CSN Mineração Q2 2026 slides: record volumes offset by freight pressure

On August 13, 2026, CSN Mineração disclosed its Q2 2026 earnings, highlighting strong operational performance amidst financial challenges. The Brazilian iron ore producer recorded its highest sales volume in history, despite increased freight costs, currency appreciation, and a mandatory maintenance shutdown. The company's stock price fell 2.59% to $5.64 following the announcement, indicating investor apprehension over margin compression.

Net income surged 89% year-over-year to R$ 219 million, while adjusted EBITDA declined to R$ 1,018 million from R$ 1,420 million in the previous quarter. The company unveiled three key achievements: robust operational efficiency, record sales volume, and a significant reduction in inventories. In Q2, sales volume jumped 23.0% to 11,849 thousand tons, marking a slight year-over-year increase.

The months of April and June set records for production and sales, despite a 15-day maintenance shutdown in May. Production surged 8.2% from the first quarter, while inventories fell to 2,739 thousand tons, the lowest in five years. Sales performance was strong across domestic and international markets, with foreign sales at 10,503 thousand tons and domestic sales at 1,346 thousand tons.

However, net revenue decreased 9.4% quarter-over-quarter and 15.8% year-over-year, impacted by lower iron prices and higher freight costs. The company's cost of goods sold and EBITDA trends revealed margin compression, driven by lower benchmark prices, quality adjustments, and elevated freight costs. CSN Mineração's Q2 results showcased a balance between growth and financial prudence.

The company invested R$ 687 million, largely for expansion and operational continuity, leading to a substantial reduction in working capital and a positive free cash flow. Despite a rise in leverage, CSN Mineração's capital structure remained robust, with a significant cash position and manageable debt levels.