Prepared remarks
Ladies and gentlemen, at this time, we would like to welcome everyone to CSN's conference call to present the results for the First Quarter 2026. Today, we have with us the company's executive officers. We would like to inform you that this event is being recorded. The event today can be accessed at ircsn.com.br, where the presentation is also available. The replay of the event will be available soon after closing. Before proceeding, please bear in mind that some of the forward-looking expectations or trends are based on the current assumptions and opinions of the company management. Future results, performance and events may differ materially from those expressed herein, which do not constitute projections. In fact, actual results, performance or events may differ materially from those expressed or implied by forward-looking statements as a result of several factors, general and economic conditions in Brazil and other countries, interest rates and exchange rate levels, future rescheduling or prepayment of debt pegged in foreign currencies, protectionist measures in the U.S., Brazil and other countries, changes in laws and regulations and general competitive factors at a global, regional or national base. I would now like to turn the floor over to Marco Rabello, Investor Relations Executive Officer, who will present the highlights of CSN for the period. You may proceed, sir.
Good day to all of you. I would like to thank you for your attendance at another CSN call. We have joined here to present the results of the first quarter 2026. We had growth in EBITDA despite the heavy rainfall we had during the period and intense competition from imported material in the first two months of the year. Despite this, EBITDA grew 5.5% versus the same period last year. This shows the importance of having a diversified operation and a strong portfolio. The main contributions came from cement and logistics, which ended up offsetting the effects of the exchange rate drop and the more challenging environment in steel. Another consolidated result was a drop in leverage, with the indicator reaching 3.36x in the first quarter 2026, a drop of 3 percentage points versus the previous period. This improvement goes beyond the focus of the company regarding projects that continue to advance, and the company is still working with several initiatives to organically improve its leverage.
The performance for the quarter is a consequence of operational improvements, new prepayment contracts and the payment of debt, all contributing to the reduction of indebtedness. Finally, in April, we signed a bridge loan representing BRL 1.2 billion that could be extended to BRL 1.4 billion. This loan has the goal of anticipating part of the proceeds for the sale of assets and being put to work immediately for short- and medium-term operations. This loan will also demonstrate to the market that the company is still sound without immediate pressure for liquidity. Let's go on to the highlights for mining. In the first quarter of 2026, we had a record in own production despite the rainfall in the state and some situations of public calamity in adjacent areas to our mine. This is a demonstration of operational excellence and the ability to mitigate weather-related challenges. TECAR reached a new shipment record for the period, totaling 8.7 million tons, reinforcing the robustness of this asset.
The price dynamic of iron ore neutralized the impact on cost, especially because of freight. This helped to dissipate greater pressure on results. Iron ore prices present a favorable trend so far and should help the segment's performance for the rest of the year. In steel, we had a challenging beginning of the year with importers anticipating measures to avoid the protective measures that were put in place in March. Despite that challenge and the negative seasonality of the period, sales increased 12% when compared to the previous quarter. Part of that growth is the result of the performance achieved in March, which was responsible for 50% of the sales. This shows that the commercial trend is favorable for local producers with a positive dynamic in volume and price. Another factor that contributed positively to sales was the performance abroad and the resumption of exports that contributed to the results.
Regarding prices, we observed stability in the domestic market with the readjustments implemented at the beginning of the year, offsetting the pressure of imported products. However, there was an appreciation of the Brazilian real, and this exerted pressure on the conversion of results. The company carried out a new adjustment in April, and the trend in the international market is favorable for these increases. This should contribute to the results in the second quarter and full year. In the cement market, we saw exceptional performance. The company managed to transfer prices even in a period of rainfall and a weaker market. We prioritized results, and this shows the resilience of the cement business. There is an active labor market, a new salary mass and real estate construction from Minha Casa, Minha Vida that continue to increase demand for cement. The company reached the highest EBITDA in its history, even in a quarter that seasonally is weaker.
This shows that 2026 can be an extraordinary year for cement. If we analyze the results of the first quarter, we would have a potential EBITDA above BRL 1.6 billion for the year. And if we use the seasonality of the segment during the year, the results could go beyond BRL 2 billion. This is not a formal guidance by the company, but it shows the potential of the cement sector alongside profitability. CSN has an EBITDA margin above 30%, reaching 31.2% in the first quarter 2026. This shows the competitiveness of the operation that is now fully verticalized with price control, new plants, strong brands and logistical operations that truly make a difference. We have received more than seven proposals in the divestiture process, all of which are qualified. This shows the attractiveness of the asset, and we expect to continue on our expected schedule for this. If we look to the right of the slide, we have the logistics and energy segments.
Logistics in the first quarter also had a negative seasonality because of the rainfall on the railroads. This impacted cargo volumes. Despite this, the segment had growth of 26% in EBITDA versus the same period last year and maintained profitability above 40%, showing the resilience of this platform. In energy, this is another quarter of strong growth with EBITDA rising more than 92% versus the previous quarter, impacted by energy availability and an improvement in prices. Moving on to the EBITDA results and margin for the first quarter 2026, we see seasonality effects versus the previous quarter, especially given the intensity of rainfall. Despite this, the company had 5.6% growth in EBITDA on an annual comparison with a margin expansion of 1.8 percentage points. This performance shows the importance of a diversified operation. Cement and logistics drove the growth. In the graph to the right, you can see the contribution of each segment compared to the previous quarter.
The difference reflects a non-recurring effect presented in the previous quarter, referring to idleness. If we exclude the BRL 314 million of that effect presented in the previous quarter, in steel we would have growth in EBITDA in the first quarter. In mining, besides the new volumes, performance was impacted by the strong appreciation of the real during the period. On the next slide, we show our investment activities. We see a 49% drop in CapEx versus the previous quarter, showing the company's tendency to invest more toward year end, but there is stability in terms of investments with more disbursements in mining because of the advance of civil works for P15. Moving to Slide 5, working capital: we can see an increase of 54.4% versus the previous quarter because of higher accounts receivable due to increased commercial activity in steel concentrated in March, and a lower volume of payables driven by reduced third-party iron ore purchases.
Regarding inventories, beginning in April we initiated a liquidity program to take advantage of finished products and other materials in the group, especially in steel. This will help release working capital and support cash generation for the group. On the following slide, free cash flow: the free cash flow was negative BRL 1.6 billion in the quarter. The main factors were seasonality with lower operating performance, working capital consumption, still elevated financial expenses and significant debt amortization during the period. We're going to use cash to reduce net debt as part of our deleveraging goal. The outlook for the next quarter improves as we expect better financial indicators, favorable seasonality, improvements in working capital and a drop in financial expenses during the year, debt payments and all of this will accelerate our deleveraging. On Slide 7, net debt and leverage and payment of debt during the quarter: the main message is a reduction in leverage from 3.47x to 3.36x.
This improvement shows efforts carried out since the beginning of the year to improve the capital structure. The company maintains a high cash position of BRL 2.6 billion, more than sufficient for the short term. The main points that contributed to net debt were a new prepayment contract for iron ore that will cover some amortization this year and the positive effect of exchange fluctuation. Most of the issues in the previous quarter were reversed. Regarding future outlook, the sale of assets as announced in January continues at full speed with better results than expected, showing how attractive the assets are and management's focus on the group's financial structure. On Slide 8, indebtedness profile: we are keeping a high level of cash despite debt amortization during the period. Short-term maturities refer to banking debt where CSN has been able to address the matter without major difficulties.
There was negative news about CSN's sustainability; that situation does not reflect reality. CSN is still active in amortizations and working with the bank syndicate, where we have increased the group's visibility and anticipated part of the funds so that we can continue addressing short- and medium-term debt. The expected environment going forward should lengthen maturities, allowing the company to execute its divestiture plan. This concludes the analysis of our consolidated results. On Slide 10, highlights for steel: commercial activity grew 12% for the quarter despite weak seasonality and import pressure. Importers tried to avoid protective measures. Part of the growth was driven by March, and we saw a resumption of exports and consumption in Europe. March already shows benefits from the better price environment and will help steel performance going forward. On steel production, the first quarter reflects planned shutdowns and a reduction of inventories for the year.
The slight increase verified in the period is due to increased raw material and energy use, reducing performance momentarily with the goal of reversal in the coming quarter, thanks to price readjustments already applied. On steel financial performance, net revenue increased due to greater commercial activity abroad. On a year-over-year basis, revenue was impacted by price decline and negative foreign exchange. There was a slight drop in price in the quarter that offset the readjustment practiced earlier. EBITDA shows stability with non-recurring effects from the previous quarter. EBITDA margin was pressured by non-recurring effects. There are signs of improvement in the domestic market in March, showing the benefit of protective measures. In mining, production and sales reflect seasonality and rainfall effects. Despite this pressure, own production grew 6.4% year-on-year, demonstrating operational excellence.
TECAR set a new shipment record in the first quarter, showing the robustness and efficiency of our logistics structure. Sales volume was stable versus the previous quarter. In financial performance for mining, revenue decline reflects lower volumes shipped because of seasonality and the negative impact of exchange variation. Iron ore has proven resilient despite conflicts in the Middle East, helping offset freight and oil increases. We improved the export mix with a higher share of our own production. Adjusted EBITDA for mining versus the previous quarter was directly impacted by seasonality and freight cost increases. For cement, sales volume in the quarter was stable versus the previous quarter with a small drop year-over-year reflecting higher rainfall and the company's strategy of prioritizing value over volume to avoid a price war. The segment is resilient and sustainable for 2026. Financially, cement revenue grew 14% year-over-year and was stable versus Q4 2025, reflecting price readjustments and resilient demand in Brazil.
Adjusted EBITDA was the highest in company history, nearly BRL 400 million, with margin beyond 30%. Delivering nearly BRL 400 million EBITDA in a seasonally impacted quarter suggests further EBITDA increase ahead. Logistics revenue dropped due to seasonal rainfall on cargo transport, but EBITDA evolution was strong: even with negative seasonality, we maintained profitability above 40%. With this, I conclude the segment presentation and turn the floor to Helena Guerra for ESG highlights.
Good morning, everybody. I would like to resume what I mentioned in the last call. This is the basis for how we approach ESG at the company. This is not simply a part of our agenda linked to operational efficiency or value generation and regulatory or financial risks; we have a very strong connection between ESG and the business. We have evolved in our reporting: we have a full report bringing updates on indicators, goals and results, connecting these indicators with the main ESG risks of the company and our strategy to mitigate these risks and the resiliency of our ESG performance. We apply double materiality integrated in CSN and CMIN. We have published an integrated report that follows the main market frameworks and presents a more integrated version discussing risk and value, which will be applied during the next year. Our transparency and performance in ESG have improved successively; we are positioned among the 10% of companies with the lowest ESG risk.
We had the MSCI rating upgraded from BB to BBB. We have stability regarding our tailings dams; renewals occurred in March. We had great efficiency in our plan to contain the impact of rainfall, which was intense but did not impact our dams or have significant impact on operations. In terms of health and safety, we had a challenging quarter: despite structural advances and a reduction in third-party accidents, we experienced some severe incidents. We have full focus on this issue and celebrated an important achievement this quarter with ISO 45001 certification. On the environmental front, we have reduced greenhouse gas emissions in steel and cement production versus baseline years, which is important to remain competitive amid carbon regulations and to mitigate potential climate-transition costs. Regarding gender diversity, we continue to advance: a 12% increase in female representation in the workforce and a 7% increase in female representation in leadership positions. We are making investments in retention to reduce operational risk from labor scarcity and increase long-term sustainability. Thank you very much for your attention.
Thank you, Helena. I will now give the floor to our Chairman, Benjamin, for his comments.
Good day to all of you and thank you for attending the CSN earnings call. I would like to quickly review what was presented per sector, underscoring our commitment to deleveraging and working in two ways: first, operational enhancement across sectors, and second, debt reduction, which is our priority. From an operational perspective, mining had extraordinary results despite heavy rainfall. The rainfall was exceptional and hampered production and shipment, yet we continued producing. TECAR also reached a record and we had a significant cost reduction there. Mining performed exceptionally. In steel, we also faced rainfall impacts including flooding and energy cuts that hampered production and flow. January and February were weak but March showed significant improvements, responsible for 50% of the quarter's production. With operational improvements and rationalization, March and April have a positive outlook and we should have significant improvements in the second quarter for steel.
Cement delivered an exceptional and consistent quarter, with an annualized EBITDA of BRL 1.6 billion reference, and our challenge is to improve further. Logistics is one of the businesses with the greatest potential in the CSN group; we are addressing it rationally and with focus. Energy also had excellent performance. Operationally, we improved costs and controlled OpEx, with systematic reductions across units. Beginning in March we saw practical results in OpEx and inventory reductions. In December we had BRL 12 billion in inventories across raw material, work in progress and finished products; we are working strongly to improve liquidity and cash. It has been an enormous challenge in 2026 to reduce OpEx and inventories. I would like to thank all our employees and operational teams for their efforts. Regarding the sale of assets, we are following the schedule rigorously. For cement, we received several non-binding proposals higher than expected and are moving to the next phase to obtain binding offers; we expect a short-term outcome.
In logistics, we have a schedule and are negotiating with strategic partners in the coming months. Our working capital priority is inventory reduction. The priorities are operational enhancement, deleveraging and inventory reduction. This is being pursued consistently and delivered results since March. We see opportunities non-operationally, and we expect a strong year for capital structure improvements. Prices are stronger than expected: iron ore spot at about $111 is higher than foreseen, despite transportation and oil cost increases; margins remain maintained or improved. In steel, we began seeing improvements in March due to anti-dumping measures, which will favor the second quarter. Logistics and energy have good outlooks. I remain realistic but optimistic: we are moving toward a more balanced capital structure and positive results. Thank you very much for your participation.
Questions and answers
Our first question comes from Daniel Sasson from Itaú BBA.
My first question goes to Martinez for steel operations. Martinez, could you comment on current capacity utilization? Are you importing BQ, has there been an increase in capacity that could help dilute fixed costs, and is there room to increase volumes? What has been the impact of the antidumping measures, and can you comment on internal indications that volumes are being rerouted from regions such as South Korea? A more direct question on prices: Martinez, you are trying to increase prices by 5% again — how is that working and how is demand reacting? This would help us understand the gradual recovery of margins in steel.
Daniel, thank you for the question. I will give an overview of what we see in the market, speak about the first quarter and our view for the rest of the year. In the first quarter we had an important mission to reduce inventories, and we did so in a relevant way. Production delivered fewer value-added products than needed as part of our strategy of prioritizing value over volume. We aligned price and volume and fostered inventory reduction, which also occurred in the international market. We took advantage of the situation in Europe to export tinplate to Europe, around 20,000–25,000 tons, which is positive given the geopolitical scenario. January and February were difficult; March improved significantly. We focused on March sales and were able to increase volumes and prices considerably. For the second quarter, we expect better results. Regarding the international market, Chinese BQ prices that were around $430–$450 rose to around $500, the highest in the last year and a half, which is positive.
In Europe, Lusosider was able to increase prices by EUR 100 due to quota reductions and reduced supply. In the U.S., prices have increased considerably and margins are healthy; the U.S. situation supports recovery here. U.S. steel margins for flat products have been strong and we should quickly catch up. On costs, operational excellence remains a focus. Despite blast furnace number 2 being shut down, we see opportunities to buy BQ and slabs; we have reduced use of imported slabs. Our goal for the second quarter is to bring total cost towards BRL 3,000 per ton from around BRL 3,200, which would be material. The dollar also benefits us. On supply and demand, sectors are showing stable demand. Government funding measures to support industry and tool sectors, inventory dynamics and positive trends in automotive and white goods support demand. Regarding imports, a second-quarter drop in imports is expected.
Reports show the magnitude of Korean exports to Brazil, and current lineups are smaller, indicating less import pressure. China is less competitive in Brazil due to trade defense measures. The Ministry of Trade and Industry and other agencies are addressing circumvention and classification issues to prevent unfair imports, including via free zones. This should help domestic producers. CSN has been more affected by coated material imports than others, but our order book shows a positive trend for the second and third quarters. Premiums for Chinese coated material are now low; importing from China is often not worthwhile. We are using a value-added strategy in downstream lines, increasing tinplate production, which is a strategic product for Brazil. My expectation for steel for the second quarter is a return to double-digit EBITDA margins. At the last call, I said we would increase prices by 3%–4%; we have caught up on prices but were influenced by mix and inventory.
We are targeting FOB price levels of BRL 350–BRL 380 for the second quarter. April saw a 5% price increase; we have another increase in May where resistance is higher, but we expect to end the second quarter with a 5%–8% increase for coated material primarily. We will continue to manage inventories, especially tinplate, aiming to reduce stock without compromising margins, which will aid deleveraging and debt reduction. We have a healthy order book and a fragmented client base, which provides planning comfort. In summary, the scenario for steel in Q2–Q3 is positive and based on market facts: improved prices, reduced import pressure and cost control should lead to margin recovery. If you have further questions, please ask.
Our next question comes from Rafael Barcellos from Bradesco BBI.
A follow-up for Martinez: to confirm, was there a 5% increase in April, a 2% carryover from March, and a roughly 7% move for the second quarter? Based on global and domestic trade defense movements, will the quota and antidumping measures change the sector structurally? What is your expectation for renewal of quota or tariff measures in May or June? My second question is an update on the divestiture process announced at the beginning of the year: any relevant updates for the cement operation or additional structure you can share?
Thank you, Rafael. At the close of April our prices had already increased, building on a stronger March. The increase was 5%–6.5% depending on the product line. In May we have a scheduled increase for the second half of the month, and I am being cautious because I don't want to jeopardize the positive volume recovery in coated material. We are working for a 5%–7% increase for the second quarter. Volumes are not a concern; our order book is healthy with about two months and 13 days of portfolio, giving planning comfort. We have doubled client fragmentation and diversified sectors. Regarding trade defense, the antidumping measures for tinplate and cold-laminated products have effectively excluded China from competitiveness in Brazil. We expect additional measures by July, potentially covering hot-rolled products and extending antidumping measures against Germany, Netherlands and India if circumvention appears.
We are working with customs authorities to supervise imports from Vietnam and other countries to ensure proper origin documentation and combat circumvention. We are also engaging with standards bodies to consider technical barriers for higher added-value products. These actions should be constructive for domestic industry. On the cement M&A process, as Benjamin reinforced, the process is on track. We have received more non-binding proposals than expected, and we will enter a phase of binding offers shortly. We will call a smaller number of qualified bidders to proceed to due diligence, technical visits and presentations. In two to three months we expect to reach the binding offer stage and discuss SPA terms. We aim to sign the sale in the second half of the year. The proposals are highly qualified both by player and valuation. Regarding cement strategy, we achieved an 18% price recovery year-over-year in Q1 2026 versus Q1 2025.
We expect continuing price increases in Q2 as part of results, and margins in Q2 should be better than Q1. Cement's outlook is highly positive with favorable demand drivers like Minha Casa, Minha Vida and other launches, and despite petcoke cost pressures we should see price realignments in the market. This is a very interesting moment for the business.
Our third question comes from Guilherme from XP.
I have two questions. First, on deleveraging: you mentioned working capital management, CapEx flexibility and other alternatives. Besides the cement sale, what other alternatives do you have? Any update on infrastructure or other divestments? Second, regarding cement: you mentioned normalized annualized EBITDA potentially well above multiplying Q1 EBITDA by four. How do you expect volume performance, price evolution and cost evolution in Q2, particularly with higher petcoke costs?
Guilherme, on cement we have already commented. For this year, cash proceeds will depend on antitrust (CADE), but the process announced on January 15 is qualitatively better than expected. Regarding working capital, the company created a program in March and began in April to monetize inventory, which could represent several billion BRL. This program targets MRO, intermediate products and finished products across segments, with a starting inventory mass of about BRL 12 billion to be addressed and monetized, which will contribute to cash. CapEx is being held back at 2025 levels, with mining disbursements rising due to P15 civil works that must be completed by end-2027. If free cash flow is not as expected, we will continue managing CapEx and other levers. Our commitment is material deleveraging. The cement process and the infrastructure process are progressing; in recent months we focused on long-term contracts, ports, tariffs and buyer conditions so potential buyers receive a full package of detailed information.
We will accelerate infrastructure divestment this quarter and expect news by the next call. Beyond cement and infrastructure, the company has non-core assets for monetization, such as real estate and other non-operational assets worth several billion BRL that could be monetized in the short to medium term. The focus is speeding up these processes and we should have updates in the next call.
Guilherme, regarding demand: Brazil's market is resilient, and the cement sector is expected to grow. We saw Brazil's construction activity around 3.7% last year and are above 2% this quarter. Cost pressures are significant across the sector due to the international geopolitical scenario, driving increases in raw material, diesel and freight. Through our pricing and profitability strategy we work to offset cost increases. Plants are operating above 70% utilization on average, which will facilitate price recovery. Q1 was a record quarter for us even though seasonally weak, and we expect stronger figures ahead. Our competitive differences are operational; we are the largest user of rail distribution in Brazil, have streamlined plants with low energy consumption and optimized personnel structures, and strong cost management. Those elements enable a positive and resilient market position to deliver the levels management has mentioned.
Our next question comes from Ricardo Monegaglia from Banco Safra.
Two questions for Marco Rabello. First, on the bridge loan: you said it could expand from BRL 1.2 billion to BRL 1.4 billion. What are the conditions for that expansion? You mentioned the cash will be earmarked for short-term amortization — what are the priorities for reducing debt? Any color on the NPV gains for reduction of debt or positive impact on financial expenses? Second, a follow-up on the cement M&A: is the company targeting a strategic buyer or a financial buyer? How much of the company will be sold — 50% or 100%? Are brownfield or greenfield assets included in valuations?
Ricardo, thank you. On the bridge loan: it is a committed bridge facility and we draw down only as needed; we will avoid paying unnecessary commitment fees. Expansion to BRL 1.4 billion depends on a company decision. This operation demonstrates bankability; several banks joined and there are others interested. We will not draw the full amount just to incur fees; the decision depends on the pace of the cement sale. If the cement sale proceeds quickly, we may not use the full facility. We will prioritize replacing less efficient debt and lengthening maturities at the lowest cost; banks offering the most efficient conditions will be prioritized. We have a $1.3 billion bond maturing 2028 and want to reduce that as soon as possible, using cash and refinancing as appropriate. We do not want to wait until 2027; we aim to act in the coming months of 2026. We have not run a full NPV calculation across alternatives yet. On cement M&A, we expect significant binding offers soon. In any M&A process, both strategic and financial players may present compelling proposals. We are selling control of the company; the percentage sold (70%, 80%, 100%) will depend on the buyer's preference. The goal is to raise sufficient funds to deleverage the group. Brownfield and greenfield assets are included; Edvaldo will comment on that.
On inclusion of greenfields in the transaction: yes, they are included. These are mature projects with mines, land and environmental licenses either approved or under approval, which increase the asset value. We have worked on these projects in recent years, and their inclusion is part of the package.
Our next question comes from Pedro Mello from Citi.
First, congratulations on cement results. A few follow-up points on the verticals and variables to help analyze the transaction: does it make sense to think about moving from BRL 1.6 billion to BRL 2 billion annualized EBITDA for cement? How should we view valuation — closer to 1.6 or 2.6? Also, can you confirm the net debt of the cement vertical expected at year-end to help with multiples? Lastly, how sustainable can the cement momentum be given expectations for future interest rate cuts?
Pedro, we'll have Martinez and Edvaldo add color. The sector recognizes 2026 as a good year and valuation varies quarter-to-quarter. There has been price recovery in the cement sector; in Brazil prices have room to recover relative to some international benchmarks. On net debt for the cement vertical, an indicative figure is BRL 2.8 billion net debt at year-end, based on last year's EBITDA and current assumptions. That is not company guidance but an indication for your modeling. Working capital could be reduced and cash proceeds could be significant; the exercise depends on assumptions.
Pedro, on market dynamics Edvaldo mentioned utilization. Industry utilization near 75%–80% is relevant. Above that, costs make competition unfeasible. Freight and location matter for FOB margins. Historically, Brazil's cement consumption peaked around 71–72 million tons during major infrastructure periods, dropped to about 53 million tons and is now near 65–66 million tons. Projections from industry bodies are positive, and GDP for construction is expected to grow 2%–2.5% in coming years. So demand supports improved cement performance. Given the price recovery and operational positioning, the second quarter should look better than Q1.
The sector drivers are volume, costs and price. The market is growing and we focus on profitability. Costs are under pressure; through strong internal cost management and operational efficiency we intend to mitigate those impacts. Price recovery is necessary — cement prices in Brazil are among the lowest globally and plants are operating at 75%–80% utilization, leaving room for price improvement. These drivers support the improved results we mentioned for the coming quarters.
Our next question comes from Henrique Braga from Morgan Stanley.
Question to Martinez regarding the quota/tariff measures that are about to expire this month: can you give color about discussions with the government? Is the idea to renew under the same parameters, expand to other products, or cancel? How are the discussions proceeding?
Thank you, Henrique. Commercial defense discussions are ongoing. The government has several levers and is considering a broader approach than before, looking at the entire production chain to avoid deindustrialization because imports affect many industrial chains. They are analyzing expanding the system and potentially adding tariffs on products currently outside the measures to neutralize imports with high dumping margins from countries other than China. The cold-rolled case involving Korea shows there are high margins that need to be addressed. Importantly, the government is more receptive and interested in maintaining a growing domestic industry, which is constructive for our sector.
Our next question comes from Nicolas from Jefferies.
Two quick questions. First, on the cement bridge loan: how much of the loan has already been drawn, and how much do you expect to disburse? Second, any update on refunding the 2028 bond — are you discussing an exchange offer or other proposals?
Nicolas, regarding the bridge loan, we have already withdrawn about one-third of the facility, so there is significant headroom. There is still important space to work on good refinancing for the company, and whether we expand to BRL 1.4 billion depends on needs. Regarding the 2028 bond, we have not made a refinancing proposal yet. We are discussing options internally and with counterparties, but no formal offer or exchange has been made. We would like to address it in the short term, however.
Our next question comes from Julian Lautersztain from Oaktree.
What is your amortization schedule per quarter? We know you paid a large amount for maturities in 2026. What will happen for the rest of the year?
Julian, for this year the maturities and the schedule are shown in our presentation. We have about BRL 6 billion that will need to be renegotiated or paid throughout the year. Amortization is spread across quarters with no major concentration in a single quarter. The largest installment was the 2026 bond paid in April. We are negotiating with several creditors simultaneously. Some bank debts have already been rescheduled; we are lengthening maturities and contracting new debt where needed. Our plan is to use the BRL 1.2 billion bridge facility in the coming four months if necessary, and the amortization profile for 2026–2027 could change in the next months as we actively refinance debt.
Our next question comes from Charles Walters from Sandglass. Could you explain the status of bank rolling for 2026 and 2027?
Charles, we are negotiating with multiple banks. The debt maturity profile is as presented in our materials but we are actively discussing rescheduling and refinancing. Some bank debt has already been rescheduled without immediate counterpart payments. We are working closely with our banking partners to lengthen maturities and improve conditions. We expect more clarity in the next three to four months.
As we have no further questions, we will return the floor to Mr. Marco Rabello for closing remarks.
To close, and reinforcing Benjamin's gratitude for all employees, I would like to thank everyone who attended this conference. This concludes our earnings call for the first quarter 2026. Thank you very much.
Thank you. The CSN earnings call ends here. Have a very good day.