Metalurgica Gerdau (GOAU4) Q1 2026 earnings summary

Executive summary

• Achieved best adjusted EBITDA for a first quarter since 2022, with North America contributing 75% of consolidated EBITDA and driving resilience amid global volatility.

• Launched Gerdau NewEco, a low-carbon steel solution, and inaugurated the Barro Alto Solar Complex, reinforcing sustainability and competitiveness.

• Maintained positive free cash flow and low leverage, with continued focus on capital allocation, shareholder returns, and operational efficiency.

• Major projects nearing completion: Miguel Burnier mining expansion, Pindamonhangaba scrap processing center, and Midlothian expansion in Texas, expected to add BRL 1.5 billion to annual EBITDA.

• Celebrated 125th anniversary and recognized as Steel Sustainability Champion 2026 by worldsteel.

Financial highlights

• Adjusted EBITDA reached BRL 3.0 billion, up 25% quarter-over-quarter and 23.2% year-over-year, with margin improving to 17.7%.

• Adjusted net income was BRL 1.0 billion, up 51% sequentially and 34% year-over-year; earnings per share at BRL 0.51.

• Free cash flow for Q1 2026 was BRL 16 million, positive despite working capital consumption.

• Net sales totaled BRL 16.7 billion, down 2% quarter-over-quarter and 3.8% year-over-year.

• Dividend payout for Q1 2026: BRL 354 million (BRL 0.18/share) for Gerdau S.A. and BRL 106 million (BRL 0.08/share) for Metalúrgica Gerdau.

Outlook and guidance

• Signs of gradual recovery in Brazilian domestic demand, especially in construction and infrastructure, after seasonal slowdown.

• North American steel consumption expected to remain stable at high levels, with order backlog above historical averages and margin growth anticipated.

• CAPEX guidance for 2026 maintained at BRL 4.7 billion, with R$ 1.1 billion invested in Q1 (23% of annual plan); maintenance CAPEX expected to average BRL 3 billion annually over the next five years.

• Continued discipline in capital allocation, execution of share buyback programs, and monitoring of Section 232 and USMCA review in the U.S.