SID Q2 Earnings Miss on Higher Financial Costs, Revenues Rise Y/Y

National Steel delivered solid top-line growth in the second quarter of 2026, benefiting from stronger commercial activity across its businesses and improving market conditions in the steel segment.

Net revenues increased 5.7% year over year to R$11.31 billion ($2.237 billion). Domestic-market net revenues rose 14.7% year over year to R$6.22 billion ($1.19 billion), while foreign-market revenues declined 1.9% to R$5.09 billion ($0.98 billion).

National Steel’s Gross Margin Inches Up in Q2

Cost of goods sold increased 5.1% year over year to R$8.38 billion ($1.61 billion) as higher sales volumes and raw-material costs weighed on expenses. Gross profit increased 7.5% to R$2.93 billion ($0.56 billion), while the gross margin improved to 25.9% from 25.5%.

Selling, general and administrative expenses increased 8% year over year to R$1.64 billion ($0.31 billion), reflecting higher freight expenses and the recovery in steel sales. 

National Steel posted a net loss of R$773.1 million ($148 million) in the second quarter of 2026. Adjusted EBITDA, however, increased 4.9% year over year to R$2.77 billion, while the adjusted EBITDA margin was 23.4% compared with 23.5%.

SID’s Q2 Segmental Performance

Steel: The segment’s revenues totaled R$6.08 billion ($1.17 billion), up 12.7% year over year. Steel sales were 1,182 thousand tons, up 16.7% from 1,013 thousand tons in the second quarter of 2025. Adjusted EBITDA rose 9.5% year over year to R$636.3 million ($122.84 million).

Mining: The segment’s adjusted net revenues totaled R$2.90 billion ($0.56 billion), down 14.9% year over year. Iron ore sales were 11,849 thousand tons, up 0.1% from 11,833 thousand tons in the prior-year quarter. Adjusted EBITDA fell 24% year over year to R$929.7 million ($179.48 million).

Logistics: The segment’s net revenues were R$1.21 billion ($0.23 billion), up 3.1% year over year. Improved rail and multi-modal logistics performance supported the segment’s results. Adjusted EBITDA increased 5.6% to R$548.2 million ($105 million).

Energy: The segment’s revenues surged 94.5% year over year to R$395.5 million ($76.35 million), aided by the retroactive recognition of revenues related to the Jacuí Hydroelectric Power Plant. Adjusted EBITDA increased 173% to R$246 million ($47.5 million).

Cement: The segment’s revenues increased 14.3% year over year to R$1.39 billion ($0.27 billion), driven by price adjustments and resilient demand. Adjusted EBITDA jumped 45.5% year over year to a record R$426.9 million ($82.41 million).

National Steel Balance Sheet Updates

The free cash flow turned positive at R$808.1 million ($154 million), helped by working-capital release and funding transactions.

Adjusted net debt as of June 30, 2026, was R$42.14 billion ($8.08 billion), with leverage at 3.49X compared with 3.36X in the prior quarter. Cash and cash equivalents totaled R$15.4 billion ($2.95 billion).

SID Stock’s Price Performance

National Steel’s shares have lost 32.4% in the past year against the industry’s 81.6% growth.

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National Steel’s Zacks Rank

SID currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today's Zacks #1 Rank stocks here.

SID’s Peer Performances

Nucor Corporation NUE reported adjusted earnings of $4.84 per share for the second quarter of 2026. The figure beat the Zacks Consensus Estimate of $4.57. On a reported basis, earnings were $5.04 per share, up from $2.60 in the year-ago quarter. 

Nucor recorded revenues of $10.4 billion, up 23% year over year. The figure beat the Zacks Consensus Estimate of $10.06 billion. 

ArcelorMittal S.A. MT recorded second-quarter 2026 earnings of 89 cents per share. This compares unfavorably with $2.34 per share in the year-ago quarter. Earnings missed the Zacks Consensus Estimate of $1.18. 

ArcelorMittal revenues increased around 5% year over year to $16.76 billion in the quarter. The figure missed the consensus estimate of $16.82 billion. 

Commercial Metals Company CMC reported adjusted earnings per share of $1.73 in third-quarter fiscal 2026 (ended May 31, 2026), beating the Zacks Consensus Estimate of $1.60 by 8.1%. The bottom line surged 147.1% from 70 cents in the year-ago quarter. 

Commercial Metals’ revenues in the reported quarter were $2.48 billion compared with $2.02 billion in the year-ago quarter. The reported figure beat the Zacks Consensus Estimate of $2.37 billion.

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