#Brazil #São Paulo #Investments #EBITDA #Gerdau S.A.

Gerdau S.A. Reports Stellar 3Q26 Performance

Gerdau S.A., one of the prominent players in the steel production sector, recently published its financial results for the third quarter of 2026, marking a noteworthy period of growth and strategic development. This quarter showcased a remarkable performance, particularly in terms of financial metrics and operational undertakings.

Financial Highlights

In the third quarter of 2026, Gerdau achieved an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of R$3.8 billion. This figure shows a robust increase of 10% compared to R$3.4 billion in the previous quarter, securing an adjusted EBITDA margin of 20.2%. This margin represents the highest level recorded since the second quarter of 2023, reflecting Gerdau's strong operational efficiency and market positioning.

Leading the charge, the North America segment was again the key contributor, accounting for more than 76% of the consolidated EBITDA. The region reported an impressive R$2.9 billion in EBITDA, with an outstanding EBITDA margin of 27.7%, the most significant achievement in the last four years for the segment. This shows the resilience and competitive edge of Gerdau's North American operations amidst a challenging market environment.

In terms of net income, Gerdau reported an adjusted net income of R$1.5 billion for 3Q26, marking a 4% increase from the prior quarter and a remarkable 40% increase year-over-year from 3Q25. These variations underscore the company's enhanced operational and financial performance, driven by effective management and strategic initiatives.

Capital Investments and Strategic Projects

In the realm of capital expenditures (CAPEX), Gerdau's investments totaled R$955 million during this quarter, which is commendable considering the year-to-date investments now represent 66% of the full-year guidance for 2026. This strategic approach towards investment indicates Gerdau's commitment to enhancing its operational capabilities and infrastructure, thereby positioning itself for sustained growth.

Among the cornerstone projects, Gerdau has made significant strides in launching its scrap processing operation in Pindamonhangaba. Additionally, the final phase of integrated testing for the Miguel Burnier sustainable mining platform is advancing as planned, with operations set to commence in the fourth quarter of 2026. These initiatives highlight Gerdau's focus on sustainability and modernization in its operational processes.

Shareholder Value Initiatives

On the investor front, Gerdau has approved a distribution of cash dividends of R$0.34 per share, amounting to R$667.0 million, which is scheduled to be paid on December 15, 2026. This move not only reflects the company’s solid financial health but also its commitment to delivering shareholder value. Moreover, Gerdau continues to execute its 2026 Share Repurchase Program, further emphasizing its focus on enhancing shareholder returns.

Conclusion

As Gerdau S.A. closes the third quarter of 2026, the financial metrics, investment strategies, and operational enhancements send a strong signal of the company's ongoing commitment to growth and excellence in the steel industry. By maintaining a focus on operational efficiency and strategic investments, Gerdau is well-positioned for continued success in the upcoming quarters.

For more details on Gerdau's financial results and strategic advancements, interested parties can refer to the documentation filed with the Securities and Exchange Commission (SEC) and the Comissão de Valores Mobiliários (CVM), which are readily available on the company’s official website. Gerdau remains committed to transparency and open communication with its stakeholders as it forges ahead in an evolving market landscape.