Metalurgica Gerdau (GOAU4) investor relations material

Executive summary

• Adjusted EBITDA reached R$ 3.4 billion in Q2 2026, up 16% year-over-year, with strong North American performance and operational improvements in Brazil and South America.

• Adjusted net income rose 45% year-over-year to R$ 1.5 billion, reflecting improved profitability and operational gains.

• Shipments totaled 2.9 million tonnes, up 3% year-over-year, led by a 7% increase in North American volumes.

• Expansion in self-production of energy increased ownership in Dona Francisca Energética, raising self-generated energy to over 50% of Brazilian consumption.

• Dividend distribution set at R$ 0.23 per share for Gerdau S.A. and R$ 0.11 per share for Metalúrgica Gerdau.

Financial highlights

• Free cash flow for Q2 was R$ 237 million, with a significant year-over-year increase in H1 2026.

• Net sales for H1 2026 were R$ 34.6 billion, with gross profit at R$ 5.12 billion.

• EPS for Q2 was R$ 0.74, up 44% year-over-year.

• Share buyback program reached 31% completion, with significant share cancellations.

• CAPEX investments for H1 2026 totaled R$ 2.1 billion, with maintenance CAPEX expected at around R$ 3 billion per year.

Outlook and guidance

• North American margins expected to expand, with upside risk from recent price increases and stable demand in renewable energy and data centers.

• Brazilian margin expansion anticipated through improved sales mix, productivity, and cost reductions, despite flat prices.

• CAPEX for coming years projected at R$ 4–4.7 billion, focused on competitiveness and transformation projects.

• No significant risk foreseen from USMCA negotiations; positive developments expected.

• Management remains focused on capital discipline and increasing renewable energy self-generation.