# CSN’s net loss widens to R$1.25 billion in third quarter

*Net debt reaches R$44.9 billion at the end of September as leverage rises to 4.23 times. The sale of its cement business to Huaxin is expected to reduce debt once completed.*

- Published: 2026-11-13
- Section: Insights
- Tags: CSN, STEEL
- URL: https://brazilstockguide.com/insights/csns-net-loss-widens-to-r1-25-billion-in-third-quarter/

![Cade fines CSN](https://i0.wp.com/brazilstockguide.com/wp-content/uploads/2025/10/CSN.jpg?fit=1024%2C683&ssl=1)

**By Brazil Stock Guide —** Brazilian steelmaker CSN (B3: CSNA3) reported a net loss of R$1.25 billion in the third quarter of 2026, widening 61.3% from the previous quarter and reversing a profit a year earlier. Lower mining profitability and higher operating expenses weighed on earnings, according to results released on Thursday, November 12.

Consolidated net debt stood at R$44.92 billion at the end of September. Leverage, measured as net debt to trailing 12-month EBITDA, rose to 4.23 times from approximately 3.49 times in June, reflecting weaker operating performance and cash outflows during the period.

The figures do not yet reflect the agreement to sell CSN Cimentos to China’s Huaxin, announced after the quarter ended. The transaction is expected to help reduce debt once completed. CSN also highlighted a binding term sheet for the sale of its entire German steel subsidiary, SWT, as part of its efforts to strengthen its capital structure.

Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, fell 43.5% year on year to R$1.88 billion, down 32.3% from the second quarter. The adjusted EBITDA margin stood at 17%, while net revenue declined 11.1% from a year earlier to R$10.49 billion.

#### Cash outflows put pressure on finances

Free cash flow, as defined by the company, was negative R$3.5 billion, reversing a positive figure in the second quarter. CSN attributed the outflow to weaker operating performance, debt repayments and repayments under iron ore prepayment agreements, despite a release of working capital.

Gross debt fell 1.6% during the quarter. The reduction, however, was insufficient to prevent leverage from rising, as trailing 12-month EBITDA also declined.

Earnings were further affected by net other operating expenses of R$1.21 billion. CSN attributed the deterioration mainly to a provision related to arbitration proceedings and idle-capacity costs at its steel pickling lines, which returned to normal operations during the quarter.

Net financial expenses totaled R$1.36 billion, down 5.6% year on year and 26.1% from the second quarter. The company said the improvement reflected lower inflation adjustments on inflation-linked debt and gains on derivatives.

#### Lower prices and higher freight costs squeeze mining margins

In mining, lower iron ore prices and higher ocean freight costs reduced profitability. The segment’s adjusted net revenue fell 46.1% year on year to R$2.38 billion, while adjusted EBITDA totaled R$380.7 million, with a margin of 16%.

Sales reached 11.65 million metric tons, down 6% from a year earlier. Net revenue per ton, however, fell 39% to US$40.06, reflecting lower realized prices and higher freight costs.

Production, including purchases from third parties, declined 16.4% to 9.97 million metric tons. As profitability deteriorated for lower-grade ore, CSN temporarily curtailed production at the dry processing plant at its Pires complex. Lower output left fixed costs spread over fewer tons, helping push C1 cash costs to US$26 per ton from US$21.10 a year earlier.

#### Steel and cement also face pressure

The steel business reported adjusted EBITDA of R$576.1 million, with a margin of 10%. According to CSN, improved production efficiency was offset by seasonally weaker overseas sales and increased steel imports into Brazil, which limited further price increases.

Cement sales reached 3.44 million metric tons, the highest quarterly volume of the year, although down 5.1% from a year earlier. Net revenue rose 8.8% to R$1.45 billion, but higher raw material and freight costs pushed adjusted EBITDA down 0.5% to R$385.5 million. The margin narrowed by 2.5 percentage points year on year to 26.6%.

Logistics contributed adjusted EBITDA of R$533.7 million, down 3% year on year, with a margin of 44%. Rail operations accounted for the largest share, contributing R$432.4 million.

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Source: Brazil Stock Guide, https://brazilstockguide.com/insights/csns-net-loss-widens-to-r1-25-billion-in-third-quarter/