Q2 2025 Gerdau SA and Metalurgica Gerdau SA Earnings Call (English, Portuguese) Transcript

Aug 01, 2025 / 03:00PM GMT

Release Date Price: €2.54 (-1.55%)

Transcript

Key Points

Positve

Gerdau SA (GGB) achieved a record low in workplace accident rates, highlighting their commitment to employee safety.
The company reported the lowest historical GHG emissions at 0.85 tonnes of CO2 per tonne of steel, significantly below the global average.
North American operations posted the highest all-time share in results, contributing 61% to consolidated EBITDA.
Gerdau SA (GGB) successfully issued a USD650 million bond and a BRL1.4 billion debenture, strengthening cash flow and extending debt maturity.
The company approved a dividend distribution and continued its share buyback program, reflecting a strong commitment to shareholder returns.

Negative

The Brazilian market faced challenges due to excessive steel imports, with an import penetration rate of 23.4%, impacting domestic operations.
Gerdau SA (GGB) decided to reduce investments in Brazil due to ineffective trade defense measures and high import penetration.
The company's net debt increased from BRL5 billion to BRL9 billion over recent quarters, raising concerns about leverage.
The Brazilian operations experienced a reduction in production pace due to ongoing CapEx projects, impacting cost efficiency.
The company anticipates a reduction in global CapEx disbursement from 2026, particularly affecting future investments in Brazil.

Mariana Dutra

Gerdau SA - Manager - Investor Relations

Good morning, everyone, and welcome to Gerdau's second quarter 2025 results presentation. I'm Mariana Dutra, Head of Investor Relations. And joining us today on this conference call are our CEO, Gustavo Werneck; and CFO, Rafael Japur. (Event Instructions) It is worth noting that the forward-looking statements contained herein are based on the company's beliefs and assumptions based on information currently available.

Forward-looking statements are no guarantee of future performance and are subject to risks and uncertainties that may or may not occur. I will now turn the floor to Gustavo to begin the presentation. You may proceed, Gustavo.

Gustavo Werneck Da Cunha

Gerdau SA - Chief Executive Officer, Member of the Board of Executive Officers, Director

Well, good afternoon, everyone. I hope you are all well, and I really appreciate the opportunity to be together for another earnings release presentation. I will briefly comment on the highlights of the quarter and the outlook for our operations.

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