CSN CEO Faces Debt Crisis as Asset Sales Gain Investor Confidence

Fabio Schvartsman, appointed CEO of Cia. Siderúrgica Nacional SA (CSNA3) on September 2, 2026, has sparked investor optimism following his selection as an outsider to the controlling Steinbruch family. CSN's bonds have become among the best performers in emerging markets since his appointment, as investors believe his leadership will finally advance the company's long-stalled asset-sale program to reduce its significant debt burden.

The company is pursuing multiple high-value asset sales. The CSN Cimentos unit is the most advanced, with binding offers of approximately R$ 11 billion from Huaxin, Votorantim, and Polimix—below the R$ 15 billion target but potentially acceptable to the company. The cement division generated R$ 427 million in EBITDA in the second quarter, with margins exceeding 30% percent. Additionally, CSN is selling Stahlwerk Thuringen (SWT), its German steel subsidiary acquired in 2012 for US$ 634 million, with potential proceeds of up to R$ 1.5 billion. Infrastructure assets may also be divested individually rather than as a single package.

However, analysts caution that asset sales alone will not resolve CSN's financial crisis. The company's net debt stands at approximately R$ 42 billion. Even if the announced divestment plan—targeting R$ 15 billion to R$ 18 billion—is fully executed, leverage would decline from roughly 4 times to between 2.9 and 3.4 times EBITDA, far short of a sustainable 1 times ratio. The CSN Cimentos unit, which management is considering selling, is among the company's strongest cash-generating assets, creating a strategic dilemma: selling reduces short-term debt but diminishes long-term cash generation capacity.

Schvartsman's predecessor, Benjamin Steinbruch, led CSN for two decades and is known for driving hard bargains in asset sales. The last major divestment occurred in 2018, when CSN received US$ 400 million for its CSN LLC steel operations in the United States. Schvartsman's decades of experience leading major Brazilian industrial and natural resource companies is cited by investors as evidence he can execute the asset program. The market backdrop presents additional headwinds: excess Chinese steel supply has flooded global markets, including Brazil, pressuring prices and margins across the sector.