Metalurgica Gerdau (GOAU4) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was R$755.9 million, down from R$2,055.4 million in Q1 2024, with R$257.8 million attributable to controlling shareholders.

• Net sales reached R$17.4 billion in Q1 2025, up 7.2% year-over-year, driven by higher North American shipments and favorable exchange rates.

• Adjusted EBITDA was R$2.4 billion, stable sequentially but down 14.7% year-over-year, with North America offsetting weaker Brazil and South America.

• Dividend of R$0.08 per share (R$79.1 million) approved for payment in May 2025; 100% of the 2025 share buyback program completed.

• Major acquisitions included full control of Gerdau Summit and Rio do Sangue Energia S.A., enhancing vertical integration and energy self-sufficiency.

Financial highlights

• Consolidated net revenue: R$17.4 billion (Q1 2025), up from R$16.2 billion (Q1 2024).

• Steel shipments totaled 2.9 million tonnes, up 4.9% year-over-year, led by North America.

• Adjusted EBITDA margin: 13.8% (down 0.4 p.p. sequentially, down 3.5 p.p. year-over-year).

• Basic and diluted EPS: R$0.26 (Q1 2025) vs. R$0.66 (Q1 2024).

• Cash and equivalents: R$6.5 billion at 31/03/2025, down from R$7.9 billion at 31/12/2024.

Outlook and guidance

• Full-year 2025 CAPEX guidance maintained at R$6.0 billion, with major projects including the Ouro Branco hot-rolled coil mill expansion and the Itabiritos iron ore project.

• Management expects incremental annual EBITDA of nearly R$400 million from the Ouro Branco expansion once fully ramped.

• Management continues to monitor steel market conditions and expects ongoing volatility in demand, especially in automotive and construction sectors.

• Geographical diversification and strong order backlog in North America expected to support resilience amid market volatility.

• No formal quantitative guidance provided for the remainder of 2025.