0001104659-26-027678
SEC filingGerdau S.A. reported consolidated net sales of $69.86B for FY 2025, up 4.2% YoY from $67.03B, driven by 3.6% higher crude steel production at 12.13M tonnes and stronger North America performance with 12.1% sales growth to $35.79B. Gross profit fell 13.4% to $7.97B due to 7.0% higher cost of sales at $61.89B, yielding an 11.4% margin versus 13.7% prior year. Operating income before financials and taxes dropped 50.1% to $3.74B, impacted by $1.96B asset impairment in Brazil. Net income declined 69.2% to $1.42B from $4.60B, with EPS at R$0.69 (down from R$2.18). Brazil sales fell 1.8% to $29.69B amid import pressures; North America rose 12.1%; South America dipped 3.4%. Net cash from operations was $7.99B (down 29.8%), with capex at $6.68B. Total assets $81.69B, equity $53.80B, net debt $7.81B. Forward-looking, $4.7B capex planned for 2026 focuses on maintenance and competitiveness amid steel market volatility.
Gerdau S.A. delivered FY 2025 net sales of $69.86B, a 4.2% YoY increase from $67.03B, supported by 3.6% higher crude steel output at 12.13M tonnes and robust North America growth. However, gross profit declined 13.4% to $7.97B (11.4% margin vs. 13.7%), driven by 7.0% higher cost of sales at $61.89B. Operating income before financials/taxes fell 50.1% to $3.74B, primarily due to $1.96B Brazil asset impairment. Net income dropped sharply 69.2% to $1.42B (EPS R$0.69 vs. R$2.18), with financial expenses up 37.5% to $2.07B. Cash from operations was $7.99B (-29.8% YoY), capex $6.68B. Balance sheet shows total assets $81.69B, equity $53.80B, net debt $7.81B (up from $5.36B).
Net sales rose 4.2% YoY to $69.86B. North America led with +12.1% to $35.79B (51.2% of total), benefiting from higher shipments and pricing. Brazil dipped 1.8% to $29.69B (42.5%) amid import competition; South America -3.4% to $5.56B. Shipments totaled 11.36M tonnes (+3.4% YoY), with Brazil at 5.83M tonnes, North America 5.00M tonnes. Exports from Brazil grew 21% to 1.19M tonnes (21.9% of Brazil shipments). Crude steel production +3.6% to 12.13M tonnes.
Gross margin contracted to 11.4% from 13.7%, reflecting higher costs (+7.0% to $61.89B) from shutdowns, adjustments at Ouro Branco, and raw materials. Brazil COGS +5.7%, margin 6.3% vs. 12.9%. North America margin improved to 15.3% from 14.1%. Operating margin before financials/taxes fell to 5.4% from 11.2%. $1.96B impairment dominated expenses; adjusted EBITDA $10.07B (14.4% margin).
Operating cash flow $7.99B (-29.8% YoY), impacted by lower profits and prior tax recovery. Capex $6.68B (maintenance/competitiveness). Free cash flow negative at -$1.84B change in cash. Total assets $81.69B (-5.9%), current assets $28.61B. Debt $14.18B (net $7.81B), average maturity 8.5 years, cost CDI-0.21% (BRL)/6.12% (USD). Equity $53.80B. Cash $5.93B.
$4.7B capex planned for 2026 (maintenance ~$3B/year). Focus on asset modernization, efficiency amid steel volatility. Brazil monitors imports; North America watches tariffs/USMCA. Risks: trade wars, China oversupply, energy costs.