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SID Q2 Earnings Miss on Higher Financial Costs, Revenues Rise Y/Y
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Key Takeaways
National Steel's Q2 revenues rose 5.7% as stronger commercial activity boosted domestic sales.
Steel, energy and cement posted higher revenues and adjusted EBITDA, while mining declined.
The free cash flow turned positive at R$808.1 million, while adjusted net debt rose to R$42.14 billion.
National Steel (SID - Free Report) reported a loss of 12 cents per share in the second quarter of 2026, missing the Zacks Consensus Estimate of breakeven. The company posted a loss of 2 cents in the year-ago quarter. Higher financial expenses tied to exchange-rate variation outweighed stronger operating performance.
SID’s Q2 Top Line Rises on Stronger Commercial Activity
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 Company Price, Consensus and EPS Surprise
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.
Image Source: Zacks Investment Research
National Steel’s Zacks Rank
SID currently carries a Zacks Rank #5 (Strong Sell).
Nucor Corporation (NUE - Free Report) 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 - Free Report) 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 - Free Report) 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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SID Q2 Earnings Miss on Higher Financial Costs, Revenues Rise Y/Y
Key Takeaways
National Steel (SID - Free Report) reported a loss of 12 cents per share in the second quarter of 2026, missing the Zacks Consensus Estimate of breakeven. The company posted a loss of 2 cents in the year-ago quarter. Higher financial expenses tied to exchange-rate variation outweighed stronger operating performance.
SID’s Q2 Top Line Rises on Stronger Commercial Activity
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 Company Price, Consensus and EPS Surprise
National Steel Company price-consensus-eps-surprise-chart | National Steel Company Quote
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.
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 - Free Report) 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 - Free Report) 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 - Free Report) 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.