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National Steel Q1 Earnings Miss Estimates on Softer Steel Demand
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Key Takeaways
National Steel reported a Q1 loss of 8 cents per share, missing earnings estimates of 23 cents.
SID's revenues fell 2.8% y/y as domestic and foreign sales declined on weak demand and imports.
Adjusted EBITDA rose 5.5%, with margin gains aided by cost control and FX impacts.
National Steel (SID - Free Report) posted a first-quarter 2026 loss of 8 cents per share. The Zacks Consensus Estimate for the quarter’s bottom line was pegged at earnings of 23 cents. The company also posted a loss of 8 cents in the year-ago quarter.
SID’s Q1 Top Line Dips on Lower Key Market Revenues
National Steel reported a modest top-line pullback in the first quarter of 2026, reflecting softer revenues across both key markets. Domestic-market net revenues dipped 1.7% year over year to R$5.42 billion ($1.09 billion), while foreign-market revenues declined 3.8% to R$5.19 billion ($1.04 billion). Overall, total net revenues were R$10.60 billion ($2.01 billion), down 2.8% from the year-ago quarter.
SID posted a net loss of R$555 million ($111 million) for the quarter, narrower than the R$731.6-million loss reported in the prior-year period.
Results reflected a seasonally weaker quarter with heavy rainfall, while steel demand was pressured early in the period by higher imports.
National Steel Company Price, Consensus and EPS Surprise
In the first quarter of 2026, SID reported cost of goods sold of R$8.08 billion ($1.62 billion), down 3.5% from the year-ago quarter. Gross profit totaled R$2.52 billion ($0.51 billion). While gross profit was down 0.4% year over year, the gross margin improved to 23.8% from 23.2%, aided by tighter cost control and the impacts of exchange-rate movements on certain U.S. dollar-denominated inputs.
Adjusted EBITDA came in at R$2.65 billion ($0.53 billion), reflecting a 5.5% year-over-year increase, with an adjusted EBITDA margin of 23.9%.
SID’s Q1 Segmental Performance
Steel: The segment’s revenues totaled R$5.60 billion ($1.12 billion), down 8.3% year over year. Steel sales were 1,116 thousand tons, down 2.5% from the first quarter of 2025, reflecting pressure from imports and weaker activity in January and February, partly offset by a stronger March.
Mining: The segment generated revenues of R$3.19 billion ($0.64 billion), down 8.0% year over year. Iron ore sales were 9,636 thousand tons, broadly in line with the prior-year quarter, while production reached 10,063 thousand tons, down 1.4% year over year.
Logistics: The segment’s revenues totaled R$1.07 billion ($0.23 billion). The segment reported revenues of R$771 million ($154 million) in the year-ago quarter. Adjusted EBITDA for the segment was R$448 million ($90 million), with an adjusted EBITDA margin of 41.8%.
Energy: The segment’s revenues totaled R$203 million ($40 million), up 13.6% year over year. Adjusted EBITDA was R$61.9 million ($12 million), with an adjusted EBITDA margin of 30.5%.
Cement: The segment’s revenues grew 14.0% year over year to R$1.26 billion ($0.25 billion). Cement sales volume totaled 3.064 million tons, down 4.5% from the prior-year quarter, as the company prioritized value over volumes. Adjusted EBITDA surged 62.7% year over year to R$392.5 million ($0.25 million), marking a record quarterly EBITDA for the segment.
National Steel’s Balance Sheet Updates
SID reported consolidated net debt of R$40.5 billion ($8 billion) as of March 31, 2026, and net leverage of 3.36X (Net Debt/LTM EBITDA), improving from the year-end levels. The company tied the move to operating progress, an iron ore prepayment agreement and the favorable impacts of exchange-rate variation on foreign-currency debt, while reiterating its focus on resolving capital structure through additional initiatives.
SID Stock’s Price Performance
National Steel’s shares have lost 19.1% in the past year against the industry’s 89.4% surge.
ArcelorMittal S.A. (MT - Free Report) recorded first-quarter 2026 net income of $575 million or 75 cents per share. This compares unfavorably with the net income of $805 million or $1.04 per share in the year-ago quarter.
ArcelorMittal recorded adjusted earnings of 76 cents per share. The bottom line beat the Zacks Consensus Estimate of 72 cents. ArcelorMittal’s revenues rose around 4% year over year to $15.5 billion in the quarter. The figure marginally missed the consensus estimate of $15.7 billion.
Nucor Corporation (NUE - Free Report) reported earnings of $3.23 per share for the first quarter of 2026, up from 67 cents in the year-ago quarter. It beat the Zacks Consensus Estimate of $2.79. Nucor posted net revenues of $9.5 billion, up 21.3% year over year. The figure beat the Zacks Consensus Estimate of $8.7 billion.
Commercial Metals Company (CMC - Free Report) reported adjusted earnings per share of $1.16 in second-quarter fiscal 2026 (ended Feb. 28, 2026), missing the Zacks Consensus Estimate of $1.28. Adjusted for one-time items, the company posted earnings of 31 cents in the prior-year quarter. Commercial Metals’ revenues in the reported quarter were $2.13 billion compared with $1.75 billion in the year-ago quarter. The reported figure beat the Zacks Consensus Estimate of $1.98 billion.
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National Steel Q1 Earnings Miss Estimates on Softer Steel Demand
Key Takeaways
National Steel (SID - Free Report) posted a first-quarter 2026 loss of 8 cents per share. The Zacks Consensus Estimate for the quarter’s bottom line was pegged at earnings of 23 cents. The company also posted a loss of 8 cents in the year-ago quarter.
SID’s Q1 Top Line Dips on Lower Key Market Revenues
National Steel reported a modest top-line pullback in the first quarter of 2026, reflecting softer revenues across both key markets.
Domestic-market net revenues dipped 1.7% year over year to R$5.42 billion ($1.09 billion), while foreign-market revenues declined 3.8% to R$5.19 billion ($1.04 billion). Overall, total net revenues were R$10.60 billion ($2.01 billion), down 2.8% from the year-ago quarter.
SID posted a net loss of R$555 million ($111 million) for the quarter, narrower than the R$731.6-million loss reported in the prior-year period.
Results reflected a seasonally weaker quarter with heavy rainfall, while steel demand was pressured early in the period by higher imports.
National Steel Company Price, Consensus and EPS Surprise
National Steel Company price-consensus-eps-surprise-chart | National Steel Company Quote
National Steel’s Profit Dips in Q1
In the first quarter of 2026, SID reported cost of goods sold of R$8.08 billion ($1.62 billion), down 3.5% from the year-ago quarter. Gross profit totaled R$2.52 billion ($0.51 billion). While gross profit was down 0.4% year over year, the gross margin improved to 23.8% from 23.2%, aided by tighter cost control and the impacts of exchange-rate movements on certain U.S. dollar-denominated inputs.
Adjusted EBITDA came in at R$2.65 billion ($0.53 billion), reflecting a 5.5% year-over-year increase, with an adjusted EBITDA margin of 23.9%.
SID’s Q1 Segmental Performance
Steel: The segment’s revenues totaled R$5.60 billion ($1.12 billion), down 8.3% year over year. Steel sales were 1,116 thousand tons, down 2.5% from the first quarter of 2025, reflecting pressure from imports and weaker activity in January and February, partly offset by a stronger March.
Mining: The segment generated revenues of R$3.19 billion ($0.64 billion), down 8.0% year over year. Iron ore sales were 9,636 thousand tons, broadly in line with the prior-year quarter, while production reached 10,063 thousand tons, down 1.4% year over year.
Logistics: The segment’s revenues totaled R$1.07 billion ($0.23 billion). The segment reported revenues of R$771 million ($154 million) in the year-ago quarter. Adjusted EBITDA for the segment was R$448 million ($90 million), with an adjusted EBITDA margin of 41.8%.
Energy: The segment’s revenues totaled R$203 million ($40 million), up 13.6% year over year. Adjusted EBITDA was R$61.9 million ($12 million), with an adjusted EBITDA margin of 30.5%.
Cement: The segment’s revenues grew 14.0% year over year to R$1.26 billion ($0.25 billion). Cement sales volume totaled 3.064 million tons, down 4.5% from the prior-year quarter, as the company prioritized value over volumes. Adjusted EBITDA surged 62.7% year over year to R$392.5 million ($0.25 million), marking a record quarterly EBITDA for the segment.
National Steel’s Balance Sheet Updates
SID reported consolidated net debt of R$40.5 billion ($8 billion) as of March 31, 2026, and net leverage of 3.36X (Net Debt/LTM EBITDA), improving from the year-end levels. The company tied the move to operating progress, an iron ore prepayment agreement and the favorable impacts of exchange-rate variation on foreign-currency debt, while reiterating its focus on resolving capital structure through additional initiatives.
SID Stock’s Price Performance
National Steel’s shares have lost 19.1% in the past year against the industry’s 89.4% surge.
National Steel’s Zacks Rank
SID currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Recent Peer Performance
ArcelorMittal S.A. (MT - Free Report) recorded first-quarter 2026 net income of $575 million or 75 cents per share. This compares unfavorably with the net income of $805 million or $1.04 per share in the year-ago quarter.
ArcelorMittal recorded adjusted earnings of 76 cents per share. The bottom line beat the Zacks Consensus Estimate of 72 cents. ArcelorMittal’s revenues rose around 4% year over year to $15.5 billion in the quarter. The figure marginally missed the consensus estimate of $15.7 billion.
Nucor Corporation (NUE - Free Report) reported earnings of $3.23 per share for the first quarter of 2026, up from 67 cents in the year-ago quarter. It beat the Zacks Consensus Estimate of $2.79. Nucor posted net revenues of $9.5 billion, up 21.3% year over year. The figure beat the Zacks Consensus Estimate of $8.7 billion.
Commercial Metals Company (CMC - Free Report) reported adjusted earnings per share of $1.16 in second-quarter fiscal 2026 (ended Feb. 28, 2026), missing the Zacks Consensus Estimate of $1.28. Adjusted for one-time items, the company posted earnings of 31 cents in the prior-year quarter. Commercial Metals’ revenues in the reported quarter were $2.13 billion compared with $1.75 billion in the year-ago quarter. The reported figure beat the Zacks Consensus Estimate of $1.98 billion.