Breaking Down Companhia Siderúrgica Nacional (SID) Financial Health: Key Insights for Investors

You're looking at Companhia Siderúrgica Nacional (SID) right now and seeing a classic multi-segment story: strong operational performance fighting a persistent debt headwind. The Q3 2025 results defintely showed the group's underlying strength, with Adjusted EBITDA hitting a robust BRL 3.3 billion, a 26% quarter-on-quarter jump, driven by the mining segment's BRL 1.9 billion EBITDA on record sales volume of over 12 million tons. That's a clear win, but here's the quick math: while they've reduced their leverage ratio (Net Debt-to-EBITDA) for the third consecutive quarter, bringing it down to 3.1x from 3.5x, the company still posted a net loss of BRL 137.08 million for the quarter. So, the question isn't just about efficiency-they achieved the lowest steel production costs in four years-but about how they'll manage the aggressive import competition in the steel market while continuing to chip away at that debt load. We need to map out if the operational excellence in mining and cement can outpace the financial drag.

Revenue Analysis

You're looking for a clear picture of where Companhia Siderúrgica Nacional (SID) actually makes its money, and honestly, the answer is less about steel and more about dirt. The company's revenue streams are highly diversified, but the Mining segment is the undisputed powerhouse right now, driving the overall growth.

For the third quarter of 2025 (3Q25), Companhia Siderúrgica Nacional reported a consolidated Net Revenue of R$11.794 billion (Brazilian Real). That number is defintely a bright spot, representing a 6.6% increase compared to the same period in 2024. This performance is largely a story of operational efficiency and strong commodity pricing, which is a good sign for a cyclical business.

Here's the quick math on the year-over-year (YoY) trend: The trailing twelve months (TTM) revenue ending September 30, 2025, stood at R$45.42 billion, marking a 4.02% growth rate over the prior TTM period. This positive growth reverses the -3.85% annual revenue decline the company saw in 2024, showing a clear near-term opportunity in their diversified model. The key is knowing which segments are pulling the weight.

The primary revenue sources break down across five core segments-Steel, Mining, Cement, Logistics, and Energy. While net revenue figures for each segment aren't always disclosed, the Q3 2025 Adjusted EBITDA contribution provides a clear map of where the profit power lies. Mining is the dominant driver of the consolidated business, but you can't ignore the others for their stability and growth potential.

• Mining: 58.4% of Q3 2025 Adjusted EBITDA, driven by record iron ore shipments.
• Steel: 12.9% of Q3 2025 Adjusted EBITDA, facing pressure from imported materials.
• Logistics: 16.6% of Q3 2025 Adjusted EBITDA, a segment with a record-high margin.
• Cement: 11.7% of Q3 2025 Adjusted EBITDA, benefiting from higher volumes and price adjustments.
• Energy: 1.6% of Q3 2025 Adjusted EBITDA, the smallest but a crucial component of vertical integration.

The most significant change in the revenue mix is the continued, massive reliance on the Mining segment. In 3Q25, the Mining segment was the primary driver of the 10.3% sequential growth (quarter-over-quarter) in net revenue, benefiting from increased iron ore prices. Also, the Logistics segment, which includes rail and port operations, is becoming more important, with its total Net Revenue reaching R$1,217 million in 3Q25, a 3.4% sequential increase. This is critical because it gives the company a cost advantage over peers. If you want to dig deeper into who is betting on this diversified model, you should check out Exploring Companhia Siderúrgica Nacional (SID) Investor Profile: Who's Buying and Why?

To be fair, the Steel segment is still the core identity, but it's currently a lower-margin, higher-volume business that must contend with record penetration of imported steel, which challenges domestic pricing. The table below illustrates the segment contributions based on the latest available data, showing the true weight of the operational mix.

What this estimate hides is the internal transfer pricing between the Mining and Steel segments, which can sometimes mask the true standalone profitability of each. Still, the message is clear: Companhia Siderúrgica Nacional is a mining company with a steel operation, not the other way around.

Profitability Metrics

You need to know how efficiently Companhia Siderúrgica Nacional (SID) converts its revenue into profit, especially given its diversified model spanning steel, mining, and logistics. The headline for the third quarter of 2025 (Q3 2025) is a clear operational rebound, but the full-year picture still shows the drag of earlier performance.

The company achieved its first quarterly net profit of the year in Q3 2025, posting a net income of BRL 76 million on net sales revenue of BRL 11.794 billion. This is defintely a positive shift, but it's crucial to remember that the net loss for the nine months ended September 30, 2025, still stood at BRL 922.23 million. One strong quarter doesn't erase the year's earlier losses. Here's the quick math on the Q3 margins:

Operational Efficiency and Cost Management

Companhia Siderúrgica Nacional's operational efficiency is clearly driving the recent margin expansion. The Q3 2025 Gross Profit Margin of 29.4% is nearly double the average Gross Profit Margin of 14.9% for the broader Industrial Metals & Mining sector, a strong signal of cost control. The Adjusted EBITDA margin of 27% is also well above the 22% average seen in the global mining industry in the most recent comparable period.

This operational strength stems from its vertical integration and focus on the high-margin mining segment. The Iron Ore EBITDA gross margin hit an impressive 44% in Q3 2025, which is a huge driver for the consolidated results. Plus, the company reported its steel production costs were the lowest in four years, which directly translates to a better Gross Margin.

• Mining segment is the primary profit engine.
• Cost control in steel production is at a four-year best.
• Diversified segments like Cement (29% EBITDA margin) outperform their sector averages.

However, the steel segment itself still faces headwinds from imported materials, which pressures local prices and keeps the overall Net Profit Margin tight at 0.64% despite the strong operational performance. The key takeaway is that the company is executing well on what it can control-costs and high-margin mining-which is why the Operating Profit jump was so significant, increasing by 121% year-over-year. You can find a deeper look at the balance sheet and strategy in Breaking Down Companhia Siderúrgica Nacional (SID) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

When you look at Companhia Siderúrgica Nacional (SID), the first thing that jumps out is its aggressive use of debt, which is a common but high-stakes strategy in the capital-intensive steel and mining world. For the investor, the balance sheet tells a story of high leverage, even as the company works hard to bring it down. Honestly, the debt load is the single biggest risk factor here.

As of the most recent reporting period, Companhia Siderúrgica Nacional's total debt stands at roughly $10.00 billion USD. This figure represents the total of both short-term and long-term liabilities. To manage this, the company maintains a high cash position, which reached R$ 19.3 billion in the second quarter of 2025 (2Q25). This cash is crucial because it's what allows them to manage their net debt position-total debt minus cash-and fund operations.

The real measure of risk is the Debt-to-Equity (D/E) ratio, which shows how much debt the company uses to finance its assets compared to shareholder equity. Companhia Siderúrgica Nacional's D/E ratio currently sits around 3.07 (or 307%). This is a massive number. To put that in perspective:

• The average D/E ratio for the Diversified Metals & Mining industry is closer to 0.45.
• A D/E ratio above 2.5 is generally viewed by analysts as a sign of financial instability, even for companies in capital-intensive sectors.
• A high D/E ratio means creditors, not shareholders, are providing the bulk of the company's funding.

The good news is that management is acutely aware of this leverage. Their primary focus has been on improving the Net Debt-to-EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) ratio, which is a key metric for measuring a company's ability to service its debt. They have successfully reduced this leverage ratio for three consecutive quarters, bringing it down from 3.5x at the end of last year to 3.1x in the third quarter of 2025 (3Q25). That's a defintely positive trend. The long-term goal is to get this number well below 3x.

The company balances its growth needs by consistently tapping the debt market for refinancing, not just new capital. For example, in 2Q25, Companhia Siderúrgica Nacional raised new funds and refinanced bilateral contracts specifically to push the bulk of its amortization flows out to the 2027 to 2030 window. This strategy buys them time to grow their EBITDA and organically deleverage before the next major wave of debt payments hits. They are also actively pursuing capital recycling projects, like CSN Infrastructure, to generate cash and reduce debt without issuing new equity.

Here's a quick summary of the leverage picture:

This high leverage means any downturn in commodity prices or operational hiccups will quickly translate into higher financial stress, as evidenced by the low interest coverage ratio in recent periods. To learn more about how these risks map to the company's overall strategy, check out the full post here: Breaking Down Companhia Siderúrgica Nacional (SID) Financial Health: Key Insights for Investors.

Liquidity and Solvency

If you're looking at Companhia Siderúrgica Nacional (SID), the immediate takeaway on liquidity is a mixed, but concerning, picture. The company is managing its short-term obligations, but the cushion is thin, and recent cash flow trends show real pressure. You need to look past the surface-level ratios to see the underlying working capital strain.

The core of a company's near-term health lies in its ability to cover bills. For Companhia Siderúrgica Nacional, the most recent quarter (MRQ) Current Ratio sits at about 1.32. That means for every R$1.00 of current liabilities (bills due in the next year), the company has R$1.32 in current assets to cover it. That's generally acceptable, but it's not a comfortable margin for a capital-intensive business like steel.

The Quick Ratio (or Acid-Test Ratio) tells a more honest story, stripping out inventory which can be slow to sell. Companhia Siderúrgica Nacional's Quick Ratio for the most recent quarter is a low 0.86. This is defintely below the 1.0 mark we like to see, meaning the company cannot cover all its immediate, non-inventory-dependent short-term debts with its most liquid assets. This is a clear red flag for operational flexibility.

• Current Ratio (MRQ): 1.32-Acceptable, but not robust.
• Quick Ratio (MRQ): 0.86-A key liquidity concern, indicating reliance on inventory sales.

Working Capital and Cash Flow: The Real Strain

The working capital trends confirm the pressure. Companhia Siderúrgica Nacional reported a higher working capital consumption in the second quarter of 2025 (2Q25), which significantly strained its cash position. This is why the Net Current Asset Value (TTM) is deep in the negative at roughly R$ -48.73 billion. That's a massive gap between current assets and current liabilities, largely driven by the company's heavy debt load.

Looking at the Cash Flow Statement for Q2 2025, the Adjusted Cash Flow was negative by a substantial R$ 1,474.9 million. This negative free cash flow was a sharp deterioration from the previous quarter, reflecting two things: increased investments to push forward expansion projects and the negative impact of high financial expenses from their debt.

Here's the quick breakdown of the cash flow activities (TTM figures where 2025 quarterly data isn't fully annualized):

The Investing Cash Flow is a net outflow of around R$ 432.02 million (TTM), which is expected as the company continues to invest in its steel, mining, and logistics assets. The financing side is where management has been active, and this is a strength. They have successfully refinanced debt, pushing the amortization flows out to between 2027 and 2030. This action buys the company crucial time to improve its operating cash generation and reduce leverage, but it doesn't fix the underlying working capital issue.

What this estimate hides is the continued reliance on external financing or asset sales to manage the debt, given the negative adjusted cash flow. The liquidity concern is not an immediate solvency crisis, but a sustained pressure point that will cap growth and keep the stock volatile until the operating cash flow turns reliably positive. For a deeper dive into the company's strategy for tackling this debt, you should check out Breaking Down Companhia Siderúrgica Nacional (SID) Financial Health: Key Insights for Investors.

Valuation Analysis

You want to know if Companhia Siderúrgica Nacional (SID) is a good buy right now, and the hard numbers suggest caution. Based on the most recent data near November 2025, the stock is generally seen as overvalued relative to its current earnings power, but undervalued on a book value basis. The analyst consensus is definitively bearish.

The core issue is profitability. The Price-to-Earnings (P/E) ratio is a negative -7.4x, which immediately flags a problem: the company is currently reporting a loss (negative earnings). You can't really value a company with negative earnings using a P/E ratio, so this metric tells us the market is paying for future turnaround, not current performance.

Here's the quick math on the key valuation multiples:

• Price-to-Book (P/B): The ratio sits at approximately 0.8x. This suggests the stock is trading below its net asset value, which often signals an 'undervalued' stock, but only if you trust the book value and believe a turnaround is coming.
• Enterprise Value-to-EBITDA (EV/EBITDA): This multiple, which is better for capital-intensive industries like steel, is around 4.8x for the trailing twelve months (LTM) as of August 2025. This is a reasonable multiple for the sector, but it hides the high debt load and negative earnings.

What this estimate hides is the market's skepticism about the company's ability to convert its operational earnings (EBITDA) into net profit, which is essential for long-term shareholder value. For more on the company's long-term goals, you can check their Mission Statement, Vision, & Core Values of Companhia Siderúrgica Nacional (SID).

Stock Trend and Dividend Reality

Looking at the stock price trend, Companhia Siderúrgica Nacional (SID) has struggled, seeing a decline of about 24.75% over the last 12 months. The 52-week trading range is from $1.240 to $2.050, and with the stock trading around $1.53 in mid-November 2025, it's sitting closer to the low end of that range. This downward momentum is a clear warning sign.

The dividend story is also complex. The Trailing Annual Dividend Yield is high, around 5.71% as of November 2025. However, the dividend is defintely not covered by earnings, with a Payout Ratio of around -112.16%. This negative payout ratio means the company is paying dividends out of reserves or new debt, not from current profit, which is unsustainable. A high yield in this situation often signals risk, not value.

Analyst Consensus and Price Target

Wall Street analysts are largely pessimistic. The consensus rating for Companhia Siderúrgica Nacional (SID) is a Sell or even a Strong Sell. Out of the analysts providing ratings, a significant portion are recommending a sell.

The average 12-month price target is roughly $1.30. Compared to the current price of approximately $1.53, this implies a potential downside of about -15.03% over the next year. This is a clear signal that the street expects further price erosion.

Next step: You need to dig into the company's debt maturity schedule and cash flow from operations for the 2025 fiscal year to understand if they can sustain operations long enough for the projected turnaround to materialize.

Risk Factors

If you're looking at Companhia Siderúrgica Nacional (SID), the direct takeaway is this: the company is a diversified, integrated powerhouse, but its financial structure is the primary risk. The sheer volume of debt and the resulting financial expenses are the core challenge, even as operational performance improves.

Honestly, the biggest near-term risk remains the highly leveraged balance sheet (financial leverage is the use of borrowed money to finance assets). The total debt is massive, exceeding BRL 52.6 billion as of late 2025, which means high interest rates are a constant drag on profitability. This financial pressure is why the adjusted cash flow for Q3 2025 was still negative BRL 815 million, despite strong operational results.

Here's the quick math on the deleveraging effort, which is the management's top priority. They have been working hard, still.

External Headwinds: Competition and Commodity Swings

Beyond the balance sheet, Companhia Siderúrgica Nacional (SID) operates in a highly cyclical and competitive environment. The steel market is facing a record penetration of imported materials, which severely challenges the company's ability to maintain profit margins without protective trade measures. This is a defintely a factor you can't ignore.

Plus, as an integrated producer with significant mining operations, the company's revenue remains highly sensitive to commodity price volatility. For example, lower iron ore prices in Q2 2025 offset operational improvements, even as the company reported a net revenue of R$ 10,693.3 million for the quarter. You also see this market pressure in the Port Logistics segment, where tariff dispute impacts led to a 27.5% lower net revenue in Q2 2025, reaching only R$ 57.4 million.

• Commodity Price Risk: Iron ore price swings directly impact mining segment revenue.
• Import Competition: Record foreign steel penetration pressures domestic margins.
• Regulatory Risk: New Brazilian environmental laws could force significant, unbudgeted capital expenditures, diminishing future cash flow.

Mitigation and Strategic Resilience

The good news is that management has clear, actionable mitigation strategies. Their core defense against market volatility is their vertical integration (owning the supply chain from iron ore to finished steel, plus logistics, cement, and energy). This diversification provides resilience, as strong results in one segment, like the record-high EBITDA in logistics, can partially absorb weakness in another.

The deleveraging plan is underway, evidenced by the reduction in the Net Debt-to-EBITDA ratio to 3.1x. The company is also focused on operational efficiencies and cost control, which drove steel production costs to their lowest level in four years in Q3 2025. They are using strategic hedging operations to manage commodity price risk, which helped improve the Q2 2025 net loss to R$ 130.4 million, an 82.2% improvement from the previous quarter's net loss of R$ 732 million.

If you want to dive deeper into the full picture, including the valuation, you can read the full analysis at Breaking Down Companhia Siderúrgica Nacional (SID) Financial Health: Key Insights for Investors.

Next Step: Analyst Team: Model the impact of a 10% increase in Brazilian interest rates on the Q4 2025 financial expenses and net income by the end of next week.

Growth Opportunities

You're looking for a clear map of where Companhia Siderúrgica Nacional (SID) goes from here, especially with the 2025 fiscal year data showing some serious operational muscle. The direct takeaway is this: SID's future growth isn't just about steel; it's a multi-vector play driven by their dominant mining segment and aggressive expansion in cement, all underpinned by world-class vertical integration.

The company's strategy is simple but powerful: control the entire value chain and use the high-margin segments to fuel deleveraging. Honestly, the operational results in Q3 2025 were defintely strong, with adjusted EBITDA hitting BRL 3.3 billion, a 26% quarter-on-quarter increase, showing their focus on operational efficiency is paying off.

Key Growth Drivers and Strategic Focus

The primary engine for near-term growth is the mining segment, which is a significant competitive advantage. The segment's Q3 2025 adjusted EBITDA soared to BRL 1.9 billion, a 57% increase, with a gross margin of 44%. This profitability is a core driver, acting as a natural hedge against volatility in the steel market. Plus, the strategic projects are moving fast.

Key drivers and strategic initiatives include:

• Deleveraging and Infrastructure: A major strategic focus is reducing the net leverage ratio, which was down to 3.1x in Q3 2025, with a target of 3.0x by year-end. The 'CSN Infrastructure' project is in its concluding stages and is expected to contribute significantly to this effort.
• Cement Market Expansion: Recent acquisitions, including Elizabeth Cimentos and LafargeHolcim Brasil, are driving capacity and synergies. The cement segment is a major growth vector, achieving its second-largest sales volume in history in Q3 2025, over 3.6 million tons, with an EBITDA of BRL 388 million.
• Operational Efficiency: The steel segment achieved its lowest production costs in four years, which is crucial for maintaining margins against the strong competition from imported material.

Revenue and Earnings Outlook

Analysts are projecting modest revenue growth for 2025, but the focus is on profitability and balance sheet repair. The consensus forecast for 2025 annual revenue is approximately BRL 45.69 billion, representing a 4.57% increase from 2024. What this estimate hides is the significant operational improvement that may not fully translate to the top line due to macro pressures, but is clearly visible in the margins of their diversified segments. For instance, the Logistics segment recorded its highest-ever EBITDA of BRL 550 million, with a margin above 35% in Q3 2025.

Here's the quick math on the segment's Q3 2025 performance, which shows where the real growth is coming from:

Core Competitive Advantages

SID's long-term growth is fundamentally protected by its unique structure. The company is one of the world's lowest-cost steel producers, and that is a massive barrier to entry for competitors. This cost advantage comes directly from its deep vertical integration (from mine to mill to port), which ensures a stable, low-cost supply of high-grade iron ore and self-sufficiency in energy through its own hydroelectric and thermoelectric plants.

This integrated model allows them to focus on high-margin products like tin plate and galvanized steel, which are key for the domestic construction, automotive, and packaging industries. If you want to dive deeper into the long-term vision, you can review the Mission Statement, Vision, & Core Values of Companhia Siderúrgica Nacional (SID).

Next step: you should model the impact of the targeted 3.0x leverage ratio on their cost of capital, as this deleveraging is the single most important financial action for 2025.