Metalurgica Gerdau SA (BSP:GOAU4)

Q2 2026 Gerdau SA and Metalurgica Gerdau SA Earnings Call Transcript

Aug 5, 2026 / 03:00 PM GMT

Release Date Price: R$11.53 (+1.05%)

Transcript

Key Points

Positve

Metalurgica Gerdau SA (BSP:GOAU3) reported its best consolidated EBITDA since Q3 2023, with a 15% increase in North America adjusted EBITDA quarter-over-quarter.
Shipments grew 7% year-over-year in North America, driven by resilient demand in key sectors like renewable energy and data centers.
Adjusted net income increased substantially by 45% quarter-on-quarter, reaching BRL1.5 billion, translating operating gains into shareholder returns.
The company maintains a solid balance sheet with low leverage (net debt/EBITDA of 0.69x) and generated an additional BRL2.3 billion in free cash flow in the first half of 2026 compared to the same period last year.
Strategic projects are nearing completion, including the Miguel Burnier mining expansion and a new recycling center, expected to generate BRL1.1 billion to BRL1.5 billion in additional annual EBITDA when fully operational.
The company increased its ownership stake in Dona Francisca Energetica, boosting its south-generated energy to over 50% of its Brazilian consumption, enhancing competitiveness and supporting its decarbonization strategy.

Negative

Brazilian operations continue to face pressure from high levels of imported steel, which negatively impacts profitability despite a slight improvement in results.
The company is being conservative about U.S. margin expansion, citing potential ceilings on price increases and not fully incorporating recent price hikes into its outlook.
A maintenance downtime at the Midlothian plant in the U.S. is expected to cause a one-off cost impact of BRL100-150 million due to idleness, affecting margins in the third quarter.
Freight costs in North America increased by 8.5% quarter-over-quarter due to fuel issues related to Middle East conflicts, adding to cost pressures.
The iron ore market is under pressure with prices dropping, and the company is focused on executing the ramp-up of Miguel Burnier rather than benefiting from current market prices.
Brazilian operations face structural challenges, including a mismatch between crude steel production and rolled product capacity at Ouro Branco, which the company is still working to resolve.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

GOAU4.SA - Metalurgica Gerdau SA
Q2 2026 Gerdau SA and Metalurgica Gerdau SA Earnings Call
Aug 05, 2026 / 03:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning and welcome to Gerdao's second quarter 2026 results presentation. I am Mariana Pereira, Investor Relations Specialist, and joining us on this conference call are our CEO Gustavo Brunek and CFO Rafael Japor.

Please note that this call is being simultaneously translated into English, and you can choose your preferred language by clicking on the globe icon at the bottom of your screen.

During the presentation, all participants will be on listen-only mode, and then we will begin the Q&A session.

Analysts and investors can join the queue by clicking on the raise hand button.

It is worth noting that the forward-looking statements contained herein are based on the

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