CSN Mineração (CMIN3) Q2 2025 earnings summary

Executive summary

• Achieved record iron ore production of 11.6 million tons in Q2 2025, up 11.3% year-over-year and 13.6% sequentially, with sales volume at 11.8 million tons, the second highest in history.

• Net income of R$116 million reversed the previous quarter's loss, driven by higher sales and favorable exchange impacts.

• Operational efficiency and logistics optimization offset lower iron ore prices, supporting stable net revenue and strong sales.

• Distributed R$1.51 billion in dividends and interest on equity in July 2025.

Financial highlights

• Adjusted EBITDA reached R$1.27 billion with a margin of 37.2%, down 11.5 percentage points year-over-year due to lower iron ore prices.

• Adjusted free cash flow was R$768 million, up 40.6% sequentially.

• Net revenue was R$3.41 billion in Q2 2025, up 2.5% year-over-year and stable sequentially.

• C1 cash cost at US$20.8/ton, below guidance and down 1.0% sequentially.

• Gross profit fell 12.4% sequentially and 25.3% year-over-year to R$1.03 billion; gross margin dropped to 30.2%.

Outlook and guidance

• Confident in meeting or exceeding full-year production and cost guidance, with review possible after Q3.

• P15 expansion project on schedule, with ramp-up expected in 2026 and material quality improvements from 2027.

• Production and purchase guidance for 2025 maintained at 42–43.5 million tons, with 21.8 million tons produced in 1H25.