National Steel (NYSE:SID) Announces Quarterly Earnings Results

National Steel (NYSE:SID) released its earnings results on Thursday. The basic materials company reported ($0.12) earnings per share for the quarter, meeting the consensus estimate of ($0.12), FiscalAI reports. National Steel had a negative return on equity of 10.69% and a negative net margin of 3.92%.The business had revenue of $2.18 billion for the quarter, compared to the consensus estimate of $2.13 billion.

Here are the key takeaways from National Steel’s conference call:

• Positive Sentiment: Consolidated EBITDA increased 5% year over year, supported by improved performance across steel, mining, cement, logistics, and energy despite higher freight and raw-material costs.
• Positive Sentiment: Free cash flow turned positive at BRL 808 million, aided by working-capital reductions and fundraising. Management is targeting up to an additional BRL 1 billion in cash release by year-end through lower inventories and improved operating efficiency.
• Positive Sentiment: Steel margins recovered to 10.5% as anti-dumping measures reduced imports, domestic sales grew about 10%, and export volumes reached their highest level since early 2023. Management expects further price, volume, and cost improvements in the second half.
• Positive Sentiment: Cement delivered a second consecutive record EBITDA of more than BRL 420 million, with revenue up 14% sequentially and margins above 30%. Resilient demand, price increases, and a focus on profitability over volume support management’s positive second-half outlook.
• Neutral Sentiment: Deleveraging remains a central priority: the company extended roughly $1 billion of maturities through its 2030 bond exchange and is advancing binding offers for the cement business and non-binding offers for a 20%–30% infrastructure stake. However, leverage remains high at approximately 3.49x, while mining EBITDA was pressured by foreign exchange and freight costs and energy benefited from a one-time retroactive revenue recognition.

National Steel Stock Up 1.5%

Shares of SID stock traded up $0.01 on Thursday, hitting $0.88. The stock had a trading volume of 1,836,908 shares, compared to its average volume of 4,709,884. National Steel has a 52-week low of $0.84 and a 52-week high of $2.20. The firm has a market capitalization of $1.17 billion, a price-to-earnings ratio of -3.65 and a beta of 1.57. The company has a debt-to-equity ratio of 2.60, a quick ratio of 0.73 and a current ratio of 1.11. The stock’s 50 day moving average is $1.02 and its 200-day moving average is $1.30.

Hedge Funds Weigh In On National Steel

A hedge fund recently raised its stake in National Steel stock. HRT Financial LP raised its stake in National Steel Company (NYSE:SID) by 175.3% during the fourth quarter, according to its most recent disclosure with the SEC. The fund owned 564,262 shares of the basic materials company’s stock after buying an additional 359,335 shares during the quarter. HRT Financial LP’s holdings in National Steel were worth $902,000 as of its most recent SEC filing.

Analysts Set New Price Targets

Separately, Weiss Ratings reiterated a “sell (d-)” rating on shares of National Steel in a research report on Wednesday, June 17th. One equities research analyst has rated the stock with a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of “Sell” and a consensus price target of $1.40.

About National Steel

Companhia Siderúrgica Nacional operates as an integrated steel producer in Brazil and Latin America. It operates through five segments: Steel Industry, Mining, Logistics, Energy, and Cement. The company offers flat steel products, such as hot and cold rolled, galvanized, galvalume, pre-painted, and metal sheets products; coil, sheets, and derivatives; tiles and derivatives, pipes, and profiles; long steel products; steel packaging solutions for the food industry; chemical packaging solution; and carbochemical products.