Metalurgica Gerdau SA
BOVESPA:GOAU4
Metalurgica Gerdau SA
Metalúrgica Gerdau S.A., anchored in the dynamic landscape of the Brazilian steel industry, stands as a pivotal player with roots tracing back to the early 20th century. Founded by Johann Gerdau in 1901, this family-run company grew from a small nail factory in Porto Alegre to a multinational steel manufacturing giant. At its core, Metalúrgica Gerdau's operations revolve around the production and distribution of long and specialty steel products, which are essential building blocks in the construction, automotive, and agricultural sectors. The company has adeptly expanded by navigating the complexities of globalization and strategically establishing itself in North and South American markets. Its business model is underpinned by an integrated steel production process that starts from procuring raw materials, predominantly scrap metals, and culminates in manufacturing a wide range of steel products including beams, rails, and reinforcing bars.
What sets Metalúrgica Gerdau apart is its vertical integration strategy, which ensures control over the entire production process, from the collection of raw materials to the final distribution of steel products. This model not only provides a significant competitive edge by reducing costs and improving efficiency but also enables Gerdau to maintain a strong grip on quality assurance, a crucial element in an industry dictated by stringent standards and specifications. By adopting advanced technological innovations in manufacturing processes, such as electric arc furnaces, the company has optimized energy consumption and reduced its environmental footprint, addressing the growing global emphasis on sustainability. Revenue streams primarily flow from its diversified range of high-demand steel products, with a continuous focus on innovation and meeting evolving market needs, ensuring Gerdau remains a resilient and influential force globally in the steel industry.
Metalúrgica Gerdau S.A., anchored in the dynamic landscape of the Brazilian steel industry, stands as a pivotal player with roots tracing back to the early 20th century. Founded by Johann Gerdau in 1901, this family-run company grew from a small nail factory in Porto Alegre to a multinational steel manufacturing giant. At its core, Metalúrgica Gerdau's operations revolve around the production and distribution of long and specialty steel products, which are essential building blocks in the construction, automotive, and agricultural sectors. The company has adeptly expanded by navigating the complexities of globalization and strategically establishing itself in North and South American markets. Its business model is underpinned by an integrated steel production process that starts from procuring raw materials, predominantly scrap metals, and culminates in manufacturing a wide range of steel products including beams, rails, and reinforcing bars.
What sets Metalúrgica Gerdau apart is its vertical integration strategy, which ensures control over the entire production process, from the collection of raw materials to the final distribution of steel products. This model not only provides a significant competitive edge by reducing costs and improving efficiency but also enables Gerdau to maintain a strong grip on quality assurance, a crucial element in an industry dictated by stringent standards and specifications. By adopting advanced technological innovations in manufacturing processes, such as electric arc furnaces, the company has optimized energy consumption and reduced its environmental footprint, addressing the growing global emphasis on sustainability. Revenue streams primarily flow from its diversified range of high-demand steel products, with a continuous focus on innovation and meeting evolving market needs, ensuring Gerdau remains a resilient and influential force globally in the steel industry.
EBITDA: 2025 EBITDA was BRL 10.1 billion, down 7% from 2024, mainly due to a challenging environment in Brazil.
North America: Strong results and record shipments in North America, with stable, high levels of steel demand and robust order backlogs.
Brazil: Brazil faced profitability pressure from record steel imports and higher costs, but trade defense measures are expected to help.
Impairment: Nonrecurring impairment losses of BRL 2 billion in Brazil impacted net income; adjusted net income was BRL 3.4 billion, down 21%.
CapEx: 2025 CapEx was BRL 6.1 billion; 2026 guidance is reduced to BRL 4.7 billion, improving free cash flow outlook.
Cash Flow: Strong Q4 free cash flow of BRL 1.4 billion turned annual cash generation positive to BRL 394 million.
Dividends & Buybacks: BRL 2.4 billion paid out in dividends and buybacks in 2025; new buyback program for about 2.9% of shares worth BRL 1.2 billion announced.
Margins Outlook: Brazilian margins expected to be stable near 7% in 1H26, with potential to reach double-digit margins by year-end if market conditions and Miguel Burnier ramp-up progress as planned.
