Gerdau's diversified geographic footprint (strong N.A. offsetting weaker Brazil/South America) and sub-0.7x leverage position it well for continued shareholder returns. Monitor USMCA trade negotiations and Brazil import penetration (18% in 2Q26, lowest since 1Q23) as key catalysts. The Midlothian expansion and Miguel Burnier mining project ramping in 2H26 could provide incremental EBITDA upside of ~R$1.4B combined at full run-rate.
Price Chart
Executive Summary
Gerdau S.A. reported strong 2Q26 results with adjusted EBITDA of R$3.4 billion (+16% QoQ, +34% YoY) and adjusted net income of R$1.5 billion (+45% QoQ). The North America segment drove performance with record backlog and 25.7% EBITDA margins, while Brazil showed gradual improvement. Leverage remained low at 0.69x net debt/EBITDA, and the company announced R$597 million in combined dividends and continued share buybacks.
Key Facts
- 2Q26 adjusted EBITDA R$3.4 billion, +16% QoQ and +34% YoY
- Adjusted net income R$1.5 billion, +45% vs 1Q26
- EPS R$0.74 vs R$0.51 in 1Q26
- Net leverage 0.69x, gross debt R$8.1B, cash R$5.4B
- North America EBITDA R$2.6B (25.7% margin), Brazil EBITDA R$705M (10.5% margin), South America EBITDA R$205M (16% margin)
- Total shipments 2.9 Mt; North America volumes +7% YoY
- Free cash flow positive at R$237 million in 2Q26
- Dividends declared: R$451M (Gerdau S.A. R$0.23/sh) and R$146M (Metalúrgica Gerdau R$0.11/sh)
- Share buyback program 31% executed (~R$334M) with 85% of repurchased shares cancelled
Financial Impact
EBITDA up 34% YoY to R$3.4B; net income up 45% QoQ; free cash flow positive at R$237M
Risk Factors
- Persistent import pressure in Brazil (22.5% in 1H26, above historical levels)
- South America weakness with shipments -8% QoQ due to Peru pull-forward and Argentina/Uruguay demand
- Cost pressures from metallurgical coal, logistics, and freight in Brazil
- USMCA tariff uncertainty and potential impact on North America steel pricing
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001104659-26-090754 |
| Document: tm2621830d3_6k.htm | 0001104659-26-090754 |
| Document: 0001104659-26-090754-index-headers.html | 0001104659-26-090754 |
| Document: 0001104659-26-090754-index.html | 0001104659-26-090754 |
| Document: 0001104659-26-090754.txt | 0001104659-26-090754 |
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