Metalurgica Gerdau (GOAU4) Q2 2026 earnings summary

Executive summary

• Adjusted EBITDA reached R$ 3.4 billion, up 16% year-over-year, with strong North American growth and gradual improvement in Brazil; shipments totaled 2.9 million tonnes, up 3% YoY.

• Adjusted net income rose 45% year-over-year to R$ 1.5 billion, reflecting operational gains and effective cost management.

• Dividend distributions announced: R$ 0.23 per share for Gerdau S.A. (R$ 451 million) and R$ 0.11 per share for Metalúrgica Gerdau, with a payout ratio of 74.9% in 2026.

• Share buyback program reached 31% completion, with significant share cancellations and R$ 334 million invested.

• Increased ownership in Dona Francisca Energética raised self-generated energy to over 50% of Brazilian consumption, supporting decarbonization goals.

Financial highlights

• Free cash flow for Q2 was R$ 237 million, with a significant YoY increase in the first half, mainly due to higher EBITDA and reduced CapEx.

• Net sales for H1 2026 were R$ 17.9 billion, up 7% YoY; gross profit was R$ 5.12 billion, up from R$ 3.98 billion YoY.

• Earnings per share reached R$ 0.74, up 44% YoY.

• CAPEX investments for H1 2026 totaled R$ 2.1 billion (~45% of annual plan).

• Net cash provided by operating activities for H1 2026 was R$ 3.04 billion, up from R$ 1.92 billion YoY.

Outlook and guidance

• North America expected to maintain strong demand, especially in renewable energy and data centers, with margin expansion possible if recent price increases are fully implemented.

• Brazilian outlook remains cautious due to persistent import pressure and moderate growth in construction and manufacturing; anti-dumping investigations and trade defense measures may impact future results.

• CAPEX guidance for 2026 is R$ 4.7 billion, with potential reduction to R$ 4–4.5 billion in coming years as major projects conclude.

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

• Start-up of key projects including Midlothian expansion and Miguel Burnier Mining expected in the second half of 2026.