GGB · Gerdau S.A.

Gerdau S.A.'s Q1 2026 results showed significant improvement in profitability, with net income attributable to owners rising 34% year-over-year to R$1,002 million, supported by higher gross profit margins as cost of sales declined more than net sales. Income before financial items and taxes increased to R$1,834 million from R$1,386 million, aided by equity earnings from associates of R$82 million and reduced impairment charges. Financial expenses remained stable at R$443 million, while taxes rose to R$500 million. EPS doubled to R$0.51, reflecting strong earnings delivery. Balance sheet remains solid with total assets at R$81 billion and equity at R$53 billion, though cash declined R$653 million due to investing outflows of R$1.2 billion primarily in property, plant and equipment and financing uses including R$206 million in share repurchases and R$187 million in dividends. Operating cash flow of R$1.5 billion provided liquidity despite higher receivables and inventory builds, offset by payables growth. Comprehensive income was negative R$432 million due to R$1.45 billion in translation adjustments, highlighting forex volatility impact. No forward guidance provided in the statements.