Metalurgica Gerdau (GOAU4) investor relations material

Executive summary

• Achieved best-adjusted EBITDA for a first quarter since 2022, with North America contributing 75% of consolidated EBITDA and driving resilience amid global volatility.

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

• Maintained positive free cash flow and low leverage, with continued focus on capital allocation, shareholder returns, and operational efficiency.

• Major projects nearing completion, including Miguel Burnier mining expansion, Pindamonhangaba scrap processing center, and Midlothian expansion in Texas, expected to add significant EBITDA.

• Celebrated 125th anniversary and recognized as Steel Sustainability Champion 2026 by worldsteel.

Financial highlights

• Adjusted EBITDA reached R$ 3.0 billion, up 25% quarter-over-quarter, with margin at 17.7%-18%.

• Consolidated net income was R$ 1.0 billion, up 50% sequentially and 34% year-over-year.

• Net sales totaled R$ 16.7 billion, down 2%-3.8% year-over-year.

• Free cash flow for Q1 2026 was R$ 16 million, positive despite working capital needs.

• Dividend payout for Q1 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.

Outlook and guidance

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

• North American steel consumption and margins anticipated to remain strong, supported by robust order backlog and demand in renewable energy and data centers.

• CAPEX guidance for 2026 maintained at R$ 4.7 billion, with maintenance CAPEX expected to average R$ 3 billion annually over the next five years.

• Ongoing focus on sustainable growth, operational competitiveness, and shareholder value creation.

• Monitoring developments in Section 232, USMCA review, and global market risks.