Gerdau (GGBR4) Q2 2026 earnings summary

Executive summary

• Shipments reached 2.9 million tonnes, up 3% year-over-year, with North America volumes rising 7% and driving 74% of consolidated Adjusted EBITDA.

• Adjusted EBITDA rose 16% year-over-year to R$3.4 billion, with North America up 15% and Brazil showing gradual improvement amid import pressure.

• Adjusted net income increased 45% year-over-year to R$1.5 billion, with EPS at R$0.74.

• Expanded self-generation of energy to over 50% of consumption in Brazil through increased ownership in Dona Francisca Energética.

• Net income for H1 2026 was R$2.48 billion, with adjusted EBITDA for the period at R$6.39 billion.

Financial highlights

• Consolidated adjusted EBITDA reached R$3.4 billion for the quarter and R$6.39 billion for H1 2026, with a margin of 19.2%.

• Adjusted net income was R$1.5 billion for the quarter; EPS R$0.74, up 44% year-over-year.

• Free cash flow was R$237 million for the quarter, up R$220 million year-over-year.

• Dividends declared: R$0.23/share (R$451 million) for Gerdau S.A. and R$0.11/share (R$146 million) for Metalúrgica Gerdau.

• Share buyback program 31% complete at Q2 close, with 14.7 million GGBR and 2.2 million GOAU shares cancelled.

Outlook and guidance

• Expect continued strong demand and stable margins in North America, especially from renewables and data centers; Midlothian expansion Phase 1 to start up.

• In Brazil, anticipate moderate growth and slight margin expansion, with ongoing import pressure and anti-dumping updates expected in H2.

• Strategic projects in Brazil and North America are on track, with new capacity and efficiency gains expected in H2 2026.

• CapEx guidance may be reduced, with future investments focused on competitiveness and transformation.

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