Metalurgica Gerdau (GOAU4) Q4 2025 earnings summary

Executive summary

• 2025 was marked by strong North American performance, with EBITDA up 18.5% year-over-year, while Brazil faced margin pressure from record steel imports and increased competition.

• Steel shipments reached 11.6 Mt in 2025, a 5.9% increase, with North America posting record shipments in December.

• The Miguel Burnier mining project achieved 91% physical progress and is set to reduce production costs at Ouro Branco.

• Operational resilience was supported by geographic diversification and a strong safety culture.

• Consolidated net revenue reached R$69.9 billion, adjusted EBITDA R$10.1 billion, and adjusted net income R$3.4 billion.

Financial highlights

• Adjusted EBITDA for 2025 was R$10.1 billion, down 7% year-over-year, mainly due to Brazil's competitive environment.

• Adjusted net income for 2025 was R$3.4 billion, a 21% decrease from 2024, excluding R$2.0 billion in non-cash impairment losses in Brazil.

• CAPEX for 2025 totaled R$6.1 billion; 2026 guidance is R$4.7 billion, a reduction of 24%.

• Free cash flow for 2025 was R$394 million, with Q4 at R$1.4 billion.

• Dividends and share buybacks in 2025 totaled R$2.4 billion.

Outlook and guidance

• Moderate demand growth is expected in Brazil for 2026, with optimism around new trade defense measures and a focus on infrastructure.

• North America is expected to maintain high steel consumption and strong order backlogs, with growth in solar, data centers, and infrastructure.

• CAPEX for 2026 is set at R$4.7 billion, focused on competitiveness, maintenance, and cost reduction.