Metalurgica Gerdau (GOAU4) Q2 2026 earnings summary

Executive summary

• Shipments reached 2.9 Mt, with both quarter-over-quarter and year-over-year growth, led by a 7% increase in North American volumes compared to the prior year.

• Adjusted EBITDA rose 16% year-over-year to R$ 3.4 billion, with positive performance across all segments and a margin of 19.2%.

• Adjusted net income increased 45% year-over-year to R$ 1.5 billion.

• Brazilian operations showed gradual improvement in profitability and productivity despite continued high import pressure.

• Increased ownership in Dona Francisca Energética, raising self-generated energy to over 50% of consumption in Brazil, supporting decarbonization strategy.

Financial highlights

• Adjusted EBITDA: R$ 3.4 billion (+16% YoY); Adjusted net income: R$ 1.5 billion; EPS: R$ 0.74 (+45% YoY).

• Free cash flow was positive at R$ 237 million for the quarter, with first half 2026 free cash flow up R$ 2.3 billion year-over-year.

• Dividends declared: R$ 0.23 per share for Gerdau S.A. and R$ 0.11 per share for Metalúrgica Gerdau.

• Share buyback program 31% complete at Q2 close, with significant share cancellations.

• CAPEX investments for 6M26 totaled R$ 2.1 billion (~45% of annual plan).

Outlook and guidance

• North American demand remains robust, especially in renewable energy and data centers, with a strong order backlog and stable margins expected.

• Margin expansion in North America expected, though management remains conservative due to potential ceiling effects and cost pressures.

• Brazilian market faces moderate growth and persistent import challenges; awaiting anti-dumping investigation outcomes.

• CapEx guidance for 2026 is R$ 4.7 billion, with potential reduction to R$ 4–4.5 billion in coming years as major projects conclude.

• Strategic projects in Brazil and North America are on track, including Miguel Burnier mining and Midlothian expansion.