Gerdau (GGBR4) investor relations material

Executive summary

• North America contributed 75% of consolidated EBITDA, driving resilience and record Q1 results, while Brazil faced profitability pressure from high steel imports and South America showed mixed trends.

• Consolidated Adjusted EBITDA reached R$ 3.0 billion, up 25% quarter-over-quarter and 23% year-over-year, with margin improvement to 17.7%.

• Adjusted net income was R$ 1.0 billion, up 51% quarter-over-quarter and 34% year-over-year, with free cash flow positive at R$ 16 million despite higher working capital consumption.

• Launched Gerdau NewEco, a low-carbon steel solution, and inaugurated the Barro Alto Solar Complex, reinforcing sustainability and competitiveness.

• Continued focus on workplace safety, with accident frequency rate at 0.84 in Q1 2026.

Financial highlights

• Q1 2026 Adjusted EBITDA reached R$ 3.0 billion, with an EBITDA margin of nearly 18%.

• Adjusted net income was R$ 1.0 billion; earnings per share at R$ 0.51.

• Free cash flow was R$ 16 million, positive despite seasonal working capital needs.

• Net debt/EBITDA ratio stood at 0.74x at March-end, reflecting a strong balance sheet.

• Dividend payments scheduled for June 9, 2026: R$ 354 million (R$ 0.18/share) for Gerdau S.A. and R$ 106 million (R$ 0.08/share) for Metalúrgica Gerdau S.A.; new share buyback program for up to 10 million preferred shares approved.

Outlook and guidance

• Gradual recovery in Brazilian domestic demand expected, especially in construction and infrastructure, after seasonal slowdown.

• North American steel consumption expected to remain stable at high levels, with robust order backlog and margin growth anticipated.

• Monitoring anti-dumping investigations, trade defense measures, and regulatory changes in Brazil and North America.

• CAPEX for 2026 guided at R$ 4.7 billion, with R$ 1.1 billion invested in Q1, focused on maintenance, competitiveness, and growth.

• Start-up of Miguel Burnier Mining Project and Phase 1 of Midlothian expansion expected in the second half of 2026.