.

• Net revenue rose between 21.1% and 21.9% year-over-year, supported by operational improvements and a favorable exchange rate.

• Board approved dividends and interest on equity totaling R$1.3–2.3 billion to be paid in 2025, with total distributions for the year reaching R$1.5 billion.

• Interim financial statements for the quarter ended March 31, 2025, were reviewed and found to be in accordance with Brazilian and international accounting standards.

Financial highlights

• Adjusted EBITDA reached R$1.43 billion, up 27.1% year-over-year, with a margin of 41.8%.

• Adjusted free cash flow was R$546 million, driven by record sales and lower CapEx.

• Net working capital was negative R$188 million, stable sequentially.

• Cash and cash equivalents stood at R$14.3 billion, down 5.9% from the previous quarter due to exchange rate effects.

• Net cash position totaled R$4.1 billion, with a leverage ratio (net debt/EBITDA) of -0.65x.

Outlook and guidance

• C1 cost guidance maintained at R$21.5–23 per ton for the year, after an 11% year-over-year reduction in Q1 to US$21.0/t.

• CapEx for 2025 expected to ramp up, with R$377 million already invested in Q1 and annual disbursements projected at R$2.6 billion in coming years.

• P15 project on track for completion in Q4 2027, expected to add 16.5 million tons of high-grade iron ore capacity.

• Full-year production and purchase guidance reaffirmed at 42–43.5 million tons.

• Dividend policy to maintain payout of 80–100% of net profit annually; buyback program open for up to 100 million shares.