Gerdau公布2026年三季度业绩：北美利润率创四年新高、自由现金流大增，但股价盘中下跌约3%

Introduction & Market Context
Brazilian steelmaker Gerdau S.A. (NYSE:GGB) presented its third-quarter 2026 earnings on October 27, highlighting robust cash generation and record margins in North America while navigating persistent challenges in its home market. The company’s shares traded at $10.08, down 3.08% from the previous close of $10.40, reflecting investor caution about near-term headwinds despite strong quarterly performance.
The presentation revealed adjusted EBITDA of R$3.8 billion with a 20.2% margin, representing the company’s strongest profitability since the second quarter of 2023. Free cash flow surged to R$1.4 billion, a sixfold improvement from the prior quarter, strengthening the company’s ability to fund dividends and share buybacks while maintaining conservative leverage at 0.58x net debt to EBITDA.
Quarterly Performance Highlights
As shown in the following comprehensive financial snapshot, Gerdau delivered improvement across multiple key metrics during the third quarter.
The company’s adjusted net income reached R$1.5 billion, up 4% from the second quarter, translating to earnings per share of R$0.79 compared to R$0.74 in 2Q26. Total steel shipments remained stable at 2.9 million tonnes, with resilient demand in the company’s main markets offsetting seasonal pressures.
Capital expenditure investments totaled R$3.1 billion for the nine-month period, representing 66% of the full-year plan. The company expanded its revolving credit facility to US$1.125 billion, a 29% increase in availability, with maturity extended to 2031. Both Fitch and S&P Global Ratings revised their outlook to positive, reflecting confidence in Gerdau’s business resilience and financial discipline.
The following operational highlights illustrate the company’s performance across key business areas and strategic initiatives.
Regional Performance Analysis
North America: Driving Consolidated Results
Gerdau’s North American operations delivered exceptional performance, accounting for 76% of consolidated EBITDA with a 27.7% margin—the highest level in four years. The following detailed breakdown shows the region’s strong operational metrics.
North America shipments totaled 1,313 thousand tonnes, down 2.5% from the prior quarter but following a record volume period. Net sales increased 3.8% to R$10,512 million as price increases more than offset lower volumes, with net sales per ton in U.S. dollars rising 4.7%. EBITDA jumped 12.0% to R$2,912 million despite higher maintenance costs and exchange rate variations.
The company reported a solid order backlog above historical averages, supported by resilient demand from non-residential construction, data centers, and renewable energy projects. Utilization rates reached 87% for rolled steel and 83% for crude steel, reflecting near-capacity operations.
Brazil: Gradual Improvement Amid Structural Challenges
Brazil’s operations showed modest sequential improvement despite continued pressure from imports and oversupply. The following comprehensive overview details the domestic market’s performance.
Brazilian shipments remained stable at 1,351 thousand tonnes in 3Q26, with a 5.9% increase in the domestic market offsetting lower exports. Net sales rose 3.9% to R$6,948 million due to a better sales mix and slight price improvements in some product lines. EBITDA increased 5.2% to R$741 million with a 10.7% margin, though profitability remained constrained by elevated input costs, particularly coal.
The import challenge facing Brazil’s steel industry is illustrated in the following detailed analysis of trade flows and defensive measures.
Steel imports in Brazil reached 24.0% penetration in the first nine months of 2026, well above pre-COVID levels of 11.2%. While import volumes showed signs of slowing, they remained at elevated levels, with the composition shifting from Chinese origins (28% in 3Q26) to new sources including Egypt, Peru, Russia, Vietnam, and India (40% in 3Q26).
Gerdau highlighted progress on trade defense measures, including quota and tariff systems covering 17 product categories, antidumping duties on flat bar and plate, and positive preliminary decisions on hot-rolled coils. The company emphasized that wire rod antidumping decisions are expected by December 2026.
South America: Volume Growth, Margin Pressure
The South American region posted mixed results with strong volume growth offset by margin compression. The following regional breakdown provides detailed performance metrics.
South America shipments increased 9.7% to 309 thousand tonnes, driven by record sales in Peru’s civil construction market during August. Net sales rose 12.6% to R$1,440 million, reflecting higher volumes and U.S. dollar appreciation against the Brazilian real. However, adjusted EBITDA declined 22.0% to R$160 million with an 11.1% margin, impacted by scheduled maintenance shutdowns primarily in Argentina and lower fixed cost dilution.
Geographic Diversification Strategy
The company’s multi-regional operating model demonstrated its value during the quarter, as strength in North America offset challenges in Brazil. The following comparison illustrates how geographic diversification supported resilient consolidated results.
Adjusted EBITDA increased 10% sequentially and 38% year-over-year, with North America contributing R$2,912 million, Brazil R$741 million, and South America R$160 million. The regional balance enabled Gerdau to maintain a 20.2% consolidated margin despite varying market conditions across geographies.
Cash Flow Generation and Financial Strength
Free cash flow generation marked a significant improvement in the quarter, driven by working capital efficiency and strong operational performance. The following waterfall analysis details the components of cash flow generation.
Starting from adjusted EBITDA of R$3,771 million, the company generated free cash flow of R$1,439 million after accounting for working capital consumption of R$272 million, income tax of R$548 million, capital expenditures of R$1,101 million, and interest payments of R$69 million. This represented a substantial improvement from the R$233 million generated in the prior quarter.
Net cash increased from R$5,440 million at the end of 2Q26 to R$6,043 million at the end of 3Q26, reflecting the strong free cash flow generation offset by dividends of R$426 million, share buybacks of R$32 million, and M&A activity of R$292 million.
The company’s liquidity position and debt profile demonstrate financial stability and flexibility. The following comprehensive overview shows debt maturity schedule and available liquidity.
Gerdau maintained gross debt of R$13.7 billion and net debt of R$7.7 billion, with leverage declining to 0.58x net debt to EBITDA—well below the company’s financial policy target of ≤1.5x. Total liquidity reached R$10.5 billion, including R$6.0 billion in cash and R$4.5 billion in revolving credit facilities, providing substantial cushion against near-term obligations.
The debt maturity profile shows a well-distributed schedule with an average term of 7.5 years and average cost of CDI -0.21% for Brazilian real debt and 6.13% for U.S. dollar debt. All three major rating agencies maintain investment-grade ratings, with Fitch and S&P both assigning positive outlooks.
Capital Allocation and Shareholder Returns
Gerdau continued its commitment to shareholder returns through both dividends and share buybacks. The following breakdown illustrates the company’s capital return program.
The company declared dividends of R$667 million (R$0.34 per share) for Gerdau S.A. and R$212 million (R$0.16 per share) for Metalúrgica Gerdau S.A., payable December 15, 2026. Combined with share buybacks of R$32 million in the quarter, total shareholder returns reached R$699 million, representing a 47.3% payout ratio.
For the full year 2026, Gerdau has returned more than R$1.85 billion to shareholders through dividends and buybacks. The company’s 2026 share buyback program for Gerdau S.A. authorizes repurchase of up to 56.4 million shares, with 32% completed and 84% of repurchased shares cancelled. The Metalúrgica Gerdau S.A. program authorizes up to 10 million preferred shares, with 22% completed and 100% cancellation of repurchased shares.
Strategic Initiatives and Capital Investments
The company made significant progress on key competitiveness projects designed to enhance operational efficiency and reduce costs. The following overview shows capital expenditure allocation across maintenance and growth initiatives.
Total capital expenditures for the nine-month period reached R$3.1 billion, representing 66% execution against the full-year guidance of R$4.7 billion. The spending breakdown included R$1.7 billion for maintenance and R$1.4 billion for competitiveness initiatives.
Three major projects are approaching completion with expected contributions to 2027 results. The following detailed status update shows physical and financial progress for each initiative.
The Miguel Burnier mining project reached 99% physical completion and 92% financial completion, with start-up expected in the fourth quarter of 2026. At full run-rate, the project is expected to contribute approximately R$1.1 billion in annual EBITDA against total capital investment of R$3.6 billion.
The Pindamonhangaba recycling center achieved 98% physical completion and 89% financial completion, with operations already started in the second half of 2026. The facility is expected to generate approximately R$100 million in annual EBITDA against capital investment of R$400 million.
The Midlothian expansion Phase 1 reached 93% physical completion and 96% financial completion, with start-up also expected in the second half of 2026. The project is expected to contribute approximately R$275 million in annual EBITDA against total capital investment of R$1.2 billion.
Management indicated that 2026 capital spending is now tracking closer to R$4 billion, below the earlier R$4.5 billion to R$4.7 billion range, reflecting tighter project approval, lower maintenance spending, and greater capital discipline.
Workplace Safety Performance
The company maintained its focus on employee safety, continuing a multi-year trend of improvement. The following chart shows accident frequency rates over time.
The accident frequency rate for 3Q26 stood at 0.69 accidents per million hours worked, representing continued progress from the 0.99 rate recorded in 2015. While the rate showed some quarterly variation, the long-term trend demonstrates sustained commitment to workplace safety as a core operational priority.
Forward-Looking Statements and Outlook
Management provided differentiated outlooks for its major operating regions in the fourth quarter, reflecting varying market conditions and seasonal factors.
For North America, the company expects stable margins despite lower volumes and higher scrap costs reflecting typical seasonality. A solid order backlog driven by renewable energy and data center demand should support profitability, though a scheduled maintenance shutdown at Midlothian will create temporary cost impacts. Higher prices are expected to support operational profitability, though USMCA negotiations and developments from U.S. elections remain potential sources of volatility.
In Brazil, management anticipates margin compression in the fourth quarter due to seasonal slowdown in domestic demand, higher exports negatively impacting the sales mix, and continued price pressure with elevated input costs, particularly coal. The start-up of the Miguel Burnier mining project represents a positive development, along with progress on trade defense measures including antidumping duties on hot-rolled coils and wire rod.
The company emphasized continued discipline in capital allocation and operational efficiency across all regions. Management plans to present a broader strategic plan for Brazil at an investor day scheduled for December 4, 2026, addressing personnel, capacity, and capital spending with a focus on improving domestic market profitability.
Chief Executive Gustavo Werneck emphasized the company’s proactive approach to Brazil’s challenges, stating the company cannot wait for external factors to improve profitability and margins. He noted the company is pursuing the same type of internal transformation that previously reshaped its North American business.
The presentation underscored that while near-term challenges persist, particularly in Brazil, Gerdau’s geographic diversification, strong balance sheet, and major projects nearing completion position the company for improved performance as market conditions evolve and strategic investments begin contributing to results in 2027.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.