Gerdau SA (FRA:GDUB)

Q2 2026 Gerdau SA and Metalurgica Gerdau SA Earnings Call Transcript

Aug 5, 2026 / 03:00 PM GMT

Release Date Price: €4.24 (-0.93%)

Transcript

Key Points

Positve

Gerdau SA (GGB) reported a 15% increase in adjusted EBITDA in North America in Q2 2026, driven by resilient demand and strong operating performance.
Consolidated adjusted EBITDA reached BRL 3.4 billion, the best since Q3 2023, with adjusted net income up 45% quarter-over-quarter.
The company generated an additional BRL 2.3 billion in free cash flow in the first half of 2026 compared to the same period last year, supported by EBITDA growth and reduced CapEx.
Gerdau SA (GGB) is nearing completion of key strategic projects, including the Miguel Burnier mining expansion and a new recycling center, which are expected to enhance competitiveness and generate BRL 1.4-1.5 billion in additional annual EBITDA.
The company maintains a solid balance sheet with low leverage (net debt/EBITDA of 0.69x) and continues to return capital to shareholders through dividends and a share buyback program.
North American demand remains robust, with strong order backlogs in renewable energy, data centers, and infrastructure, and the company sees upside potential from recent price increases not yet fully reflected in guidance.

Negative

Gerdau SA (GGB) faces continued pressure from high levels of steel imports in Brazil, which negatively impact profitability despite some slowdown during the quarter.
The company expects a temporary negative impact of BRL 100-150 million in Q3 2026 due to the maintenance downtime at its Midlothian plant in the U.S., affecting margins.
Freight costs in North America increased by 8.5% quarter-over-quarter due to fuel price inflation, which is expected to persist.
Brazilian operations show only slight improvement, with moderate growth in construction and manufacturing sectors and an excessive influx of imported steel.
The company is being conservative on U.S. margin expansion, citing potential ceilings on price increases and uncertainty in the market, which may limit upside.
Gerdau SA (GGB) faces structural challenges in Brazil, including the need to address the mismatch between crude steel production and rolled product capacity at Ouro Branco, which may require significant future investments.

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

GGBR4.SA - 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 company's beliefs

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