CSN Mineração (CMIN3) Q3 2025 earnings summary

Executive summary

• Achieved record iron ore sales of 12.4 million tons in 3Q25, with production reaching 11.9 million tons, and Tecar shipping over 4 million tons in a month for the first time.

• Net income reached R$696 million in 3Q25, a fivefold increase sequentially, driven by operational records, higher prices, and lower financial expenses.

• Adjusted EBITDA rose to R$1.991 billion, up 57% sequentially and 74% year-over-year, with a margin of 45.2%.

• Maintained a strong net cash position despite distributing over R$1.5 billion in dividends and interest on equity.

• ESG milestones included a 3% reduction in carbon emission intensity, 26.2% female workforce representation, and over 11 years without fatalities.

Financial highlights

• Net revenue was R$4.41 billion in 3Q25, up 48.2% year-over-year, driven by record shipment volumes and improved realized prices.

• Gross profit reached R$1.76 billion, up 71.1% sequentially and 93.4% year-over-year; gross margin improved to 39.9%.

• Adjusted EBITDA margin was 45.2%.

• Net cash position reached R$3.9 billion; Net Debt/EBITDA LTM at -0.59x.

• Free cash flow was R$284 million, down 63% from the previous quarter due to higher working capital needs and increased investments.

Outlook and guidance

• Guidance for 2025 sales volume maintained at 42–45 million tons, with potential to exceed if current pace continues; 2026 target set at 43.5–47.5 million tons.

• Confident in meeting annual production and purchasing guidance, expecting to reach the upper end of the 42–43.5 million ton range.

• Dividend payout policy of 80–100% of net income to be maintained.

• Iron ore prices expected to remain around $110/ton in 2026, with strong demand for Brazilian ore.

• Enhanced commercial strategy and higher iron ore prices are expected to continue supporting strong EBITDA performance.