Gerdau (GGBR4) Q2 2026 earnings summary

Executive summary

• Shipments reached 2.9 million tonnes, growing both quarter-over-quarter and year-over-year, with North America volumes up 7% and driving record results.

• Adjusted EBITDA rose 16% year-over-year to R$3.4 billion, with North America contributing 74% and Brazil showing gradual improvement amid import pressures.

• Adjusted net income increased 45% year-over-year to R$1.5 billion, supported by operational efficiency and higher profitability in key segments.

• Expanded self-generated energy to over 50% of consumption in Brazil through increased ownership in Dona Francisca Energética, supporting decarbonization strategy.

• Major projects advanced, including Miguel Burnier mining, new recycling center in Pindamonhangaba, and Midlothian expansion in North America.

Financial highlights

• Consolidated adjusted EBITDA reached R$3.4 billion (+16% year-over-year), with net income at R$1.5 billion and EPS at R$0.74 (+44%).

• Free cash flow for the quarter was R$237 million, with a year-over-year increase of R$2.3 billion in H1 2026.

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

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

• Net debt/EBITDA ratio at 0.69x, reflecting strong deleveraging and a solid balance sheet.

Outlook and guidance

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

• In Brazil, moderate growth and slight margin expansion are expected, with ongoing challenges from imports and a focus on competitiveness.

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

• CapEx guidance between R$4.0–4.7 billion, with investments focused on competitiveness and transformation.

• Management maintains a cautious outlook due to potential economic volatility and inflationary pressures.