Gerdau (GGBR4) Investor Day 2025 summary

Strategic priorities and business outlook

• Focus on safety, talent retention, and education to ensure long-term organizational health and competitiveness.

• Steel remains core, with ongoing vigilance against unfair competition from subsidized imports, especially from China.

• No plans to expand into new geographies; operations will remain in seven countries where a competitive edge exists.

• Emphasis on structural competitiveness, diversification, and financial excellence, with ongoing transformation in Brazil and North America.

• Key drivers include vertical integration, mining platform expansion, and flat steel growth.

Capital allocation and financial guidance

• CapEx for 2025 is BRL 16 billion, with a 22% reduction planned for 2026, totaling BRL 4.7 billion; 76% of 2025 CapEx is for competitiveness, 20% for maintenance, and 4% for growth.

• Maintenance CapEx will average BRL 3 billion annually, with peaks during blast furnace and coking plant overhauls from 2026–2030.

• Shareholder returns prioritized: ~75% of free cash flow returned via dividends and buybacks since 2018.

• Share buyback program executed at 85% for 2025, reducing outstanding shares by ~7% since inception.

• Strong balance sheet with net debt/EBITDA at 0.85x, investment-grade ratings, and long average debt term of 7.2 years.

Key projects and operational initiatives

• Three priority projects: Midlothian (Texas) expansion, Pindamonhangaba recycling center, and Miguel Burnier mining platform.

• Miguel Burnier mining platform: BRL 3.6 billion investment, 5.5 Mtpa capacity, 40 years of reserves, IRMA certified, ramp-up in early 2025, full benefits by 2027.

• Ouro Branco mill verticalization and cost improvements expected to yield BRL 400 million EBITDA gain.

• Investments in self-generation of electricity in Brazil to reduce energy costs by up to 60%.

• Downstream and recycling investments in North America and Brazil to enhance competitiveness and margin resilience.